IDBI TRUSTEESHIP SERVICES LIMITED Vs. KIRI INDUSTRIES LIMITED

JUDGEMENT

(1.) By this petition filed under Section 9 of the Arbitration and Conciliation Act, 1996 (hereinafter referred as 'the Act' for short), petitioner seeks an order and direction against the respondent to deposit in this Court an amount to the extent of Rs.43,63,0149/- with liberty to the petitioner to withdraw and/or furnishing the bank guarantee in the like amount, injunction against the respondents in respect of the mortgaged properties described in Exhibit A to the petition and for appointment of Court Receive. Some of the relevant facts for the purposes of deciding this petition are as under.

(2.) The first respondent wanted to raise a debt for the purposes of repayment of long term loans, general corporate purposes and long term working capital requirements. Vide two letters dated 28th July 2011, the petitioner gave its consent to the first respondent for acting as the Debenture Trustee for such fees and on the terms and conditions mentioned in the said two letter. The first respondent accepted the said two letter by countersigning the same thereby according its a cceptance of the contents.

(3.) On 10th August 2011, the petitioner and the first respondent entered into the Debenture Trustee agreement and also Information Memorandum on 4th August 2011 by which the petitioner agreed to act as Debenture Trustee for the debentures issued under the Trust Deed for and on behalf of debenture holders. On 1st August 2011, the Chartered Accountants (CA) of the first respondent issued a certificate stating that the first respondent's proposed issue of debentures was within the borrowing limits of Rs.1000 crores as approved by the share holders of the first respondent.