: 1: nms.2774.2010 vss IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION NOTICE OF MOTION NO.2774 OF 2010 IN SUIT NO.2429 OF 2010 SBI Global Factors Ltd. ..Plaintiff Versus Kundrakudi Kandha Spinning Mills Pvt. Ltd. & Ors. ..Defendants Mr.Chirag Balsara i/b K.Ashar & Co. for Plaintiff Mr.R.S. Kelaskar, Representative of Court Receiver is present CORAM : DR. D.Y. CHANDRACHUD,J. MARCH 15, 2011 P.C : 1. The Plaintiff is a subsidiary of the State Bank of India and carries on business of providing international and domestic factoring and other trade finance services. Pursuant to a request of the First Defendant the Plaintiff granted a trade finance facility in the amount of Rs.15 crores by a letter of sanction dated 18.3.2008. According to the Plaintiff, the terms and conditions of the letter of sanction were accepted by the First Defendant. On 31.3.2008, the Second and Third Defendants executed deeds of guarantee to secure the outstandings of the Plaintiff under the trade finance facility. : 2: nms.2774.2010 2. On 25.3.2008, the First Defendant executed a Global Account Receivables Management agreement and a letter of hypothecation of receivables. A Promissory Note in the amount of Rs.15 crores was also executed. The First Defendant executed a memorandum of deposit of title deeds dated 20.11.2008 with an intent to create a mortgage on certain fixed assets of which the Second Defendant was the owner. According to the Plaintiff, the Defendants availed of the trade finance facility. 3. An amount of Rs.17,89,77,298/- was due and payable on the date of institution. The plaintiffs sought interim relief for the protection of the mortgaged property and hypothecated receivables. 4. An ad-interim order was passed by a learned Single judge in terms of prayer clause (a) (excluding the power of sale) and prayer clause (f) of the Motion on 4.2.2011. The Defendants have been served but have not entered appearance or filed any defense to the Motion. The Plaintiffs relied on the judgement of the Full Bench in State Bank of India vs. Trade Aid Paper & Allied Products (India) Pvt. Ltd., AIR 1995 Bombay 268 and a judgment of a learned Single Judge of this Court dated 25.10.2010 in Suit No.2823 of 2009. In paragraphs 23 and 24 of the plaint, an apprehension was expressed : 3: nms.2774.2010 that the Defendants would adversely deal with the property to defeat and delay the claim of the plaintiff. An apprehension was also expressed on behalf of the plaintiff that the hypothecated receivables would be dealt with to the prejudice of the plaintiff. 5. The plaintiff has made out a prima facie case for the grant of interlocutory relief. The claim of the Plaintiff is in excess of Rs.17.89 crores. The plaintiff has prima facie established that the title deeds to the immovable property mentioned in `exhibit J' to the plaint have been deposited with the plaintiff with intent to create a mortgage. 6. In the circumstances, the ad-interim order dated 4.2.2011 is confirmed as the order on the Motion. On the request of the learned Counsel appearing on behalf of the Plaintiff however, liberty is granted to the plaintiff to adopt appropriate proceedings for the grant of any further reliefs that would subserve the ends of justice. Since no other relief is sought at this stage, the Motion is disposed of accordingly. (Dr.D.Y. Chandrachud, J.)