JUDGMENT :

1. Heard learned counsel for the parties and scanned the material available on record.

2. The present company petition as well as the application preferred by the Kotak Mahindra Bank shall stand decided by this common order.

3. Instant company petition has been filed by the Specified Undertaking of the Unit Trust of India (UTI) against M/s Derby Textiles Limited having registered office at Marudhar Industrial Area, Basni, II Phase, Jodhpur.

4. Briefly, the facts noted in the present case are that respondent M/s Derby Textiles Limited through its Managing Director vide letter dated 21.08.1995 requested the petitioner for sanction of credit/loan of Rs.1 Crore against issuance of the Unsecured Transferable Notes (UTN) of Rs.1 Crore. The same was sanctioned by the petitioner vide letter dated 31.01.1996. The UTN for Rs.1 Crore was issued for a period of 12 months carrying interest @ 19.5% p.a. payable at quarterly rate.

5. The respondent-Company through its Managing Director's letter dated 20.12.1995 further requested the petitioner to subscribe to "Secured Redeemable Non-Con