AI Drafter 
TaxTMI 
TaxTMI 
2016 (5) TMI 730
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....jects of business development and infrastructure. 3. The respondent company is a subsidiary of Marg Limited, with the said parent company holding major shares in excess of 70%. The respondent company has an authorized share capital of Rs. 170 crores as 17,00,00,000/- equity shares of Rs. 10/- each. The paid up capital of the Respondent company is Rs. 163 Crores which has been subscribed as Rs. 16,30,00,000/- equity shares of Rs. 10/- each, fully paid up. The respondent company is involved in the premium commercial development of a proposed Mall complex named, "Marg Junction" at Karapakkam, Old Mahabalipuram Road, Chennai. 4. The respondent company was promoted by Mr.G.R.K.Reddy and Mrs.Rajini Reddy, promoters of Marg Limited, with the conceived project of establishing a Mall with multiplexes. The respondent company had originally availed funding from HUDCO and commenced the project in the year 2008. During the course of their business activities the respondent approached the petitioner, for part funding to develop the said commercial complex with a proposal to seek for consortium lending. State Bank of Patiala and Syndicate Bank agreed to fund the project by way of Project Te....
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....uant to the Board Resolution dated 22.10.2010. Further, the Director of the respondent Company viz., Mr.G.R.K.Reddy also stood as the guarantor in his individual capacity for the Project Term Loan availed by the respondent by executing a Guarantee Deed dated 21.04.2011. STATE BANK OF PATIALA is the Lenders Agent and Security Trustee, pursant to the Lenders Agreement dated 21.04.2011 entered into between the lenders and the Respondent Company. 9. The petitioner has further stated that the said Project Term Loan which was availed by the Respondent Company was secured by hypothecation of the entire fixed and current assets of the Company. Further, the Respondent Company had also created mortgage over the Immovable Property which is the project site, together with all buildings, structures standing as on date and / or under construction thereon being the huge commercial complex / establishment known as MARG Junction Riverside Mall of OMR, being an extent of Acres 7.30 1/2 cents comprised in various survey umbers of Karapakkam Village, in an by a Mortgage Deed dated 23.05.2011 executed by them in favour of the Security Trustee and the other consortium bankers viz., State Bank of Pati....
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....ent company sent a reply, which was considered and a rejoinder was also sent by State Bank of Patiala. Even thereafter as the Respondent company had not taken any prospective steps to clear off the dues, the Authorised Officer of State Bank of Patiala, as the lead banker had initiated further measures under Sec-13(4) of the SARFAESI Act by taking symbolic possession of the secured asset, on 15.02.2014 and issued the possession notice. All procedures as contemplated under the Act and Rules have been complied with in the measures taken under SARFAESI. 13. As the respondent company has huge arrears, not able to honour the committed and accepted the liability, a statutory notice dated 07.01.2015, has been issued under Section 433 of the Companies Act, 1956. Notice has been acknowledged on 01.02.2015. So far no amount has been paid. According to the petitioner as on 28.02.2015, the respondent has to pay a sum of Rs. 174,74,78,295.88p to the petitioner along with further interest and costs. In the abovesaid circumstances, M/s. LIC Housing Finance Limited, Chennai has filed this Company Petition under Section 433 of the Companies Act, 1956, for the following prayer: "a) Direct....
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.... on 28.02.2013 along with further interest, charges and expenses within a period of 60 days from the date of the said notice, which is payable by the 1st respondent to State Bank of Patiala, Syndicate Bank and LIC Housing Finance Limited collectively. 17. Since M/s.Riverside Infrastructure Pvt. Ltd., failed to clear dues as demanded vide aforesaid Demand Notice, the State Bank of Patiala was left with no other option but to take measures under Section 13(4) of SARFAESI Act, i.e. to take possession of secured assets of the company. The authorized officer of State Bank of Patiala has taken symbolic possession of the secured assets on 15th February 2014. 18. In the mean time vide Assignment Agreement dated 26.06.2014 and 28.06.2014 entered into with the answering respondent, the State Bank of Patiala and Syndicate Bank respectively assigned all its right, title and interest in and to the financial assistance granted by them to 1st respondent alongwith underlying securities thereto in favour of the answering respondent. 19. As per the said Assignment Agreements, the answering respondent has become the full and absolute owner and as such the only person legally entitled to reco....
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....of the project and sale of the same. 7. I further submit that without prejudice to the rights of the 1st respondent company available under the SARFAESI Act and all other statutes, including the right of the 1st respondent Company to bring its own creditors / investors for the rescue of the 1st respondent company to discharge the loans outstanding to the consortium banks, the 1st respondent company undertakes to handover physical possession of the secured assets upon completion and confirmation of the auction sale to be proceeded under the SARFAESI Act." 23. Added further, submissions have also been advanced by the learned counsel for the petitioner and Edelweiss Asset Reconstruction Company, Mumbai, that consent has been given by the respondent company to recover the amounts due and payable to M/s. LIC Housing Finance Limited, Chennai, by resorting to the provisions under SARFAESI Act. Symbolic possession has already been taken. In the light of the above submissions, impleading application in Comp.A.No.1248 of 2015 is ordered. Registry is directed to make necessary amendments in the company petition and other applications. 24. In the light of the consent given by th....