FAIRGROWTH FINANCIAL SERVICES LTD Vs. GODREJ SOAPS LTD

JUDGEMENT

(1.) THE petitioner herein is the notified party under the provisions of Section 3(2) of the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter referred to as, 'the said Act' for the sake of brevity), who is seeking to recover a sum of Rs.87,75,913.70 with interest at the rate of 27% p.a. on the Principal of Rs.72,56,764.68 and cost from the 1st respondent. Exh.A to the petitioner contains the particulars of the said claim.

(2.) THE petitioner is a Limited Company registered under the Indian Companies Act and were engaged in rendering financial services. Respondent No.1 is also a Limited Company who have on 25th March, 1992 secured short term loan of Rs.5 crores from the petitioner with interest at the rate of 22% p.a. The 1st respondents were to repay the said amount on or before 30th September, 1992 and on failure had agreed to pay additional penal interest of 5% p.a. Respondent No.2 is the Custodian appointed under the provisions of the said Act who on 2nd July, 1992 notified the petitioner as notified person under the provisions of the said Act and as a result, all properties of the petitioner stood simultaneously attached.

(3.) AS stated earlier, on 2nd July, 1992 the 2nd respondent notified the petitioner as a notified person under the provisions of the said Act and consequently all the assets movable and immovable of the petitioner stood simultaneously attached as from the date of notification.