SEBACIC India Limited vs State Bank Of India

Bhargav D. Karia, J

Heard learned Senior Advocate Mr. Navin Pahwa assisted by learned advocate Mr. Monaal Davawala, learned advocate Mr. Ashish Parwari,

learned advocate Mr. Devesh Javekar, learned advocate Mr. Dikshit Mehra and learned advocate Ms. Gitika Makhija for the petitioner and learned

advocate Mr. Pranav Desai for learned advocate Mr. Siddhartha Samal for respondent No.1 and learned advocate Mr. Sandip Bhatt for respondent

No.2 through video conference.

Pursuant to the order dated 25.05.2021, the respondent-State Bank of India has filed an affidavit stating that after issuance of the letter dated

13.04.2021 by communication through email dated 17.04.2021, the petitioner was informed that no further transaction would be allowed for the facility

of cash credit account which is recalled by the respondent-State Bank of India.

The petitioner has filed further affidavit on 26.05.2021 wherein the petitioner has, without prejudice to the rights and contentions as an interim

arrangement, made a proposal to the bank in para 25 of the further affidavit which reads as under:

“25. Without prejudice to the rights and contentions of the petitioner, I say and submit that as an interim arrangement, the petitioner is ready and

willing to pay/deposit an amount of Rs.50 Lakhs with this Hon'ble Court or with the Respondent No.1 Bank. This deposit would be in addition to the

undertaking by the petitioner to remit 10% from all the export proceeds until the CC Limit is reduced by an amount of Rs. 3 crores. I say that to

enable the Bank to reduce the working capital by Rs. 3 crores, the Bank may also consider to invoke the pledge of shares offered by the promoter

shareholders which are worth more than Rs. 1.98 crores. I say and submit that during this entire period, the petitioner additionally undertake to

continue to service the CC Account. This arrangement can be made for a period of 3-6 months during which period the strategic investor may

negotiate fresh/renewed terms with the Bank and work out/determine a wholesome solution to the problem.â€​

Learned advocate Mr. Pranav Desai states that he has received the further affidavit of the petitioner yesterday evening and therefore, it is

forwarded to the bank to consider the aforesaid proposal made by the petitioner by way of an interim arrangement. Learned advocate Mr. Desai

further states that the petitioner can open another the account in the State Bank of India to receive the export proceeds of the sale made by the

petitioner so as to enable the petitioner to run its business and make urgent payments which are required to be made by the petitioner during the

course of the business till the proposal of the petitioner is considered by the Bank.

In view of the above statement, learned Senior Advocate Mr. Pahwa states that the petitioner shall approach the State Bank of India for opening

another account in order to receive the sale proceeds from the exports made by the petitioner so that outstanding payments may be made by the

petitioner company to run the business till the proposal of the petitioner is considered by the Bank.

In view of the above facts, put up the matter on 9th June, 2021 for further consideration.