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2015 (3) TMI 462 - BOMBAY HIGH COURTDefault in repayment of debts - Winding up application - Decree from foreign court - Held that:- However, as indicated in the foregoing discussion, step down subsidiary of Videocon in Italy had admittedly taken a loan of 38 Million Euros from the Bank in Italy. Admittedly, Videocon had given a guarantee in the form of Patronage letter of 5 June 2007 for the aforesaid loan but it kept its liability limited to 38 Million Euros. As noted by the learned Company Judge and as was the case before us, there is no denial of the aforesaid basic facts. In fact Videocon had admitted its liability before issuance of the statutory notice by the Bank. For instance, in the letter dated 19 January 2010, the Subsidiary not only admitted the liability, but requested the Bank not to enforce the guarantees backing the loan stating that Videocon is one of the oldest and well known companies in Indian stock market giving the figures of its turnover and net worth. It also stated that Videocon has a distribution channel with around 45,000 distributors spread all over India and counts more than 160 million satisfied clients. The Subsidiary which is a step down subsidiary of Videocon requested for installments to grant a very short moratorium in order to reschedule the loan in question according to parameters. The Subsidiary enclosed financial statements of Videocon of 30 September 2009. Even thereafter Videocon itself addressed a letter dated 9 December 2010 admitting that the Bank had granted to its subsidiary loan of 35 Million Euros under the Facility Agreement which was secured by Patronage Letter granted by Videocon itself on 5 June 2007 in favour of the Bank for the benefit of its subsidiary. In the said letter, the Videocon further admitted that the Subsidiary was not able to comply with the financial covenants of the Facility Agreement. Videocon further indicated that it was ready to discuss the term sheet containing proposed reconstructing. All these letters leave no room for doubt that Videocon admitted its liability to honour the guarantee given in the form of Patronage letter dated 5 June 2007. It cannot, therefore, be said that Videocon has even a tittle of defence on merits. All that it has been contending after receiving the statutory notice and filing of the winding up petition is not merely a technical but a hyper technical defence that the Bank cannot enforce the liability arising from the Patronage Letter because the Bank has already obtained a decree from a Court in Turin. Learned Company Judge has rightly observed that a creditor who obtains a decree from a foreign court cannot be at a disadvantage in the matter of filing of a winding up petition. We fully concur with the view of the learned Company Judge. Since we have already granted time upto 30 September 2014 to Videocon to pay the amount to the respondent Bank (petitioning creditor), it is not necessary to grant any stay as prayed for, but the respondent Bank shall not take any further steps on the basis of this judgment till 30 September 2014. - Appeal dismissed.
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