Legal Form No. -4

PARIPARSU AGREEMENT

THIS AGREEMENT made at Cuttack the……………... day of………... 200….. between M/S.…………………………………….; a Public/Private Limited Company, incorporated and Registered under the Companies Act of 1956 having its Registered Office at.……………… P. O…………………. Dist.……………………… in the state of Orissa hereinafter called "The BORROWERS" which expression shall, unless repugnant to the subject or context thereof, include their successors and assigns of the FIRST PART.

ORISSA STATE FINANCIAL CORPORATION, a Statutory Corporation established under the State Financial Corporation Act 1951 and having its Head Office at O.M.P. Square, Cuttack-3 hereinafter called the "0. S F. C." which expression shall unless repugnant to the subject or context thereof, include its successors and assigns of the SECOND PART.

INDUSTRIAL PROMOTION AND INVESTMENT CORPORA TION OF ORISSA LIMITED, A Government Company incorporated and registered under the Companies Act, 1956 and having its Registered Office at IPICOL House, Janapath, Bhubaneswar in the State of Orissa hereinafter referred to as the" IPICOl " which expression shall, unless it is repugnant to the subject or context thereof include its successors and assigns of the THIRD PART.

WHEREAS at the request of the Borrowers the O.S.F.C. agreed to lend and advance to the Borrowers a term loan of Rs... lakhs ( Rupees... only) interalia on the condition that the Borrowers will secure the repayment of the said loan with interests cost, charges and expenses thereon and/or relating thereto in the manner following-

1. (i) By mortgage over all its hereditaments and premises situated at.……….. P. O……… Dist………………... in the State of Orissa more parti- cularly described in the schedule' A ' hereunder together with all buildings, structures, erections and godowns present and future or any part thereof.

(ii) Hypothecation of all its present and future plants, machineries, equipments, appliances, fixtures, implements stored or to be stored laying at.………………. in. the District.………… short particulars whereof are given in Schedule 'B' hereunder .

2. WHEREAS the Borrowers created mortgage in favour of OSFC and have executed a letter of Hypothecation in .favour of the OSFC in pursuance of the said sanction orders amounting to Rs……………..lakhs.

3. WHEREAS at the request of the Borrowers IPICOL agreed to lend and advance to the Borrowers a term loan of Rs.………….. Iakhs (Rupees.………………………………………………….. ) only inter alia on the conditions that the Borrowers would secure the repayment of the said loan with interest, cost, charges and expenses thereon and/or relating thereto in the following manner :-

  1. By an equitable mortgage over all its land, hereditaments and premises situated at... . ..... ...District…………... , in the State of Orissa more particularly described in the Schedule' A' hereunder together with all buildings structures erections and godowns present and future or any part thereof .

  2. Hypothecation of all its present and future plants, machineries, equipments, appliances, stores, fixtures, implements stored or to be stored laying at... District... short particulars whereof are given in the Schedule 'B' hereunder .

4. WHEREAS the Borrowers created an equitable mortgage in favour of IPICOL and have executed a letter of Hypothecation in favour of the IPICOL in pursuance of the sanction order .

5. WHEREAS it was agreed between all the three parties hereto that tripartite agreement should be entered into between the parties hereto for the purpose of securing and ensuring the rights of OSFC & IPICOL and rights for division of sale proceeds in the event of enforcement of securities would rank paripassu in the manner hereinafter appearing.

NOW these presents witness and it is hereby agreed by and between the parties hereto as follows :

(1) NOTWITHST ANDING anything to the contrary contained in the OSFC Mortgage and the IPICOL Mortgage ( hereinafter collectively called "The said Securities" ) the rights of OSFC & IPICOL interest in respect of the securities created by the OSFC mortgage and IPICOL mortgage and mentioned in the respective schedule thereto and other assets and any further assets that may be comprised in the said securities (hereinafter referred to as the " Mortgage Premises") shall rank paripassu for all purposes and to all intents.

(2) (A) DURING the subsistence of the securities referred to in the preceding clause all insurance in respect of the mortgaged premises and the other assets and the further assets comprised in the said securities shall be taken from such office or offices of insurance of repute in India as may be agreed to by OSFC & IPICOL and such policies of the Insurance shall be taken out in the joint names of the Borrowers as the Mortgagors and OSFC & the IPICOL as the Mortgagees. In case of any money becoming due and payable under such insurance the amount realised from the Insurance Company or Companies shall be received in the first instance by OSFC and shall be subject to the mutual consent of OSFC and IPICOL be applied either to the repairs, re instatement or replacement of the properties and premises so damaged or destroyed or towards appropriation in the manner hereinafter mentioned.

(B) All Title Deeds relating to the mortgaged premises shall remain with the OSFC for itself and as the Agent of the IPICOL and the OSFC shall make the same available to the IPICOL as and when occasion arises.

(3) All money resulting from the enforcement of the securities under the OSFC Mortgage and IPICOL mortgage or the amount realised in respect of any policy or policies of Insurance or any compensation money from acquisition or requisition of the mortgaged premises or any of them or any part thereof or any other realisation from the said securities either by enforcement or otherwise shall be applied in the manner hereinafter appearing.

FIRSTLY, they shall be paid out of such money all charges, cost and expenses incurred by OSFC & IPICOL or by anyone of them incidental to the enforcement of the said securities or realisation on receipt of such moneys.

5 SECONDLY , the balance of such money shall.

(i) In the event of money available for distribution to OSFC and IPICOL being sufficient to pay to them the full amount of the money due under the said securities be applied simultaneously in the payment to the OSFC & IPICOL the full money respectively due under the said securities.

(ii) In the event of money available for distribution to OSFC & IPICOL being insufficient to pay to OSFC &. IPICOL, the full amount of the money due under the said securities be applied paripassu as nearly as may be practicable towards payment to OSFC &. IPICOL in proportion to the amount due to them without any preference or priority whatsoever. The amount distributable to each of OSFC &. IPICOL shall bear to the distributable amount the same proportion which the outstanding amount of each of the said institutions bears to the aggregate of the outstanding due to them by the Borrowers under the said securities.

THIRDLY , surplus, if any, out of such money shall be paid to person or persons entitled thereto.

(4) All policies of Insurance in respect of the mortgaged premises shall hence- forth be kept by OSFC in its custody for the mutual benefits of OSFC &. IPICOL and the same shall be made available form OSFC to IPICOL as and when occasion arises.

(5) EITHER OSFC or IPICOL or any of them shall be entitled to bring suit or to take any steps for enforcement of the security created in their respective favour or otherwise for realisation of their respective dues from the borrowers and in the event of institution of any suit or proceedings by either OSFC or IPICOL, such institutions shall join the other as party.

(6) PRIOR to taking any action or other steps for enforcement of securities created in their respective favour OSFC & IPICOL shall duly perform and act upon the same and each of them shall consult and co-operate with other in respect of all matters pertaining without affecting its own rights and each of them shall at all times keep the other informed of all serious and important matters coming to its knowledge relating to the mortgaged premises or any portion thereof or otherwise relating to the borrowers.

(7) If either OSFC or IPICOL in pursuance of the powers reserved to them under their respective documents decide to take over the management of the borrower's industrial concern or to enforce their right to sell the mortgaged premises or any part thereof to exercise any other rights or powers conferred by the respective documents or by law in their respective favour then in such case each of them shall consult the other before enforcing such security or exercising such rights or powers. If, at any time in the course of enforcing the security either OSFC or IPICOL decide to appoint a Receiver in exercise of the powers reserved to them neither OSFC nor IPICOL shall appoint such Receiver except in consulting with the other .

(8) PURSUANT to the permission in writing that may be jointly and severally given by the OSFC & IPICOL to the Borrowers to sell any assets forming part of the mortgaged premises if the Borrower sell any such assets the sale of such assets shall, subject to the consent of QSFC & IPICOL, be utilised by the Borrowers in acquiring additional capital assets or be paid by the Borrowers to the OSFC in the first instance and OSFC & IPICOL shall thereafter utilise and adjust such sale proceeds towards repayment of OSFC dues and IPICOL's dues from the Borrowers as provided in clause 3 hereof.

(9) The OSFC & IPICOL mortgage will stand modified, amended and/or altered as aforesaid and shall always be deemed to have been so modified, amended and/or altered and subject to such modifications, amendment and/or alterations, each of the OSFC and the IPICOL mortgage shall be in full force and effective and binding upon the respective parties thereto. ( 10) The Borrowers do hereby confirm the provisions contained in these presents and undertake. that during the subsistence of the securities created by the borrowers in favour of the OSFC & IPICOl as aforesaid the Borrowers shall not do or suffer to be done or be part or privy to any act, deed, .matter or thing which may in anywise prejudicially affect the securities and the rights of OSFC & IPICOL.

IN WITNESSTH whereof the parties hereto put their hands and seals to the agreement and the Common seal of the borrowers has been affixed hereto.

Witness

Borrower(s)

1.

2.

OSFC

IPICOL

SCHEDULE-A

 

SCHEDULE-B