SBI (MAURITIUS) LIMITED Vs. GTL LIMITED

JUDGEMENT

(1.) This Chamber Summons, taken out by the original plaintiff in the Commercial Suit, seeks amendment of the plaint and the affidavit in support of the Notice of Motion taken out in the suit, pursuant to leave granted in that behalf by this court by its order dtd. 11/1/2019.

(2.) The Commercial Suit seeks a perpetual injunction restraining the defendants from alienating their assets until the final disposal of, the proceedings between the parties pending before the courts in Mauritius. The basis of the plaintiff's cause of action in the suit is Letters of Guarantee cum undertaking issued by defendant No. 1 for the line of credit made available by the plaintiff to defendant No. 2.

(3.) The plaintiff's case is that defendant No. 1 had executed two documents, being letters' dtd. 31/8/2010 and 1/12/2010, which were in the nature of Letters of Guarantee cum undertaking, to enable the plaintiff to extend a line of credit to defendant No. 2, which is a wholly owned subsidiary of defendant No. 1. These Letters of Guarantee inter aha provide for defendant No. 1 continuing to maintain at least 51 % ownership in defendant No. 2 and causing it to be operated and maintained in such manner as to be in a financial position to meet its obligations in favour of the plaintiff towards the credit extended by the latter. According to the plaintiff, the Letters of Guarantee also include a commitment on the part of defendant No. 1, in the event of the plaintiff being unable to recover from defendant No. 2 the funds made available to it under the line of credit, and on demand, to make sufficient funds available to ensure that-defendant No. 2 meets its obligations to the plaintiff.