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The expression GSFC, GIIC, BOB and DNB shall hereinafter collectively be referred to as "the financial institutions".

WHEREAS the Company had charged its immovable properties and hypothecated its movable plant and machinery by way of pari passu charge to secure the financial assistance by way of Term Loans sanctioned by the financial institutions, namely:

Rs.30.00 lacs provided by GSFC;
Rs.60.00 lacs provided by GIIC;
Company Appeal (AT) (Insolvency) Nos. 37 & 573 of 2024 17 Rs.16.50 lacs provided by BOB, and Rs.16.50 lacs provided by DNB, Together with interest and charges thereon. The financial institutions have thus pari passu charge on the assets of the Company consisting of Survey Nos. 725, 729, 730/1, 730/2, 731, 732(part), 782 and 787/2 of Village Rajoda, Bavla, District: Ahmedabad, admeasuring about 24. acres 11/½ gunthas of thereabout together with all buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to the earth, more particularly described in Schedule-I and machinery as described in Schedule-II appended hereto. Further, for securing the repayment of the said termloans, the Company had executed in favour of GSFC an irrevocable power of attorney for sale, mortgage, transfer, etc. of its property.

12 The entire amount of the purchase price paid to GSFC by the purchaser as per the terms and conditions mentioned hereinabove, shall be distributed by GSFC amongst GIIC, BOB and DNB on pro- rata basis of documents of pari-passu charge and surplus if any, shall be paid as per the provisions of Section 29(4) of the State Financial Corporations Act, 1951. In the same way the amount Company Appeal (AT) (Insolvency) Nos. 37 & 573 of 2024 22 forfeited in terms of clause 9 above shall also be distributed amongst the financial institutions on pro-rata basis."

2. The company had charged its immovable property and hypothecated its movable plant and machine1y by way of passu charged to secure the financial assistance of Rs. 30.00 Lakhs provided by the corporation; Rs. 60.00 Lacs granted by Gujarat Industrial Investment Corporation Ltd. (GIIC); Rs. 16.50 Lakhs gra11ted by Bank of Baroda and Rs. 16.50 Lakhs granted by Dena Bank together with interest and charges thereon. The corporation and the other three financial institution have thus Pari Passu charge on the assets of the company consisting of survey nos. 725, 729, 730/1, 730/2, 731,732 (part), 782 and 787/2 of village Rajoda, Bavla Distt, Ahmedabad, admeasu1ing about 24,115 acres or thereabout together with all the buildings and structures thereon and all plant and machinery attached to the earth or permanently fastened to anything attached to earth and the movable 1nachinery. On account of default in repayment of the outstanding dues of the principal amount a11d payment _ of interest thereof, the corporation Initiated action in exercise of the powers conferred under the provisions of section 29 of the Company Appeal (AT) (Insolvency) Nos. 37 & 573 of 2024 35 state Financial Corporation Act, 1951 and had offered for sale the properties of the company by public Advertisement."