TaxTMI 
TaxTMI 
2026 (7) TMI 1669
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....alya Ganguli, Adv. JUDGMENT DEBANGSU BASAK, J.:- 1. Appellant has assailed the judgment and order dated March 19, 2026 passed by the learned Single Judge in AP COM 193 of 2025. 2. By the impugned judgment and order, learned Single Judge has disposed of the petition filed under Section 9 of the Arbitration and Conciliation Act, 1996, by the appellant by holding that there was no incident of default which would necessitate urgent interim relief. 3. Learned Senior Advocate appearing for the appellant has submitted that, the appellant entered into a Rupee Term Loan Agreement dated April 2, 2019 with the respondent. Under the agreement, appellant made over sum of Rs. 273.48 crores to the respondent. 4. Learned Senior Advocate a....
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....r Section 7 of the Insolvency and Bankruptcy Code, 2016 before the National Company Law Tribunal, Kolkata which is pending. 8. Learned Senior Advocate appearing for the respondent has contended that, there is no default on the part of the respondent in paying the appellant in terms of the Rupee Term Loan Agreement. He has submitted that, the respondent has paid the monthly instalment in terms of the Rupee Term Loan Agreement. 9. Learned Senior Advocate appearing for the respondent has contended that, the mortgage could not be created in view of the stand taken by the relevant authorities. He has contended that, the respondent cannot be faulted for non-creation of the mortgage as the events leading up thereto were beyond the control of....
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.... the Rupee Term Loan Agreement, learned Senior Advocate appearing for the respondent has submitted that, creation of security depended upon the issuance of no-objection certificate by Asansol Durgapur Development Authority. 14. Learned Senior Advocate appearing for the respondent has contended that, there being no event of default occurring in terms of the Rupee Term Loan Agreement or the Amendatory and Supplementary Loan Agreement, the question of grant of any interim protection to the appellant does not arise. He has contended that, the learned Single Judge rightly rejected such prayer by the impugned judgment and order. 15. Appellant had agreed to lent and advance a sum of Rs. 275 crores to the respondent for the purpose of financi....
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....) the amounts accumulated in the DSR shall be utilized as provided under this Agreement and the other Financing Documents. (b) The DSR shall be utilized only in case of a shortfall in cash flows for meeting debt service requirements from time to time; and (c) If at any time any amount is so utilized, the Borrower shall immediately credit the designated account (if any) or such other account or as may be advised by the Lender for the amount so utilized. (iii) the amounts accumulated in the DSR will be interest bearing linked to the tenure and rate of interest as may be decided by the Lender." "3.1 The Obligation of the Borrower shall be secured by way of :- 3.1.1. An exclusive first charge on the ....
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....d/or hypothecation of the Receivables under the Deed of Hypothecation; 3.1.4. Negative Lien on sale/transfer of the Mortgaged Property till such time the mortgage is created and perfected in favour of the Lender; (The security specified in this Article 3.1 is referred to as the "Security" which shall include any further or additional Security Interest created in terms of Article 3.4 hereof)." "4.4.1 Creation/Perfection of Security The Borrower shall, within 60 days post receipt of no objection certificate from ADDA have created and perfected the Security mentioned in Articles 3.1.1 and 3.1.2." 20. Article 2.11 of the Rupee Term Loan Agreement dated April 2, 2019 obliges the respondent to create and mai....
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....pplementary Rupee Term Loan Agreement respondent agreed to create and perfect security mentioned in Articles 3.1.1. and 3.1.2 of the Rupee Term Loan Agreement within 60 days of receipt of no objection certificate from Asansol Durgapur Development Authority. 25. The documentation executed by the parties as security for the loan agreement by the appellant to the respondent requires the respondent to create mortgage of the financed project in favour of the appellant. Mortgage of immovable property is yet to be created. Justification for non creation canvassed by the respondent is non issuance of no objection certificate by Asansol Durgapur Development Authority. 26. The issue of interim protection is required to be considered in the cont....