TaxTMI 
TaxTMI 
2019 (2) TMI 1362
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.... reply be filed within four weeks. 2. Alongwith the appeal the appellants have also filed the application for stay. The prayer is strongly opposed by the Mr. Mohd. Faraz, counsel for the respondent no. 1. Learned counsel for the appellant no. 1 i.e. ICICI Bank Ltd. is pressing the interim order on the operation of the order of confirmation dated 11.12.2018 passed by the Adjudicating Authority under the Prevention of Money Laundering Act, 2002 confirming Provisional Attachment Order no. 9/2018 dated 25.06.2018 in OC no. 1000/18 titled "Enforcement Directorate Vs. Mehul Choksi & Ors.", qua the properties mortgaged/hypothecated/pledged/guaranteed in favour of the appellant and the other consortium lenders. 3. The following are details of the properties which are mortgaged/pledged/hypothecated in favour of bank and the other consortium lenders and deed executed thereof. " 1. IMMOVEABLE PROPERTIES IMMOVABLE PROPERTY S.NO. Security Provider Facility Secured Name of Property Mortgage Document 1 GECL GECL WC Facility extended vide Third Supplemental Working Capital Consortium Agreement dated June 29, 2011 Unit No.1, Lease Land & Building at Plot No....
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....d 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 3 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 5 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011. 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 7 GBL (now known as Nakshatra World Limited/NWL) NWL WC Facility extended Vide Supplemental Amendatory Working Capital Consortium Agreement dated 29.09.2014 and Third Supplemental Working Capital Consortium Agreement dated 18.04.....
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.... 2014 and Third Supplemental Working Capital Consortium Agreement dated June 29, 2011 Deed of Hypothecation dated 30.10.2014 and Deed of Mortgage cum charge cum guarantee dated 29-06-2011. 25 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012. 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 27 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 28 NWL NWLWC Facility extended Vide Supplemental Amendatory Working Capital Consortium Agreement dated 29.09.2014 and Third Supplemental Working Capital Consortium Agreement ....
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....e dated 06.07.2012. 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 36 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 37 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 38 GGL 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement dated 06.07.2012 2. ECB Facility extended vide Facility Agreement dated 10.09.2011 1. Deed of Hypothecation dated 19.08.2016 and Dee....
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....Facility extended Vide Supplementary Facility Agreement dated 19.08.2016. Deed of Hypothecation executed by Gili India Limited in favour of ICICI Bank Limited dated 24.10.2016. 2 Gili Showroom, R-City Mall, Ghatkopar West, Mumbai, Maharashtra Gili India Limited GGL WC Facility extended Vide Supplementary Facility Agreement dated 19.08.2016. Deed of Hypothecation executed by Gili India Limited in favour of ICICI Bank Limited dated 24.10.2016. 3 Gitanjali Gems Limited, Ranga Reddy District, Telangana, Andhra Pradesh Gitanjali Gems Limited 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016and Supplemental Working Capital Consortium Agreement dated 06.07.2012. 2. ECB Facilityextended vide Facility Agreement dated 10.09.2011. 1. Deed of Hypothecation dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012. 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 4 Gitanjali Gems Ltd, Siapura Industrial Estate, Jaipur Gitanjali Gems Limited 1. GGL WC Facility extended Vide Working Capital Facility Agreement dated 19.08.2016 and Supplemental Working Capital Consortium Agreement ....
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....tion dated 19.08.2016 and Deed of Mortgage cum charge cum guarantee dated 06.07.2012. 2. Deed of Hypothecation for ECB Facility dated 17.10.2011. 5. VEHICLES OF MEHUL CHOKSI Vehicles S. No. Make & Model Owner Facility Secured Document Executed 1. BMW BMWX118l Mehul Choksi Supplemental Working Capital Consortium Agreement dated 29.09.2014 Deed of Guarantee dated 29.09.2014 4. Brief facts as per the case of the appellants are that the bank and the other Consortium Lenders have entered into legitimate banking transactions with M/s Gitanjali Gems Ltd ("GGL"), M/s Gitanjali Exports Corporation Ltd. ("GECL") and M/s Nakshatra World Ltd. ("NWL"), for which collateral in form of inter alia the present properties attached had been furnished by way of Mortgaged/Hypothecation/Pledge Agreements and Deeds of Corporate and Personal Guarantee. 5. Upon a failure of GGL, GECL and NWL to repay the outstanding amounts as advanced, the Appellant in exercise of its rights issued Recall and Statutory Notice U/s 13(2) SAFAESI, declared the account of GGL and GECL as NPA w.e.f 31.03.2018, filed OA No. 408/2018 on 05.07.20....
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....rs. The Appellant Bank finds itself unable to recover inter alia, the Principal and interest amounts, handicapped by the operation of the Impugned Order. Consequently, the Appellant has incurred financial losses of mammoth proportion. The Appellant Bank has the right to recover the loan amount against the mortgaged properties, under law. This valuable right will be lost if the interim order is not pressed. 9. It is alleged by the bank that incase the properties continue to remain attached by the Respondent, the Appellant will not be in a position to take possession and/or sell off and/or deal with the properties, even if DRT and/or NCLT, Mumbai were to pass orders in favour of the Appellant. 10. It is not disputed that the said properties are not mortgaged with the bank or bank is not secured creditor. It is also not denied that the bank is a victim party and is entitled to recover the due amount. 11. Similar arguments have been addressed by advocate appeared on behalf of Mr. Vijay Garg, Resolution Professional for Gitanjali Gems Ltd., who is supported the arguments of ICICI Banks Ltd. 12. In view of the above facts and circumstances, I am of the considered view that as....