Chief Controlling Revenue Authority V. Coastal Gujarat Power Ltd*

Syndicated advances are quite common in lending transactions. In large financing, a single bank may not be in a position to provide the finance by itself. Hence, the finance is syndicated such that two or more banks agree to provide finance to a borrower on common terms governed by a single covenant between all parties. Similarly, a common security trustee is appointed to receive and hold the security provided by the borrower, which is held for the benefit of the common lenders. The issue of stamp duty on mortgages provided by a borrower to a security trustee for the benefit of syndicated lenders came up for consideration before the Supreme Court in Chief Controlling Revenue Authority v. Coastal Gujarat Power Ltd.²