BANK OF INDIA vs SANJAY DHINGRA on 25 February 2026

**FINAL ORDER**

1. This original application was filed by the Applicant Banks no. 1 to 8 on 12.03.2020, through Mr. Pawan Kumar, Chief Manager of the Applicant no. 1 / Bank of India (BOI); Mineendra S.R., Chief Manager (Law) of Applicant no. 2 / Andhra Bank; Mr. Deepak Kumar, Senior Manager of Applicant no. 3 bank / Bank of Baroda (BOB); Mr. Ranjan Kumar Lenka, Assistant General Manager of Applicant no. 4 / IDBI; Mr. Susheel Kumar Sharma, Chief Manager of Applicant no. 5 / Syndicate Bank; Mr. Sanjay Khera, Chief Manager of Applicant no. 6 / Central Bank of India (CBI); Mr. Krishna Kumar, Branch Head of Applicant no. 7 / Dhanlaxmi Bank and Mr. Ashok Kumar Yadav / Senior Manager of Applicant no. 8 bank / Canara Bank being Authorized Officer(s) of Applicant Banks no. 1 to 8, under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 against the Defendants no. 1 to 3 for recovery of a sum of Rs. 1189,86,12,756.68/- (Rupees One Thousand One Hundred Eighty Nine Crore Eighty Six 

Hundred Fifty-Six and Sixty-Eight Paise Only) due as on 15.02.2020 in following manner:-

<thead> <tr> <th>S. No.</th> <th>Applicant Bank</th> <th>Aggregate amount due including Principal Amount, Interest and Penal Interest</th> </tr> </thead> <tbody> <tr> <td>1.</td> <td>Bank of India</td> <td>261,46,23,993.00</td> </tr> <tr> <td>2.</td> <td>Andhra Bank</td> <td>243,33,23,370.00</td> </tr> <tr> <td>3.</td> <td>Bank of Baroda</td> <td>214,69,80,610.05</td> </tr> <tr> <td>4.</td> <td>IDBI Bank Ltd.</td> <td>118,13,40,092.00</td> </tr> <tr> <td>5.</td> <td>Syndicate bank</td> <td>58,29,88,540.62</td> </tr> <tr> <td>6.</td> <td>Central Bank of India</td> <td>162,29,64,533.00</td> </tr> <tr> <td>7.</td> <td>Dhanlaxmi Bank</td> <td>44,29,34,055.02</td> </tr> <tr> <td>8.</td> <td>Canara Bank</td> <td>87,34,57,562.99</td> </tr> <tr> <td></td> <td><b>Total</b></td> <td><b>1189,86,12,756.68</b></td> </tr> </tbody> </table>

together with interest with monthly rest together with interest thereon at the rates indicated in the above calculated per annum with monthly rest and until 15.02.2020 and plus penal interest at the rate applicable from time to time on the aforementioned amount(s) from the date of filing of this OA till the date of complete realization / payment of the above said sums with all costs, expenses etc. along with other relief(s).

1.2 It is pertinent to note here that this OA bearing no. 57/2021 was originally filed before Ld. DRT-II, Delhi.

During the pendency of this OA, it was informed by the parties that defendant no. 1 is the only contesting defendant which is before Ld. NCLT and other defendants are proforma party. Accordingly, the said OA was disposed off vide Order dated 31.03.2022 of the Tribunal with liberty to the parties to revive the same in case of any court order, NCLT order or otherwise any need or any exigency to revive the same.

Thereafter, MA No. 72/2022 was filed by the applicants before Ld. DRT-II, Delhi praying therein to:-

- (a) Allow the instant application for direction;

- (b) Pass directions as may be appropriate and/or necessary including that of recalling the Order dated 31.03.2022 passed in the OA proceedings to its original number being OA 57 of 2021 against Defendant no. 2 (M/s Pashupati Dairies Pvt. Ltd.) and 3 (JTPL Townships Pvt. Ltd.);

- (c) Pass any such other or further order(s) as this Hon'ble Court may deem fit and proper in the facts and circumstances.

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, the said case file was transferred by Ld. DRT-II, Delhi to this Tribunal in February 2024 and was numbered as TMA No. 03/2024. The said TMA was allowed vide order dated 29.02.2024 & OA No. 57/2021 i.e. Bank of India Vs. Sanjay Dhingra and Ors. was revived. **Vide aforesaid order dated 29.02.2024 passed in TMA, the Registry was also directed to assign the new transfer application number and same was numbered as TA-06/2024.**

2. The brief facts of the case are that the Applicants no. 1 to 8 Bank are body corporates constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 and / or registered under the Companies Act, 1956 and a company within the meaning of the Companies Act 2013 and a Banking Company within the meaning of Section 5 of the Banking Regulations Act, 1949 and carry on the business of 

banking and have their respective branches situated at New Delhi.

It is pertinent to note that the present OA has been collectively instituted by the Applicants named above. The other members of the Consortium namely Corporation Bank and Allahabad Bank have instituted independent legal proceedings for recovery of the outstanding amounts against the Defendants.

It is also stated that the present OA has been instituted by Applicant No. 1 to 8 and each Applicant Bank is signing this OA individually. The Power of Attorney of each Applicant Bank in favour of their respective authorized officers is also annexed with the OA.

2.1 It is stated in the OA that the Principal Borrower is undergoing Corporate Insolvency Resolution Process under Section 7 of the Insolvency and Bankruptcy Code, 2016 before the Hon'ble National Company Law Tribunal, New Delhi. Pertinently, the Applicants herein have formed the Committee of Creditors and moratorium against the Principal Borrower is still subsisting.

It is further stated in the OA that Defendant no. 1 has executed personal guarantee and Defendants no. 2 & 3 has executed corporate guarantee respectively for the facilities granted to the Principal Borrower in favour of the Applicants being the members of the consortium. Therefore, Defendants no. 1 to 3 are jointly and severally liable to discharge the outstanding dues of the Applicants along with the Principal Borrower.

2.2 It is stated in the OA that the Principal Borrower was engaged in the business of dairy products having its ultramodern milk processing plant situated at Village Softa, Distt. Palwal, Haryana. The Principal Borrower have a corporate office at KDIL House, F-82, Shivaji Place, Rajouri Garden, New Delhi – 110027.

At the outset, for the sake of clarity, it is stated in the OA that the present OA involves the amount owed by the Principal Borrower and Defendants no. 1 to 3 jointly and / or severally in respect of various credit facilities sanctioned by the Applicants which were duly availed by the Principal Borrower.

2.3 It is stated in the OA that at the request of the Principal Borrower represented by its Director Defendant no. 1 and Ms. Kanika Dhingra in the month of July 2010, approached the Applicant No. 1 for financial assistance by way of working capital. The Applicant no. 1 vide its sanction letters agreed to sanction working capital limit fund based to the extent of Rs. 75.0 Crore.

The initial Term Loans sanctioned by Applicant no. 1 is enumerated herein below:-

<thead> <tr> <th rowspan="2">Credit Facility</th> <th colspan="3">Limits (Rs. in Crore)</th> <th rowspan="2">Margin</th> <th rowspan="2">Rate of Interest</th> </tr> <tr> <th>Existing</th> <th>New</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Working Capital (FB)</td> <td>-</td> <td>75</td> <td>75</td> <td>Stock 25%<br/>Book<br/>Debts 30%</td> <td>BPLR presently<br/>12% p.a.</td> </tr> <tr> <td>Fund Based Total</td> <td colspan="3">75</td> <td></td> <td></td> </tr> </tbody> </table>

The Applicant no. 1 vide its letter of Sanction sanctioned above referred Rupee Term Loan of Rs. 75.0 Crore on a stand alone basis.

The Principal Borrower and Defendants no. 1 to 3 in order to secure Applicant No. 1 of due repayment of the above sanctioned credit facilities, had executed various documents in favour of Applicant No. 1. The details of the documents executed by the Principal Borrower and Defendants no. 1 to 3 are as follows:-

- (i) L-516 dated 21.07.2010;

- (ii) Deed of Guarantee dated 21.07.2010 executed between the Applicant No. 1 and Defendants;

- (iii) Agreement of Hypothecation of plant and machinery, stocks and book debts dated 21.07.2010 executed between the Principal Borrower and the Applicant No. 1;

- (iv) Credit Facility Agreement dated 21.07.2010 executed between the Principal Borrower and the Applicant no. 1;

- (v) L-490 dated 21.07.2010;

- (vi) L-434 dated 21.07.2010;

- (vii) L-515 dated 21.07.2010;

- (viii) Declaration by the Principal Borrower to the Applicant stating that the directors of the company are not of ECGC caution list / specific approval list, RBI's defaulter's list / caution list; COFEPOSA defaulters list or out bank's defaulters list, and are not disqualified u/s 274 of the Companies Act. Additionally, the declaration states that the directors of the company are not facing any material legal cases except the legal cases against the company in the normal course of business dated 21.07.2010;

- (ix) Declaration by the Defendants to Bank of India in relation to change in structure of the company dated 21.07.2010;

- (x) Document executed by Bank of India stating the creation and extension of equitable mortgage over immovable property situated at village Softa Tehsil and District Palwal, Haryana dated 29.09.2010.

2.4 It is also stated in the OA that the following individual advances and facilities granted by the Applicant no. 1, an Inter Se Agreement dated 30.03.2011 (Consortium-I) was executed between the Banks named below:-

- (a) Bank of India

- (b) Allahabad Bank

- (c) Andhra Bank

- (d) Bank of Baroda

- (e) ICICI Bank Ltd.

- (f) IDBI Bank Ltd.

- (g) Catholic Syrian Bank Ltd.

- (h) Corporation Bank

It is stated in the OA that the facilities granted to Principal Borrower pursuant to the constitution of the BOI consortium are noted as under:- (Rs. In Crores)

<thead> <tr> <th>Name of Bank</th> <th>Fund Based</th> <th>Non-Fund Based</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Bank of India</td> <td>75.00</td> <td>Nil</td> <td>75.00</td> </tr> <tr> <td>Allahabad Bank</td> <td>50.00</td> <td>Nil</td> <td>50.00</td> </tr> <tr> <td>Andhra Bank</td> <td>60.00</td> <td>Nil</td> <td>60.00</td> </tr> <tr> <td>Bank of Baroda</td> <td>65.00</td> <td>Nil</td> <td>65.00</td> </tr> </tbody> </table>


<tr> <td>ICICI Bank Ltd.</td> <td>40.00</td> <td>Nil</td> <td>40.00</td> </tr> <tr> <td>IDBI Bank Ltd.</td> <td>25.00</td> <td>Nil</td> <td>25.00</td> </tr> <tr> <td>Catholic Syrian Bank Ltd.</td> <td>25.00</td> <td>Nil</td> <td>25.00</td> </tr> <tr> <td>Corporation Bank</td> <td>50.00</td> <td>Nil</td> <td>50.00</td> </tr> <tr> <td><b>Total</b></td> <td><b>390.00</b></td> <td><b>Nil</b></td> <td><b>390.00</b></td> </tr> </table>

**Aggregate Fund Based Credit Limit with the Consortium : Rs. 390.0 Crore : 30.03.2012**

In consideration with the sanction of Fund Based Credit Limits to the Principal Borrower and in order to secure the interest of the BOI Consortium, the Defendants executed the following loan Joint Documents in favour of BOI consortium for aggregate credit limits of Rs. 390.0 Crore:-

- (i) Copy of the extract of the minutes of meeting of the board of directors of the Principal Borrower dated 30.03.2011;

- (ii) Letter of Authority dated 30.03.2011;

- (iii) Working capital consortium agreement dated 30.03.2011;

- (iv) Joint Deed of Hypothecation dated 30.03.2011;

- (v) Revival Letter dated 30.03.2011;

- (vi) Acknowledgment of debt and securities dated 30.03.2011;

- (vii) Deed of Guarantee dated 30.03.2011;

- (viii) Undertaking and Declaration dated 30.03.2011;

- (ix) Consent and disclosure dated 30.03.2011.

**Reconstitution of Consortium and Enhancement of the Credit Facilities dated 05.03.2012**

2.5 It is further stated in the OA that subsequently at the request(s) of the Principal Borrower the BOI Consortium enhanced the credit facilities to Rs. 600.0 Crore. Vide Inter Se Agreement dated 05.03.2012 (Consortium-II) the BOI Consortium was once again reconstituted and came to be comprised of the following banks:-

- (a) Bank of India

- (b) Allahabad Bank

- (c) Andhra Bank

- (d) Bank of Baroda

- (e) Central Bank of India

- (f) Corporation Bank

- (g) Dena Bank

- (h) Dhanlaxmi Bank Ltd.

- (i) ICICI Bank Ltd.

- (j) IDBI Bank Ltd.

It is stated in the OA that upon reconstitution of the BOI Consortium as mentioned herein above, the sanctioned limits of the Facilities granted to the Principal Borrower were enhanced at the request of the borrower as follows:- (Rs. in Crores)

<thead> <tr> <th>Name of Bank</th> <th>Fund Based</th> <th>Non-Fund Based</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Bank of India</td> <td>110</td> <td>Nil</td> <td>110</td> </tr> <tr> <td>Allahabad Bank</td> <td>50</td> <td>Nil</td> <td>50</td> </tr> <tr> <td>Andhra Bank</td> <td>90</td> <td>Nil</td> <td>90</td> </tr> <tr> <td>Bank of Baroda</td> <td>105</td> <td>Nil</td> <td>105</td> </tr> <tr> <td>Central Bank of India</td> <td>50</td> <td>Nil</td> <td>50</td> </tr> <tr> <td>Corporation Bank</td> <td>50</td> <td>Nil</td> <td>50</td> </tr> <tr> <td>Dena Bank</td> <td>70</td> <td>Nil</td> <td>70</td> </tr> <tr> <td>Dhanlaxmi Bank</td> <td>25</td> <td>Nil</td> <td>25</td> </tr> <tr> <td>ICICI Bank Ltd.</td> <td>25</td> <td>Nil</td> <td>25</td> </tr> </tbody> </table>


<tr> <td>IDBI Bank Ltd.</td> <td>25</td> <td>Nil</td> <td>25</td> </tr> <tr> <td><b>Total</b></td> <td><b>600</b></td> <td><b>Nil</b></td> <td><b>600</b></td> </tr> </table>

**Bank of India : Working Capital Limit of Rs. 60.0 Crore : 14.09.2012**

2.6 At the request of the Principal Borrower, Applicant no. 1 (BOI) enhanced the working capital limit to the tune of Rs. 60.0 crore (55 Crore Cash Credit Limit + 5 Crore Bank Guarantee). The Principal Borrower and Defendants no. 1 to 3 accepted the terms of the sanction and executed various individual documents in favour of the Applicant no. 1 to secure the loan. The relevant documents are as under:-

- (i) Sanction Letter dated 14.09.2012;

- (ii) Extract of the minutes of meeting of the Board of Directors of the Principal Borrower held on 19.09.2012;

- (iii) Deed of Guarantee executed between the Defendants and Applicant Bank dated 17.10.2012;

- (iv) Demand Promissory Note dated 17.10.2012;

- (v) Credit Facility Agreement dated 17.10.2012;

- (vi) Agreement of Hypothecation of Plant and Machinery, stocks and book debts dated 17.10.2012;

- (vii) Declaration – cum – Undertaking consideration of Applicant no. 1 dated 17.10.2012;

- (viii) Acknowledgment of debt and securities dated 17.10.2012;

- (ix) Omnibus Indemnity for Imports dated 17.10.2012;

- (x) Declaration from the borrower dated 17.10.2012;

- (xi) General counter guarantee featuring indemnity covering several guarantees within the sanctioned guarantee limit dated 17.10.2012;

(xii) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 19.09.2012.

**Reconstitution of Consortium and Enhancement of the Credit Facilities dated 18.01.2013**

2.7 It is further stated in the OA that subsequently at the request(s) of the Principal Borrower the BOI Consortium enhanced the credit facilities to Rs. 850.0 Crore. Vide Inter Se Agreement dated 18.01.2013 (Consortium-III) the BOI Consortium was once again reconstituted and came to be comprised of the following banks:-

- (a) Bank of India

- (b) Allahabad Bank

- (c) Andhra Bank

- (d) Bank of Baroda

- (e) Central Bank of India

- (f) Dena Bank

- (g) Dhanlaxmi Bank Ltd.

- (h) IDBI Bank Ltd.

It is stated in the OA that upon reconstitution of the BOI Consortium as mentioned herein above, the sanctioned limits of the Facilities granted to the Principal Borrower were enhanced at the request of the borrower as follows:- (Rs. in Crores)

<thead> <tr> <th>Name of Bank</th> <th>Fund Based</th> <th>Non-Fund Based</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Bank of India</td> <td>145.00</td> <td>Nil</td> <td>150.00</td> </tr> <tr> <td>Allahabad Bank</td> <td>75.00</td> <td>-</td> <td>75.00</td> </tr> <tr> <td>Andhra Bank</td> <td>135.00</td> <td>5.09</td> <td>140.00</td> </tr> </tbody> </table>


<tr> <td>Bank of Baroda</td> <td>135.00</td> <td>5.00</td> <td>140.00</td> </tr> <tr> <td>Central Bank of India</td> <td>75.00</td> <td>-</td> <td>75.00</td> </tr> <tr> <td>Corporation Bank</td> <td>75.00</td> <td>-</td> <td>75.00</td> </tr> <tr> <td>Dena Bank</td> <td>85.00</td> <td>-</td> <td>85.00</td> </tr> <tr> <td>Dhanlaxmi Bank Ltd.</td> <td>35.00</td> <td>-</td> <td>35.00</td> </tr> <tr> <td>IDBI Bank Ltd.</td> <td>65.00#</td> <td>10</td> <td>75.0</td> </tr> <tr> <td><b>Total</b></td>

</tr> </table>

#Interchangeable with Non Fund Limit to the tune of 25%

It is stated in the OA that following documents were executed by the Principal Borrower and the Defendants to secure the due repayment to BOI Consortium of enhanced credit facilities amounting to Rs. 850.0 Crore :-

- (i) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 16.01.2013;

- (ii) Letter of Authority dated 18.01.2013;

- (iii) Working Capital Consortium Agreement dated 18.01.2013;

- (iv) Joint Deed of Hypothecation dated 18.01.2013;

- (v) Deed of Guarantee dated 18.01.2013;

- (vi) Declaration cum Undertaking dated 18.01.2013;

- (vii) Revival Letter dated 18.01.2013;

- (viii) Consent of Disclosure dated 18.01.2013;

- (ix) ROC Charge dated 18.01.2013;

- (x) Undertaking dated 18.01.2013;

- (xi) Acknowledgment of debt and securities dated 18.01.2013.

**Bank of India : Working Capital Limit of Rs. 75.29 Crore : 30.10.2013**

2.8 At the request of the Principal Borrower, Applicant no. 1 (BOI) enhanced the working capital limit to the tune of Rs. 75.29 crore. The Principal Borrower and Defendants no. 1 to 3 accepted the terms of the sanction and executed various individual documents in favour of the Applicant no. 1 to secure the loan. The relevant documents are as under:-

- (i) Sanction Letter dated 30.10.2013;

- (ii) Extracts of the minutes of meeting of the Board of Directors of the Principal Borrower held on 10.11.2013;

- (iii) L-516 dated 10.11.2013;

- (iv) Import Trust Receipt 06.12.2013;

- (v) Omnibus Indemnity FBP / FBN 06.12.2013;

- (vi) Declaration cum Undertaking dated 06.12.2013;

- (vii) Certificate / Undertaking dated 06.12.2013;

- (viii) Deed of Guarantee executed between the Defendants 1-2 and Applicant Bank dated 06.12.2013;

- (ix) Extracts of the resolution passed by the Directors of the Principal Borrower dated 06.12.2013;

- (x) Demand Promissory Note dated 06.12.2013;

- (xi) Agreement of Hypothecation of Plant and Machinery, stocks and book debts dated 06.12.2013;

- (xii) Credit Facility Agreement dated 06.12.2013;

- (xiii) Declaration – cum – Undertaking consideration of Applicant no. 1 dated 06.12.2013;

- (xiv) Acknowledgment of Debt and Securities dated 06.12.2013;

- (xv) Deed of Guarantee by Defendant no. 1 dated 06.12.2013.


**Bank of India : Working Capital Limit of Rs. 109.0 Crore : 20.03.2014**

2.9 At the request of the Principal Borrower, Applicant no. 1 (BOI) sanctioned WCDL & FCL limits amounting to Rs. 109.0 crore. The Principal Borrower and Defendants no. 1 to 3 accepted the terms of the sanction and executed various individual documents in favour of the Applicant no. 1 to secure the loan. The relevant documents are as under:-

- (i) Sanction Letter dated 20.03.2014;

- (ii) Extracts of the minutes of meeting of the Board of Directors of the Principal Borrower held on 24.03.2014;

- (iii) L-516 dated 24.03.2014;

- (iv) Declaration from the Borrower dated 24.03.2014;

- (v) Declaration from the Borrower dated 24.03.2014;

- (vi) Demand Promissory Note dated 24.03.2014;

- (vii) Acknowledgment of Debt and Securities dated 24.03.2014;

- (viii) Demand Promissory Note dated 24.03.2014.

**Central Bank of India : Working Capital Limit of Rs. 125.0 Crore : 25.04.2014**

2.10 At the request of the Principal Borrower, Applicant no. 6 (Central Bank of India) sanctioned WCDL & FCL limits amounting to Rs. 125.0 crore. The Principal Borrower and Defendants no. 1 to 3 accepted the terms of the sanction and executed various individual documents in favour of the Applicant no. 6 to secure the loan. The relevant documents are as under:-

- (i) Supplementary Agreement;

- (ii) Packing Credit Agreement;


- (iii) Letter of Continuity;

- (iv) Letter of Interest;

- (v) Letter of Waiver;

- (vi) Agreement for Hypothecation of Current Asset;

- (vii) Application & Agreement of Letter of Credit;

- (viii) Omnibus Counter Guarantee for Letter of Credit;

- (ix) Agreement for Hypothecation of Fixed / Block Assets;

- (x) Demand Promissory Note;

- (xi) Agreement for Discounted / Negotiated / Purchased Bill;

- (xii) Guarantee for Advance & Credits Generally;

- (xiii) Extracts of the minutes of meeting of the Board of Directors of the Principal Borrower held on 24.03.2014.

**Reconstitution of Consortium and Enhancement of the Credit Facilities dated 13.06.2014**

2.11 It is further stated in the OA that subsequently at the request(s) of the Principal Borrower the BOI Consortium enhanced the credit facilities to Rs. 1125.0 Crore. Vide Inter Se Agreement dated 13.06.2014 (Consortium-IV) the BOI Consortium was once again reconstituted and came to be comprised of the following banks:-

- (a) Bank of India

- (b) Allahabad Bank

- (c) Andhra Bank

- (d) Bank of Baroda

- (e) Central Bank of India

- (f) Corporation Bank

- (g) Dena Bank


- (h) IDBI Bank Ltd.

- (i) Canara Bank

- (j) Syndicate Bank

(Rs. in Crores)

<thead> <tr> <th rowspan="2">Name of the Bank</th> <th colspan="3">Limits Sanctioned for the period 2013-2014</th> <th colspan="3">Allocation of Limits</th> </tr> <tr> <th>FB</th> <th>NFB</th> <th>Total</th> <th>FB</th> <th>NFB</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Bank of India</td> <td>220.00</td> <td>5.0</td> <td>225.00</td> <td>195.00</td> <td>5.0</td> <td>200.00</td> </tr> <tr> <td>Bank of Baroda</td> <td>180.00</td> <td>5.0</td> <td>185.00</td> <td>160.00</td> <td>5.0</td> <td>165.00</td> </tr> <tr> <td>Andhra Bank</td> <td>200.00</td> <td>5.0</td> <td>205.00</td> <td>190.00</td> <td>5.0</td> <td>195.00</td> </tr> <tr> <td>Dena Bank</td> <td>60.00</td> <td>-</td> <td>60.00</td> <td>60.00</td> <td>-</td> <td>60.00</td> </tr> <tr> <td>Allahabad Bank</td> <td>100.00</td> <td>-</td> <td>100.00</td> <td>95.00</td> <td>-</td> <td>95.00</td> </tr> <tr> <td>Central Bank of India</td> <td>125.00</td> <td>-</td> <td>125.00</td> <td>100.00</td> <td>-</td> <td>100.00</td> </tr> <tr> <td>Corporation Bank</td> <td>125.00</td> <td>-</td> <td>125.00</td> <td>105.00</td> <td>-</td> <td>105.00</td> </tr> <tr> <td>IDBI Bank</td> <td>100.00</td> <td>10.00</td> <td>110.00</td> <td>85.00</td> <td>10.00</td> <td>95.00</td> </tr> <tr> <td>Canara Bank</td> <td>100.00</td> <td>-</td> <td>100.00</td> <td>60.00</td> <td>-</td> <td>60.00</td> </tr> <tr> <td>Syndicate Bank</td> <td>75.00</td> <td>-</td> <td>75.00</td> <td>50.00</td> <td>-</td> <td>50.00</td> </tr> <tr> <td><b>Total</b></td>

</tr> </tbody> </table>

It is stated in the OA that following documents were executed by the Principal Borrower and the Defendants to secure the due repayment to BOI Consortium of enhanced credit facilities amounting to Rs. 1125.0 Crore :-

- (i) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 16.01.2013;

- (ii) Letter of Authority dated 13.06.2014;

- (iii) Working Capital Consortium Agreement dated 13.06.2014;

- (iv) Joint Deed of Hypothecation dated 13.06.2014;

- (v) Deed of Guarantee of Defendant no. 1 dated 13.06.2014;

- (vi) Deed of Corporate Guarantee of Defendant no. 2 dated 13.06.2014;

- (vii) Revival Letter dated 13.06.2014;

- (viii) Consent of Disclosure dated 13.06.2014;

- (ix) Declaration / Affidavit of Defendant no. 2 dated 13.06.2014;

- (x) Declaration / Affidavit of Mr. Avnish Kumar Srivastava dated 13.06.2014.

**Reconstitution of Consortium and Enhancement of the Credit Facilities dated 13.06.2014**

2.12 It is further stated in the OA that subsequently at the request(s) of the Principal Borrower the BOI Consortium enhanced the credit facilities to Rs. 1125.0 Crore. Vide Inter Se Agreement dated 25.07.2014 (Consortium-V) the BOI Consortium was once again reconstituted and came to be comprised of the following banks:-

- (a) Bank of India

- (b) Allahabad Bank

- (c) Andhra Bank

- (d) Bank of Baroda

- (e) Central Bank of India

- (f) Corporation Bank

- (g) IDBI Bank Ltd.

- (h) Canara Bank

- (i) Syndicate Bank

- (j) Dhanlaxmi Bank Ltd.

(Rs. in Crores)


<thead> <tr> <th rowspan="2">Name of the Bank</th> <th colspan="3">Limits Sanctioned for the period 2013-2014</th> <th colspan="3">Allocation of Limits</th> </tr> <tr> <th>FB</th> <th>NFB</th> <th>Total</th> <th>FB</th> <th>NFB</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Bank of India</td> <td>220.00</td> <td>5.0</td> <td>225.00</td> <td>195.00</td> <td>5.0</td> <td>200.00</td> </tr> <tr> <td>Bank of Baroda</td> <td>180.00</td> <td>5.0</td> <td>185.00</td> <td>160.00</td> <td>5.0</td> <td>165.00</td> </tr> <tr> <td>Andhra Bank</td> <td>200.00</td> <td>5.0</td> <td>205.00</td> <td>190.00</td> <td>5.0</td> <td>195.00</td> </tr> <tr> <td>Allahabad Bank</td> <td>100.00</td> <td>-</td> <td>100.00</td> <td>95.00</td> <td>-</td> <td>95.00</td> </tr> <tr> <td>Central Bank of India</td> <td>125.00</td> <td>-</td> <td>125.00</td> <td>125.00</td> <td>-</td> <td>125.00</td> </tr> <tr> <td>Corporation Bank</td> <td>125.00</td> <td>-</td> <td>125.00</td> <td>105.00</td> <td>-</td> <td>105.00</td> </tr> <tr> <td>IDBI Bank</td> <td>100.00</td> <td>10.00</td> <td>110.00</td> <td>85.00</td> <td>10.00</td> <td>95.00</td> </tr> <tr> <td>Canara Bank</td> <td>100.00</td> <td>-</td> <td>100.00</td> <td>60.00</td> <td>-</td> <td>60.00</td> </tr> <tr> <td>Syndicate Bank</td> <td>75.00</td> <td>-</td> <td>75.00</td> <td>50.00</td> <td>-</td> <td>50.00</td> </tr> <tr> <td>Dhanlaxmi Bank</td> <td>35.00</td> <td>-</td> <td>35.00</td> <td>35.00</td> <td>-</td> <td>35.00</td> </tr> <tr> <td><b>Total</b></td>

</tr> </tbody> </table>

\* Credit exposure limit for forward cover – validity one year – limit – Rs. 1.43 crore (calculated @2% of the exposure)

\*\* Overall aggregate exposure of Rs. 1126.43 Crore.

It is stated in the OA that following documents were executed by the Principal Borrower and the Defendants to secure the due repayment to BOI Consortium of enhanced credit facilities amounting to Rs. 1125.0 Crore :-

1. (i) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 23.07.2014;

2. (ii) Extracts of the minutes of the meeting of the Board of Directors of Defendant no. 2 held on 23.07.2014;

3. (iii) Letter of Authority dated 25.07.2014;

- (iv) Working Capital Consortium Agreement dated 25.07.2014;

- (v) Joint Deed of Hypothecation dated 25.07.2014;

- (vi) Deed of Guarantee of Defendant no. 1 dated 25.07.2014;

- (vii) Deed of Corporate Guarantee of Defendant no. 2 dated 25.07.2014;

- (viii) Revival Letter dated 25.07.2014;

- (ix) Consent of Disclosure dated 25.07.2014;

- (x) Declaration obtained from the borrower dated 25.07.2014;

- (xi) Letter of Negative Lien executed between Applicants and Defendant no. 1 on behalf of Principal Borrower 25.07.2014;

- (xii) Acknowledgement of Debt and Securities dated 25.07.2014.

Further more, the Defendant no. 3 in order to secure the facilities availed by the Principal Borrower executed its corporate guarantee in favour of BOI Consortium.

**Andhra Bank : Working Capital Limit of Rs. 195.0 Crore**

2.13 It is stated in the OA that at the request of the Principal Borrower, Applicant no. 2 (Andhra Bank) sanctioned OCC and BG limits amounting to Rs. 195.0 crore which was last renewed vide Sanction Letter dated 30.06.2017.

2.14 It is further stated in the OA that sometimes in 2017, following the disbursement of all previous sanctioned amounts, the members of BOI Consortium individually and collectively noticed that the accounts of Principal Borrower were becoming irregular and were not being serviced in the manner required under the agreements. Moreover, it was also 

noticed that Principal Borrower failed to maintain the financial discipline and also found to be acting in derogation of the provisions of the relevant Agreements.

In the said circumstances, repeated requests and reminders were addressed by the BOI Consortium calling upon Principal Borrower to regularize its accounts but the Principal Borrower omitted, failed and neglected to do so and to otherwise act in accordance with the norms and conditions of the sanction and did not adhere to the requisite financial discipline. Upon the continuous and unabated omission, neglect and failure on the part of Principal Borrower to regularize its account with the members of the BOI consortium, individually and / or collectively and to duly service the same as well as to perform its obligations under the various agreements executed with the Applicants herein, individually and or collectively, the Applicant were constrained to recall the facilities and to declare Principal Borrower's account as NPA on 31.08.2018 in accordance with RBI guidelines and applicable laws in that regard. The Applicant no. 4 declared the account of Principal Borrower as NPA on 16.09.2018. The Applicant no. 6 declared account of Principal Borrower's as NPA on 30.07.2018. The Applicant no. 2 declared the account of Principal Borrower as NPA on 31.07.2018.

**Hypothecation of Plant, Machinery, Fixed & Current Assets**

2.15 Notably, by way of security in lieu of the facilities extended by the BOI Consortium unto Principal Borrower, the BOI Consortium and/or its members were given charge with regard to plant and machinery and other fixed assets of Principal Borrower as well as over its fixed and current assets.

A brief description of the assets and properties hypothecated / mortgaged / line as contained in the Schedule Appended to the relevant charges is as under:-

- (i) First pari passu charge over current assets of the company i.e. on the stock and book debts;

- (ii) 10% cash margin for LC & BG in the form of FDR;

- (iii) First pari passu charge on entire fixed assets of the company;

- (iv) First pari passu charge on land and building of the existing plant situated in Khasra No. 15/13/2, 18/1, 18/2, 18/3, 14/2, 17, 23/1, 23/2, 24, 19 3-1, 4, 7/1 admeasuring 51 Kanal 0 Marla or 30855 sq. yds. Located at Village Softa, Tehsil Palwal, Dist. Faridabad, Haryana in the name of Company;

- (v) First pari passu charge by way of EQM on land situated at Khewat / Khata no. 2/2, Must. No. 15, Kila No. 19(7-15) Mese 19 min east (3-17) Kila no. 22(8-0) mese 22 min east (4-1) Must. No. 19, Kila No. 2(8-0) mese 2min east (4-1) & Must No. 19, Kila No. 3/2(2-3) & Must No. 19, Kila No. 8/2 (1-17) mese 8/2 min north (1-1) admeasuring 15 Kanal 1 Marla or 7612.29 sq. mtr. Located at Revenue Estate, Village Softa & District Palwal, Haryana in the name of Company;

- (vi) First pari passu charge by way of EQM of factory, land and building situated at Khata No. 296, Gata No. 902 admeasuring 138.30 sq. mtrs. located at Main Delhi Badaun State Highway, Revenue Estate, Village Mumrejpur, The, Dibai, Dist. Bulandshahar, U.P. in the name of Company;

- (vii) First pari passu charge by way of EQM of factory, land and building situated at Khata No. 53, 90, 28 &


15 and Khasra no. 110, 111, 103, 104, 105 & 110/2, 1 admeasuring 256.57 sq. mtrs. located at Village Kumhar hera Pargana, The & Dist. Saharanpur, U.P. in the name of Pashupati Dairies Pvt. Ltd.;

(viii) First pari passu charge by way of EQM on vacant piece of land situated at Khata No. 53, 90, 28 & 15 and Khasra no. 110, 111, 103, 104, 105 & 110/2, 1 admeasuring 256.57 sq. mtrs. located at Village Kumhar Hera Pargana, The & Dist. Saharanpur, U.P. in the name of Pashupati Dairies Pvt. Ltd.;

(ix) First pari passu charge by way of EQM on vacant piece of land situated at Khewat / Khatauni No. 54/56, Khasra No. 10/17 (5-4) admeasuring 4 Kanal 16 Marla i.e. 2904 sq. yds. located at Sector – 115, Mohali Village, Khuni Marja, the. Kharar, Dist. Ropar, now Mohali, Punjab in the name of JTPL Township Pvt. Ltd.;

(x) First pari passu charge by way of EQM on vacant piece of land situated at Khewat / Khatauni No. 80/84, Mushteel / Killa No. 27/8 (8-0), 9(8-0), 10/1 (7-0), 11/2 (2-0) & 12 (2-8) ½ share admeasuring 13 Kanal 14 Marla i.e. 8288.5 sq. yds. located at Sector – 115, Village Sante Majra, The. Kharar, Dist. Mohali, Punjab in the name of JTPL Township Ltd.;

(xi) Negative lien for non-disposal / non-transfer of 51% of equity shares held by Mr. Sanjay Dhingra;

(xii) Corporate Guarantee by M/s Pashupati Dairies Pvt. Ltd.;

(xiii) Corporate Guarantee by M/s JTPL Township Pvt. Ltd.

It is stated in the OA that the assets / properties were charged in favour of BOI Consortium under the Joint Deed of 

Hypothecation dated 18.01.2013, 13.06.2014 and 25.07.2014. It is further stated that the Applicants reserve their right to rely upon and refer to the same during the course of the proceedings as the same are not being extensively reproduced herein for the sake of brevity.

It is also stated in the OA that in order to secure the several loans, advances and facilities from the Applicants, individually or collectively, the Defendants created equitable mortgage(s) immovable properties as mentioned above in favour of the Applicants. In this regard, the Memorandum of Equitable Mortgage is annexed with the OA.

2.16 It is further stated in the OA that pursuant to the grant of loans, advances and facilities detailed in the proceeding paragraphs, Principal Borrower and the Defendants no. 1 & 2 also executed Revival Letter from time to time including on 15.03.2017 for the purpose of Section 18 of the Limitation Act, 1963.

**Notices of Demand and SARFAESI Notice, Invocation of Guarantee and Payment by Defendants no. 1 to 3**

2.17 It is stated in the OA that subsequent to the classification of the account of Principal Borrower as NPA, the Applicant(s) proceeded to invoke their rights under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) by issuing suitable notice(s) under Section 13(2) of SARFAESI Act dated 25.01.2019. The individual banks also issued separate notices which are as follows:-

- (i) Notice dated 17.10.2018 issued by Syndicate Bank (Applicant no. 5); 

- (ii) Notice dated 17.10.2018 issued by Andhra Bank (Applicant no. 2);

- (iii) Notice dated 03.08.2018 issued by Bank of Baroda (Applicant no. 3);

- (iv) Notice dated 01.08.2018 issued by Canara Bank (Applicant no. 8);

- (v) Notice dated 10.07.2019 issued by IDBI Bank (Applicant no. 4);

- (vi) Notice dated 22.10.2018 issued by Central Bank of India (Applicant no. 6).

It is stated in the OA that the Applicant(s) also sought to call upon Defendants no. 1 to 3 being the Guarantors with regard to the facilities availed of by the Principal Borrower to make payment, jointly and severally, in discharge and satisfaction of the outstanding liabilities of Principal Borrower by invoking the corresponding guarantees by issuing Guarantee Invocation Notices dated 25.01.2019. The consortium banks also issued separate notices as mentioned below:-

- (i) Notice dated 17.10.2018 issued by Syndicate Bank (Applicant no. 5);

- (ii) Notice dated 17.08.2018 issued by Andhra Bank (Applicant no. 2);

- (iii) Notice dated 14.01.2019 issued by Bank of Baroda (Applicant no. 3);

- (iv) Notice dated 01.08.2018 issued by Canara Bank (Applicant no. 8);

- (v) Notice dated 26.10.2018 issued by IDBI Bank (Applicant no. 4); **Outstanding amounts, Statement of Account and Certifications under Banker's Book Evidence Act**


2.18 It is stated in the OA that as on 15.02.2020, the total outstanding sums due and payable by the Defendants, jointly and severally, to the Applicant(s) under the several deeds, documents and instruments executed by them is tabulated below.

It is also stated that in terms of Judgment rendered by Hon'ble Supreme Court of India in its decision in the case of *Central Bank of India Vs. Ravindra*, the break up on the total outstanding sums due and payable by the Defendants unto the Applicants is expressed as follows:-

<thead> <tr> <th>S. No</th> <th>Applicant Bank</th> <th>Facility</th> <th>Principal</th> <th>Interest</th> <th>Penal Interest</th> <th>Aggregate amount due including Principal Amount, Interest and Penal Interest</th> </tr> </thead> <tbody> <tr> <td>1.</td> <td>Bank of India</td> <td>Working Capital Facility</td> <td>2048161698.00</td> <td>509066707.00</td> <td>57395588.00</td> <td>261,46,23,993.00</td> </tr> <tr> <td>2.</td> <td>Andhra Bank</td> <td>Fund Based – 1896,47,82,200/-<br/>None Fund Based – 48,90,000/-</td> <td>190,13,68,200/-</td> <td>53,19,55,170/-</td> <td></td> <td>243,33,23,370.00</td> </tr> <tr> <td>3.</td> <td>Bank of Baroda</td> <td>Working Capital Facility</td> <td>159,97,00,496</td> <td>49,50,59,691.78</td> <td>5,21,00,422.27</td> <td>214,69,80,610.05</td> </tr> <tr> <td>4.</td> <td>IDBI Bank Ltd.</td> <td>Working Capital</td> <td>89,72,56,038</td> <td>25,54,25,095</td> <td>2,86,58,959</td> <td>118,13,40,092.00</td> </tr> <tr> <td>5.</td> <td>Syndicate bank</td> <td>Working Capital</td> <td>49,96,92,829.13</td> <td>8,16,29,797.27</td> <td>16,65,914.22</td> <td>58,29,88,540.62</td> </tr> <tr> <td>6.</td> <td>Central Bank of India</td> <td>Working Capital</td> <td>124,95,50,688.72</td> <td>32,85,11,779</td> <td>4,49,02,065</td> <td>162,29,64,533.00</td> </tr> <tr> <td>7.</td> <td>Dhanlaxmi Bank</td> <td>Cash Credit</td> <td>350,00,00,000</td> <td>9,29,34,055.02</td> <td>-</td> <td>44,29,34,055.02</td> </tr> <tr> <td>8.</td> <td>Canara Bank</td> <td>Cash Credit</td> <td>65,52,79,854.99</td> <td>21,81,77,708.00</td> <td>-</td> <td>87,34,57,562.99</td> </tr> <tr> <td></td> <td><b>Total</b></td> <td></td> <td><b>1235,10,09,804.84</b></td> <td><b>251,27,90,003.07</b></td> <td><b>18,48,12,948.49</b></td> <td><b>1189,86,12,756.68</b></td> </tr> </tbody> </table>

It is stated in the OA that the interest / compound interest has been charged by each and all of the Applicant(s) at the rates applicable from time to time and in accordance with the regulations / directives and guidelines issued by the RBI in this regard.

2.19 Since, the Defendants failed to pay the amount due to the applicant banks (as stated above), hence, the Applicant Banks no. 1 to 8 have filed this OA before this Hon'ble Tribunal for seeking recovery of their dues from the defendants.

3. Notices of this O.A. were issued to the defendants and they also appeared through respective counsels. However, defendant no. 1 did not choose to file any WS.

3.1 So far as, defendants no. 2 & 3 are concerned, they filed their common WS on 27.10.2021 through Mr. Pravin Chandra Chaturasani, authorized officer of defendants no. 2 & 3. These defendants also filed IA No. 35/2022 for seeking condonation of delay in filing the WS.

3.2 In the meantime, during the pendency of this OA it was brought to the knowledge of this Tribunal that defendant no. 1 is before Ld. NCLT, Delhi and rest of the defendants are proforma parties. Accordingly, the said OA was disposed off vide Order dated 31.03.2022 of the Tribunal with liberty to the parties to revive the same in case of any court order, NCLT order or otherwise any need or any exigency to revive the same.

Thereafter, MA No. 72/2022 (after transfer to this Tribunal re-numbered as TMA no. 03/2024 ) was filed by the applicants praying therein to recall the Order dated 31.03.2022 passed in the OA proceedings to its original number against Defendants no. 2 & 3 which was allowed vide order dated 29.02.2024 & the OA was revived.

Since, the OA was revived, hence, IA no. 35/2022 was pressed by defendants no. 2 & 3 and the said IA was allowed vide order dated 14.05.2024 of this Tribunal and the WS of defendants no. 2 & 3 was taken on record.

3.3 Subsequently, IA No. 451/2026 was also filed by the applicant bank to revive the TA qua defendant no. 1 as no moratorium is going on against defendant no. 1. The said IA was allowed vide order dated 03.06.2024 of this Tribunal and the OA was revived qua defendant no. 1 as well. Since, defendant no. 1 did not chose to file any WS neither before disposal of OA nor after revival of OA qua defendant no. 1, hence, the case of applicant banks remained uncontested by defendant no. 1.

3.4 Defendants no. 2 & 3 have raised following main objections in their common WS:-

- (i) Defendants no. 2 & 3 have raised an objection that the applicant bank is trying to get relief qua one claim at multiple foras and in multiple proceedings i.e. before this Tribunal as well as before Ld. NCLT, Delhi;

- (ii) Next objection of Defendants no. 2 & 3 is that the alleged debt of the applicant banks is more than sufficient secured through mortgaged assets;

- (iii) Defendants no. 2 & 3 have also taken a plea that the statement of account is false and fabricated and the same is not supported with a proper certificate in terms of the Bankers' Books Evidence Act, 1891;

- (iv) Defendants no. 2 & 3 have also taken a plea that the amount claimed by way of present OA is unsubstantiated;

- (v) Next objection raised by defendants no. 2 & 3 is that the rate of interest charged by the applicant bank is exorbitant, harsh and the same was never agreed between the parties;

- (vi) Defendants no. 2 & 3 have also taken a plea that this Tribunal has no jurisdiction to try the present matter;

- (vii) Defendants no. 2 & 3 have also raised an objection that this OA has not been filed within the period of limitation;

- (viii) Defendants no. 2 & 3 have raised an objection that the alleged guarantee of defendants no. 2 & 3 stand discharged in terms of Section 133 of the Contract Act as the terms of the alleged loan transactions have been varied by the applicant bank unilaterally and without consent of the answering defendants; In the light of above, it has been prayed to reject the claim of the Applicant Banks against the answering defendants no. 2 & 3.

Defendants no. 2 & 3 have also filed certain documents along with their WS viz. Board Resolutions dated 08.10.2021 and 28.06.2021 of defendants no. 2 & 3 in favor of Mr. Pravin Chandra Chaturasani; agreements executed with media / marketing house; copy of sanction letters issued by KKR, BOI, Lenders including applicant banks from time to time in favour of Kvality Ltd. (Principal Borrower); Letters issued to BOB, Andhra Bank, Syndicate Bank, Canara Bank, Central Bank of India, IDBI Bank, Corporation Bank by Kvality Ltd.; Letters issued to Andhra; TEV report prepared for Kvality Limited in January 2016; copy of counter claim 

(without documents) filed by the answering defendants in OA No. 741/2018; copy of orders passed by Ld. NCLT, New Delhi with regard to Principal Borrower (D-1 to D-21).

4. It is pertinent to note here that during the pendency of this OA, name of Applicant no. 2 i.e. Corporation Bank was substituted with Union Bank of India. Similarly, name of Applicant no. 5 i.e. Syndicate Bank was also substituted with Canara Bank. Accordingly, amended memo of parties was filed by the Applicants.

5. To prove thier case, the Applicant Banks no. 1 to 8 lead their evidence by filling the affidavit of Sh. Pawan Kumar, Chief Manager of Applicant no. 1 / Bank of India on behalf of itself as well as for other applicant banks (being authorized signatory) who placed reliance upon the following documents filed by the Applicant Bank(s) :-

- (i) Copy of power of attorney of applicant bank in favour of the deponent (Ex. AW-1/1); **Documents with regard to initial loans and facilities sanctioned by Applicant no. 1 / BOI**

- (ii) L-516 dated 21.07.2010 (Ex.AW-1/2);

- (iii) Deed of Guarantee dated 21.07.2010 executed between the Applicant No. 1 and Defendants (Ex. AW-1/3);

- (iv) Agreement of Hypothecation of plant and machinery, stocks and book debts dated 21.07.2010 executed between the Principal Borrower and the Applicant No. 1 (Ex. AW-1/4);

- (v) Credit Facility Agreement dated 21.07.2010 executed between the Principal Borrower and the Applicant no. 1 (Ex. AW-1/5); 

- (vi) L-490 dated 21.07.2010 (Ex. AW-1/6);

- (vii) L-434 dated 21.07.2010 (Ex. AW-1/7);

- (viii) L-515 dated 21.07.2010 (Ex. AW-1/8);

- (ix) Declaration by the Principal Borrower to the Applicant stating that the directors of the company are not of ECGC caution list / specific approval list, RBI's defaulter's list / caution list, COFEPOSA defaulters list or out bank's defaulters list, and are not disqualified u/s 274 of the Companies Act. Additionally, the declaration states that the directors of the company are not facing any material legal cases except the legal cases against the company in the normal course of business dated 21.07.2010 (Ex. AW-1/9);

- (x) Declaration by the Defendants to Bank of India in relation to change in structure of the company dated 21.07.2010 (Ex. AW-1/10);

- (xi) Document executed by Bank of India stating the creation and extension of equitable mortgage over immovable property situated at village Softa Tehsil and District Palwal, Haryana dated 29.09.2010 (Ex. AW-1/11);

- (xii) Inter Se Agreement dated 30.03.2011 (Consortium-I) executed between the Banks namely Bank of India, Allahabad Bank, Andhra Bank, Bank of Baroda, ICICI Bank Ltd. IDBI Bank Ltd., Catholic Syrian Bank Ltd. and Corporation Bank (Ex. AW-1/12); **Documents with regard to Fund Based Credit Limit with the Consortium : Rs. 390.0 Crore : 30.03.2011**

- (xiii) Copy of the extract of the minutes of meeting of the board of directors of the Principal Borrower dated 30.03.2011 (Ex. AW-1/13);

- (xiv) Letter of Authority dated 30.03.2011 (Ex. AW-1/14);

- (xv) Working capital consortium agreement dated 30.03.2011 (Ex. AW-1/15);

- (xvi) Joint Deed of Hypothecation dated 30.03.2011 (Ex. AW-1/16);

- (xvii) Revival Letter dated 30.03.2011 (Ex. AW-1/17);

- (xviii) Acknowledgment of debt and securities dated 30.03.2011 (Ex. AW-1/18);

- (xix) Deed of Guarantee dated 30.03.2011 (Ex. AW-1/19);

- (xx) Undertaking and Declaration dated 30.03.2011 (Ex. AW-1/20);

- (xxi) Consent and disclosure dated 30.03.2011 (Ex. AW-1/21); **Documents with regard to reconstitution of consortium and enhancement of the Credit Facilities dated 05.03.2012**

- (xxii) Inter Se Agreement dated 05.03.2012 (Consortium-II) executed amongst the BOI Consortium members namely, Bank of India, Allahabad Bank, Andhra Bank, Bank of Baroda, Central Bank of India, Corporation Bank, Dena Bank, Dhanlaxmi Bank Ltd., ICICI Bank Ltd. and IDBI Bank Ltd. (Ex. AW-1/22); **Documents with regard to BOI : Working Capital Limit of Rs. 60.0 Crore : 14.09.2012**

- (xxiii) Sanction Letter dated 14.09.2012 (Ex. AW-1/23);

- (xxiv) Extract of the minutes of meeting of the Board of Directors of the Principal Borrower held on 19.09.2012 (Ex. AW-1/24);

- (xxv) Deed of Guarantee executed between the Defendants and Applicant Bank dated 17.10.2012 (Ex. AW-1/25);

- (xxvi) Demand Promissory Note dated 17.10.2012 (Ex. AW-1/26);

- (xxvii) Credit Facility Agreement dated 17.10.2012 (Ex. AW-1/27);

- (xxviii) Agreement of Hypothecation of Plant and Machinery, stocks and book debts dated 17.10.2012 (Ex. AW-1/28);

- (xxix) Declaration – cum – Undertaking consideration of Applicant no. 1 dated 17.10.2012 (Ex. AW-1/29);

- (xxx) Acknowledgment of debt and securities dated 17.10.2012 (Ex. AW-1/30);

- (xxxi) Omnibus Indemnity for Imports dated 17.10.2012 (Ex. AW-1/31);

- (xxxii) Declaration from the borrower dated 17.10.2012 (Ex. AW-1/32);

- (xxxiii) General counter guarantee featuring indemnity covering several guarantees within the sanctioned guarantee limit dated 17.10.2012 (Ex. AW-1/33);

- (xxxiv) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 19.09.2012 (Ex. AW-1/34); **Documents with regard to reconstitution of consortium and enhancement of the Credit Facilities dated 18.01.2013**

- (xxxv) Inter Se Agreement dated 18.01.2013 (Consortium-III) executed amongst the BOI Consortium banks namely Bank of India, Allahabad Bank, Andhra Bank, Bank of Baroda, Central Bank of India, Dena Bank, Dhanlaxmi Bank Ltd. and IDBI Bank Ltd. (Ex. AW-1/35);

(xxxvi) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 16.01.2013 (Ex. AW-1/36);

(xxxvii) Letter of Authority dated 18.01.2013 (Ex. AW-1/37); (xxxviii) Working Capital Consortium Agreement dated 18.01.2013 (Ex. AW-1/38);

(xxxix) Joint Deed of Hypothecation dated 18.01.2013 (Ex. AW-1/39);

(xl) Deed of Guarantee dated 18.01.2013 (Ex. AW-1/40);

(xli) Declaration cum Undertaking dated 18.01.2013 (Ex. AW-1/41);

(xlii) Revival Letter dated 18.01.2013 (Ex. AW-1/42);

(xliii) Consent of Disclosure dated 18.01.2013 (Ex. AW-1/43);

(xliv) ROC Charge dated 18.01.2013 (Ex. AW-1/44);

(xlv) Undertaking dated 18.01.2013 (Ex. AW-1/45);

(xlvi) Acknowledgment of debt and securities dated 18.01.2013 (Ex. AW-1/46); **Documents with regard to BOI : Working Capital Limit of Rs. 75.29 Crore : 30.10.2013**

(xlvii) Sanction Letter dated 30.10.2013 (Ex. AW-1/47);

(xlviii) Extracts of the minutes of meeting of the Board of Directors of the Principal Borrower held on 10.11.2013 (Ex. AW-1/48);

(xlix) L-516 dated 10.11.2013 (Ex. AW-1/49); 

- (l) Import Trust Receipt 06.12.2013 (Ex. AW-1/50);

- (li) Omnibus Indemnity FBP / FBN 06.12.2013 (Ex. AW-1/51);

- (lii) Declaration cum Undertaking dated 06.12.2013 (Ex. AW-1/52);

- (liii) Certificate / Undertaking dated 06.12.2013 (Ex. AW-1/53);

- (liv) Deed of Guarantee executed between the Defendants 1-2 and Applicant Bank dated 06.12.2013 (Ex. AW-1/54);

- (lv) Extracts of the resolution passed by the Directors of the Principal Borrower dated 06.12.2013 (Ex. AW-1/55);

- (lvi) Demand Promissory Note dated 06.12.2013 (Ex. AW-1/56);

- (lvii) Agreement of Hypothecation of Plant and Machinery, stocks and book debts dated 06.12.2013 (Ex. AW-1/57);

- (lviii) Credit Facility Agreement dated 06.12.2013 (Ex. AW-1/58);

- (lix) Declaration – cum – Undertaking consideration of Applicant no. 1 dated 06.12.2013 (Ex. AW-1/59-colly);

- (lx) Acknowledgment of Debt and Securities dated 06.12.2013 (Ex. AW-1/60);

- (lxi) Deed of Guarantee by Defendant no. 1 dated 06.12.2013 (Ex. AW-1/61); **Documents with regard to BOI : Working Capital Limit of Rs. 109.0 Crore : 20.03.2014**

- (lxii) Sanction Letter dated 20.03.2014 (Ex. AW-1/62);

- (lxiii) Extracts of the minutes of meeting of the Board of Directors of the Principal Borrower held on 24.03.2014 (Ex. AW-1/63);

- (lxiv) L-516 dated 24.03.2014 (Ex. AW-1/64);

- (lxv) Declaration from the Borrower dated 24.03.2014 (Ex. AW-1/65);

- (lxvi) Declaration from the Borrower dated 24.03.2014 (Ex. AW-1/66);

- (lxvii) Demand Promissory Note dated 24.03.2014 (Ex. AW-1/67);

- (lxviii) Acknowledgment of Debt and Securities dated 24.03.2014 (Ex. AW-1/68);

- (lxix) Demand Promissory Note dated 24.03.2014 (Ex. AW-1/69); **Documents with regard to Working Capital Limit of Rs. 125.0 Crore : 25.04.2014 (sanctioned by Central Bank of India / applicant no. 6)**

- (lxx) Supplementary Agreement (Ex. AW-6/2);

- (lxxi) Packing Credit Agreement (Ex. AW-6/3);

- (lxxii) Letter of Continuity (Ex. AW-6/4);

- (lxxiii) Letter of Interest (Ex. AW-6/5);

- (lxxiv) Letter of Waiver (Ex. AW-6/6);

- (lxxv) Agreement for Hypothecation of Current Asset (Ex. AW-6/7);

- (lxxvi) Application & Agreement of Letter of Credit (Ex. AW-6/8);

- (lxxvii) Omnibus Counter Guarantee for Letter of Credit (Ex. AW-6/9);

- (lxxviii) Agreement for Hypothecation of Fixed / Block Assets (Ex. AW-6/10);

- (lxxix) Demand Promissory Note (Ex. AW-6/11); 

- (lxxx) Agreement for Discounted / Negotiated / Purchased Bill (Ex. AW-6/12);

- (lxxxi) Guarantee for Advance & Credits Generally (Ex. AW-6/13); **Documents with regard to reconstitution of consortium and enhancement of the credit facilities dated 13.06.2014**

- (lxxxii) Extracts of the minutes of meeting of the Board of Directors of the Principal Borrower held on 24.03.2014 (Ex. AW-1/70);

- (lxxxiii) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 16.01.2013 (Ex. AW-1/71);

- (lxxxiv) Letter of Authority dated 13.06.2014 (Ex. AW-1/72);

- (lxxxv) Working Capital Consortium Agreement dated 13.06.2014 (Ex. AW-1/73);

- (lxxxvi) Joint Deed of Hypothecation dated 13.06.2014 (Ex. AW-1/74);

- (lxxxvii) Deed of Guarantee of Defendant no. 1 dated 13.06.2014 (Ex. AW-1/75);

- (lxxxviii) Deed of Corporate Guarantee of Defendant no. 2 dated 13.06.2014 (Ex. AW-1/76);

- (lxxxix) Revival Letter dated 13.06.2014 (Ex. AW-1/77);

- (xc) Consent of Disclosure dated 13.06.2014 (Ex. AW-1/78);

- (xci) Declaration / Affidavit of Defendant no. 2 dated 13.06.2014 (Ex. AW-1/79);

- (xcii) Declaration / Affidavit of Mr. Avnish Kumar Srivastava dated 13.06.2014 (Ex. AW-1/80); **Documents with regard to reconstitution of consortium and enhancement of the credit facilities dated 13.06.2014**


- (xciii) Inter Se Agreement dated 25.07.2014 (Consortium-V) executed amongst the BOI Consortium Banks viz. Bank of India, Allahabad Bank, Andhra Bank, Bank of Baroda, Central Bank of India, Corporation Bank, IDBI Bank Ltd., Canara Bank, Syndicate Bank and Dhanlaxmi Bank Ltd. (Ex. AW-1/81);

- (xciv) Extracts of the minutes of the meeting of the Board of Directors of Principal Borrower held on 23.07.2014 (Ex. AW-1/82);

- (xcv) Extracts of the minutes of the meeting of the Board of Directors of Defendant no. 2 held on 23.07.2014 (Ex. AW-1/83);

- (xcvi) Letter of Authority dated 25.07.2014 (Ex. AW-1/84);

- (xcvii) Working Capital Consortium Agreement dated 25.07.2014 (Ex. AW-1/85);

- (xcviii) Joint Deed of Hypothecation dated 25.07.2014 (Ex. AW-1/86);

- (xcix) Deed of Guarantee of Defendant no. 1 dated 25.07.2014 (Ex. AW-1/87);

- (c) Deed of Corporate Guarantee of Defendant no. 2 dated 25.07.2014 (Ex. AW-1/88);

- (ci) Revival Letter dated 25.07.2014 (Ex. AW-1/89);

- (cii) Consent of Disclosure dated 25.07.2014 (Ex. AW-1/90-colly);

- (ciii) Declaration obtained from the borrower dated 25.07.2014 (Ex. AW-1/91);

- (civ) Letter of Negative Lien executed between Applicants and Defendant no. 1 on behalf of Principal Borrower 25.07.2014 (Ex. AW-1/92); 

- (cv) Acknowledgement of Debt and Securities dated 25.07.2014 (Ex. AW-1/93);

- (cvi) Corporate Guarantee executed by defendant no. 3 in favour of BOI Consortium (Ex. AW-1/94); **Documents with regard to Working Capital Limit of Rs. 195.0 Crore sanctioned by Andhra Bank**

- (cvii) Sanction Letter of Andhra Bank (Ex. AW-2/2);

- (cviii) Copy of the memorandum of equitable mortgage (Ex. AW-1/95);

- (cix) Revival Letter executed by the Principal Borrower / defendants (Ex. AW-1/96);

- (cx) Notice(s) under Section 13(2) of SARFAESI Act dated 25.01.2019 issued by the Applicant(s) (Ex. AW-1/97);

- (cxi) Notice dated 17.10.2018 issued by Syndicate Bank (Applicant no. 5) (Ex. AW-5/2);

- (cxii) Notice dated 17.10.2018 issued by Andhra Bank (Applicant no. 2) (Ex. AW-2/3);

- (cxiii) Notice dated 03.08.2018 issued by Bank of Baroda (Applicant no. 3) (Ex. AW-3/2);

- (cxiv) Notice dated 01.08.2018 issued by Canara Bank (Applicant no. 8) (Ex. AW-8/2);

- (cxv) Notice dated 10.07.2019 issued by IDBI Bank (Applicant no. 4) (Ex. AW-4/2);

- (cxvi) Notice dated 22.10.2018 issued by Central Bank of India (Applicant no. 6) (Ex. AW-6/14);

- (cxvii) Guarantee Invocation Notices dated 25.01.2019 issued by the Applicant(s) (Ex. AW-1/98);

- (cxviii) Notice dated 17.10.2018 issued by Syndicate Bank (Applicant no. 5) (Ex. AW-5/3);

- (cxix) Notice dated 17.08.2018 issued by Andhra Bank (Applicant no. 2) (Ex. AW-2/4); 

- (cxx) Notice dated 14.01.2019 issued by Bank of Baroda (Applicant no. 3) (Ex. AW-3/3);

- (cxxi) Notice dated 01.08.2018 issued by Canara Bank (Applicant no. 8) (Ex. AW-8/3);

- (cxxii) Notice dated 26.10.2018 issued by IDBI Bank (Applicant no. 4) (Ex. AW-4/3);

- (xi) Certified true copy of the statement of account duly maintained by Bank of India and other consortium members (Ex. AW-1/99-colly), (Ex. AW-2/5-colly), (Ex. AW-3/4-colly); (Ex. AW-4/4-colly); (Ex. AW-5/4-colly); (Ex. AW-6/15-colly); (Ex. AW-7/2-colly) and (Ex. AW-8/4-colly);

- (xii) Certificate(s) under Bankers' Book Evidence Act, 1891 (Ex. AW-1/100); (Ex. AW-2/6-colly); (Ex. AW-3/5-colly); (Ex. AW-4/5-colly); (Ex. AW-5/5-colly); (Ex. AW-6/16-colly), (Ex. AW-7/3-colly) and (Ex. AW-8/5-colly).

**6. Heard and perused the record.**

**6.1 It is matter of record that CIRP proceedings qua Principal Borrower are also pending before Ld. NCLT, hence, no relief has been claimed by applicant(s) qua Principal Borrower nor it has been impleaded in this OA.**

**6.2 It is also matter of record that though Defendant no. 1 appeared through counsel but did not chose to file the WS. Thus, the case of Applicant(s) herein remained uncontested by Defendant no. 1.**

**6.3 So far as, defendants no. 2 & 3 are concerned, they filed their common WS raising certain objections qua the claim of applicant(s) herein.**


However, it is pertinent to note here that CIRP proceedings have been commenced qua Principal Borrower as well as Defendants 2 & 3 herein / corporate Guarantors to the Borrower Company which is also before Ld. NCLT, Delhi.

Since CIRP proceedings qua defendants no. 2 & 3 are pending before Ld. NCLT, hence, no order qua defendants no. 2 & 3 can be passed by this Tribunal, at this stage. In these circumstances there is no need to deal with the objections raised by defendants no. 2 & 3 in their WS.

However, it is directed that applicant(s) shall be at liberty to revive the OA qua defendants no. 2 & 3 in case NCLT proceedings are quashed / withdrawn in future, in accordance with law.

It is now directed that in case Applicant Bank (s) receive any amount from the CIRP proceedings pending qua Principal Borrower as well as Defendants no. 2 & 3 / Corporate Guarantor(s) to Borrower Company, pending before Ld. NCLT, Delhi, they shall give due adjustment of the same in the recovery proceedings.

6.3 On the other hand, the witness of Applicant/s has fully corroborated the averments made in the OA. Even otherwise the whole case of the applicant is based on the documents and the witness has duly proved all these documents. The evidence filed by the applicants gone unrebuted and there is no question of disbelieving the evidence lead by the applicant bank and applicant bank has proved its case beyond reasonable doubts. Accordingly, the Applicant(s) are entitled to recover the entire amount, as claimed in the OA from the defendants, along with pendentelite interest @12% p.a. and costs of this OA.

6.4 In this OA, Applicant(s) have prayed to issue recovery certificate against defendants no. 1 to 3 (defendant no. 1 being personal guarantor and defendants no. 2 & 3 being corporate guarantors to the borrower company).

6.5 It is matter of record that the Principal Borrower is already before Ld. NCLT, New Delhi, hence, it has neither been impleaded in this OA nor any relief has been sought by applicant(s) herein.

6.6 Since CIRP proceedings qua defendants no. 2 & 3 herein are also pending before Ld. NCLT, Delhi, no order qua defendants no. 2 & 3 can be passed by this Tribunal at this stage.

However, it is directed that applicant(s) shall be at liberty to revive the OA qua defendants no. 2 & 3 in case NCLT proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant receives any amount from the CIRP / personal insolvency proceedings qua Principal Borrower as well as Defendants no. 2 & 3 (being Corporate Guarantors to Borrower Company), pending before Ld. NCLT, Delhi, it shall give due adjustment of the same in the recovery proceedings.

7. Consequently, TA No. 06/2024 is liable to be allowed in favour of the Applicant(s) herein and against defendant 1 / Personal Guarantor to Borrower Company, as he is liable to pay the dues of the Applicant(s) herein along with costs and pendentelite & future interest @12% p.a. from the date of filing of the OA till its actual realization in full.

ORDER


(i) TA No. 06/2024 stands allowed in favour of applicant(s) herein against defendant no. 1 for a sum of Rs. 1189,86,12,756.68/- (Rupees One Thousand One Hundred Eighty Nine Crore Eighty Six Lakh Twelve Thousand Seven Hundred Fifty Six only) due as on 15.02.2020 in following manner:-

<thead> <tr> <th>S. No.</th> <th>Applicant Bank</th> <th>Aggregate amount due including Principal Amount, Interest and Penal Interest</th> </tr> </thead> <tbody> <tr> <td>1.</td> <td>Bank of India</td> <td>261,46,23,993.00</td> </tr> <tr> <td>2.</td> <td>Union Bank of India (e-Andhra Bank)</td> <td>243,33,23,370.00</td> </tr> <tr> <td>3.</td> <td>Bank of Baroda</td> <td>214,69,80,610.05</td> </tr> <tr> <td>4.</td> <td>IDBI Bank Ltd.</td> <td>118,13,40,092.00</td> </tr> <tr> <td>5.</td> <td>Canara Bank (e-Syndicate bank)</td> <td>58,29,88,540.62</td> </tr> <tr> <td>6.</td> <td>Central Bank of India</td> <td>162,29,64,533.00</td> </tr> <tr> <td>7.</td> <td>Dhanlaxmi Bank</td> <td>44,29,34,055.02</td> </tr> <tr> <td>8.</td> <td>Canara Bank</td> <td>87,34,57,562.99</td> </tr> <tr> <td></td> <td><b>Total</b></td> <td><b>1189,86,12,756.68</b></td> </tr> </tbody> </table>

along with pendentelite and future interest @12% p.a. from the date of filing of the OA till its actual realization in full; along with costs of this OA. Now Defendant no. 1 is directed to pay the aforesaid amount(s) to the Applicant(s) herein within 30-days, failing which, the aforesaid amount(s) shall be recovered from the sale of secured assets (mortgaged / hypothecated / pledged) belonging to defendant no. 1.

In case of shortfall, same shall be recovered from the sale movable and immovable assets of the defendant no. 1.

- (i) Since CIRP proceedings qua defendants no. 2 & 3 and Principal Borrower are pending before Ld. NCLT, Delhi, no order qua defendants no. 2, 3 & Principal Borrower can be passed by this Tribunal at this stage.

However, it is directed that applicant shall be at liberty to revive the OA qua defendants no. 2 & 3 in case NCLT proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant (s) receives any amount from the CIRP proceedings pending qua Defendants no. 2 & 3 (being Corporate Guarantors to Borrower Company) as well as Principal Borrower Company, pending before Ld. NCLT, Delhi, it shall give due adjustment of the same in the recovery proceedings.

- (ii) It is also directed that the sale proceeds of the secured assets shall be distributed between the consortium members, as per inter-se agreements executed amongst them.

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

In case of shortfall, same shall be recovered from the sale movable and immovable assets of the defendant no. 1.

- (i) Since CIRP proceedings qua defendants no. 2 & 3 and Principal Borrower are pending before Ld. NCLT, Delhi, no order qua defendants no. 2, 3 & Principal Borrower can be passed by this Tribunal at this stage.

However, it is directed that applicant shall be at liberty to revive the OA qua defendants no. 2 & 3 in case NCLT proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant (s) receives any amount from the CIRP proceedings pending qua Defendants no. 2 & 3 (being Corporate Guarantors to Borrower Company) as well as Principal Borrower Company, pending before Ld. NCLT, Delhi, it shall give due adjustment of the same in the recovery proceedings.

- (ii) It is also directed that the sale proceeds of the secured assets shall be distributed between the consortium members, as per inter-se agreements executed amongst them.

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

- (iv) The recovery certificate be issued forthwith and be sent to the Recovery Officer-II, Debts Recovery Tribunal-III, Delhi.

- (v) Parties are directed to appear before the Recovery Officer-II, DRT-III, Delhi on 30.04.2026.

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

File be closed and consigned to records.

25.02.2026

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

(Pronounced in open court) Dated: 25.02.2026