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Showing contexts for: paripassu in Chandrakant V. Shah vs Axis Finance Limited And Ors on 20 July, 2022Matching Fragments
Digitally signed by SHARAYU PANDURANG KHOT Date:
2022.08.03 19:05:33 +0530
1. Heard learned Counsel for the parties.1/10
906-IAL-29766-21.doc
2. By this Interim Application, the Applicant is seeking vacation of ad-interim order of this Court dated 26th October 2021 and subsequent order dated 9th December 2021.
3. Learned Counsel appearing for the Applicant has submitted that the order dated 26th October 2021 was an order passed in the absence of the Applicant/original Defendant No. 6. He has submitted that the said order has not taken into consideration the fact that the first loan sanctioned by the Plaintiff to the 1st Defendant and pursuant which was secured by the first Deed of Mortgage dated 5th August, 2014 had been repaid. This Court was required to consider the 2nd Deed of Mortgage/Agreement of Indenture dated 29th December 2016. He has submitted that in the mortgaged property which is recital E, it is clearly provided that one of the conditions precedent for the lender making available the facility to the borrower for its project is that the borrower shall secure all its obligations under the facility agreement inter alia by the mortgaged property as detailed in Schedule I thereto in consideration of the facility on and subject to the terms and conditions set out in the Indenture and set out in the other finance documents in favour of the security trustee. In the ranking of security clause in the Indenture of 906-IAL-29766-21.doc Mortgage Deed it is provided that the security created over the mortgaged property as described in part A of Schedule 1 shall be first ranking pari-passu security registered in favour of the security trustee and the security created over the mortgaged property as described in part B of Schedule 1 shall be a second ranking paripassu security registered in favour of the security trustee until the full repayment of the borrower's obligations under the existing facility, after which the security over the mortgaged property as described in part B of schedule 1 shall be the first ranking paripassu charge in favour of the security trustee.