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4 That the respondent company, is indebted to the petitioner for and on behalf of the Bondholders for a sum of USD.64,036,036.29 (US Dollars sixty four million thirty six thousand and thirty six and twenty nine cents only) under the Bonds along with accrued interest and default interest.

5 That according to the balance sheet of the respondent company, the authorised share capital of the respondent company is Rs.7,000,000,000.00 (Rupees seven thousand Million only) divided into equity shares of Rs.10/- each. The amount of capital issued is Rs.3,721.270,450.00 (Rupees three thousand seven hundred twenty one Million, two hundred seventy thousand four hundred and fifty only) divided into equity shares of Rs.10/- each.

11 Condition 4.1 of the Bonds provides that the Bonds shall bear interest from and including the Issue date at the rate of 2% p.a. and which is payable in equal instalments in arrears on 27th June and 27th December in each year commencing with the interest payment falling due on 27.6.2008.

12 Condition 13.5 of the Bonds provides that the Company shall be liable to pay default interest on the failure of the Company to pay any sum in respect of the Bonds becoming due and payable under the Bond conditions. Condition 13.5 of the Bond is reproduced herein for the ease of reference.

"13.5 Default Interest:

If the Company fails to pay any sum in respect of the Bonds when the same becomes due and payable under these conditions, interest shall accrue on the overdue sum at the lower of (a) the rate of 5% p.a. From the due date; or b) the maximum permissible rate under applicable law (the "Default Interest"). Such default interest shall accrue on the basis of actual number of days lapsed and a 360 day year.

The Trustee, the Agents and the Lead Manager shall not be liable for (a) any such payments of Default Interest pursuant to this Condition 13.5 which shall be made directly by the Company to the relevant Bondholder (b) any failure by the Company to make payments of any such Default Interest to the Bondholders and (c ) any calculations in respect of such interest, which calculations shall be done by the Company."

23 That it is surprising that after constant assurances from the company, that it would meet its interest payment obligations for over three months since the interest fell due, the Company for the first time in September, 2010 attempted to renege from its obligation of paying the interest amount and default interest admittedly due on the basis of the liquidity crunch being faced by the Company without providing any explanation to this effect.

24 This indicates that for all this while the Company was postponing the interest payment to prevent any action by the Bondholders. The petitioner is of the view that such conduct of the Company is indicative of the fact the Company at no time intended to pay the Bondholders. However, it was due to this conduct of the Company, that the Petitioner, under the bona fide belief that the Company had the intention to pay the Bondholders, refrained from taking action against the Company.