“The plaintiff (YES Financial institution) has made out no case in any respect for the grant of interim reduction; that the go well with is presumably completely misconceived and misdirected,” stated Justice GS Patel in his 50-page order. “The plaint proceeds on a completely unwarranted and faulty interpretation of legislation; that very many events have been needlessly joined to the motion; and that the IA should essentially fail.”
Senior Counsel Dr VV Tulzapurkar together with Ativ Patel of AVP Companions appeared for the YES Financial institution within the case. Whereas senior counsels Aspi Chinoy and Janak Dwarkadas appeared for Zee Leisure and promoters of the corporate Punit Goenka and Subhash Chandra respectively.
Sure Financial institution had lent $52.5 million to a Zee subsidiary Dwelling Leisure Ltd (LEL) by means of its worldwide finance centre department in Present Metropolis close to Ahmedabad in Might 2016. One of many Zee promoter member of the family Punit Goenka had supplied a letter of consolation as a assure in opposition to the mortgage. Sure Financial institution had petitioned to implement this assure and restrain the Zee promoters from promoting extra shares because the promoters are elevating cash to cut back debt.
The loans had been granted when Rana Kapoor was the CEO of the financial institution. His function within the financial institution is now below regulatory probe.
These loans are amongst these being probed by the Enforcement Directorate (ED) in reference to a cash laundering case in opposition to Kapoor.
Attorneys for Zee and its promoter Punit Goenka argued that the mortgage settlement specifies that any dispute on these loans can be sure by worldwide legislation as this mortgage was granted by means of the financial institution’s worldwide department.