Consortium agreement
Rupendra Porwal
(Querist) 26 June 2015
This query is : Resolved
Dear Friends,
One of our client has already availed Fund base facility of 5 cr and non fund base facility of 30 cr from consortium of 4 banks.
After appraisal by lead bank, the Fund base facility increased to 8 cr and non fund base facility increased to 50 cr.
Consortium documents prepared and signed by ONLY 3 BANKS. ONE BANK DID NOT PARTICIPATE AND, THUS NOT SIGNED THE CONSORTIUM DOCUMENTS.
QUERY:
1. What is validity of CONSORTIUM DOCUMENTS signed by only THREE BANKS?
2. Can charge be registered, if yes, what is validity of the charge?
Rupendra Porwal
Advocate
Lucknow-98385 97775
P. Venu
(Expert) 27 June 2015
Your client certainly can afford competent professional advice.
Dalip Singh
(Expert) 28 June 2015
(1) The fourth bank has not given any enhanced limit and is also not a party to the consortium hence the fourth bank can ask for refund of the facility given by them earlier.
(2) Charge for the enhanced limit will be registered pari pasu.
