CANARA BANK Vs. PUNALUR PAPER MILLS LIMITED

JUDGEMENT

(1.) DEFENDANTS Nos. 1 to 4 have taken out this Chamber Summons for revoking the leave granted under Clause XII of the Letters Patent.

(2.) THE plaintiffs have filed the suit to recover a sum of Rs. 11 Crores and odd from defendants Nos. 1 to 4. Defendants Nos. 5, 6 and 7 are the other financial institutions with whom the plaintiffs have a pari passu agreement, whereby they have agreed inter se that their respective rights with regard to their claim of each of them as against defendants Nos. 1 to 4 shall rank pari passu without any preference of priority of one over the other or others for all purposes and to all intents.

(3.) IT is an admitted position that all the facilities to defendants Nos. 1 to 4 were granted at Quilon and Punalur, Kerala. The amounts were disbursed at Quilon. Defendants Nos. 1 to 4 carry on business and reside out of Bombay. The immovable properties which are given as security are also situated out of Bombay. However, the plaintiffs have sought to file the suit in this Court on the basis that the pari passu agreement between the plaintiffs and defendants Nos. 5, 6 and 7 was entered into in Bombay and that the mortgage deed was executed at Bombay. That is how the plaintiffs applied for leave under Clause XII of the Letters Patent which was granted on 19-4-1987.