ICICI LIMITED Vs. STATE OF GUJARAT

JUDGEMENT

(1.) .In this petition under Article 226 of the Constitution, three public Financial Institutions, viz. ICICI Ltd., Industrial Development Bank of India and IFCI Ltd. (hereinafter referred to as ICICI, IDBI and IFCI respectively or as "public financial institutions") have challenged the notification dated 22.10.1999 (annexure "C") issued by the State of Gujarat under the provisions of Bombay Relief Undertakings (Special Provisions) Act, 1958 (hereinafter referred to as "BRU Act") in favour of respondent No.2-Gujarat Telephone Cables Ltd, a public limited company. The petitioners have also prayed for a writ to restrain the State Government from issuing any fresh notification in favour of respondent No.2-Company or renewing the notification issued under BRU Act in favour of respondent No.2.

(2.) The petitioners are public financial institutions which had advanced loans to respondent No.2-Gujarat Telephone Cables Ltd (hereinafter referred to as "the respondent Company" or "the Company"). The petitioners had advanced loans in various categories to the respondent Company as per the statements at Annexures A and B respectively. The particulars of advances, outstandings and arrears as in April/May 2000 are as under :- @@@ --------------------------------------------------------- Advances Outstan- Arrears Dues as dings on (Rupees in lacs) --------------------------------------------------------- (1) (2) (3) (4) (5) (6) --------------------------------------------------------- 1. ICICI 8557 5096 2979 15.04.2000 2. IDBI 700 1206 1206 01.04.2000 3. IFCI 111 101 101 11.05.2000 Total 6403 4286 -------------------------------------------------------

(3.) According to the petitioners, the respondent-Company committed breach of loan agreements and failed to: