DENA BANK Vs. APPLE FINANCE LIMITED

JUDGEMENT

(1.) By this Chamber Summons, plaintiff seeks amendment of the plaint in terms of schedule annexed there to.

(2.) Plaintiff has filed this suit against the defendants for a declaration that the sale under the agreement dated 31st December, 2005 executed between the plaintiff and the defendant nos. 1 and 2 in respect of the plaintiff's 14% and 15.5% AAA-III series debentures to the defendant no.2 is bad in law and not binding on the plaintiff on the ground that the tripartite agreement under which plaintiff's 14% and 15.5% AAA-III series fully secured non-convertible debentures were transferred to defendant no.2 which transfer was induced by gross misrepresentation by the defendants, resulting into a huge financial loss to the plaintiff. It is the case of the plaintiff that the plaintiff was the owner of 500 14% AAA-III secured redeemable non-convertible debentures issued by defendant no.1 on 30th December, 1997 and on or about 25th June, 1998 2000 15.5% AAA-III secured redeemable non-convertible debentures. In relation to the said debentures, a Debenture Trust deed dated 23rd December, 1998 had been executed wherein it had inter alia been stated in Clause 2C that the debentures constituted thereby "shall rank pari passu interse without any preference or priority of one over the other or others". Canara Bank was appointed as the debenture trustee in respect of the said debentures issued in favour of the plaintiff and various other debenture holders.

(3.) In the year 2001, some of the debenture holders exercised their option to get 33% of the face value of the debentures redeemed. It is the case of the plaintiff that defendant no.1 defaulted and consequently the entire debentures became due and payable under clause 14(a) and thus defendant no.1 was liable to pay to the Canara Bank, the debenture trustees an agreegate amount of Rs.93,84,43,990/- of which Rs.30,69,01,617/- was payable to the plaintiff therein.