SGS INFRATECH LTD vs PUNJAB AND SIND BANK

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2024 Supreme(Del) 989

HIGH COURT OF DELHI
MS. JUSTICE SWARANA KANTA SHARMA, J
SGS INFRATECH LTD – Appellant
Versus
PUNJAB AND SIND BANK – Respondent

Mr. Rajeev Mehra, Senior Advocate with Mr. Ekta Kalra Sikri, Mr. Ajay Pal Singh, Mr. Vikalp Mudgal, Mr. Dinesh Gandhi and Mr. Prakhar Khanna, Advocates; Mr. Sudhir Makkar, Senior Advocate with Mr. Girish Verma, Mr. Raghav Verma, Ms. Aadhya S., Ms. Mehak Nagar, Advocates and Mr. Umesh Jayant, Chief Manager, PSB.

JUDGMENT :

SWARANA KANTA SHARMA, J.

1. This is a suit for recovery instituted by the plaintiff SGS Infratech Limited [hereafter „plaintiff company‟], against the defendant Punjab and Sind Bank [hereafter „defendant bank‟], Digitally Signed seeking recovery of Rs. 2,24,89,361/- along with interest of Rs. 67,46,808/-, along with pendente lite and future interest at the rate of 18% per annum.

THE PLAINTIFF’S CASE

2. The plaintiff company is a public limited company incorporated under the Companies Act, 1956, engaged in the business of construction and similar activities. It is also involved in developing and acquiring commercial properties, earning income either through the sale or rental of such properties. In 2006, the plaintiff company decided to purchase a commercial mall namely Magnum Mall [hereafter „the Mall‟], a fully constructed property with certain shops being rented out, for a total sale consideration of Rs. 147 crores.

3. To finance this purchase, the plaintiff company approached Indian Overseas Bank [hereafter „IOB‟] for financial assistance of Rs. 130 crores. IOB agreed to provide Rs. 80 crores and advised the plaintiff company to seek the remaining Rs. 50 crores from other