CANARA BANK Vs. APPLE FINANCE LTD

JUDGEMENT

(1.) The above suit No.162 of 2002 came to be filed by Canara Bank as a Debenture Trustee for amounts due and payable by the Defendants Apple Finance Limited (AFL) in respect of 750014% Secured Redeemable Rated NonConvertible Debentures (AAAIII) series for 75 crores together with interest, costs, charges thereon. AFL mortgaged their immovable property at Plot No.C27, G block,s Bandra Kurla Complex, Bandra(E), Mumbai 400 051 (the suit property) to secure the said debentures. AFL issued the said debentures of 75 crores to 6 debenture holders being 5 Nationalised Banks and to a Limited Company. The Nationalised Banks were Dena Bank, Bank of Baroda, United Bank of India, UCO Bank and Syndicate Bank. A first charge on the right, title and interest inter alia of the suit property together with the plot on which it stood and the furniture, fittings and fixtures thereon came to be created in favour of Canara Bank as the Debentures Trustee who filed the above Suit.

(2.) The AFL failed to redeem the debentures and pay off the various loans granted by the Debenture Holders. Consequently the Plaintiffs sued to obtain interim reliefs including appointment of the Court Receiver.

(3.) The Receiver was directed to sell the suit property. Several offers resulted in failure. On 23rd December, 2005 the offer by Jet Airways of Rs.206 crores came to be received which until then was the highest offer. 25% of the amount of the offer as required to be deposited by the Offerer at the auction sale under the provisions of Order XXI Rule 84 of the CPC came to be deposited in the Court. Under the Court Receiver's report the said offer is required to be accepted or rejected by the Court, pending the confirmation of the offer, two other offerers of Rs.225 Crores and Rs.235 Crores have been received from 2 applicants being (one) M/s. Financial Technologies India Limited who have taken out Notice of Motion No.407 of 2007 in the above suit and (one) Parasvnath Developers Limited who have taken out Chamber Summons No.183 of 2007.