STATE BANK OF INDIA vs ARISE INDIA LIMITED AND ORS on 16 February 2026

**FINAL ORDER**

1. 1. This present Original Application was instituted on 20.10.2018 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, seeking recovery of a sum of Rs. 255,62,45,273.89 (Rupees Two Hundred Fifty Five Crores Sixty Two Lakhs Forty Five Thousand Two Hundred Seventy Three and Paise Eighty Nine only), inclusive of interest up to 30.09.2018, along with further interest @ 1.25% per annum above the MCCR with monthly rests from 27.02.2018 till full and final realization, together with costs, charges and expenses, against Defendants No. 1 to 15, jointly and severally, individually and co-extensively, in favour of the Applicant Bank. The Applicant No. 1 Bank is a body corporate constituted under the State Bank of India Act, 1955, having its Head Office at State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai – 400021 and, inter alia, a Branch Office at 6th Floor, Mohan Singh Place, Baba Kharak Singh Marg, Connaught Place, New Delhi – 110001. The Application has been duly signed, verified and presented by Mr. Vinod Kumar, Assistant General Manager, presently posted at the Stressed Assets Management Branch, New Delhi, who is well conversant with the facts of the case and duly authorized under the State Bank of India General Regulations, 1955 and Regulations 76 and 77 framed by the Reserve Bank of India under Sub-Section (3) of Section 50 of the State Bank of India Act, 1955, pursuant to the Notifications published in the Gazette of India dated 26.09.1959, 28.08.1972 and 02.05.1987, Annexure A-I.

1. 2. It is pertinent here that this OA bearing No. 26/2019 was originally filed before Ld. DRT-II, Delhi, however, in pursuance to Gazette Notification No. 4718(E) dated 04.10.2022 issued by Government of India, Department of Financial Services, Ministry of Finance, this case file was transferred by Ld. DRT-II, Delhi to this Tribunal on 28.10.2022 and was numbered at TA-320/2022.

2. 3. The brief facts of the case are that Defendant No. 1 is the principal Borrower of the Applicant Bank, engaged in the business of manufacturing inverter batteries, water pumps and trading of electrical goods, and has availed various credit facilities, including Working Capital Facilities, from the Applicant Bank and Defendants No. 11 to 15 under a consortium arrangement through the State Bank of India, Commercial Branch, South Extension Part-I, New Delhi. Defendants No. 2 to 8 are the Personal Guarantors and Defendants No. 9 and 10 are the Corporate Guarantors, all of whom have executed joint and several guarantees securing due repayment of the credit facilities and are jointly and severally liable for the outstanding dues of Defendant No. 1. Defendants No. 1 to 10 are also the mortgagors of the immovable properties furnished as collateral security for the said facilities. Defendants No. 11 to 15 are the co-lenders under the consortium arrangement and are impleaded as Proforma Defendants, no substantive relief being claimed against them, though they are necessary and proper parties to the present Original Application.

1. 4. So far as, Defendants No. 6 to 10 have been proceeded ex parte vide order dated 10.04.2024. Despite due service of summons, the said Defendants failed to enter appearance or file their written statements within the prescribed period before this Tribunal; accordingly, the proceedings against them were directed to continue and have been carried on ex parte.

2. 5. It is pertinent that Defendants No. 3, 5, 6, 7 and 8 are presently undergoing Corporate Insolvency Resolution Process (CIRP) pursuant to orders passed by the Ld. NCLT, New Delhi under the Insolvency and Bankruptcy Code, 2016. In view of the pendency of the said insolvency proceedings, no relief is being granted against Defendants No. 3, 5, 6, 7 and 8 in the present matter. However, any amount that may be realized by the Applicant Bank in the course of the insolvency proceedings shall be duly adjusted and given credit to in the present recovery proceedings.

1. 6. It is further stated that Defendant No. 1, through Defendants No. 2 to 8, approached the Applicant Bank on 15.06.2009 for sanction of Working Capital Facilities amounting to Rs. 27.00 Crores and offered primary security by way of first charge over the entire current assets of the company, including raw materials, stock-in-process, finished goods lying at godowns/ports and book debts, and further offered collateral security by way of first charge over the fixed assets of the company, including creation of equitable mortgage over immovable properties situated at (i) Industrial Sector-29, Village Hasmabad, Sonipat (Haryana) in the name of Defendant No. 4, (ii) Village Tejpur Khurd, Delhi in the name of Defendant No. 5, (iii) Property No. A-3/71, Janakpuri, New Delhi in the name of Defendant No. 4, and (iv) leasehold property at Hatli More, Kathua, Jammu & Kashmir, along with personal guarantees of Defendants No. 2 to 5 and Smt. Sudesh Jain. Upon considering the representations and repayment assurances of the Defendants, the Applicant Bank sanctioned the said credit facilities vide Sanction Letter No. MCGRM/YS/2009-10/403 dated 15.09.2009, duly accepted by the Defendants. Prior thereto, Defendant No. 1 had passed a Board Resolution dated 30.06.2009 for availing the said facilities and subsequently passed another Board Resolution dated 15.09.2009 authorizing execution of loan and security documents and creation of equitable mortgage, copies whereof are annexed as Annexures A/3 and A/4 respectively.

2. 7. Pursuant to the passing of the requisite Board Resolution and upon acceptance of the terms and conditions contained in the Sanction Letter, Defendant No. 1 proceeded to execute the following loan and security documents in favour of the Applicant Bank:-

- i. Form C-1 – Agreement of Loan for Overall Limit dated 26.09.2009 for Rs. 27.00 Crores.

- ii. Form C-2 – Agreement of Hypothecation dated 26.09.2009 for Rs. 27.00 Crores.

- iii. Form C-5 – Letter regarding grant of individual limit within overall limit dated 26.09.2009.

- iv. Declaration regarding Directors not being included in the defaulters' list dated 26.09.2009.

- v. Declaration regarding no Director having relationship with any officer of the Bank dated 26.09.2009.

- vi. Undertaking for publication of names of the Borrower/Directors in the event of default dated 26.09.2009.

- vii. Letter of Undertaking not to create further charge over the properties and assets including uncalled capital dated 26.09.2009.

- viii. Reserve Bank of India Consent Clause Undertaking dated 26.09.2009.

- ix. Agreement-cum-Indemnity dated 26.09.2009.

Copies of the aforesaid loan and security documents, all dated 26.09.2009, are annexed herewith and collectively marked as Annexure A/15 (Colly).

- 8. Defendants No. 2, 3, 4 and 5, along with Smt. Sudesh Jain (since released), executed a Deed of Joint and Several Personal Guarantee dated 26.09.2009 in favour of the Applicant Bank to secure due repayment of the credit facilities amounting to Rs. 27.00 Crores sanctioned and granted to Defendant No. 1. The said guarantors further executed CIBIL Consent Clauses authorizing publication/disclosure of their names in the event of default by Defendant No. 1 in repayment of the loan, installments and/or interest, Annexure A/6.

1. 9. On 14.10.2009, Defendant No. 1 and Defendant No. 4 appeared before the authorized officer of the Applicant Bank and created an equitable mortgage by deposit of original title deeds in respect of the immovable properties detailed in the para No. 5(h) of OA, thereby securing the credit facilities granted by the Applicant Bank.

2. 10. It is stated that the Applicant Bank duly registered its charge with the Registrar of Companies on 10.10.2009, and a copy of Form-8 evidencing such registration, Annexure A/8. Subsequently, in December 2010, Defendant No. 1 sought renewal-cum-enhancement of the credit facilities from Rs.27.00 Crores to Rs.62.00 Crores under the Multiple Banking Arrangement and offered additional collateral security by way of equitable mortgage over property situated at Village Tejpur Khurd, Delhi, standing in the name of Defendant No. 5, along with Corporate Guarantee of M/s Jainex Techno Power Pvt. Ltd. and additional Joint and Several Personal Guarantees, besides the existing guarantees dated 26.09.2009. The Applicant Bank sanctioned the renewal-cum-enhancement vide Sanction Letter No. MCG/RM-AMT/2010-11/159 dated 07.01.2011 (Annexure A/9), which was duly accepted through Board Resolutions dated 17.03.2011 passed by Defendant No. 1 and 05.04.2011 passed by Defendant No. 10, Annexure A/10 (Colly).

3. 11. On 09.04.2011, Defendant No. 1 executed the following loan and security documents in favour of the Applicant Bank:-

1. i. Form A-2 - Agreement where the person(s) furnishing security is/are not the holder(s) of the account on which the advance is granted;

2. ii. Form C-1-A - Supplemental Agreement of Loan for increase in Overall Limit;

- iii. Form C-2-A - Supplemental Agreement of Hypothecation of Goods and Assets for increase in Overall Limit;

- iv. Form C-5 - Letter regarding grant of individual limits within Overall Limit dated 09.04.2011;

- v. Undertaking regarding Cancellation of Limits along with CIBIL Consent Letter dated 09.04.2011;

- vi. Acknowledgment of execution of documents and undertaking for disclosure/publication of name in the event of default; and

- vii. Balance Confirmation Letter dated 09.04.2011 acknowledging the balance outstanding as on 31.03.2011. Copies of the aforesaid loan and security documents dated 09.04.2011 are annexed herewith and collectively marked as Annexure A/11 (Colly).

12. It is stated that Defendants No. 2, 3, 4, 5 and Smt. Sudesh Jain (since released) executed a Supplemental Agreement of Joint and Several Personal Guarantee dated 09.04.2011 to secure repayment of the enhanced credit facilities of Rs.52.00 Crores sanctioned to Defendant No. 1, along with CIBIL Consent Clauses for publication of their names in the event of default. Further, Defendant No. 10 executed an Agreement of Corporate Guarantee dated 09.04.2011, and Mr. Bhim Singh Jain and Mrs. Kavita Jain executed a Joint and Several Deed of Personal Guarantee dated 09.04.2011 to secure the said enhanced facilities, Annexure A/12 and Annexure A/13 (Colly).

13. It is stated that Defendant No. 1 was availing credit facilities from the Applicant Bank, Axis Bank and erstwhile State Bank of Mysore (now merged with State Bank of India) under a Multiple Banking Arrangement, pursuant to which the total credit exposure was enhanced to Rs.102.00 Crores. In order to secure the said facilities, the Defendants created extension of equitable mortgage over (i) built-up property admeasuring 2600 sq. yards out of Khasra No. 24/13, Khewat No. 17, Khasra No. 30, Killa No. 24, Industrial Sector-29, Village Hasmabad, Sonepat (Haryana) standing in the name of Defendant No. 4; (ii) ground floor of property bearing No. A-3/71, Janakpuri, New Delhi admeasuring 330 sq. yards in the name of Defendant No. 4; (iii) leasehold built-up property admeasuring 300 sq. yards situated at Hatli More, Kathua, Jammu & Kashmir in the name of Defendant No. 1; and further created equitable mortgage over property comprised in Khasra No. 10/20/2 (2-4), 10/21 (4-16), 10/22 (5-13), 10/27 (0-1), Village Tejpur Khurd, Delhi admeasuring 4 Bigha 5 Biswa in the name of Defendant No. 5; freehold built-up property bearing Plot No. 7302, admeasuring 269.098 sq. yards, DLF Qutub Enclave Complex, Phase-IV, Village Chakkarpur, Tehsil & District Gurgaon in the joint names of Mr. Bhim Singh Jain and Mrs. Kavita Jain; and western part of property Nos. 1511, 1515 to 1520, admeasuring 291 sq. yards, Near Ram Gali, Jhajjar Road, Rohtak, Haryana in the name of Defendant No. 10. The particulars of the said properties, including dates of extension/creation of mortgage, deposit of title deeds and confirmation thereof by the respective Defendants, are detailed in the para No. 5(o) of the OA.

14. It is stated that upon submission of the requisite margin and security by the Defendants, the Applicant Bank released property bearing No. 7302, DLF Phase-IV, mortgaged by Mr. Bhim Singh Jain and Mrs. Kavita Jain, on 20.08.2011.

15. It is further stated that the Defendants thereafter approached the Applicant Bank for enhancement of the credit facilities from Rs.52.00 Crores to Rs.70.00 Crores and also sought enhancement from the other Defendant Banks, which request was acceded to, leading to the formation of a consortium of Banks wherein the Applicant Bank acted as the Lead Bank. The Applicant Bank accordingly sanctioned an enhanced limit of Rs.70.00 Crores out of the total consortium limit of Rs.180.00 Crores in favour of Defendant No. 1 vide Sanction Letter No. MCG/RM-AMT-I/2011-12/740 dated 12.12.2011, and while submitting the proposal under the consortium arrangement, the Defendants offered securities as detailed in para No. 5(q) of OA.

1. 16. It is stated that in order to accept the terms and conditions of Sanction Letter No. MCG/RM-AMT-I/2011-12/740 dated 12.12.2011 and to execute the requisite loan and security documents, Defendant No. 1 passed a Board Resolution dated 02.02.2012, Defendant No. 10 passed a Board Resolution dated 02.02.2012, and Defendant No. 11 also passed a Board Resolution dated 02.02.2012, Annexure A/16 (Colly).

2. 17. It is further stated that upon acceptance of the said terms and conditions, Defendant No. 1 executed the requisite loan and security documents mentioned below, in favour of the Banks on 04.02.2012.

3. iii. Omnibus Counter Guarantee;

4. iv. Agreement-cum-Indemnity;

5. v. Link Letter linking the enhanced facility of the Applicant Bank with the consortium limit;

6. vi. Declaration regarding no relationship with any officer of the Bank;

7. vii. Declaration regarding not being a defaulter;

8. viii. Balance Confirmation Letter acknowledging the balance outstanding as on 03.02.2012 in the loan account of the Applicant Bank;

9. ix. Undertaking for publication of names by the Bank in the event of default; and

- x. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking, all dated 04.02.2012.

Copies of the aforesaid loan and security documents, Annexure A/17 (Colly)

- 18. It is stated that the following documents were executed among the consortium banks, in which the Applicant Bank was acknowledged as the Lead Bank of the consortium:

- - i. Form CF-8 - Letter of Authority dated 04.02.2012 in favor of the Applicant Bank; and

- - ii. Inter Se Agreement dated 04.02.2012.

Copies of the aforesaid documents executed between the consortium banks are annexed hereto and marked as Annexure A/18 (Colly).

- 19. It is stated that to secure the repayment of the loan amount, the Defendants No. 2 to 5 executed Joint and Several Deeds of Guarantee dated 04.02.2012, and the Defendants No. 10 and 11 executed their respective Deeds of Corporate Guarantee dated 04.02.2012 in favor of the consortium of Banks, Annexure A/19 (Colly).

- 20. Further, the Defendants appeared before the officer of the Applicant Bank and created an extension of equitable mortgage over the properties already mortgaged with the Bank, as well as created fresh equitable mortgages over additional properties by depositing the respective title deeds, the details of which are set forth in the para No. 5(v) of OA.

- 21. It is stated that the charges under Sections 77 and 125 of the Companies Act, 1956, were duly registered with the Registrar of Companies, Annexure A/21.

- 22. That, in October 2012, the Defendants approached the Applicant Bank for enhancement of credit facilities from Rs.70.00 Crores to Rs.89.00 Crores, offering substitution of mortgaged properties, including (i) Khasra Nos. 10/20/2 (2-4), 10/21 (4-16), 10/22 (5-13), 10/27 (0-1), Village Tejpur Khurd, Delhi, in the name of Mr. Amit Jain, (ii) Property Nos. 1511-20 (western part), Railway Road, Rohtak in the name of M/s. Jainex Techno Power Pvt. Ltd., substituted by properties including House No.-63H, Ward No.17, North and South side, Wakilwala Gali, Udmi Pura, Rohtak in the names of M/s. Vrinda Trading Company and Mr. Vikash Jain, and Commercial Vacant Plot near Aggarsain Chowk, Rohtak, among others. Additional securities offered included properties at Khasra No.24/13, Industrial Sector-29, Village Hasmabad, Sonepat (Haryana); Hatli More, Kathua, Jammu; A-3/71, Janakpuri, New Delhi; Plot Nos.1 & 7, Bahasti Pura, Rohtak; Property No.315/17, Arya Nagar, Rohtak; and various other properties in Rohtak, along with personal guarantees of Mr. Avinash Jain, Mrs. Sudesh Jain, Mrs. Anju Jain, Mr. Naresh Chand Jain, Mr. Amit Jain, and corporate guarantees of M/s. Jainex Techno Power Pvt. Ltd. and M/s. Kemflo Power Pvt. Ltd. Based on the above securities and guarantees, the Applicant Bank sanctioned the enhancement of the limit from Rs.70.00 Crores to Rs.89.00 Crores under Sanction Letter No. MCG/RM-AMT-I/2012-13/434 dated 03.11.2012, thereby enhancing the total consortium limit from Rs.180.00 Crores to Rs.210.00 Crores. A copy of the Sanction Letter dated 03.11.2012, Annexure A/22.

23. Further stated that to accept the terms and conditions of the Sanction Letter No. MCG/RM-AMT-1/2012-13/434 dated 03.11.2012 and for execution of loan and security documents on a standalone basis for the credit facilities of Rs.89.00 Crores sanctioned by the Applicant Bank in favor of the Defendant No. 1, the Defendants No. 1, 10, and 11 passed their respective Board Resolutions dated 05.11.2012, Annexure A/23 (Colly).

Subsequently, after accepting the terms and conditions of the said Sanction Letter, the Defendant No. 1 executed the requisite loan and security documents on 17.11.2012 in favor of the Applicant Bank.

- i. Form C-1 - Agreement of Loan for Overall Limit for Rs.89.00 Crores;

- ii. Form C-2 - Agreement of Hypothecation for Rs.89.00 Crores;

- iii. Form C-5 - Letter regarding grant of individual limits within overall limit;

- iv. Declaration in respect of the Directors of the company not included in the defaulter's list;

- v. Declaration regarding no director of the company having any relationship with any officer of the Bank;

- vi. Undertaking for publication of names of the Borrower/Director in case of default;

- vii. Letter of Undertaking not to create further charge over the property and assets including uncalled capital;

- viii. Reserve Bank of India consent clause undertaking; and (ix) Agreement cum Indemnity.

- ix. Copies of aforementioned loan and security documents dated 17.11.2012, Annexure A/24 (Colly).

24. That, the Defendants No. 2 to 7 and Smt. Sudesh Jain (subsequently released) executed Deeds of Joint and Several Personal Guarantee dated 17.11.2012 to secure the repayment of credit facilities of Rs. 89.00 Crores sanctioned and granted by the Applicant Bank to the Defendant No. 1, along with CIBIL Consent Clauses for publication of their names in the event of default by Defendant No. 1 in repayment of the loan, installments, interest, or other dues.

25. Additionally, Defendants No. 10 and 11 executed Deeds of Corporate Guarantee dated 17.11.2012 in favor of the Applicant Bank. Copies of the Deeds of Joint and Several Personal Guarantee executed by Defendants No. 2 to 7 and Smt. Sudesh Jain, together with their respective CIBIL Consent Clauses, and the Deeds of Corporate Guarantee executed by Defendants No. 10 and 11, Annexure A/25 (Colly). The Defendants also appeared before the officer of the Applicant Bank and created extensions of equitable mortgage over the properties already mortgaged with the Bank and further created fresh equitable mortgages over additional properties by deposit of title deeds, the details of which are set out in the para No. 5(bb) of OA.

26. It is stated that after execution of the standalone documents dated 17.11.2012, a fresh consortium of Banks was formed, with the Applicant Bank as the Lead Bank and the Proforma Defendant Banks as Member Banks, resulting in a total consortium limit of Rs.210.00 Crores. The standalone documents were subsequently merged into the consortium loan and security documents, with Sanction Letter No. MCG/RM-AMT-1/2012-13/434 dated 03.11.2012 forming the basis of the consortium arrangement. For the execution of the consortium loan and security documents, the Defendants No. 1, 10, and 11 passed their respective Board Resolutions dated 12.01.2013, Annexure A/27 (Colly), and executed the following consortium loan and security documents on 17.01.2013.

1. i. Form CF-1 - Working Capital Consortium Agreement dated 17.01.2013.

2. ii. Form CF-2 - Joint Deed of Hypothecation dated 17.01.2013.

3. iii. Agreement cum Indemnity dated 17.01.2013.

4. iv. Link Letter dated 17.01.2013 linking the enhanced facility of the Applicant Bank with the consortium limit.

- v. Declaration regarding no relationship with any officer of the Bank dated 17.01.2013.

- vi. Declaration regarding not being a defaulter dated 17.01.2013.

- vii. Balance Confirmation Letter dated 17.01.2013 acknowledging the balance outstanding as on 17.01.2013 in the loan account of the Applicant Bank.

- viii. Undertaking for publication of names by the Bank in the event of default dated 17.01.2013.

- ix. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 17.01.2013.

- x. Link Letter dated 17.01.2013 linking the consortium documents with the earlier documents. Copies of the aforesaid loan and security documents dated 17.01.2013 executed by Defendant No. 1, Annexure A/28 (Colly).

27. It is stated that among the consortium Banks, Form CF-8 - Letter of Authority dated 17.01.2013 in favor of the Applicant Bank and the Inter Se Agreement dated 17.01.2013 were executed, whereby the Applicant Bank was acknowledged as the Lead Bank of the consortium, Annexure A/29 (Colly). It is further stated that to secure repayment of the loan amount, Defendants No. 2 to 8 and Smt. Sudesh Jain (subsequently released) executed Joint and Several Deeds of Guarantee dated 17.01.2013, and Defendants No. 10 and 11 executed their respective Deeds of Corporate Guarantee dated 17.01.2013 in favor of the consortium of Banks, Annexure A/30 (Colly).

28. That, the Defendants also appeared before the officer of the Applicant Bank and created extension of equitable mortgage over the properties already mortgaged with the Bank and further created fresh equitable mortgages over additional properties by deposit of title deeds, the particulars of which are set out in the para No. 5(ff) of OA.

1. 29. That, in the months of February 2013, the Defendants approached the Applicant Bank seeking an enhancement of their existing credit limits from Rs. 89.00 Crores to Rs. 108.75 Crores. In support of the said enhancement, Defendant No. 1, on behalf of all the Defendants, offered security to the Applicant Bank to secure the enhanced credit facility of Rs. 108.75 Crores, thereby ensuring adequate collateral for the financial accommodation referred to in Para No. 5(gg) of the OA.

2. 30. That, relying upon the securities and guarantees furnished by the Defendants, the Applicant Bank sanctioned the enhancement of limits from Rs. 89.00 Crores to Rs. 108.75 Crores by way of Sanction Letter No. MCG/RM-AMT-1/2013-14/44 dated 27.04.2013, thereby enhancing the consortium limit from Rs. 210.00 Crores to Rs. 260.00 Crores, Annexure A132.

3. 31. That, to accept the terms and conditions of Sanction Letter No. MCG/RM-AMT-1/2013-14/44 dated 27.04.2013, Defendants No. 1, 10, and 11 passed their respective Board Resolutions dated 29.04.2013, approving the execution of loan and security documents on a standalone basis for the credit facility of Rs. 108.75 Crores sanctioned by the Applicant Bank in favor of Defendant No. 1, Annexure A/33 (Colly). Subsequently, after accepting the terms and conditions of the said Sanction Letter, Defendant No. 1 executed the requisite loan and security documents on 01.05.2013 in favor of the Applicant Bank.

1. i. Form C-IA - Supplemental Agreement of Loan for overall limit of Rs. 108.75 Crores;

2. ii. Form C-2A - Supplemental Agreement of Hypothecation for Rs. 108.75 Crores;

- iii. Form C-5 - Letter regarding grant of individual limit within the overall limit; and

- iv. Link Letter, all dated 01.05.2013.

Copies of the aforementioned loan and security documents are annexed hereto and marked as Annexure A/34 (Colly).

- 32. That, on 01.05.2013, Defendants No. 2 to 7 and Smt. Sudesh Jain (subsequently released) executed a Deed of Joint and Several Personal Guarantee to secure the repayment of the credit facility of Rs. 108.75 Crores sanctioned and granted by the Applicant Bank to Defendant No. 1, and also executed CIBIL Consent Clauses for publication of their names in the event of any default by Defendant No. 1 in repayment of the loan, installments, interest, or other dues.

- 33. Further, Defendants No. 10 and 11 executed Deeds of Corporate Guarantee in favor of the Applicant Bank on the same date. Annexure A/35 (Colly). Subsequently, the Defendants appeared before the officer of the Applicant Bank and created extensions of equitable mortgage over the properties already mortgaged with the Bank and further created fresh equitable mortgages over additional properties by depositing the respective title deeds, the details of which are in the para No. 5(kk) of OA.

- 34. It is stated that after execution of the standalone documents dated 01.05.2013, a fresh consortium of banks was formed, with the Applicant Bank as the Lead Bank and the Proforma Defendant Banks as Member Banks, whereby the consortium limit became Rs. 260.00 Crores. The standalone documents were subsequently merged into the consortium documents, and Sanction Letter No. MCG/RM-AMT-1/2013-14/44 dated 27.04.2013 formed the basis of the consortium loan and security documents. For the execution of the consortium loan and security documents, Defendants No. 1, 10, and 11 passed their respective Board Resolutions dated 27.08.2013, Annexure A/37 (Colly), and executed the following consortium loan and security documents on 02.09.2013:

1. i. Form CF-IA - Supplemental Working Capital Consortium Agreement;

2. ii. Form CF-2A - Supplemental Joint Deed of Hypothecation;

3. iii. Agreement cum Indemnity;

4. iv. Link Letter linking the enhanced facility of the Applicant Bank with the consortium limit;

5. v. Declaration regarding no relationship with any officer of the Bank;

6. vi. Declaration confirming non-defaulter status;

7. vii. Balance Confirmation Letter acknowledging the outstanding balance in the loan account of the Applicant Bank;

8. viii. Undertaking for publication of names by the Bank in the event of default;

9. ix. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking; and

10. x. Link Letter linking the consortium documents with the earlier documents, all dated 02.09.2013.

Copies of the aforementioned loan and security documents executed by Defendant No. 1 Annexure A/38 (Colly).

35. It is stated that among the consortium Banks, the following documents were executed acknowledging the Applicant Bank as the Lead Bank:

1. i. Form CF-8 - Letter of Authority dated 02.09.2013 in favor of the Applicant Bank; and

2. ii. Inter Se Agreement dated 02.09.2013.

Copies of the aforesaid documents executed between the Banks, Annexure A/39 (Colly).

36. That, to secure the repayment of the loan, Defendants No. 2 to 8 and Smt. Sudesh Jain (subsequently released) executed Joint and Several Deeds of Guarantee dated 02.09.2013, while Defendants No. 10 and 11 executed Deeds of Corporate Guarantee dated 02.09.2013 in favor of the consortium of Banks, Annexure A/40 (Colly). Subsequently, the Defendants appeared before the officer of the Applicant Bank and created extensions of equitable mortgage over the properties already mortgaged with the Bank and further created fresh equitable mortgages over additional properties by depositing the respective title deeds, the details of which are mentioned in the para No. 5(oo) of OA.

37. That, in January 2014, the Defendants approached the Applicant Bank for enhancement of their credit limits from Rs. 108.75 Crores to Rs. 135.00 Crores, and Defendant No. 1, on behalf of all the Defendants, offered security to the Applicant Bank to secure the enhanced facility, as referred to in Para No. 5(pp) of the OA. Based on the securities and guarantees furnished, the Applicant Bank sanctioned the enhancement from Rs. 108.75 Crores to Rs. 135.00 Crores by Sanction Letter No. MCG/RM-AMT-1/2013-14/329 dated 21.02.2014, thereby increasing the consortium limit from Rs. 260.00 Crores to Rs. 325.00 Crores, Annexure A/42.

38. Further stated that, to accept the terms and conditions of Sanction Letter No. MCG/RM-AMT-1/2013-14/329 dated 21.02.2014, Defendants No. 1, 10, and 11 passed their respective Board Resolutions dated 21.02.2014 approving the execution of loan and security documents on a standalone basis for the credit facility of Rs. 135.00 Crores sanctioned by the Applicant Bank in favor of Defendant No. 1. Annexure A/43 (Colly). Thereafter, after accepting the terms and conditions of the said Sanction Letter, Defendant No. 1 executed the following loan and security documents on 28.02.2014 in favor of the Applicant Bank:

1. i. Form C-1 - Agreement of Loan for overall limit;

2. ii. Form C-2 - Agreement of Hypothecation;

3. iii. Form C-5 - Letter regarding grant of individual limit within overall limit;

4. iv. Declaration confirming that none of the Directors of the company are included in the defaulter's list;

5. v. Declaration regarding no Director of the company having any relationship with any officer of the Bank;

6. vi. Undertaking for publication of names of the Borrower/Directors in the event of default;

7. vii. Letter of Undertaking not to create any further charge over the property and assets, including uncalled capital;

8. viii. Reserve Bank of India consent clause undertaking;

9. ix. Agreement cum Indemnity; and

10. x. Link Letter, all dated 28.02.2014.

Copies of the aforementioned loan and security documents are annexed hereto and marked as Annexure A/44 (Colly).

39. That, on 28.02.2014, Defendants No. 2 to 9 executed Deeds of Joint and Several Personal Guarantee to secure the repayment of the credit facility of Rs. 135.00 Crores sanctioned and granted by the Applicant Bank to Defendant No. 1, and also executed CIBIL Consent Clauses for publication of their names in the event of default by Defendant No. 1 in repayment of the loan, installments, interest, or other dues. Further, Defendants No. 10 and 11 executed Deeds of Corporate Guarantee in favor of the Applicant Bank on the same date. Annexure A/45 (Colly).

40. Subsequently, the Defendants appeared before the officer of the Applicant Bank and created extensions of equitable mortgage over the properties already mortgaged with the Bank and further created fresh equitable mortgages over additional properties by

depositing the respective title deeds, the details of which are mentioned in the para No. 5(tt) of OA.

41. It is stated that after execution of the standalone documents dated 28.02.2014, a fresh consortium of Banks was formed, with the Applicant Bank as the Lead Bank and the Proforma Defendant Banks as Member Banks, whereby the consortium limit became Rs. 325.00 Crores. The standalone documents were subsequently merged into the consortium documents, and Sanction Letter No. MCG/RM-AMT-1/2013-14/329 dated 21.02.2014 formed the basis of the consortium loan and security documents. For execution of the consortium loan and security documents, Defendants No. 1, 10, and 11 passed their respective Board Resolutions dated 15.07.2014, Annexure A/47 (Colly), and executed the following consortium loan and security documents on 24.07.2014:

3. iii. Agreement cum Indemnity;

4. iv. Link Letter linking the enhanced facility of the Applicant Bank with the consortium limit;

5. v. Declaration regarding no relationship with any officer of the Bank;

6. vi. Declaration confirming non-default status;

7. vii. Balance Confirmation Letter acknowledging the outstanding balance in the loan account of the Applicant Bank;

8. viii. Undertaking for publication of names by the Bank in the event of default;

9. ix. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking; and

10. x. Link Letter linking the consortium documents with the earlier documents.

All dated 24.07.2014, Annexure A/48 (Colly).

42. It is stated that among the consortium Banks, the following documents were executed acknowledging the Applicant Bank as the Lead Bank:

- i. Form CF-8 - Letter of Authority dated 24.07.2014 in favor of the Applicant Bank; and

- ii. Inter Se Agreement dated 24.07.2014.

Copies of the aforesaid documents executed between the Banks, Annexure A/49 (Colly).

43. That, to secure repayment of the loan, Defendants No. 2 to 9 executed Joint and Several Deeds of Guarantee dated 24.07.2014, while Defendants No. 10 and 11 executed Deeds of Corporate Guarantee dated 24.07.2014 in favor of the consortium of Banks. Annexure A/50 (Colly).

44. Subsequently, the Defendants appeared before the officer of the Applicant Bank and created extensions of equitable mortgage over the properties already mortgaged with the Bank and further created fresh equitable mortgages over additional properties by depositing the respective title deeds, the details of which are mentioned in the para No. 5(xx) of OA.

45. It is stated that In May 2015, Defendant No. 1 again approached the Applicant Bank and the other Banks seeking enhancement of credit facilities, specifically the Applicant Bank's facility, where the existing limit was Rs. 135.00 Crores. The securities and guarantees offered by Defendant No. 1 in support of the proposed enhancement are referred to in Para No. 5(yy) of the OA. Based on the securities and guarantees furnished, the Applicant Bank sanctioned the enhanced limit of Rs. 135.00 Crores by Sanction Letter No. MCG/RM-AMT-1/2015-16/199 dated 02.06.2015, thereby increasing the consortium limit to Rs. 425.00 Crores, Annexure A/52.

46. That, to accept the terms and conditions of Sanction Letter No. MCG/RM-AMT-1/2015-16/199 dated 02.06.2015, Defendants No. 1 and 11 passed their respective Board Resolutions dated 09.06.2015, approving the execution of consortium loan and security documents for a consortium amount of Rs. 415.00 Crores, as the remaining Rs. 10.00 Crores was not tied up for the full consortium limit of Rs. 425.00 Crores, Annexure A/53 (Colly). Thereafter, after accepting the terms and conditions of the said Sanction Letter, Defendant No. 1 executed the following consortium loan and security documents on 11.06.2015 for the consortium limit of Rs. 415.00 Crores in favor of the Banks:

3. iii. Omnibus Counter Guarantee;

4. iv. Agreement cum Indemnity;

5. v. Link Letter linking the enhanced facility of the Applicant Bank with the consortium limit;

6. vi. Declaration regarding no relationship with any officer of the Bank;

7. vii. Declaration confirming non-default status;

8. viii. Balance Confirmation Letter acknowledging the outstanding balance in the loan account of the Applicant Bank;

9. ix. Undertaking for publication of names by the Bank in the event of default; and

10. x. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking, all dated 11.06.2015.

Copies of the aforesaid loan and security documents executed by Defendant No. 1, Annexure A/54 (Colly).

47. It is submitted that among the consortium Banks, the following documents were executed acknowledging the Applicant Bank as the Lead Bank:

- i. Form CF-8 - Letter of Authority dated 11.06.2015 in favor of the Applicant Bank; and

- ii. Inter Se Agreement dated 11.06.2015. Annexure A/55 (Colly).

48. That, to secure repayment of the loan, Defendant Nos. 2 to 9 executed Joint and Several Deeds of Guarantee dated 11.06.2015, while Defendant No. 11 executed a Deed of Corporate Guarantee dated 11.06.2015 in favor of the consortium of Banks. True copies of the Joint and Several Deeds of Guarantee and the Deed of Corporate Guarantee are annexed hereto and marked as Annexure A/56 (Colly).

49. That, the Defendants appeared before the officer of the Applicant Bank and executed extensions of equitable mortgage over the properties already mortgaged with the Bank, and further created fresh equitable mortgages over additional properties by depositing the respective title deeds, the details of which are mentioned in the para No. 5(ccc) of OA.

50. It is stated that when the full consortium limit of Rs. 425.00 Crores was fully tied up, the consortium of Banks was reconstituted with the Applicant Bank as the Lead Bank. To execute the consortium loan and security documents, Defendants No. 1 and 10 passed fresh Board Resolutions dated 10.11.2015, Annexure A/58 (Colly). Thereafter, after accepting the terms and conditions of Sanction Letter No. MCG/RM-AMT-1/2015-16/199 dated 02.06.2015, Defendant No. 1 executed the following fresh consortium loan and security documents on 22.12.2015 for the consortium limit of Rs. 425.00 Crores in favor of the Banks:

- i. Form CF-1 - Working Capital Consortium Agreement;

- ii. Form CF-2 - Joint Deed of Hypothecation;

- iii. Omnibus Counter Guarantee;

- iv. Agreement cum Indemnity;

- v. Link Letter linking the enhanced facility of the Applicant Bank with the consortium limit;

- vi. Declaration regarding no relationship with any officer of the Bank;

- vii. Declaration confirming non-default status;

- viii. Balance Confirmation Letter acknowledging the outstanding balance in the loan account of the Applicant Bank;

- ix. Undertaking for publication of names by the Bank in the event of default; and

- x. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking, all dated 22.12.2015.

Copies of the aforesaid loan and security documents executed by Defendant No. 1 Annexure A/59 (Colly).

51. It is stated that among the consortium Banks, the following documents were executed acknowledging the Applicant Bank as the Lead Bank of the consortium: Form CF-8 — Letter of Authority dated 22.12.2015, and Inter Se Agreement dated 22.12.2015, Annexure A/60 (Colly). To secure repayment of the loan, Defendant Nos. 2 to 9 executed Joint and Several Deeds of Guarantee dated 22.12.2015, while Defendant No. 11 executed a Deed of Corporate Guarantee dated 22.12.2015 in favor of the consortium of Banks, Annexure A/61 (Colly).

52. That, the Defendants appeared before the officer of the Applicant Bank and executed extensions of equitable mortgage over the properties already mortgaged with the Bank, and further created fresh equitable mortgages over additional properties by depositing the respective title deeds, the details of which are mentioned in the para No. 5(ggg) of OA.

53. It is stated that in January 2016, Defendant No. 1 again approached the Applicant Bank and the other Banks seeking enhancement of credit facilities from Rs. 425.00 Crores to Rs. 510.00 Crores, specifically the Applicant Bank's facility, where the existing limit was Rs. 135.00 Crores. The securities and guarantees offered by Defendant No. 1 in support of the proposed enhancement are mentioned in Para No. 5(hhh) of the OA. Based on the securities and guarantees furnished, the Applicant Bank sanctioned the enhanced limit of Rs. 135.00 Crores by Sanction Letter No. MCG/RM-AMT-II/2015-16/276 dated 31.03.2016, thereby increasing the consortium limit to Rs. 510.00 Crores. A true copy of the Sanction Letter dated 31.03.2016, Annexure A/63.

54. Further that, to accept the terms and conditions of Sanction Letter No. MCG/RM-AMT-II/2015-16/276 dated 31.03.2016 and to execute the loan and security documents, Defendants No. 1 and 10 passed fresh Board Resolutions dated 08.06.2016, Annexure A/64 (Colly). Thereafter, after accepting the terms and conditions of the said Sanction Letter, Defendant No. 1 executed the following fresh consortium loan and security documents on 26.07.2016 for the consortium limit of Rs. 510.00 Crores in favor of the Banks:

1. i. Form CF-I – Amended and Restated Working Capital Consortium Agreement dated 26.07.2016;

2. ii. Form CF-2 – Amended and Restated Joint Deed of Hypothecation dated 26.07.2016;

3. iii. Omnibus Counter Guarantee dated 26.07.2016;

4. iv. Agreement-cum-Indemnity dated 26.07.2016;

5. v. Link Letter dated 26.07.2016 linking the enhanced facility of the Applicant Bank with the consortium limit;

6. vi. Declaration regarding no relationship with any officer of the Bank dated 26.07.2016;

- vii. Declaration regarding not being a defaulter dated 26.07.2016;

- viii. Balance Confirmation Letter dated 26.07.2016 acknowledging the outstanding balance as on 26.07.2016 in the loan account of the Applicant Bank;

- ix. Undertaking for publication of name by the Bank in the event of default dated 26.07.2016; and

- x. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 26.07.2016.

Copies of the aforesaid loan and security documents, Annexure A/65 (Colly).

55. It is stated that among the consortium Banks, the following documents were executed acknowledging the Applicant Bank as the Lead Bank of the consortium, namely:

- i. Form CF-8 – Letter of Authority dated 26.07.2016 in favor of the Applicant Bank; and

- ii. Inter Se Agreement dated 26.07.2016.

Copies of the aforesaid documents executed inter se between the Banks are annexed hereto and marked as Annexure A/66 (Colly).

56. To secure repayment of the loan amount, Defendants No. 2 to 9 executed Joint and Several Deeds of Guarantee dated 26.07.2016, and Defendant No. 11 executed a Deed of Corporate Guarantee dated 26.07.2016 in favor of the consortium of Banks, Annexure A/67 (Colly).

57. Further, the Defendants appeared before the officer of the Applicant Bank and created extension of equitable mortgage over the properties already mortgaged with the Bank and also created fresh equitable mortgage over additional properties by deposit of title deeds, the details whereof are mentioned in the para No. 5(kkk) of OA.

58. It is stated that despite regular follow-up and reminders by the Applicant Bank, the Defendants failed to maintain financial discipline and committed persistent defaults in repayment of the loan facilities. The Applicant Bank repeatedly called upon the Defendants to regularize the loan account; however, they failed to do so. Consequently, the Applicant Bank issued a Demand-cum-Loan Recall Notice dated 14.03.2018, recalling the entire outstanding amount of Rs. 246,49,31,526.28 (Rupees Two Hundred Forty-Six Crores Forty-Nine Lakhs Thirty-One Thousand Five Hundred Twenty-Six and Paise Twenty-Eight Only) as on 31.01.2018.

59. Despite receipt of the said notice, the Defendants failed to make payment of the outstanding dues, thereby constraining the Applicant Bank to approach this Tribunal for recovery of its lawful debts, Annexure A/69.

60. It is stated that by grossly violating the terms and conditions of the loan documents and failing to maintain financial discipline, the Defendants have rendered themselves liable for recovery proceedings. The Applicant Bank is entitled to recover a sum of Rs. 255,62,45,273.89 (Rupees Two Hundred Fifty-Five Crores Sixty-Two Lakhs Forty-Five Thousand Two Hundred Seventy-Three and Paise Eighty-Nine Only), inclusive of interest up to 30.09.2018, along with further interest @ 1.25% above MCLR per annum with monthly rests, from the date of filing till full realization, together with costs and expenses. The Defendants are jointly and severally liable to pay the said amount. The Applicant Bank is further legally entitled to realize the outstanding dues from the sale proceeds of the properties equitably mortgaged with it, particulars whereof are mentioned in the para No. 5(nnn) of OA.

61. It is stated that the credit facilities availed by the Defendants constitute a legally enforceable "debt" within the meaning of Section 2(g) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, and the Defendants are jointly and severally liable to repay the outstanding dues.

62. The cause of action first arose on 15.09.2009 upon sanction of the loan and execution of loan and security documents on 26.09.2009, and continued upon subsequent renewals, enhancements, execution of further documents, formation of the consortium under the leadership of the Applicant Bank, sanction of enhanced facilities, creation and extension of equitable mortgages on various dates up to 26.07.2016, classification of the loan account as NPA on 27.02.2017, and issuance of Loan Recall-cum-Demand Notice dated 14.03.2018. The cause of action is continuing and subsists till full repayment. As the mortgaged properties are situated at New Delhi, this Tribunal has territorial jurisdiction, and the outstanding amount of Rs. 255,62,45,273.89 (inclusive of interest up to 30.09.2018 with further interest @ 1.25% above MCLR per annum with monthly rests till realization) falls within the definition of "debt" under Section 2(g) of the Act, thereby conferring subject-matter jurisdiction. The certified statement of account and interest ledger, Annexure A/70.

63. To substantiate its case, the Applicant Bank has placed on record the affidavit of Mr. Sunil Mohindru, Chief Manager and Case Officer, who is presently posted at Stressed Assets Management Branch-I, 12th Floor, Jawahar Vyapar Bhawan, STC Building, Tolstoy Marg, Janpath, New Delhi, the Bank having its Head Office at State Bank Bhavan, Nariman Point, Mumbai. He is duly authorized and competent to sign, verify and institute pleadings, affidavits and applications on behalf of the Applicant Bank in terms of the State Bank of India General Regulations, 1955 and Regulations 76 & 77 framed under Section 50(3) of the Act, as notified in the Gazette of India. The Original Application was initially signed and presented by Mr. Vinod Kumar, Assistant General Manager and then Case Lead Officer, who has since been transferred; however, Shri Sunil Mohindru, being conversant with his signatures and the records of the case in the ordinary course of banking business, is fully competent to prosecute and pursue the present matter before this Tribunal, Exhibit AW-1

1. i. Relevant Notification under the Bank of India Act, 1955 published in the Gazette of India dated 26.09.1959, 28.08.1972 and 02.05.1987 – Exhibit AW/1

2. ii. Sanction Letter No. MCG/RM/YS/2009-10/403 dated 15.09.2009 – Exhibit AW/2

3. iii. Board Resolution dated 30.06.2009 passed by Defendant No. 1 authorizing availing of credit facilities – Exhibit AW/3

4. iv. Board Resolution dated 15.09.2009 passed by Defendant No. 1 authorizing execution of loan documents and creation of equitable mortgage – Exhibit AW/4

5. v. Form C-1 – Agreement of Loan for Overall Limit dated 26.09.2009 for Rs. 27.00 Crores – Exhibit AW/5

6. vi. Form C-2 – Agreement of Hypothecation dated 26.09.2009 for Rs. 27.00 Crores – Exhibit AW/6

7. vii. Form C-5 – Letter regarding grant of individual limit within overall limit dated 26.09.2009 – Exhibit AW/7

8. viii. Declaration regarding Directors not included in defaulters' list dated 26.09.2009 – Exhibit AW/9

- ix. Declaration regarding no Director having relationship with any Officer of the Bank dated 26.09.2009 – Exhibit AW/10

- x. Undertaking for publication of names of Borrower/Directors in case of default dated 26.09.2009 – Exhibit AW/11

- xi. Letter of Undertaking not to create further charge over property/assets including uncalled capital dated 26.09.2009 – Exhibit AW/12

- xii. Reserve Bank of India Consent Clause Undertaking dated 26.09.2009 – Exhibit AW/13

- xiii. Agreement-cum-Indemnity dated 26.09.2009 – Exhibit AW/14

- xiv. Deed of Joint and Several Personal Guarantee dated 26.09.2009 executed by Defendants No. 2, 3, 4, 5 and Smt. Sudesh Jain along with respective CIBIL Consent Clauses – Exhibit AW/15

- xv. Original Lease Deed dated 16.07.2008 relating to Leasehold built-up property measuring 300 sq. yards situated at Hatli More, Kathua, Jammu & Kashmir – Exhibit AW/16

- xvi. Leasehold Rights Transfer Order dated 09.06.2008 – Exhibit AW/17

- xvii. Agreement to Sell dated 29.01.2008 – Exhibit AW/18

- xviii. General Power of Attorney dated 28.11.2007 in favour of Mr. Joginder Kumar Gupta – Exhibit AW/19

- xix. Memorandum of Understanding dated 15.01.2007 – Exhibit AW/20

- xx. Site Plan of Leasehold Property situated at Hatli More, Kathua, Jammu & Kashmir – Exhibit AW/21

- xxi. Form-8 filed with Registrar of Companies for registration of charge dated 10.10.2009 – Exhibit AW/22

- xxii. Sanction Letter No. MCG/RM-AMT/2010-11/159 dated 07.01.2011 for renewal-cum-enhancement of credit facilities from Rs. 27.00 Crores to Rs. 62.00 Crores – Exhibit AW/23

- xxiii. Board Resolution dated 17.03.2011 passed by Defendant No. 1 accepting the terms and conditions of Sanction Letter No. MCG/RM-AMT/2010-11/159 dated 07.01.2011 – Exhibit AW/24

- xxiv. Board Resolution dated 05.04.2011 passed by Defendant No. 10 accepting the terms and conditions of Sanction Letter No. MCG/RM-AMT/2010-11/159 dated 07.01.2011 – Exhibit AW/25

- xxv. Form A-2 – Agreement where the person(s) furnishing the security is/are not holder(s) of the account on which the advance is granted dated 09.04.2011 – Exhibit AW/26

- xxvi. Form C-1-A – Supplemental Agreement of Loan for increase in Overall Limit dated 09.04.2011 – Exhibit AW/27

- xxvii. Form C-2-A – Supplemental Agreement of Hypothecation of Goods and Assets for increase in Overall Limit dated 09.04.2011 – Exhibit AW/28

- xxviii. Form C-5 – Letter regarding grant of individual limits within Overall Limit dated 09.04.2011 – Exhibit AW/29

- xxix. Undertaking in respect of Cancellation of Limits and CIBIL Consent Letter dated 09.04.2011 – Exhibit AW/30

- xxx. Acknowledgment of Execution of Documents and Undertaking for disclosure/publication of name in the event of default dated 09.04.2011 – Exhibit AW/31

- xxxi. Balance Confirmation Letter dated 09.04.2011 acknowledging balance outstanding as on 31.03.2011 – Exhibit AW/32

- xxxii. Supplemental Agreement of Joint and Several Personal Guarantee dated 09.04.2011 executed by Defendant Nos. 2, 3, 4, 5 and Smt. Sudesh Jain along with respective CIBIL Consent Clauses – Exhibit AW/33

- xxxiii. Agreement of Corporate Guarantee dated 09.04.2011 executed by Defendant No. 10 – Exhibit AW/34

- xxxiv. Deed of Joint and Several Personal Guarantee dated 09.04.2011 executed by Mr. Bhim Singh Jain and Mrs. Kavita Jain – Exhibit AW/35

- xxxv. Memorandum of Entry in the Mortgage Register of the Bank for extension of equitable mortgage dated 09.04.2011 – Exhibit AW/36

- xxxvi. Confirmation of Mortgage dated 09.04.2011 in respect of Leasehold built-up property measuring 300 sq. yards situated at Hatli More, Kathua, Jammu & Kashmir – Exhibit AW/37

- xxxvii. Sanction Letter No. MCG/RM-AMT-I/2011-12/740 dated 12.12.2011 sanctioning enhanced limit of Rs. 70.00 Crores under Consortium Arrangement – Exhibit AW/38

- xxxviii. Board Resolution dated 02.02.2012 passed by Defendant No. 1 accepting terms of Sanction Letter dated 12.12.2011 – Exhibit AW/39

- xxxix. Board Resolution dated 02.02.2012 passed by Defendant No. 10 – Exhibit AW/40

- xl. Board Resolution dated 02.02.2012 passed by Defendant No. 11 – Exhibit AW/41

- xli. Form CF-1 – Working Capital Consortium Agreement dated 04.02.2012 – Exhibit AW/42

- xl.ii. Form CF-2 – Joint Deed of Hypothecation dated 04.02.2012 – Exhibit AW/43

- xl.iii. Omnibus Counter Guarantee dated 04.02.2012 – Exhibit AW/44

- xliv. Agreement-cum-Indemnity dated 04.02.2012 – Exhibit AW/45

- xlv. Link Letter dated 04.02.2012 linking enhanced facility of Applicant Bank with Consortium Limit – Exhibit AW/46

- xlvi. Declaration regarding no relationship with any Officer of the Bank dated 04.02.2012 – Exhibit AW/47

- xlvii. Declaration regarding not being defaulter dated 04.02.2012 – Exhibit AW/48

- xlviii. Balance Confirmation Letter dated 04.02.2012 acknowledging balance outstanding as on 03.02.2012 – Exhibit AW/49

- xl.ix. Undertaking for Publication of Names in the event of default dated 04.02.2012 – Exhibit AW/50

- l. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 04.02.2012 – Exhibit AW/51

- li. Form CF-8 – Letter of Authority dated 04.02.2012 in favour of the Applicant Bank (Lead Bank) – Exhibit AW/52

- lii. Inter Se Agreement dated 04.02.2012 executed amongst Consortium Banks – Exhibit AW/53

- liii. Joint and Several Deeds of Guarantee dated 04.02.2012 executed by Defendant Nos. 2 to 5 – Exhibit AW/54

- liv. Deeds of Corporate Guarantee dated 04.02.2012 executed by Defendant Nos. 10 and 11 – Exhibit AW/55

- lv. Memorandum of Entries in the Mortgage Register of the Applicant Bank evidencing extension of equitable mortgage dated 04.02.2012 – Exhibit AW/56

- lvi. Confirmation of Mortgage dated 04.02.2012 in respect of Leasehold Property Plot No. 11, Industrial Extension Area, Kathua, Jammu & Kashmir – Exhibit AW/57

- lvii. Form-8 filed under Section 125 of the Companies Act, 1956 for registration of charge with Registrar of Companies – Exhibit AW/58

- lviii. Sanction Letter No. MCG/RM-AMT-I/2012-13/434 dated 03.11.2012 sanctioning enhancement of limits from Rs. 70.00 Crores to Rs. 89.00 Crores (Consortium Limit enhanced from Rs. 180.00 Crores to Rs. 210.00 Crores) – Exhibit AW/59

- lix. Board Resolution dated 05.11.2012 passed by Defendant No. 1 accepting the terms and conditions of Sanction Letter dated 03.11.2012 – Exhibit AW/60

- lx. Board Resolution dated 05.11.2012 passed by Defendant No. 10 – Exhibit AW/61

- lxi. Board Resolution dated 05.11.2012 passed by Defendant No. 11 – Exhibit AW/62

- lxii. Form C-1 – Agreement of Loan for Overall Limit dated 17.11.2012 for Rs. 89.00 Crores – Exhibit AW/63

- lxiii. Form C-2 – Agreement of Hypothecation dated 17.11.2012 for Rs. 89.00 Crores – Exhibit AW/64

- lxiv. Form C-5 – Letter regarding grant of individual limit within overall limit dated 17.11.2012 – Exhibit AW/65

- lxv. Declaration regarding Directors not included in defaulters' list dated 17.11.2012 – Exhibit AW/66

- lxvi. Declaration regarding no Director having relationship with any Officer of the Bank dated 17.11.2012 – Exhibit AW/67

- lxvii. Undertaking for publication of names of Borrower/Directors in the event of default dated 17.11.2012 – Exhibit AW/68

- lxviii. Letter of Undertaking not to create further charge over property and assets including uncalled capital (relied upon for enhanced facility) – Exhibit AW/69

- lxiix. Reserve Bank of India Consent Clause Undertaking dated 17.11.2012 – Exhibit AW/70

- lxx. Agreement-cum-Indemnity dated 17.11.2012 – Exhibit AW/71

- lxxi. Deed of Joint and Several Personal Guarantee dated 17.11.2012 executed by Defendant Nos. 2 to 7 and Smt. Sudesh Jain (subsequently released) along with respective CIBIL Consent Clauses – Exhibit AW/72

- lxxii. Deeds of Corporate Guarantee dated 17.11.2012 executed by Defendants No. 10 and 11 in favour of the Applicant Bank – Exhibit AW/73

- lxxiii. Memorandum of Entries in the Mortgage Register of the Applicant Bank evidencing extension of equitable mortgage dated 17.11.2012 in respect of Leasehold Property Plot No. 11, Industrial Extension Area, Kathua, Jammu & Kashmir – Exhibit AW/74

- lxxiv. Confirmation of Mortgage dated 17.11.2012 securing Rs. 210.00 Crores – Exhibit AW/75

- lxxv. Board Resolutions dated 12.01.2013 passed by Defendants No. 1, 10 and 11 authorizing execution of consortium loan and security documents – Exhibit AW/76

- lxxvi. Form CF-1 – Working Capital Consortium Agreement dated 17.01.2013 – Exhibit AW/77

- lxxvii. Form CF-2 – Joint Deed of Hypothecation dated 17.01.2013 – Exhibit AW/78

- lxxviii. Agreement-cum-Indemnity dated 17.01.2013 – Exhibit AW/79

- lxxix. Link Letter dated 17.01.2013 linking enhanced facility of the Applicant Bank with the Consortium Limit – Exhibit AW/80

- lxxx. Declaration regarding no relationship with any Officer of the Bank dated 17.01.2013 – Exhibit AW/81

- lxxxi. Declaration regarding not being defaulter dated 17.01.2013 – Exhibit AW/82

- lxxxii. Balance Confirmation Letter dated 17.01.2013 acknowledging balance outstanding as on 17.01.2013 – Exhibit AW/83

- lxxxiii. Undertaking for Publication of Names in the event of default dated 17.01.2013 – Exhibit AW/84

- lxxxiv. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 17.01.2013 – Exhibit AW/85

- lxxxv. Link Letter dated 17.01.2013 linking Consortium Documents with earlier standalone documents – Exhibit AW/86

- lxxxvi. Form CF-8 – Letter of Authority dated 17.01.2013 executed in favour of the Applicant Bank acknowledging it as Lead Bank of the Consortium – Exhibit AW/87

- lxxxvii. Inter Se Agreement dated 17.01.2013 executed amongst Consortium Banks – Exhibit AW/88

- lxxxviii. Joint and Several Deeds of Guarantee dated 17.01.2013 executed by Defendants No. 2 to 8 and Smt. Sudesh Jain (subsequently released) in favour of the Consortium Banks – Exhibit AW/89

- lxxxix. Deeds of Corporate Guarantee dated 17.01.2013 executed by Defendants No. 10 and 11 in favour of the Consortium Banks – Exhibit AW/90

- xc. Memorandum of Entries in the Mortgage Register of the Applicant Bank evidencing extension of equitable mortgage dated 17.01.2013 in respect of Leasehold Property Plot No. 11, Industrial Extension Area, Kathua, Jammu & Kashmir – Exhibit AW/91

- xci. Confirmation of Mortgage dated 17.01.2013 securing Rs. 210.00 Crores – Exhibit AW/92

- xcii. Memorandum of Entries in the Mortgage Register dated 17.01.2013 – Exhibit AW/91

- xciii. Confirmation of Mortgage dated 17.01.2013 securing Rs. 210.00 Crores – Exhibit AW/92

- xciv. Sanction Letter No. MCG/RM-AMT-I/2013-14/44 dated 27.04.2013 enhancing limits to Rs. 108.75 Crores – Exhibit AW/93

- xcv. Board Resolutions dated 29.04.2013 passed by Defendants No. 1, 10 and 11 – Exhibit AW/94

- xcv. Form C-1A – Supplemental Agreement of Loan for Overall Limit dated 01.05.2013 for Rs. 108.75 Crores – Exhibit AW/95

- xcvii. Form C-2A – Supplemental Agreement of Hypothecation dated 01.05.2013 for Rs. 108.75 Crores – Exhibit AW/96

- xcviii. Form C-5 – Letter regarding Grant of Individual Limit within Overall Limit dated 01.05.2013 – Exhibit AW/97

- xcix. Link Letter dated 01.05.2013 – Exhibit AW/98

- c. Deed of Joint and Several Personal Guarantee dated 01.05.2013 executed by Defendants No. 2 to 7 securing Rs. 108.75 Crores – Exhibit AW/99

- ci. Personal Guarantee of Smt. Sudesh Jain (subsequently released) along with CIBIL Consent Clauses and Deeds of Corporate Guarantee dated 01.05.2013 executed by Defendant Nos. 10 and 11 – Exhibit AW/100

- cii. Memorandum of Entries in the Mortgage Register dated 01.05.2013 – Exhibit AW/101

- ciii. Confirmation of Mortgage dated 01.05.2013 securing Rs. 260.00 Crores – Exhibit AW/102

- civ. Board Resolutions dated 27.08.2013 passed by Defendant Nos. 1, 10 and 11 authorising execution of consortium documents – Exhibit AW/103

- cv. Form CF-1A – Supplemental Working Capital Consortium Agreement dated 02.09.2013 – Exhibit AW/104

- cvi. Form CF-2A – Supplemental Joint Deed of Hypothecation dated 02.09.2013 – Exhibit AW/105

- cvii. Agreement-cum-Indemnity dated 02.09.2013 – Exhibit AW/106

- cviii. Link Letter dated 02.09.2013 linking enhanced facility of the Applicant Bank with the consortium limit – Exhibit AW/107

- cix. Declaration regarding no relationship with any Officer of the Bank dated 02.09.2013 – Exhibit AW/108

- cx. Declaration regarding not being a defaulter dated 02.09.2013 – Exhibit AW/109

- cx i. Balance Confirmation Letter dated 02.09.2013 acknowledging outstanding balance in the loan account – Exhibit AW/110

- cxii. Undertaking for Publication of Names in the event of default dated 02.09.2013 – Exhibit AW/111

- cxiii. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 02.09.2013 – Exhibit AW/112

- cxiv. Link Letter dated 02.09.2013 linking consortium documents with earlier standalone documents – Exhibit AW/113

- cxv. Form CF-8 – Letter of Authority dated 02.09.2013 executed in favour of the Applicant Bank as Lead Bank – Exhibit AW/114

- cxvi. Inter Se Agreement dated 02.09.2013 amongst consortium banks – Exhibit AW/115

- cxvii. Joint and Several Deeds of Guarantee dated 02.09.2013 executed by Defendants No. 2 to 8 (including Smt. Sudesh Jain, subsequently released) – Exhibit AW/116

- cxviii. Deeds of Corporate Guarantee dated 02.09.2013 executed by Defendants No. 10 and 11 in favour of the consortium of Banks – Exhibit AW/117

- cxix. Memorandum of Entries in the Mortgage Register dated 02.09.2013 – Exhibit AW/118

- cxx. Confirmation of Mortgage dated 02.09.2013 (securing consortium limit of Rs. 260.00 Crores) – Exhibit AW/119

- cxxi. Sanction Letter No. MCG/RM-AMT-I/2013-14/329 dated 27.02.2014 enhancing limits to Rs. 135.00 Crores (consortium limit enhanced to Rs. 325.00 Crores) – Exhibit AW/120

- cxxii. Board Resolutions dated 27.02.2014 passed by Defendants No. 1, 10 and 11 authorising acceptance of sanction and execution of documents – Exhibit AW/121

- cxxiii. Form C-1 – Agreement of Loan for Overall Limit dated 28.02.2014 for Rs. 135.00 Crores – Exhibit AW/122

- cxxiv. Form C-2 – Agreement of Hypothecation dated 28.02.2014 for Rs. 135.00 Crores – Exhibit AW/123

- cxxv. Form C-5 – Letter regarding Grant of Individual Limit within Overall Limit dated 28.02.2014 – Exhibit AW/124

- cxxvi. Declaration regarding Directors not included in Defaulters' List dated 28.02.2014 – Exhibit AW/125

- cxxvii. Declaration regarding no Director having relationship with any Officer of the Bank dated 28.02.2014 – Exhibit AW/126

- cxxviii. Undertaking dated 28.02.2014 for Publication of Names of Borrower/Directors in case of default – Exhibit AW/127

- cxxix. Letter of Undertaking dated 28.02.2014 not to create further charge over properties/assets including uncalled capital – Exhibit AW/128

- cxxx. Reserve Bank of India Consent Clause Undertaking dated 28.02.2014 – Exhibit AW/129

- cxxxii. Agreement-cum-Indemnity dated 28.02.2014 – Exhibit AW/130

- cxxxii. Link Letter dated 28.02.2014 – Exhibit AW/131

- cxxxiii. Deed of Joint and Several Personal Guarantee dated 28.02.2014 executed by Defendants No. 2 to 9 along with respective CIBIL Consent Clauses – Exhibit AW/132

- cxxxiv. Deeds of Corporate Guarantee dated 28.02.2014 executed by Defendants No. 10 and 11 – Exhibit AW/133

- cxxxv. Memorandum of Entries in the Mortgage Register dated 28.02.2014 – Exhibit AW/134

- cxxxvi. Confirmation of Mortgage dated 28.02.2014 securing Rs. 268.25 Crores – Exhibit AW/135

- cxxxvii. Board Resolutions dated 15.07.2014 passed by Defendants No. 1, 10 and 11 authorising execution of consortium documents – Exhibit AW/136

- cxxxviii. Form CF-1 – Working Capital Consortium Agreement dated 24.07.2014 – Exhibit AW/137

- cxxxix. Form CF-2 – Joint Deed of Hypothecation dated 24.07.2014 – Exhibit AW/138

- cxl. Agreement-cum-Indemnity dated 24.07.2014 – Exhibit AW/139

- cxli. Link Letter dated 24.07.2014 linking the enhanced facility of the Applicant Bank with the consortium limit – Exhibit AW/140

- cxl. Declaration regarding no relationship with any Officer of the Bank dated 24.07.2014 – Exhibit AW/141

- cxl. Declaration regarding not being a defaulter dated 24.07.2014 – Exhibit AW/142

- cxliv. Balance Confirmation Letter dated 24.07.2014 acknowledging outstanding balance in the loan account – Exhibit AW/143

- cxlv. Undertaking for Publication of Names in the event of default dated 24.07.2014 – Exhibit AW/144

- cxlvi. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 24.07.2014 – Exhibit AW/145

- cxlvii. Link Letter dated 24.07.2014 linking consortium documents with earlier standalone documents – Exhibit AW/146

- cxlviii. Form CF-8 – Letter of Authority dated 24.07.2014 executed in favour of the Applicant Bank acknowledging it as Lead Bank of the Consortium – Exhibit AW/147

- cxlix. Inter Se Agreement dated 24.07.2014 amongst Consortium Banks – Exhibit AW/148

- cl. Joint and Several Deeds of Guarantee dated 24.07.2014 executed by Defendants No. 2 to 9 in favour of the Consortium Banks – Exhibit AW/149

- cli. Deeds of Corporate Guarantee dated 24.07.2014 executed by Defendants No. 10 and 11 in favour of the Consortium Banks – Exhibit AW/150

- clii. Memorandum of Entries in the Mortgage Register dated 24.07.2014 – Exhibit AW/151

- cli.iii. Confirmation of Mortgage dated 24.07.2014 securing Rs. 325.00 Crores – Exhibit AW/152

- cliv. Sanction Letter No. MCG/RM-AMT-I/2015-16/199 dated 02.06.2015 sanctioning limits of Rs. 135.00 Crores (consortium limit enhanced to Rs. 425.00 Crores) – Exhibit AW/153

- clv. Board Resolutions dated 09.06.2015 passed by Defendants No. 1 and 11 authorising acceptance of sanction and execution of consortium documents – Exhibit AW/154

- clvi. Form CF-1 – Working Capital Consortium Agreement dated 11.06.2015 for consortium limit of Rs. 415.00 Crores – Exhibit AW/155

- clvii. Form CF-2 – Joint Deed of Hypothecation dated 11.06.2015 – Exhibit AW/156

- clviii. Omnibus Counter Guarantee dated 11.06.2015 – Exhibit AW/157

- clix. Agreement-cum-Indemnity dated 11.06.2015 – Exhibit AW/158

- clx. Link Letter dated 11.06.2015 linking the enhanced facility of the Applicant Bank with the consortium limit – Exhibit AW/159

- clxi. Declaration regarding no relationship with any Officer of the Bank dated 11.06.2015 – Exhibit AW/160

- clxii. Declaration regarding not being a defaulter dated 11.06.2015 – Exhibit AW/161

- clxiii. Balance Confirmation Letter dated 11.06.2015 acknowledging outstanding balance in the loan account – Exhibit AW/162

- clxiv. Undertaking for Publication of Names in the event of default dated 11.06.2015 – Exhibit AW/163

- clxv. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 11.06.2015 – Exhibit AW/164

- · clxvi. Form CF-8 – Letter of Authority dated 11.06.2015 executed in favour of the Applicant Bank acknowledging it as Lead Bank of the Consortium – Exhibit AW/165

- clxvii. Inter Se Agreement dated 11.06.2015 amongst Consortium Banks – Exhibit AW/166

- clxviii. Joint and Several Deeds of Guarantee dated 11.06.2015 executed in favour of the Consortium Banks – Exhibit AW/167

- clxix. Deed of Corporate Guarantee dated 11.06.2015 executed by Defendant No. 11 in favour of the Consortium Banks – Exhibit AW/168

- clxx. Memorandum of Entries in the Mortgage Register dated 11.06.2015 – Exhibit AW/169

- clxxi. Confirmation of Mortgage dated 11.06.2015 securing Rs. 415.00 Crores – Exhibit AW/170

- clxxii. Board Resolutions dated 10.11.2015 passed by Defendants No. 1 and 10 authorising execution of reconstituted consortium documents – Exhibit AW/171

- clxxiii. Form CF-1 – Working Capital Consortium Agreement dated 22.12.2015 for consortium limit of Rs. 425.00 Crores – Exhibit AW/172

- clxxiv. Form CF-2 – Joint Deed of Hypothecation dated 22.12.2015 – Exhibit AW/173

- clxxv. Omnibus Counter Guarantee dated 22.12.2015 – Exhibit AW/174

- clxxvi. Agreement-cum-Indemnity dated 22.12.2015 – Exhibit AW/175

- clxxvii. Link Letter dated 22.12.2015 linking enhanced facility with consortium limit – Exhibit AW/176

- clxxviii. Declaration regarding no relationship with any Officer of the Bank dated 22.12.2015 – Exhibit AW/177

- clxxix. Declaration regarding not being a defaulter dated 22.12.2015 – Exhibit AW/178

- clxxx. Balance Confirmation Letter dated 22.12.2015 acknowledging outstanding balance – Exhibit AW/179

- clxxxi. Undertaking for Publication of Names in the event of default dated 22.12.2015 – Exhibit AW/180

- clxxxii. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 22.12.2015 – Exhibit AW/181

- clxxxiii. Form CF-8 – Letter of Authority dated 22.12.2015 executed in favour of the Applicant Bank as Lead Bank – Exhibit AW/182

- clxxxiv. Inter Se Agreement dated 22.12.2015 amongst Consortium Banks – Exhibit AW/183

- clxxxv. Joint and Several Deeds of Guarantee dated 22.12.2015 executed by Defendant Nos. 2 to 9 – Exhibit AW/184

- clxxxvi. Deed of Corporate Guarantee dated 22.12.2015 executed by Defendant No. 11 – Exhibit AW/185

- clxxxvii. Memorandum of Entries in the Mortgage Register dated 22.12.2015 recording extension of equitable mortgage over Plot No. 11, Industrial Extension Area, Kathua, Jammu & Kashmir – Exhibit AW/186

- clxxxviii. Confirmation of Mortgage dated 22.12.2015 securing Rs. 425.00 Crores over the said property – Exhibit AW/187

- clxxxix. Sanction Letter No. MCG/RM-AMT-II/2015-16/276 dated 31.03.2016 sanctioning limit of Rs. 135.00 Crores (within enhanced consortium limit of Rs. 510.00 Crores) – Exhibit AW/188

cxc. Board Resolutions dated 08.06.2016 passed by Defendants No. 1 and 10 authorising acceptance of sanction terms and execution of fresh consortium documents – Exhibit AW/189

cxc i. Form CF-1 – Amended and Restated Working Capital Consortium Agreement dated 26.07.2016 for consortium limit of Rs. 510.00 Crores – Exhibit AW/190

cxcii. Form CF-2 – Amended and Restated Joint Deed of Hypothecation dated 26.07.2016 – Exhibit AW/191

cxciii. Omnibus Counter Guarantee dated 26.07.2016 – Exhibit AW/192

cxciv. Agreement-cum-Indemnity dated 26.07.2016 – Exhibit AW/193

cxcv. Link Letter dated 26.07.2016 linking enhanced facility of the Applicant Bank with the consortium limit – Exhibit AW/194

cxcvi. Declaration regarding no relationship with any Officer of the Bank dated 26.07.2016 – Exhibit AW/195

cxcvii. Declaration regarding not being a defaulter dated 26.07.2016 – Exhibit AW/196

cxcviii. Balance Confirmation Letter dated 26.07.2016 acknowledging outstanding balance – Exhibit AW/197

cxcix. Undertaking for Publication of Names in the event of default dated 26.07.2016 – Exhibit AW/198

cc. Unconditional Cancellation of Limits and CIBIL Disclosure Undertaking dated 26.07.2016 – Exhibit AW/199

- cc. Form CF-8 – Letter of Authority dated 26.07.2016 executed in favour of the Applicant Bank as Lead Bank – Exhibit AW/200

- ccii. Inter Se Agreement dated 26.07.2016 amongst Consortium Banks – Exhibit AW/201

- cciii. Joint and Several Deeds of Guarantee dated 26.07.2016 executed by Defendants No. 2 to 9 – Exhibit AW/202

- cciv. Deed of Corporate Guarantee dated 26.07.2016 executed by Defendant No. 11 – Exhibit AW/203

- ccv. Memorandum of Entries in the Mortgage Register dated 26.07.2016 recording extension of equitable mortgage over Plot No. 11, Industrial Extension Area, Kathua, Jammu & Kashmir securing Rs. 510.00 Crores – Exhibit AW/204

- ccvi. Confirmation of Mortgage dated 26.07.2016 executed by the Defendants in respect of the said property – Exhibit AW/205

- ccvii. Demand-cum-Loan Recall Notice dated 14.03.2018 demanding repayment of Rs. 246,49,31,526.28 (Rupees Two Hundred Forty Six Crores Forty Nine Lacs Thirty One Thousand Five Hundred Twenty Six and Paise Twenty Eight Only) as on 31.01.2018 – Exhibit AW/206

64. The witness produced by the Applicant Bank has fully corroborated the averments made in the present TA. In any event, the Applicant Bank's case is primarily document-based, and the witness has duly authenticated all such documents. The evidence presented by the Applicant Bank remains unrebuted, leaving no ground to disbelieve the same. The Applicant Bank has, therefore, established its claim beyond reasonable doubt. In view of the foregoing, the Applicant Bank is entitled to recover the entire outstanding amount along with pendentelite interest and future costs as agreed between the parties. Accordingly, this TA is allowed, as the Applicant Bank has successfully proven its claim beyond any doubt.

1. 65. In this TA, the Applicant Bank has sought issuance of a Recovery Certificate in favour of Applicant Bank and against Defendants No. 1 to 15. Defendant No. 1 is the Principal Borrower to whom the financial facilities were sanctioned and, at the time of institution of the Original Application, was undergoing liquidation under the charge of the Official Liquidator attached to the Hon'ble High Court of Delhi. Further, IDBI Bank Limited has instituted Personal Insolvency Applications against Defendants No. 3, 5, 6, 7 and 8 before Ld. NCLT, New Delhi, which have been admitted and are presently pending; therefore, in view of the ongoing proceedings under the Insolvency and Bankruptcy Code, no relief can be granted against Defendants No. 3, 5, 6, 7 and 8 in the present TA. Defendants No. 2 to 8 are Personal Guarantors and Defendants No. 9 and 10 are Corporate Guarantors. It is further stated that no Personal Insolvency Applications have been filed against Defendants No. 2, 4, 9 and 10; accordingly, no moratorium is applicable to them and the present proceedings are maintainable against Defendants No. 2, 4, 9 and 10.

2. 66. In the present TA, the Applicant Bank has sought relief against Defendants No. 1 to 15; however, Defendants No. 11 to 15 have been impleaded only as Proforma Defendants for the limited purpose of proper and effective adjudication of the issues involved and to avoid multiplicity of proceedings. The Defendants No. 11 to 15 are neither the Principal Borrower nor the Guarantors in respect of the financial facilities granted by the Applicant Bank, and therefore no substantive, monetary, or coercive relief is liable to be granted against them in the present proceedings.

1. 67. Consequently, TA No. 320/2022 is hereby allowed in favour of the Applicant Bank and against the Defendants No. 2, 4, 9 and 10 who are held jointly and severally liable to pay the outstanding dues of the Applicant Bank, along with costs and pendentite lite and future interest @ 13% per annum, as claimed in the TA, from the date of filing of the present TA until full and final payment.

ORDER

TA No. 320/2022 is hereby allowed in favour of the Applicant Bank and against Defendants No. 2, 4, 9 and 10, who are held jointly and severally liable to pay a sum of Rs. 255,62,45,273.89 (Rupees Two Hundred Fifty-Five Crores Sixty-Two Lakhs Forty-Five Thousand Two Hundred Seventy-Three and Paise Eighty-Nine Only) to the Applicant Bank. The Defendants No. 2, 4, 9 and 10 are directed to pay the aforesaid amount within a period of 30 days, together with costs and pendentite lite as well as future interest at the rate of 13% per annum, as claimed in the TA, from the date of filing of the application until full and final realization.

In case of default, the aforesaid amount shall be recovered by sale of the hypothecated/charged stocks, tangible movables, and the available mortgaged properties.

It is also directed that the Applicant Bank shall adjust the amount(s), if any, received from the defendants during the pendency of this case.

Further, in case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the Defendants No. 2, 4, 9 and 10.

So far as, Defendants No. 3, 5, 6, 7 and 8 are concerned, since Defendants No. 3, 5, 6, 7 and 8 are before Ld. NCLT, hence, no order qua Defendants No. 3, 5, 6, 7 and 8 can be passed against said Defendants at this stage.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendants No. 3, 5, 6, 7 and 8 in case NCLT are quashed / withdrawn in future, in accordance with law.

It is further directed that in case Applicant Bank receive any amount from the proceedings pending before Ld. NCLT, they shall give due adjustment of the same in the recovery proceedings.

It is also directed that the applicant shall adjust the amount(s), if any, received during the pendency of this case.

- (i). The recovery certificate be issued forthwith and be sent to the Recovery Office-I, Debts Recovery Tribunal-III, Delhi.

- (ii). Parties are directed to appear before the Recovery Officer-I, DRT-III, Delhi on 02.04.2026.

- (iii). Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

File be closed and consigned to records.

(Pronounced in open court)

Dated: 16.02.2026

K. Singh

(SHIV KUMAR - I) PRESIDING OFFICER, DRT-III, DELHI