Union Of India vs Infrastructure Leasing And Financial Services Ltd. & Ors.

Ld. Counsel appearing for the Secured Creditors submits that as per the figures given in the note handed over by the IL&FS financial dues as on end of the January, 2025 are Rs.703 crores and outstanding annuities are Rs.1115 crores. It is submitted that on 23^rd January order was passed by this court stopping the distribution subject to leave of the court, the said order was passed on the figures which were not correct. It is submitted an affidavit has also been filed by Edelweiss on 26.02.2025. Shri Ramji Srinivasan, Ld. Counsel appearing for the appellant submits that appellant be permitted to obtain instructions with respect to the figures mentioned in the affidavit.

Let IL&FS obtain instructions, order on these IAs shall be passed on 07.03.2025.

Be also listed on 07.03.2025.

Be listed on 07.03.2025.

Ld. Counsel for the appellant submits that R3, Indian Bank and Canara Bank have already filed their Reply. Appellant prays for and is allowed two weeks to file their Rejoinder.

Both the parties are given liberty to file hard copies within two weeks.

List on 04.04.2025.

This application has been filed by Indian Bank seeking a direction to make payment of the deficit commission with interest. Ld. Counsel for the IL&FS submits that bank guarantee were required to be extended by different orders of the court in consequent to the interim order passed by this Tribunal in this appeal on 15.10.2018. It is submitted that the project was terminated on 2019 with the NHAI and dispute between the NHAI is already a subject matter of arbitration. Shri Gautam appearing for the Indian Bank submits that atleast till 2021 when the IL&FS informed the Appellate not to further renew the bank guarantee they are entitled for commission. Ld. Counsel for the parties have also referred to the orders passed by this Tribunal in matter pertaining to National Highway Authority and the bank guarantee issued by State Bank of India in IA- 4526/2022 dated 14.02.2023 it is submitted that this Tribunal has directed for payment of commission on extension of the bank guarantee in the aforesaid order following was directed:-

We are of the view that when the bank guarantees were obliged to be continued by virtue of the order of this Tribunal dated 15.10.2018 unless there was an order for payment of commission with regard to particular bank guarantee no occasion arises today to issue directions for payment of the commission. Ld. Counsel for the respondent further submitted that bank has also filed a claim in the Insolvency Resolution Process of the company. Counsel for the appellant submits that counsel has no instructions with regard to the said claim. Be as it may, in event any such claim has been filed for commission that may be pursued in accordance with law.

With these observations, application is disposed of.

This is an application filed by Central Bank of India praying for clarification as to whether Central Bank of India BG is kept to be alive or encashed, we have already in earlier orders clarified that no bank guarantee is to be encahsed in view of the interim order dated 15.10.2018 as far as the continuance of the bank guarantee for the respondent submits that the said bank guarantee be allowed to continue since the issues between the parties and NHAI is under arbitration. In view of the aforesaid, we direct the bank guarantee to be continued till the arbitral proceedings are continued. No orders are passed with regard to bank guarantee commission.

Application is disposed of accordingly.

Appellant prays for and is allowed two weeks more time to file Rejoinder as a last opportunity.

List on 04.04.2025.

Ld. Counsel appearing for the State of Rajasthan submits that in IA No. 6869 of 2024 Reply has already been filed by State of Rajasthan. Ld. Counsel for the Appellant may file Rejoinder, if any, before the next date.

List on 04.04.2025.

This application has been filed by the Government of Rajasthan. Issue notice. Ld. Counsel for the IL&FS may obtain instructions and file Reply, if any, within two weeks.

List on 04.04.2025.

Appellant seeks liberty to file Rejoinder before the next date. List both these applications on 07.03.2025.

Appellant prays for an adjournment. Adjourned to 04.04.2025.

Pleadings are complete. List on 04.04.2025.

Ld. Counsel appearing for the applicant submits that MP Road Development Corporation Limited has not submitted his Reply. Let fresh notices be issued to MP Road Development Corporation Limited. Applicant may take steps to serve the same.

List on 04.04.2025.

Let this IA be also listed on 04.04.2025. Parties are at liberty to file hard copies before the next date.

These applications have been filed by GAIL India Limited seeking a direction for renewal/ extension of bank guarantees. Shri Ramji Srinivasan, Ld. Counsel submits that the project in question has already been terminated and dispute between parties is pending consideration before the Arbitral Tribunal. Shri Ramji Srinivasan has also referred to an earlier order passed by this Tribunal dated 19.07.2024 in IA No. 1130 of 2023 where similar prayers made for direction to renewal of bank guarantee was not accepted, when the parties are already before the Arbitral Tribunal all issues and all claims between the parties are subject matter of arbitration and the parties shall abide by the order passed in the Arbitral Tribunal.

We see no reason at this stage to issue any direction for renewal/ extension of bank guarantees.

Ld. Counsel for the applicant submits that PGs were given towards their performance and to secure the performance, be as it may when contract has come to an end and parties are in the arbitration all issues including performance of contract can be gone into and considered and answered in the arbitration. We see no reason to issue a direction for renewal of bank guarantee at this stage.

Both the applications are disposed of accordingly.

As prayed by the applicant, adjourned to 04.04.2025.

Notices have already been issued on 23.01.2025. Let Reply be filed by Union of India within three weeks.

List on 04.04.2025.

List on 04.04.2025.