UNION BANK OF INDIA vs JUBLILANT OFFSHORE DRILLING PVT LTD on 19 February 2026

**FINAL ORDER**

1. 1. This Original Application was instituted on 14.03.2017 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, for recovery of a sum of Rs. 907,42,95,304.22 (Rupees Nine Hundred Seven Crore Forty Two Lakh Ninety Five Thousand Three Hundred Four and Twenty Two Paise Only), and for a decree of the said amount in favour of Applicants No. 1 to 6 together with pendent lite and future 

interest applicable from 01.03.2017 onwards in respect of the Corporate Loan, from the date of filing of the present Original Application till its actual and final realization, along with issuance of a Recovery Certificate for the aforesaid amount. **Applicant No. 1**, Union Bank of India, is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having perpetual succession and a common seal and competent to sue and be sued in its own name; **Applicant No. 2**, Punjab National Bank; **Applicant No. 3**, Export Import Bank of India; **Applicant No. 4**, United Bank of India; **Applicant No. 5**, Indian Bank; and **Applicant No. 6**, Bank of India, are duly constituted banking/financial institutions having their respective Head/Registered Offices and branches as detailed in the application. The present proceedings have been instituted and verified through their respective authorised officers, namely Sh. P. Jagdeesh Prasad, Sh. Dilip Murdeshwar, Sh. Tarun Sharma, Mr. Sanjay Koolwal, Mr. Yatneshwar Prasad Mishra and Sh. Bharat Singh Fonia, who are well conversant with the facts of the case and duly empowered to sign, verify and prosecute the matter on behalf of the Applicant Banks No. 1 to 6, and the Powers of Attorney executed in their favour, Annexure A-1 (Colly).

1. 2. It is pertinent here that this OA bearing No. 450/2017 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 13.10.2022 and was numbered at TA-17/2022.

2. 3. The brief facts of the case are that Defendant No. 1, Jubilant Offshore Drilling Pvt. Ltd., is a company incorporated under the Companies Act, 1956, engaged in exploration and development of crude oil and natural gas, and is the principal borrower of the consortium Term Loan Facility of Rs. 1340 Crores for development of KG Basin Block KG-OSN-2001/3, including Deen Dayal West (DDW) and its Extension Area; Defendant No. 2, Jubilant Energy (Holding) B.V., is its parent and Project Support Provider; Defendant No. 3, Jubilant Energy N.V., is the Sponsor which undertook to pledge shares worth approx. Rs. 200 Crores in favour of the Lenders; Defendant No. 4, Jubilant Oil and Gas India Ltd., is the majority shareholder and Sponsor undertaking to retain at least 51% shareholding; Defendants No. 5, 6 and 7, namely Gujarat State Petroleum Corporation Ltd., Geoglobal Resources (India) Inc. and Jubilant Enpro Limited, are Joint Operating Agreement participants and parties to the Production Sharing Contract dated 04.02.2003 for the said Block; Defendant No. 8, HSBC Bank plc, is the Custodian Bank holding the pledged depository interests; Defendant No. 9, SBICAP Trustee Company Limited, is the appointed Security Trustee for the benefit of the consortium Lenders; and Defendants No. 10 to 14, namely Allahabad Bank, State Bank of India, State Bank of Bikaner & Jaipur, State Bank of Patiala and Bank of Baroda, are consortium member banks which extended various term loan facilities to Defendant No. 1 as part of the said financing arrangement.

1. 4. So far as, the right of Defendants No. 1 to 14 to file their Written Statement was closed by the Tribunal vide order dated 26.03.2018. Despite due and valid service of summons, the said Defendants failed to enter appearance or file their Written Statement within the stipulated period, and accordingly, they have forfeited their right to contest the present proceedings.

2. 5. It is pertinent that Defendant No. 1 is presently under liquidation pursuant to order dated 18.12.2017 passed in CP (IB) No. 25 of 2017 under the provisions of the Insolvency and Bankruptcy Code, 2016, by the Ld. NCLT. In view of the said liquidation proceedings, no relief is being pressed or granted against Defendant No. 1 in the present matter; however, any amount realized by the Applicant Bank through the insolvency proceedings shall be duly adjusted and appropriated in the present recovery proceedings.

1. 6. It is further stated that Defendant No. 1 approached the Applicants No. 1 to 6 and Defendants No. 10 to 14 (hereinafter collectively referred to as the "Lenders") seeking a Term Loan Facility of Rs. 1340 Crores for meeting the capital expenditure towards the enhanced scope of appraisal and development of KG Basin Block KG-OSN-2001/3, particularly the Deen Dayal West (DDW) and DDW Extension Area and allied activities, as well as for repayment of the existing Rupee Loan of Rs. 820 Crores earlier sanctioned by the consortium of the said Lenders; accordingly, the consortium agreed to extend the said facility on a pro rata basis, and pursuant thereto, Applicant No. 1 sanctioned and disbursed a Rupee Term Loan of Rs. 100 Crores in favour of Defendant No. 1 vide Sanction Letter No. OR/CBB/DL1/ADV/3337/2012-13 dated 26.09.2012 against stipulated securities, which sanction was subsequently revived on 12.11.2013 and further renewed on 30.01.2015 subject to general and special terms and conditions.

2. 7. That pursuant to the request of Defendant No. 1, Applicant No. 2 sanctioned a Rupee Term Loan of Rs. 100 Crores vide Sanction Letter dated 28.09.2012 for meeting the capital expenditure of Deen Dayal West (DDW) and its Extension Area against stipulated securities; Applicant No. 3 sanctioned a Rupee Term Loan of Rs. 150 Crores on 25.09.2012, subsequently modified on 03.12.2013; Applicant No. 4 sanctioned Rs. 100 Crores on 18.09.2012, which was duly accepted by Defendant No. 1 on 28.09.2012; Applicant No. 5 sanctioned Rs. 200 Crores on 28.09.2012; and Applicant No. 6 sanctioned Rs. 120 Crores on 26.10.2009, all of which were duly accepted by Defendant No. 1, and the respective Sanction Letters, Annexure A-4 (Colly).

1. 8. That, Defendant No. 1, vide letter dated 16.08.2012, accepted the terms and conditions of the facility by counter-signing the Sanction Letters, including the letter dated 18.09.2012 issued to Applicant No. 4 (Annexure A-5). Further, Defendant No. 11 was appointed as the Facility Agent under the Rupee Loan Agreement (Schedule I annexed as Annexure A-6), with obligations inter alia to review the project, issue approvals/consents/waivers on behalf of the Lenders, accord approvals relating to creation or ceding of charges, receive periodic information including insurance details, and process notices of drawdown in terms of the Financing Documents.

2. 9. That pursuant to the sanction of the aforesaid loan facilities, Defendant No. 1 duly passed Board Resolutions dated 26.09.2012 and 27.09.2012 granting its approval, consent and authority to enter into and execute the requisite Financing Agreements and other related documents in respect of the Loan Facilities availed from Applicants No. 1 to 6 and the consortium Lenders arrayed as Defendants No. 10 to 14, Annexure A-7 (Colly).

3. 10. That pursuant to the sanction of the aforesaid loan facilities, Defendant No. 1 duly passed Board Resolutions dated 26.09.2012 and 27.09.2012 granting its approval, consent and authority to enter into and execute the requisite Financing Agreements and other related documents in respect of the Loan Facilities availed from Applicants No. 1 to 6 and the consortium Lenders arrayed as Defendants No. 10 to 14, Annexure A-7 (Colly).

4. 11. That, pursuant to the aforesaid Resolutions, Defendant No. 1 executed the following Financing Documents in favour of the Lenders:

1. i. Rupee Loan Agreement / Facility Agreement(s)

2. ii. Security Trustee Agreement;

3. iii. Facility Agent Agreement;

- iv. Trust and Retention Account Agreement;

- v. Indenture of Mortgage;

- vi. Sponsor Undertaking;

- vii. Inter-creditor Agreement;

- viii. Consents to Assignments;

- ix. Letter acknowledging the Inter-creditor Agreement;

- x. Non-Disposal Undertaking; and

- xi. Share Pledge Agreement.

12. That it is pertinent to state that the Lenders executed an Inter Creditor Agreement dated 28.09.2012 to coordinate and regulate their respective security interests in respect of the consortium facility, Annexure A-8; Defendant No. 1, vide its letter dated 28.09.2012, duly confirmed, ratified and acknowledged the terms of the said Inter Creditor Agreement and further confirmed that it had no independent rights, claims or benefits there under, and by the said letter also acknowledged the consortium facility aggregating to Rs. 1340 Crores (Annexure A-9). Further, Defendant No. 1 entered into a Facility Agent Agreement dated 28.09.2012 with Defendant No. 11 acting as the Facility Agent on behalf of the other Lender Banks, including Applicants No. 1 to 6 and Defendants No. 10 to 14, Annexure A-10.

13. That the Loan Facility was structured as a drawdown facility under the Rupee Loan Agreement and was to be made available by the Lenders, i.e., Applicants No. 1 to 6 and Defendants No. 10 to 14, during the Availability Period, at the request of the Borrower and subject to fulfillment, to the satisfaction of the Lenders (or upon waiver by them), of the stipulated conditions precedent, inter alia.

- i. Receipt of the documents specified in Schedule 4 to the Rupee Loan Agreement dated 28.09.2012;

- ii. The Lenders' right to appoint a Nominee Director on the Board of Defendant No. 1 in terms of Section 12.22 of the Rupee Loan Agreement;

- iii. Furnishing by Defendant No. 1 of the Development Plan, Progress Reports and other requisite information to enable the Lenders to monitor the physical progress of the Project and to ensure that the expenditure incurred was reasonable and in accordance with the agreed schedule; and

- iv. Appointment of consultants, including an Independent Engineer, Legal Counsel, Insurance Advisor and such other consultants as may be required (collectively referred to as "Lenders' Consultants"), in consultation with the Lenders' Agent and Defendant No. 1.

A copy of the Rupee Loan Agreement dated 28.09.2012, Annexure A-11.

- 14. That Defendant No. 1 was entitled to avail the Drawdown Facility in one or more tranches during the Availability Period in accordance with the Drawdown Schedule submitted by the Borrower to the Lenders; the said Drawdown Schedule comprised consecutive Fiscal Quarters (each referred to as a "Drawdown Schedule Period") and specified, against each such Fiscal Quarter, the amount proposed to be drawn by Defendant No. 1 during the relevant period (the "Relevant Period Amount"), and as per Schedule 6 of the Rupee Loan Agreement, the Drawdown Schedule was structured accordingly.

**DRAWDOWN SCHEDULE : SCHEDULE 6**

<thead> <tr> <th>PERIOD</th> <th>AMOUNT IN CRORES</th> </tr> </thead> <tbody> <tr> <td>Month ended Oct-12</td> <td>650</td> </tr> <tr> <td>Quarter ended Dec-12</td> <td>130</td> </tr> <tr> <td>Quarter ended Mar-13</td> <td>130</td> </tr> </tbody> </table>

<table border="1"> <tr> <td>Quarter ended Jun-13</td> <td>130</td> </tr> <tr> <td>Quarter ended Sep-13</td> <td>100</td> </tr> <tr> <td>Quarter ended Dec-13</td> <td>100</td> </tr> <tr> <td>Quarter ended Mar-14</td> <td>100</td> </tr> <tr> <td><b>Total</b></td>

</tr> </table>

15. That the Loan Facility carried a door-to-door tenor of 12 years (48 quarters), comprising a construction period of 2 years, a moratorium of 1.5 years and a repayment period of 8.5 years, and Defendant No. 1 undertook to repay the facility in 34 consecutive quarterly installments commencing from the first repayment date, in accordance with the Repayment Schedule set out in Schedule 3 of the Rupee Loan Agreement, with the final installment along with accrued interest and all other outstanding amounts under the Financing Documents being payable on the last Repayment Date.

<thead> <tr> <th>FYE 31-Mar</th> <th>No. of Quarters</th> <th>Instalment per year (%)</th> <th>Instalment (Rs. Cr.)</th> </tr> </thead> <tbody> <tr> <td>16</td> <td>2</td> <td>1.12%</td> <td>15</td> </tr> <tr> <td>17</td> <td>4</td> <td>6.04%</td> <td>81</td> </tr> <tr> <td>18</td> <td>4</td> <td>11.64%</td> <td>156</td> </tr> <tr> <td>19</td> <td>4</td> <td>16.87%</td> <td>226</td> </tr> <tr> <td>20</td> <td>4</td> <td>15.67%</td> <td>210</td> </tr> <tr> <td>21</td> <td>4</td> <td>16.49%</td> <td>221</td> </tr> <tr> <td>22</td> <td>4</td> <td>9.03%</td> <td>121</td> </tr> <tr> <td>23</td> <td>4</td> <td>12.09%</td> <td>162</td> </tr> <tr> <td>24</td> <td>4</td> <td>11.04%</td> <td>148</td> </tr> <tr> <td><b>Total</b></td>

<td><b>100%</b></td> <td><b>1340</b></td> </tr> </tbody> </table>

16. That the Loan facility granted by the Applicant herein was secured by way of various securities, inter alia, including -

- i. A first-ranking pari passu charge over all present and future receivables of the Borrower arising from the Project;

- ii. A first-ranking pari passu charge over the Borrower's Participating Interest in the Production Sharing Contract, to the extent permissible under Article 28.8 thereof;

- iii. A first-ranking pari passu charge over the Debt Service Reserve Account to be created for servicing the debt obligations;

- iv. A first-ranking pari passu charge over all present and future intangible assets of the Borrower relating to the Project, including goodwill and uncalled capital;

- v. A first-ranking pari passu charge over the Borrower's rights under all Material Contracts (other than the Production Sharing Contract and the Joint Operating Agreement) pertaining to the Project;

- vi. A first-ranking pari passu charge over the Trust and Retention Account(s) and such other accounts as required under the Financing Documents;

- vii. A Non-Disposal Undertaking coupled with a Power of Attorney up to 51% of the equity shareholding of Jubilant Oil and Gas India Ltd. in the Borrower;

- viii. A negative lien over all preference shares of the Borrower;

- ix. A first-ranking pledge of the issued and paid-up shares of JEW held directly by JEHBV, having a market value of Rs. 200 Crores as on the date of the Share Pledge Agreement, in favour of the Security Trustee, with provision for release upon commencement of commercial production from the Deen Dayal West Extension Area; and

- x. An Indenture of Mortgage dated 15.03.2013 executed by Defendant No. 1 at Pali in favour of Defendant No. 9, as Security Trustee for the benefit of the Lenders, creating a charge over, inter alia, the immovable properties detailed in Schedule-2 (Annexure A-14) to secure due repayment and discharge of the financial assistance.

1. 17. That pursuant to the Rupee Loan Agreement, Applicants No. 1 to 6, acting through Defendant No. 11 as Facility Agent, along with Defendant No. 1 and Defendants No. 10 to 14, agreed to appoint Defendant No. 9 as the Security Trustee to hold and administer all securities created under the Security Documents in accordance with the terms of the Financing Documents for the benefit of the Lenders, and accordingly, a Security Trustee Agreement dated 28.09.2012 was duly executed by Applicants No. 1 to 6 through Defendant No. 11 (Facility Agent), Defendant No. 1, Defendant No. 9 and Defendants No. 10 to 14, Annexure A-12; further, in compliance with the conditions of the Rupee Loan Agreement, the Sponsors, namely Defendants No. 3 and 4, executed a Sponsor Undertaking dated 28.09.2012 in favour of Defendant No. 11 acting as Facility Agent for the Lenders and Defendant No. 1, undertaking to provide sponsor support in relation to the Project for the benefit of the Borrower and the Lenders, Annexure A-13.

2. 18. That in terms of the Sponsor Undertaking, Defendant No. 1 also created an encumbrance/charge over its equity and preference shares in favour of the Applicant, which inter alia implies that -

1. i. 5% Non-Convertible Redeemable Preference Shares of Rs. 100/- each of the Borrower (Defendant No. 1) held by JOGIL (Defendant No. 4), issued on the terms and conditions set out in Schedule II of the Sponsor Undertaking;

2. ii. 100 (One Hundred) 1% Cumulative Convertible Preference Shares of Rs. 100/- each of the Borrower (Defendant No. 1) held by JOGIL (Defendant No. 4), issued in accordance with Schedule II of the Sponsor Undertaking;

- iii. 0% (Zero Percent) Redeemable Preference Shares of the Borrower (Defendant No. 1) held by JEKPL. and shall further include any other preference shares issued or to be issued in future by the Borrower for the purposes of equity infusion.

- 19. That Defendant No. 4, being the legal and beneficial owner of 5,15,426 equity shares constituting 99.998% of the equity share capital and 23.80% of the preference share capital of Defendant No. 1 (the Borrower), undertook to hold and retain not less than 51% of the shareholding of the Borrower until the Final Settlement Date, and Defendant No. 3 further undertook to retain 51% of the equity shareholding of the Borrower, either directly or through its subsidiaries; moreover, an overall charge/negative lien was created over the preference shares of the Borrower in favour of the Lenders, including the Applicant herein.

- 20. It is further stated that Defendant No. 1, in order to secure repayment of the loan, executed an Indenture of Mortgage dated 15.03.2013 at Pali in favour of Defendant No. 9 as Security Trustee for the benefit of the Lenders, thereby creating a charge, inter alia, over the immovable properties detailed in Schedule-2 (Annexure A-14), to secure due repayment and discharge of the financial assistance. The properties are detailed in para No. 5.19 of OA.

- 21. That Defendant No. 1 along with Defendant No. 4 executed a Non-Disposal and Safety Net Arrangement Agreement dated 28.03.2013 in favour of Defendant No. 6, whereby a non-disposal undertaking and safety arrangement was created in respect of 51% of the total issued and paid-up equity shares of the Borrower held by Jubilant Oil & Gas India Limited (Sponsor), Annexure A-15;

- 22. Further, Defendant No. 3 created a first-ranking pledge over such issued and paid-up shares directly held by JEHBV (Defendant No.

2), having a market value of Rs. 200 Crores as on the date of the Share Pledge Agreement, which was subsequently modified pursuant to request letter dated 25.03.2013 to an alternate structure conferring a right of sale of shares in lieu of pledge, and the Board Resolution dated 04.02.2014 approving such arrangement, Annexure A-16; and the said alternate arrangement by way of Project Support Undertaking, Non-Disposal Undertaking and Power of Attorney over the Demat account in respect of shares equivalent to Rs. 200 Crores of Defendants No. 3 and 4 listed on the London Stock Exchange was duly approved by the Applicant.

1. 23. That Defendant No. 1 executed an alternate arrangement conferring a right of sale of shares in lieu of pledge; pursuant thereto, Defendant No. 1 along with Defendants No. 2 and 8 and Defendant No. 9 acting for and on behalf of the Lenders including the Applicant, entered into a Tripartite Agreement dated 25.03.2014 in relation to issuance of instructions for sale of depository interests in Defendant No. 2 held in custody with Defendant No. 5 as collateral security for certain obligations of Defendant No. 2 to Defendant No. 6 acting on behalf of the Lenders including the Applicants, Annexure A-17;

2. 24. Further, Defendant No. 2 executed a Project Support Undertaking dated 25.03.2014 in favour of Defendant No. 11 acting as Facility Agent for the Lenders including Applicants No. 1 to 6, Defendant No. 1 and Defendant No. 6, thereby undertaking to promptly infuse additional funds into the Borrower to meet any shortfall, up to a maximum aggregate amount of Rs. 200 Crores, in the event of failure by the Sponsors to fund any cost overrun beyond the estimated project cost of Rs. 508 Crores relating to the development of the Deen Dayal West Extension area of the Project, and in any event within 10 days of demand by the Borrower upon its failure, Annexure A-18.

25. That Defendant No. 1 created a first ranking pari passu encumbrance/charge in favour of the Lenders over the Borrower's 10% Participating Interest in the Production Sharing Contract dated 04.02.2003 executed between the President of India, Gujarat State Petroleum Corporation Limited, JEPL (subsequently transferred to Jubilant Offshore Drilling Pvt. Ltd. – Defendant No. 1 herein) and Geoglobal Resources (India) Inc., in respect of the KG Basin Block KG-OSN-2001/3, as amended from time to time, together with rights under the Joint Operating Agreement dated 07.08.2003 and the Production Sharing Agreement, Annexure A-19 and A-20 respectively, and accordingly Gujarat State Petroleum Corporation Ltd., Geoglobal Resources (India) Inc. and Jubilant Enpro Limited are necessary proforma parties;

26. Further, Defendant No. 1 created a first ranking pari passu charge over the Debt Service Reserve Account as detailed under Section 9 of the Trust and Retention Account Agreement, wherein the required balance is to be maintained on each Monthly Distribution Date and the right of withdrawal is subject to the rights of Defendant No. 13 acting as Facility Agent for the Lenders including Applicants No. 1 to 6; additionally, Defendant No. 1 created a first ranking pari passu encumbrance over all intangible assets of the Borrower relating to the Project, including goodwill and software valued at Rs. 24,529,808/- as on 31.03.2014, and further created a pari passu charge over the Borrower's rights under all Material Contracts including Gas Sales Agreements, Oil Sale Agreements and Insurance Contracts, excluding rights under the Production Sharing Contract and the Joint Operating Agreement.

27. That Defendant No. 1 created a Trust and Retention Account with the Account Bank, namely State Bank of India, having its office at 12th Floor, Jawahar Vyapar Bhawan, 1 Tolstoy Marg, New Delhi – 110001, wherein Defendant No. 1 undertook to deposit all cash flows and realizations accruing from or in relation to the Project into the said Trust and Retention Account, and withdrawals therefrom were subject to prior written consent of the Facility Agent (Applicant No. 1 herein), thereby creating a pari passu encumbrance/charge over the said account, and the Trust and Retention Account Agreement dated 28.09.2012, Annexure A-21;

28. Further, Defendant No. 1 executed the RBI Declaration and CIBIL Declaration under Clause 13.4 of the Rupee Loan Agreement dated 28.09.2012; and thereafter, Defendant No. 11 acting as Facility Agent for the Lender Banks along with Defendants No. 10 to 14 including Applicants No. 1 to 6 entered into a Master Joint Lenders Forum Agreement dated 15.07.2015, whereby the Lenders agreed to identify incipient stress in the Borrower's account by classifying it as a Special Mention Account (SMA) in accordance with the guidelines issued by the Reserve Bank of India from time to time and to take corrective measures to prevent the account from becoming a Non-Performing Asset (NPA), and further agreed that the Central Repository of Information on Large Credits (CRILC) set up by the RBI shall serve as the platform for collation, storage and dissemination of credit information of the Borrower among the Lender Banks, a copy whereof is annexed as Annexure A-22.

29. That pursuant to the sanction of the aforesaid credit facilities to Defendant No. 1 by Defendant No. 11 acting as Facility Agent for Applicants No. 1 to 6, separate loan accounts were maintained in the name of Defendant No. 1 in the usual books of accounts of Defendant No. 11 at its Corporate Accounts Group Branch, 12th Floor, Jawahar Vyapar Bhawan, 1 Tolstoy Marg, New Delhi – 110001, being Account No. 044705401120012 (Applicant No. 1), Loan Account No. 2175001C000041 (Applicant No. 2), Account No. HOIFPINR00000082 (Applicant No. 3), Loan Account No. 1720300000514 (Applicant No. 4), Loan Account No. 607714747

(Applicant No. 5) and Loan Account No. 29100600001074 (Applicant No. 6), and all debits and credits therein were duly and correctly recorded in the regular course of banking business, including disbursements, interest at the contractual rate with agreed rests and incidental charges, while payments made by Defendant No. 1 were appropriately credited on respective dates;

1. 30. That the said facilities were administratively transferred on 26.08.2016 to the Stressed Asset Management Branch, 6th Floor, Mohan Singh Place, Baba Kharak Singh Marg, Connaught Place, New Delhi – 110001; although Defendant No. 1 availed the facilities, it remained irregular and failed to maintain financial discipline, and executed Balance Confirmation Letters dated 15.03.2013 and 28.05.2015 in favour of Applicant Bank No. 2, quarterly Balance Confirmation Letters for the quarters ending 31.03.2015, 30.09.2015 and 31.12.2015 dated 08.04.2015, 15.10.2015 and 15.01.2016 respectively in favour of Applicant Bank No. 4, and Balance Confirmation Letters dated 10.08.2016 in favour of Applicant Bank No. 5 through Defendant No. 11 as Facility Agent, Annexure A-23;

2. 31. It is further stated that the Rupee Term Loan facility aggregating to Rs. 1346 Crores was duly acknowledged by Defendants No. 1 and 3 for the purposes of Section 18 of the Limitation Act, 1963, and specifically acknowledged by Defendant No. 1 in favour of Applicant No. 1 on 28.05.2015; despite repeated requests and letters dated 04.05.2016, 07.05.2016 and 24.05.2016 calling upon Defendant No. 1 to regularise the account (Annexure A-24 Colly), Defendant No. 1, vide letter dated 17.05.2016 addressed to Defendant No. 11 as Facility Agent, admitted that it had no short-term solution to the irregularity (Annexure A-25), and consequently the account of Defendant No. 1 was classified as Non-Performing Asset (NPA) on 31.05.2016 by Applicant No. 1, on 31.03.2016 by Applicant No. 2, and on 30.06.2016 by Applicants No. 4 and 5.

1. 32. That due to the continued irregularity and failure of Defendant No. 1 to maintain financial discipline in servicing the aforesaid loan facilities, despite repeated requests and reminders, the Applicant Banks were compelled to issue legal notices: Applicant No. 1 on 08.11.2016, Applicant No. 2 on 11.11.2016, Applicant No. 3 on 23.11.2016, Applicant No. 4 on 07.11.2016 with subsequent reminders on 10.03.2016, 21.03.2016, 15.04.2016, 28.04.2016, 17.05.2016, 03.06.2016, 23.06.2016, 11.07.2016 and a recall notice dated 28.09.2016, Applicant No. 5 on 21.11.2016 with a recall notice dated 01.07.2016, and Applicant No. 6 on 08.11.2016 along with notices under Sections 13(2) and 13(4) of the SARFAESI Act on 11.11.2016, all directed to Defendant No. 1 and its Directors calling upon them to repay the outstanding dues, but to no effect, Annexure A-26 (Colly)).

2. 33. That, Defendant No. 1, however, repeatedly acknowledged its liability, and in response to the demand notice issued by Defendant No. 11 acting as Facility Agent, vide letter dated 21.10.2016, admitted and confirmed the outstanding amount (Annexure A-27). Further, as per their own admission in the said correspondence, Defendant No. 1 was pursuing discussions with ONGC and Gujarat State Petroleum Corporation Ltd. (GSPC) for the sale of its stake in the project, with ONGC having signed a preliminary MOU to acquire and operate the KG Basin block of GSPC, Annexure A-28 (Colly).

3. 34. That as per the books of accounts maintained by the Applicant Banks in the ordinary course of business, the Defendant No. 1 has an outstanding liability towards the Applicant Banks under the Term Loan facility aggregating to Rs. 820,00,00,000/- (Rupees Eight Hundred and Twenty Crores), and under the Rupee Term Loan Account, the outstanding amount along with interest accrued thereon up to date amounts to Rs. 907,42,95,304.22/- (Rupees Nine Hundred Seven Crores Forty-Two Lakhs Ninety-Five Thousand Three Hundred Four and Twenty-Two Paise), which is payable to the Applicant Banks.

1. 35. In accordance with the consistent accounting practices followed by the Applicant Banks and pursuant to the instructions of the Reserve Bank of India, no further interest has been debited to the said Corporate Loan Account after it was classified as a Non-Performing Asset on 31.05.2016.

2. 36. That the effective rate of interest applicable to the account of Defendant No. 1 was 13.80% along with 2% penal interest up to 31.03.2017. As per the contractual terms, the accrued interest on the Rupee Term Loan facility availed by Defendant No. 1 stood as follows: Applicant No. 1 – Rs. 116,98,09,317/-; Applicant No. 2- Rs. 119,01,26,441.97/-; Applicant No. 3- Rs. 175,48,81,564.38/-; Applicant No. 4 – Rs. 116,76,27,545.49/-; Applicant No. 5 – Rs. 236,86,00,000/-; and Applicant No. 6 – Rs. 142,32,50,435.38/-, aggregating to a total of Rs. 907,42,95,304.22/- (Rupees Nine Hundred Seven Crores Forty Two Lakhs Ninety Five Thousand Three Hundred Four and Twenty Two Paise Only) due and payable by all the Defendants jointly and/or severally to the Applicant Banks till 28.02.2017, together with interest at 13.80% plus 2% penal interest, including monthly interest and future interest in respect of the cash credit limit.

3. 37. Despite repeated requests and reminders from the Applicant Banks and assurances from the Defendants, the amounts remain unpaid. Accordingly, Defendant No. 1, as Borrower, and Defendants No. 2 to 4, as Holding Company and Sponsors of Defendant No. 1, are jointly and severally liable to satisfy the claims of the Applicant Banks. The statements of accounts of Applicants No. 1 to 6, duly certified under the Bankers' Books of Evidence Act, together with calculation sheets of accrued interest and the total outstanding amounts, have been filed along with this Original Application as Annexure A -29 (Colly), which may be read as part and parcel of this Original Application, and as per accounting procedure, interest is recorded separately and payable jointly and severally by Defendants No. 1 to 4.

38. That the interest charged by the Applicant Banks on the facilities availed by the Defendants is at the agreed contractual rate and fully compliant with the directives of the Reserve Bank of India, and the present rate of interest payable is 13.80% per annum with monthly rests, along with 2% penal interest and applicable future interest. All the Defendants, jointly and severally, in their respective capacities as Borrower, Parent Company, Sponsor, and Custody Account Holder, are liable to pay a sum of Rs. 907,42,95,304.22/- (Rupees Nine Hundred Seven Crores Forty Two Lakhs Ninety Five Thousand Three Hundred and Four and Twenty Two Paise Only) to the Applicant Banks, together with all costs, charges, expenses of this Original Application, as well as pendent lite and future interest from the date of filing of the Original Application until full and final realization. The liability of the Defendants arises from commercial transactions with the Applicant Banks, entitling the Applicant Banks to pendent lite and future interest at the contracted rate of 13.80% per annum with 2% penal interest. The interest, including compound interest, has been applied at periodic rests permitted under applicable regulations and does not contravene any directives of the Reserve Bank of India.

39. The cause of action in favor of the Applicant Banks and against the Defendants arose on multiple occasions, commencing when, at the request of Defendant No. 1, the Applicant Banks granted various credit and loan facilities to Defendant No. 1, sanctioned vide letters dated 02.08.2012, 18.09.2012, accepted on 24.07.2012, and 28.09.2012, for an overall limit of Rs. 500 crores. The cause of action further arose when Defendant No. 2, as the Parent Company, executed the Loan Documents and Project Support Agreement on 25.03.2014, and when Defendants No. 3 and 4, as Sponsors, executed the Sponsor Agreement dated 28.09.2012, undertaking the liability of Defendant No. 1. Additionally, the cause of action arose when Defendant No. 5, in the capacity of Custody Account Holder, agreed to maintain the custody account, and on every occasion when various agreements were executed between the parties. The cause of action further arose each time the Applicant Banks demanded repayment of the loan and the Defendants failed to comply, including on 28.05.2015 when Defendant No. 1 acknowledged the debt through a revival letter to Applicant No. 1, and on 10.08.2015 when a revival letter was issued in favor of Defendant No. 11 acting as Facility Agent. Subsequent causes of action arose on 07.11.2016, 11.11.2016, 08.11.2016, 28.09.2016, and 01.07.2016 when Applicant Banks No. 1-6 sent legal notices to Defendant No. 1 and its Directors, and again on 21.10.2016 when Defendant No. 1 specifically accepted his liability.

1. 40. To substantiate their case, the Applicant Banks have filed the affidavit of Mr. Lakshya Khatri, S/o Sh. Jyoti Prakash Khatri, presently working as Senior Manager, Union Bank of India, Stressed Assets Management (SAM) Branch, 603B, Konnectus Tower, Bhavbhuti Marg, Opp. New Delhi Railway Station, New Delhi-110001, do hereby solemnly affirm and state that Applicant No. 1 is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its Head Office at Union Bank Bhavan, 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021 and its SAM Branch at the aforesaid address, and is competent to sue and be sued in its own name; that Applicant No. 2 is Punjab National Bank having its Head Office at 7, Bhikaji Cama Place, New Delhi-110607 and branch at Large Corporate Branch, Maker Tower-E, Ground Floor, Cuffe Parade, Mumbai-400005; Applicant No. 3 is Export Import Bank of India having its Registered Office at Centre One Building, 21st Floor, World Trade Centre Complex, Cuffe Parade, Mumbai-400005; Applicant No. 4 is United Bank of India having its Corporate Finance Branch at 106-109, Ansal Plaza, 38, Nehru Place, New Delhi-110019; Applicant No. 5 is Indian Bank having its Branch at 47-48, Pragati House, Nehru Place, New Delhi-110019; and Applicant No. 6 is Bank of India having its Corporate Finance Service Branch at 1st Floor, 3 Walchand Hirachand Marg, Ballard Pier, Mumbai-400001 and Mumbai Large Corporate Branch at Bank of India Building, 70-80 M.G. Road, Fort, Mumbai-400001; that he is duly authorized and conversant with the facts of the present case and competent to swear this affidavit on behalf of Applicant No. 1, and similarly Mr. Dilip Murdeshwar (Chief Manager, Punjab National Bank), Mr. Tarun Sharma (General Manager, Export Import Bank of India), Mr. Sanjay Koolwal (Deputy General Manager & Principal Officer, United Bank of India), Mr. Yatneshwar Prasad Mishra (Chief Manager, Indian Bank), and Mr. Bharat Singh Fonia (Assistant General Manager, Bank of India) are duly authorized officers of their respective banks, fully conversant with the facts of the case and competent to sign, verify and institute proceedings on behalf of their respective Applicant Banks, and the Powers of Attorney executed in their favour are collectively exhibited as Exhibit AW1/1 (Colly) Power of Attorney executed in favour of the Deponent and other Authorized Officers of Applicant Banks No. 1 to 6 – Exhibit AW 1/1 (Colly)

- i. Memorandum and Articles of Association of Defendant No.1 (M/s Jubilant Offshore Drilling Pvt. Ltd.) – Exhibit AW 1/2

- ii. Board Resolution of Defendant No.1 appointing SBICAP Trustee Company Ltd. as Security Trustee, dated 26.09.2012 – Exhibit AW 1/3

- iii. Sanction Letter issued by Applicant Bank No.1 bearing No. OR/CBB/DLI/ADV/3337/2012-13, dated 26.09.2012 (revived on 12.11.2013 and renewed on 30.01.2015) – Exhibit AW 1/4 (Colly)

- iv. Sanction Letter issued by Applicant Bank No.2 bearing No. CACII-UA/GRK/HKP/LCB/2012, dated 28.09.2012 – Exhibit AW 1/4 (Colly)

- v. Sanction Letter issued by Applicant Bank No.3 sanctioning Rupee Term Loan of Rs. 50 Crores, dated 25.09.2012 (modified on 03.12.2013) – Exhibit AW 1/4 (Colly)

- vi. Sanction Letter issued by Applicant Bank No.4 sanctioning Rupee Term Loan of Rs. 100 Crores, dated 18.09.2012 – Exhibit AW 1/4 (Colly)

- vii. Sanction Letter dated 28.09.2012 issued by Applicant No. 5, pursuant to the correspondence received from Defendant No. 1, sanctioning a Rupee Term Loan of Rs. 200 Crores in favour of Defendant No. 1.

- viii. Sanction Letter issued by Applicant Bank No.6 sanctioning Rupee Term Loan of Rs. 120 Crores, dated 26.10.2009 – Exhibit AW 1/4 (Colly)

- ix. Letter dated 18.09.2012 along with countersigned Sanction Letter by Defendant No.1 accepting the terms and conditions of sanction – Exhibit AW 1/5

- x. Schedule 1 to the Rupee Loan Agreement (Annexure A/1) enumerating details of Lenders and their Financial Commitments, dated 28.09.2012 – Exhibit AW 1/6

- xi. Board Resolutions of Defendant No.1 authorizing execution of Financing Documents, dated 26.09.2012 and 27.09.2012 – Exhibit AW 1/7 (Colly)

- xii. Inter Creditor Agreement dated 28.09.2012 – Exhibit AW 1/8

- xiii. Letter dated 28.09.2012 issued by Defendant No.1 confirming and ratifying the Inter Creditor Agreement and consortium facility of Rs. 1340 Crores – Exhibit AW 1/9

- xiv. Facility Agent Agreement dated 28.09.2012 – Exhibit AW 1/10

- xv. Rupee Loan Agreement dated 28.09.2012 – Exhibit AW 1/11

- xvi. Security Trustee Agreement dated 28.09.2012 executed between the Applicant Banks, Defendant No.1, Defendant No.9 and Defendants No.10 to 14 – Exhibit AW 1/12

- xvii. Sponsor Undertaking dated 28.09.2012 executed by Defendants No.3 and 4 in favour of the Facility Agent for the benefit of the Lenders – Exhibit AW 1/13

- xviii. Indenture of Mortgage dated 15.03.2013 executed by Defendant No.1 at Pali in favour of Defendant No.9 (Security Trustee) – Exhibit AW 1/14

- xix. Non-Disposal and Safety Net Arrangement Agreement dated 28.03.2013 executed by Defendants No.1 and 4 – Exhibit AW 1/15

- xx. Board Resolution dated 04.02.2014 relating to pledge/alternate security structure of shares – Exhibit AW 1/16

- xxi. Tripartite Agreement dated 25.03.2014 executed between Defendants No.1, 2, 8 and 9 for sale of Depository Interests – Exhibit AW 1/17

- xxii. Project Support Undertaking dated 25.03.2014 executed by Defendant No.2 – Exhibit AW 1/18

- xxiii. Joint Operating Agreement dated 07.08.2003 between Gujarat State Petroleum Corporation Ltd., Geoglobal Resources (India) Inc. and Jubilant Enpro Limited – Exhibit AW 1/19

- xxiv. Supplementary/Related Agreement executed between Gujarat State Petroleum Corporation Ltd., Geoglobal Resources (India) Inc. and Jubilant Enpro Limited – Exhibit AW 1/20

- xxv. Trust and Retention Account Agreement dated 28.09.2012 – Exhibit AW 1/21

- xxvi. Master Joint Lenders Forum Agreement dated 15.07.2015 – Exhibit AW 1/22

- xxvii. Balance Confirmation Letters dated 15.03.2013, 28.05.2015, 08.04.2015, 15.10.2015, 15.01.2016 and 10.08.2016 – Exhibit AW 1/23 (Colly)

- xxviii. Letters dated 04.05.2016, 07.05.2016 and 24.05.2016 issued to Defendant No. 1 – Exhibit AW 1/24

- xxix. Reply Letter dated 17.05.2016 issued by Defendant No. 1 to Defendant No. 11 (Facility Agent) – Exhibit AW 1/25

- xxx. Legal Demand Notices / Recall Notices issued by Applicants No. 1 to 6 between March 2016 and November 2016 (including notices under Sections 13(2) and 13(4) of the SARFAESI Act) – Exhibit AW 1/26

- xxxi. Reply Letter dated 21.10.2016 issued by Defendant No. 1 acknowledging liability – Exhibit AW 1/27

- xxxii. Copies of Media Reports regarding proposed stake acquisition discussions with ONGC and Gujarat State Petroleum Corporation Ltd. (GSPC) – Exhibit AW 1/28

- xxxiii. Certified Statements of Account and Calculation Sheets under the Bankers' Books Evidence Act – Exhibit AW 1/29

14. The witness produced by the Applicant Banks has fully corroborated the averments made in the present TA. In any event, 

the Applicant Banks' case is primarily document-based, and the witness has duly authenticated all such documents. The evidence presented by the Applicant Bank remains unrebutted, leaving no ground to disbelieve the same. The Applicant Banks have, therefore, established their claim beyond reasonable doubt. In view of the foregoing, the Applicant Banks are 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 Banks have successfully proven their claim beyond any doubt.

1. 15. In this TA, The Applicant Banks No. 1 to 6 have prayed for issuance of a Recovery Certificate against Defendants No. 1 to 4. Defendant No. 1 is the principal borrower to whom the financial facilities were sanctioned; however, as insolvency proceedings under the IBC are pending before the Ld. NCLT, no relief is being granted against Defendant No. 1 in the present TA. Defendant No. 2 is the parent company and Project Support Provider; Defendant No. 3 is the Sponsor which undertook to pledge shares in favour of the Lenders; and Defendant No. 4 is the majority shareholder and Sponsor, having undertaken to retain at least 51% shareholding. Defendants No. 5 to 7 are Joint Operating Agreement participants and parties to the Production Sharing Contract dated 04.02.2003 for the said Block. Defendant No. 8 is the Custodian Bank holding the pledged depository interests, Defendant No. 9 is the Security Trustee for the consortium Lenders, and Defendants No. 10 to 14 are consortium member banks which extended the term loan facilities under the said financing arrangement.

2. 16. Consequently, TA No. 17/2022 is hereby allowed in favour of the Applicant Banks No. 1 to 6 and against the Defendants No. 2 to 4, who are held jointly and severally liable to pay the dues of the Applicant Banks, 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. 17/2022 is allowed in favour of Applicant Banks No. 1 to 6 and against Defendants No. 2 to 4, who are held jointly and severally liable to pay a sum of Rs. 907,42,95,304.22 (Rupees Nine Hundred Seven Crores Forty-Two Lakhs Ninety-Five Thousand Three Hundred Four and Paise Twenty-Two Only) to the Applicant Banks. Defendants No. 2 to 4 are directed to pay the aforesaid amount within 30 days, together with costs and pendent lite and future interest at the rate of 13% per annum, as claimed in the TA, from the date of filing until 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 to 4.

So far as, Defendant No. 1 is concerned, since Defendant No. 1 is before Ld. NCLT, hence, no order qua Defendant No. 1 can be passed against said Defendant at this stage.

However, it is directed that Applicant Banks shall be at liberty to revive the OA qua Defendant No. 1 in case NCLT are quashed / withdrawn in future, in accordance with law.

It is further directed that in case Applicant Banks 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-II, Debts Recovery Tribunal-III, Delhi.

- (ii). Parties are directed to appear before the Recovery Officer-II, DRT-III, Delhi on 16.04.2026.

- (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:19.02.2026

K. Singh

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