TEESTAVALLEY POWER TRANSMISSION LIMITED Vs. TEESTA URJA LIMITED

JUDGEMENT

(1.) THE first petitioner herein, Teestavalley Power Transmission Limited (TPTL) has been granted transmission license under Section 14 of the Electricity Act, 2003 (hereinafter referred to as 'he Act', to transmit electricity as a transmission licensee and for that purpose to undertake the business of establishing, commissioning, operation and maintenance of 400 kV D/C transmission line from Teesta III HEP in North District of Sikkim to Kisangani District in Bihar, the details of which are specified in the schedule attached to the licence issued vide order dated 14.5.2009. Teestavalley Power Transmission Limited and Bank of Baroda have filed a combined petition with following prayers:

(2.) ACCORDING to the petitioner, TPTL has approached a consortium of banks/financial institution consisting of Bank of Baroda (BOB), Rural Electrification Corporation Ltd. (REC), Andhra Bank, Union Bank of India (UBI), United Bank of India (UTBI) and Bank of India (BOI) for the grant of loan to the extent of Rs. 774.37 crore out of which loan documents for Rs. 755.50 crore have been executed for the project, on the terms and conditions set out in the "Common Loan Agreement" dated 27.3.2014. For this purpose, the petitioner and the lenders have appointed Bank of Baroda as security agent who has agreed to act as trustee for the lenders and hold security to be created pursuant to the "Common Loan Agreement" in accordance with the terms and conditions thereof for the benefit of all the consortium lenders based on "Addendum -1 to the Security Agent Agreement" signed on 27.3.2014. The Bank of Baroda along with consortium of other lenders has sanctioned a loan of Rs. 755.50 crore under schedule I of "Addendum -1 to the Security Agent Agreement". The Addendum -2 to Common Loan Agreement signed on 27.3.2014 between the first petitioner (the borrower i.e. TPTL) and second petitioner (lender i.e. Bank of Baroda) on behalf of the consortium lenders have insisted for the following security:

(3.) THE petition was heard after notice to the respondent. During the course of hearing, the representative of the respondent submitted that it has no objection for creating security in favour of Bank of Baroda.