BANK OF INDIA Vs. GROWTH TECHNO PROJECTS LIMITED

JUDGEMENT

(1.) The petitioner has challenged an order of the Debt Recovery Appellate Tribunal (DRAT) dated 12.6.2005 dismissing its appeal against the order of the Debt Recovery Tribunal (DRT) allowing only a part of its claim. The petitioner had filed Suit No. 3741 of 1998 in this Court against respondent Nos. 1 to 8, which stood transferred to the DRT. Respondent Nos. 2 to 7 are individuals. Respondent Nos. 2 (A), (B)and (C) are the heirs of original respondent No. 2. Respondent No. 8 is the Ghaziabad Development Authority. Respondent No. 9 is the DRAT.

(2.) The petitioner filed the suit to recover from respondent Nos. 1,2 and 3, a sum of Rs. 14,17,56,313/- together with interest thereon at the rate of 20% per annum with half yearly rests from the date of filing of the suit till payment. The petitioner also sought a permanent injunction restraining the respondents from selling, assigning, gifting, leasing, charging or encumbering in any manner the immovable property described in Exhibit "E" till the amounts claimed were paid; an order restraining respondent No. 8 from transferring the property to anybody and a permanent injunction restraining respondent No. 1 from paying respondent Nos. 2 to 7 any amount till the amounts claimed were paid.

(3.) In August, 1995, the petitioner subscribed to the Non-Convertible Debentures (NCB) issued by respondent No. 1 having a maturity value of Rs. 10.00 crores. A Subscription Agreement dated 23.8.1995 was entered into between the petitioner and respondent No. 1. The same confirmed that the NCD had a value of Rs. 100.00 each and were to carry interest at 18.5% per annum with half yearly rests. The maturity date of the NCDs was fixed on 22.1.1997. The agreement provided for security, consequences of default etc.