Ngp Metro cites ‘financial crunch’, seeks release of guarantees from 4 banks

MAHARASHTRA Metro Rail Corporation Ltd has moved a petition before the High Court here stating that it is passing through ‘great financial crunch’ at Nagpur, and hence seeking release of bank guarantees from four banks. As the petitioner’s counsel stated that it was necessary that its petition seeking the release of bank guarantees should be decided at the earliest, Justice S B Shukre and Justice Pushpa Ganediwala agreed to hear the petition for final disposal on June 10 next.

A statement was made before the court on behalf of the respondent-banks Axis Bank, Mumbai; State Bank, Allahabad Bank, and ICICI Bank (all three based at Hyderabad), that their case was heard by National Company Law Appellate Tribunal (NCLAT) and its present view was that it would decide first the issue of jurisdiction of NCLAT regarding grant of interim direction and that might happen on or about May 23 next. The Court reminded that in its earlier order, it had made clear that if no decision in respect of sweep of the general stay order passed by NCLAT in the matter was taken by the Tribunal, the High Court would undertake the task of interpreting the effect of that order and pass an appropriate order in this case. Senior counsel S K Mishra urged on behalf of the petitioner that enough was enough and, therefore, this petition be heard finally and disposed of on merit.

The Court stated in its order that it understood the anxiety of the petitioner and in fact, the Court also understood that the same anxiety was shared by all the parties before the Court. At the same time, according to the Court, another dimension involved in this petition is regarding crystallisation of the view of NCLAT in the matter.

Of course, if the view is not crystallised by it, the High Court would no longer remain under fetters and will take the call on the issue independently. Adv Kaustubh Deogade appeared with the Senior counsel for the petitioner. Advocates V M Gadkari (Axis Bank), S N Kumar (State Bank and Allahabad Bank), Senior Counsel Sunil Manohar with R R Johrapurkar (ICICI Bank), Assistant Solicitor General of India Ulhas Aurangabadkar (Union of India), Anand Parchure and V Bhardwaj (16 intervenors) represented the respondents.