Development Agreement, without requiring any further No
objection certificate or confirmation from the respondent, the
rider was that finances were to be utilized by the petitioner only
for implementation of the said project in the property in
question. There is no doubt about the fact that as per the letter
issued by the YES bank, which has been quoted in the order of
the learned Arbitral Tribunal, the petitioners have created a charge
only to the extent of their rights in the Joint Development
Agreement, but the said letter does refer to finances being made
available for a bouquet of project. Apart from this, the learned
Tribunal is justified in referring to clause 7 of the addendum,
which mandates that the petitioners would have to provide
fortnightly statements of the utilization of borrowed funds to the
respondent so that the respondent could examine as to whether
the funds have been misused or diverted. It is found on the basis
of the material on record, that the said mandate was not followed
by the petitioners and the said findings rendered by the Tribunal
cannot be said to be erroneous.
