Jayant Nath, J.

IA 7103/2018 (u/O 39 R 1 & 2 CPC

1. In the present application filed under Order 39 Rules 1 & 2 CPC, the plaintiffs have sought appropriate ex parte injunction to restrain the defendants from seeking to enforce against the plaintiff any obligation under the Deed of Guarantee dated 16.05.2013 pending disposal of the present suit.

2. This suit is filed by the plaintiffs seeking a decree of declaration declaring that the Corporate Guarantee dated 16.05.2013 issued by plaintiff No. 1 is vitiated by fraud or misrepresentation including under Sections 17, 18, 142, 143 of the Contract Act, 1872 and is therefore invalid in law and that the plaintiff is entitled to consequential reliefs. A decree is also sought in favour of plaintiff No. 1 against defendants No. 1 to 8, 10, 12 for specified amounts as detailed below:-

Defendant No.1 Rs.1,43,22,00,000.00

Defendant No.2 Rs.30,07,00,000.00

Defendant No.3 Rs.40,06,82,247.68

Defendant No.4 and 12 (Jointly & severally) Rs.91,11,00,000.00

Defendant No.5 Rs.13,12,00,000.00

Defendant No.6 Rs.9,28,41,756.00

Defendant No.7 Rs.37,56,65,846.00

Defendant No.8 and 10 (Jointly & severally) Rs.35,93,00,000.00

3. Other connected reliefs are also sought.

4. Plaintiff No. 1 is said to be owned and controlled by the Qatar Investment Authority, (a Government of Qatar Entity), which is said to be one of the largest investors in the world. Plaintiff No. 2 is the subsidiary of plaintiff No.1 and was incorporated by plaintiff No. 1 to serve as a special purpose vehicle for the plaintiff’s investment in the company called Bush Foods Overseas Pvt. Ltd. (hereinafter referred to as ‘Bush Foods’). It is stated that Bush Foods was incorporated in July 2005 by Mr. Virkaran Awasty and his wife, namely, Mrs. Ritika Awasty. Its main business was trading in rice, both domestic and exports. In March 2011, two Mauritius based indirect subsidiaries of Standard Chartered Bank, U.K. invested in Bush Foods by subscribing to its shares and compulsory convertible debentures stock. They came to hold 29% equity in Bush Foods with the balance shareholding then remaining with the promoters, namely, by Mr. Virkaran Awasty and Mrs. Ritika Awasty.

5. In September 2012, the plaintiff was approached to invest in the said Bush Foods. After conducting due diligence, a transaction was closed on 28.03.2013. Plaintiff No. 2 was incorporated and acquired 69.5 % equity shares in Bush Foods. The Mauritius based Standard Chartered Bank subsidiaries and investor Mrs. Ritika Awasty exited Bush Food. Balance 30.5% shares remained with Mr. Virkaran Awasty.

6. As there was a change in the shareholding in Bush Foods, it required a no objection from defendants No. 1 to 7, 10, 11 who are the members of the Consortium of banks led by Bank of India (hereinafter referred to as ‘Consortium’) who had granted credit facilities to Bush Foods. Each of the banks had given an NOC upon the condition that plaintiff No. 1 furnishes a Corporate Guarantee securitizing 70% of the loans availed by Bush Foods from the said Consortium. A meeting was held with the Consortium Members at Oberoi Hotel in Delhi on 11.03.2013 which was attended by the Consortium Members and ING Vysya Bank. The Banks are said to have painted a rosy picture to the plaintiff stating that they have good relations with Bush Foods. It was never pointed out or indicated that Bush Foods was in fact desperately struggling to meet its loan repayment obligations and was regularly defaulting in its interest paying obligation. Time and again banks had warned Bush Foods for the delays and defaults and that its debts was likely to be declared as non-performing assets under the SARFAESI Act. All these facts were deliberately hidden by the Consortium from the plaintiff. On the contrary false assurances were held out to the plaintiff.

The transaction with Bush Foods was closed on 28.03.2013. A Corporate Guarantee was furnished by plaintiff in favour of the Consortium Members on 16.05.2013 as per