2012 (11) TMI 1236 - HC - Companies Law

Summary

Issues involved: Repayment terms of a loan agreement, disagreement on the amount to be repaid, request for extension of time for repayment.

Repayment terms of a loan agreement: The respondent has paid Rs. 2 crores as per the last direction, with a proposal to pay the balance of Rs. 40 crores in monthly instalments of Rs. 2 crores each with interest. The petitioner disputes this proposal, pointing out that the agreed amount to be repaid is Rs. 42.5 crores as per the document. The petitioner's counsel is not agreeable to the proposed repayment terms and highlights that the respondent had issued post-dated cheques for complete payment by a certain date, indicating a reluctance to deviate from the original agreement.

Disagreement on the amount to be repaid: The petitioner's counsel expresses dissatisfaction with the proposed repayment plan, emphasizing the significant sum involved and the petitioner's unwillingness to accept the new terms. The petitioner insists on the agreed amount of Rs. 42.5 crores and opposes any request for an extension of time for repayment, citing the respondent's prior commitment through post-dated cheques.

Request for extension of time for repayment: The Court proposes a new repayment plan to the respondent, suggesting that the entire payment be made within 10 months from the next hearing date, with interest at the agreed rate. Both parties are given time to consider this proposal, with instructions to be taken by their respective counsels. If the proposed plan does not materialize, arguments will proceed on the merits of the case. A deadline is set for filing any replies within 10 days, with a direction listed for further action on 21.11.2012.