Indian Metal and Ferro Alloys Ltd. v. Union of India

ORDER

1. The Industrial Development Bank of India (IDBI) is hereby directed to make disbursement prior to 15th June, 1985 of the first down payment of 15% of the loan amount and issue the guarantee referred to in the Letter of Intent of October 27, 1984. It is also hereby declared that notwithstanding the non-compliance or defect in compliance of any of the conditions of disbursement referred to in Clause 18 of the said letter of intent of October 27, 1084, the validity, legality and recoverability of the IDBI's investments, loans and advances shall not in any manner be prejudiced or affected and IDBI shall be in the same position as if such consents or approvals had been obtained. The Petitioners should expeditiously approach the Government and other statutory authorities for the requisite permission/approvals as per the aforesaid letter of intent. These authorities are directed to consider the application expeditiously. As regards the approval of the Central Board of Excise & Customs for exemption for payment of Customs Duty, the Petitioners contend that Notification No. 13/81, dated 5th February, 1981 is applicable and is adequate for compliance of condition 15(f) of the IDBI's letter of intent dated 27th October, 1984. We declare and direct that the said Notification applies to the present case. In respect of conditions 15(b), 15(i) and 15(m) all concerned parties viz. IDBI, IOB, IB and the Petitioners will discuss and amicable resolve the issues involved prior to the first down payment by IDBI and in any event prior to 12th June, 1985. In the meantime, the Petitioners will on or before 12th June, 1985 also execute the necessary loan agreements, documentation and other usual undertakings required by the IDBI and/or other financial institutions in accordance with their normal practice. It is also hereby expressly declared that this order has been passed paying special regard to the facts of this case and will not constitute or form precedent for any other case or matter. This order shall be binding upon all parties concerned and also all shareholders, creditors, depositors, liquidator and all other persons concerned with the company, including authorities and bodies including the Indian Overseas Bank, Indian Bank, Reserve Bank of India, the Central Electrical Authority, Controller of Capital Issues, Central Government and its Departments, State Government of Orissa and its departments, the Orissa State Electricity Board, Company Law Board, Customs Department, Excise Department etc.