BANK OF BARODA vs MUKESH KUMAR GUPTA AND ORS on 20 May 2026

**FINAL ORDER**

1. 1. This original application has been filed by the Applicant Bank i.e. Bank of Baroda (BOB), on 02.05.2019, through Mr. Anshu Kumar, Chief Manager and Authorized 

Officer of Applicant Bank, under Section 19 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 against the defendants no. 1 to 5 for recovery of a sum of Rs. 114,00,56,332.86 P. (Rupee One Hundred Fourteen Crore Fifty Six Thousand Three Hundred Thirty Two and Paise Eighty Six only) being the amount due as on 31.03.2019 together with pendentelite and future interest thereof at the rate of 13.65% (i.e. 11.65% with monthly rests + 2% penal per annum simple) and cost, charges etc. and other relief(s).

1.2 It is pertinent to note here that this OA bearing no. 576/2019 was originally filed before Ld. DRT-II, Delhi, however, in pursuance to Gazette Notification No. 4718 (E) dated 04.10.2022 issued by Government of India, Department of Financial Services, Ministry of Finance, this case file was transferred by Ld. DRT-II, Delhi to this Tribunal in October 2022 and was numbered at TA-133/2022.

2. The brief facts of the case are that the Applicant Bank i.e. Bank of Baroda (BOB) is a Banking Company, being a body corporate constituted under the banking Companies (Acquisition and transfer of Undertakings) Act, 1970. It is stated in the OA that the Applicant is a body corporate having perpetual succession and may be sued in its name. The Applicant is a "Bank" as defined under Section 2(d) of the "Recovery of Debts and Bankruptcy Resolution and Bankruptcy of Individual and Partnership Firms Act, 1993".

It is also stated that the credit facilities were sanctioned by the Applicant Bank (BOB) at its Mid Corporate Branch, Bank of India Building, 16, Sansad Marg, New Delhi – 110001 and presently the accounts of credit facilities are being maintained with the Applicant Bank (BOB) at its Corporate Financial Services Branch, Bank of Baroda Building, 16, Sansad Marg, New Delhi – 110001.

It is further stated that as per the Gazette of India, Notification dated 02.01.2019, "the Amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda Scheme, 2019", the undertakings, all business, assets etc. of Vijaya Bank and Dena Bank have been transferred to and vested with BOB w.e.f. 01.04.2019. Therefore, the credit facilities sanctioned and granted by erstwhile Vijaya Bank, Corporate Banking Branch 1, Vijaya Building, Barakhamba Road, New Delhi – 110001 have been consolidated with the credit facilities sanctioned and granted by BOB at its Corporate Financial Services Branch, Bank of Baroda Building, 16, Sansad Marg, New Delhi – 110001.

It is also stated in the OA that the present OA is being signed, verified and instituted on behalf of the Applicant Bank by Sh. Anshu Kumar, Chief Manager of the Applicant Bank who is a Principal officer and also a constituted attorney of the Applicant Bank. It is further stated that Sh. Anshu Kumar is duly authorized and competent to sign, verify and file the present OA on behalf of the Applicant Bank and to do all acts, deeds and things in general for the due prosecution of the present OA in pursuance to Power of Attorney dated 04.04.2019 executed by the Applicant Bank in his favour.

2.1 It is stated in the OA that the Defendant no. 7 i.e. M/s Shilpi Cable Technologies Limited (Borrower) has been the beneficiary of the credit facilities sanctioned and granted by the Applicant Bank from time to time. It is further stated that Defendant no. 7 is the Principal Borrower of the Applicant Bank and availed the credit facilities from the Applicant Bank in the form of Working Capital Facilities under Consortium Arrangement led by Defendant no. 8 (IDBI Bank Ltd.).

Defendants no. 1, 2 & 3 are the Personal Guarantors who have signed and executed Deeds of Guarantee for repayment of the entire outstanding dues under the Credit Facilities granted by the Applicant Bank to Defendant no. 7. Hence, they are jointly and severally liable for the repayment of entire outstanding dues against Defendant no. 7.

Defendants no. 4 to 6 are the Corporate Guarantors who have signed and executed Deeds of Corporate Guarantee for repayment of the entire outstanding dues under the Credit Facilities granted by the Applicant Bank to Defendant no. 7. Hence, they are jointly and severally liable for the repayment of entire outstanding dues against Defendant no. 7.

Further, Defendants no. 1, 2, 6 & 7 are also the Mortgagors having created / extended the charge of mortgage on their respective immovable properties from time to time to secure the credit facilities availed by Defendant no. 7.

In addition to this, the Applicant and Defendants no. 8 to 19 are the member banks of the Consortium led by Defendant no. 8 – IDBI Bank Ltd. Defendants no. 8 to 19 are proforma Defendants as there is no pecuniary claim and/or relief is being prayed for, against the Proforma Defendants. The present OA claim amount and reliefs are prayed for Defendants no. 1 to 5, who are the joint and several guarantors in respect of the credit facilities availed by Defendant no. 7 (Borrower).

It is also stated in the OA that the Defendant no. 7 (Principal Borrower) is currently under the Corporate Insolvency Resolution Process initiated by the National Company Law Tribunal, Principal Bench under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. It is further stated that vide Order dated 24.05.2017, the Ld. NCLT has declared the moratorium in accordance with Section 14 of IBC 2016 which, amongst others, prohibits transferring, encumbering, alienating or disposing off the assets of the Defendant no. 7 and foeclosure, recovery or enforcement of any security interest created over the assets of the Defendant no. 7.

Similarly, Defendant no. 6 (one of the Corporate Guarantor) is also currently under the Corporate Insolvency Resolution Process initiated by the National Company Law Tribunal, Principal Bench under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. It is further stated that vide Order dated 14.03.2018, the Ld. NCLT has declared the moratorium in accordance with Section 14 of IBC 2016 which, amongst others, prohibits transferring, encumbering, alienating or disposing off the assets of the Defendant no. 6 and foeclosure, recovery or enforcement of any security interest created over the assets of the Defendant no. 6.

Thus, in view of the declaration of moratorium under Section 14 of IBC 2016, no relief is being claimed / prayed for against Defendant no. 7 (Borrower) and Defendant no. 6 (one of the Corporate Guarantors) in the present OA, however,

Applicant Bank reserves the right to proceed against Defendants no. 6 & 7 at the appropriate stage for praying the entire claim amount with pendente lite and future interest, cost, charges and expenses etc. and so also enforcing the securities owned by Defendants no. 6 & 7, which are hypothecated and/or mortgaged and/or charged to the Applicant and/or to pray for any other relief as the facts and 2.2 It is stated in the OA that the Applicant Bank, on request of Defendant No.7 (Borrower) sanctioned various financial facilities vide Bank of Baroda's sanction letter dated 12.07.2012 and erstwhile Vijaya Bank's sanction letter dated 25.11.2014 on the terms and conditions enumerated therein. It is further stated that the credit facilities were modified/renewed/enhanced from time to time on 2014, 03.02.2016 and the credit facilities were lastly sanctioned/renewed/enhanced to the Defendant No.7 (Borrower) on 06.01.2016 by Bank of Baroda for credit facilities of Rs.40.50 crores and on 30.01.2016 by erstwhile Vijaya Bank for credit facilities of rs. 57.00 Crore, being part of total working capital consortium limits of Rs.1225.00 crores. It is also stated that the security documents for consortium limits were executed by defendants on 07.03.2017, 10.03.2017 and 25.04.2017 in favor of the Applicant Bank and consortium member banks.

It is stated in the OA that the Board of Directors of Defendant No. 7 (Borrower) vide its resolutions dated 06.03.2017 authorized to accept the terms and conditions of the sanction, execute security documents and create securities on behalf of Defendant No.7 (Borrower) in favour of consortium member banks.

It is stated in the OA that the Board of Directors of Defendant No. 4 vide its Resolution dated 06.03.2017 authorized to furnish guarantee for the financial facilities availed by Defendant No.7 (Borrower), execute security documents and create securities in favour of consortium member banks.

Further, the Board of Directors of Defendant No. 5 vide its Resolution dated 06.03.2017 authorized to furnish guarantee for the financial facilities availed by Defendant No.7 (Borrower), execute security documents and create securities in favour of consortium member banks.

Moreover, the Board of Directors of Defendant No. 6 vide its Resolution dated 06.03.2017 authorized to furnish guarantee for the financial facilities availed by Defendant No.7 (Borrower), execute security documents and create securities in favour of consortium member banks.

The details of exposure of consortium banks as on 2017 are as under:- (Rs. in Crores)

<table border="1"> <thead> <tr> <th rowspan="2">IDBI Consortium / Member Bank</th> <th colspan="3">Existing Facilities</th> <th colspan="3">Facilities</th> </tr> <tr> <th>Fund Based</th> <th>Non Fund Based</th> <th>Total</th> <th>Fund Based</th> <th>Non Fund Based</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>IDBI Bank Limited (Lead)</td>

<td>140.00</td> <td>200.00</td> <td>65.00</td> <td>175.00</td> <td>250.00</td> </tr> <tr> <td>Punjab National Bank</td> <td>20.00</td> <td>100.00</td> <td>120.00</td> <td>20.00</td> <td>100.00</td> <td>120.00</td> </tr> <tr> <td>Andhra Bank</td> <td>20.00</td> <td>45.00</td> <td>65.00</td> <td>20.00</td> <td>45.00</td> <td>65.00</td> </tr> <tr> <td>Union Bank of India</td> <td>12.00</td> <td>48.00</td> <td>60.00</td> <td>12.00</td> <td>48.00</td>

</tr> <tr> <td>Bank of Baroda</td> <td>6.50</td> <td>34.00</td> <td>40.50</td> <td>6.50</td> <td>34.00</td> <td>40.50</td> </tr> <tr> <td>Oriental Bank of</td> <td>9.00</td> <td>24.00</td> <td>33.00</td> <td>9.00</td> <td>24.00</td> <td></td> </tr> </tbody> </table>

<table border="1"> <tr> <td>Commerce</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td></td> </tr> <tr> <td>Canara Bank</td> <td>18.00</td> <td>43.50</td> <td>61.50</td> <td>18.00</td> <td>43.50</td> <td>61.50</td> </tr> <tr> <td>Axis Bank Limited</td> <td>7.50</td> <td>17.50</td> <td>25.00</td> <td>7.50</td> <td>17.50</td> <td>25.00</td> </tr> <tr> <td>Bank of India</td>

<td>50.00</td> <td>20.00</td> <td>60.00</td> <td>80.00</td> </tr> <tr> <td>Vijaya Bank</td> <td>13.00</td> <td>44.00</td> <td>57.00</td> <td>13.00</td> <td>44.00</td> <td>57.00</td> </tr> <tr> <td>State Bank of India</td> <td>20.00</td> <td>30.00</td> <td>50.00</td> <td>50.00</td> <td>30.00</td> <td>80.00</td> </tr> <tr> <td>State Bank of Hyderabad</td> <td>20.00</td> <td>30.00</td> <td>50.00</td> <td>20.00</td> <td>30.00</td> <td>50.00</td> </tr> <tr> <td>State Bank of Bikaner &amp; Jaipur</td>

<td>50.00</td>

<td>50.00</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>15.00</td> <td>35.00</td> <td>50.00</td> <td>15.00</td> <td>35.00</td> <td>50.00</td> </tr> <tr> <td>Syndicate Bank</td> <td>5.00</td> <td>20.00</td> <td>25.00</td> <td>5.00</td> <td>20.00</td> <td>25.00</td> </tr> <tr> <td>United Gap</td> <td></td> <td></td> <td></td> <td></td> <td></td> <td>150.00</td> </tr> <tr> <td>Total</td> <td>251.00</td> <td>724.00</td> <td>975.00</td> <td>276.00</td> <td>799.00</td> <td>1225.00</td> </tr> </table>

Further more, details of securities have been given in Para 5(5.9) of the OA.

2.3 It is stated in the OA that after passing respective Board Resolutions and accepting the terms and conditions of sanction letters, in order to avail Working capital facilities of Rs.40.50 Crores (Bank of Baroda) and Rs.57.00 Crores (erstwhile Vijaya Bank) out of total consortium limits of Rs.1225.00 Crores, Defendants through their authorized representatives in addition to the existing security documents, also signed, executed and created securities under consortium arrangements led by IDBI Bank Ltd. It is stated in the OA that the Defendants signed and executed following security documents and created securities by the defendants under consortium arrangement, inter alia, in favour of the Applicant:- **WORKING CAPITAL FACILITIES OF Rs, 1225 CRORES**

- (i) Lender's Agent Agreement dated 07.03.2017 executed between the Defendant No. 7 - Borrower, IDBI Bank Limited (Lead Bank), IDBI Bank Limited (Lender's Agent) and other Lenders;

- (ii) Amendatory and Restated Working Capital Consortium Facility Agreement dated 07.03.2017 executed between Defendant No. 7 -Borrower (Shilpi Cable Technologies Limited), IDBI Bank Ltd. (a lead bank and lender) and other lenders

- (iii) Amended and Restated Inter-se Agreement dated 07.03.2017 executed among IDBI Bank - lead bank and other consortium lenders;

- (iv) Conformation of Inter-se Agreement and Lender's Agent Agreement dated 7.03.2017 by Defendant No. 7 - Borrower (Shilpi Cable technologies Limited);

- (v) Letter of Authority dated 07.03.2017 signed by other consortium lenders in favour of IDBI Bank Ltd.;

- (vi) Declaration and undertaking dated 07.03.2017 by Defendant No.1 Mr. Mukesh Kumar Gupta;

- (vii) Declaration and undertaking dated 07.03.2017 by Defendant No. 2 Mr. Vishal Goel;

- (viii) Declaration and undertaking dated 07.03.2017 by Defendant No.7 M/s. Shilpi Cable Technologies Ltd.;

- (ix) Declaration and undertaking dated 07.03.2017 by Defendant No. 6- M/s. Shilpi Cables Pvt. Ltd.;

- (x) Undertaking dated 07.03.2017 by Defendant No. 1 - Mr. Mukesh Kumar Gupta;

- (xi) Affidavit dated 07.03.2017 of Defendant No. 1 - Mr. Mukesh Kumar Gupta;

- (xii) Undertaking dated 07.03.2017 of Defendant No. 2 - Mr. Vishal Goel;

- (xiii) Affidavit dated 07.03.2017 of Defendant No. 2 - Mr. Vishal Goel;

- (xiv) Undertaking dated 07.03.2017 of Defendant No. 2 - Mr. Manish Goel;

- (xv) Joint Deed of Hypothecation dated 07.03.2017 executed by Defendant – Shilpi Cable Technologies in favour of Consortium Banks;

- (xvi) Deed of Corporate Guarantee dated 07.03.2017 by Defendant no. 6 – M/s Shilpi Cables Private Limited;

- (xvii) Deed of Corporate Guarantee dated 07.03.2017 by Defendant no. 4 – M/s Shilpi Communications Private Limited;

- (xviii) Deed of Corporate Guarantee dated 07.03.2017 by Defendant no. 5 – M/s MVM Impex Private Limited;

- (xix) Agreement for Pledge of Shares dated 10.03.2017 executed between Defendant no. 4 – M/s Shilpi Communications Private Limited, IDBI Bank Ltd. (as Lead Bank) and Defendant no 7 – Shilpi Cable Technologies Limited (Borrower);

- (xx) Share Pledge Power of Attorney dated 10.03.2017 executed between Defendant no. 4 – M/s Shilpi Communications Private Limited;

- (xxi) Deed of Guarantee dated 07.03.2017 executed by Personal Guarantors namely: Defendant no. 1 – Sh. Mukesh Kumar Gupta, Defendant no. 2 – Sh. Vishal Goel and Defendant no. 3 : Sh. Manish Goel in favour of lenders;

- (xxii) Deed of Joint Omnibus Counter Guarantee dated 07.03.2017 executed by Defendant no 7 – Shilpi Cable Technologies Limited (Borrower).

2.4 It is stated in the OA that in order to secure the aforesaid working capital facilities by creation of the mortgage in favour of the Applicant Bank, mortgage was created by deposit of title deeds in favour of Consortium Lenders in respect of immovable property of Defendant No. 7 -M/s. Shilpi Cables Technologies Ltd. situated at Plot No. SP-1037, RIICO Industrial Area, Chopanki, District Alwar, Rajasthan admeasuring 37652 Sq. Mtrs. In this regard, the copy of Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with IDBI Bank Ltd. along-with title deeds are annexed with the OA.

Further, in order to secure the aforesaid working capital facilities by creation of the mortgage in favour of the Applicant Bank, mortgage was created by deposit of title deeds in favour of Consortium Lenders in respect of immovable property of Defendant No. 6 -M/s. Shilpi Cables Private Ltd., situated at Plot No. E-138, RIICO Industrial Area, Chopanki, Bhiwadi District, Alwar, Rajasthan admeasuring 4000Sq. Mtrs. In this regard, the copy of Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with IDBI Bank Ltd. along-with title deeds are annexed with the OA.

Moreover, in order to secure the aforesaid working capital facilities by creation of the mortgage in favour of the Applicant Bank, mortgage was created by deposit of title deeds created by Defendant No. 2 - Shri. Vishal Goel with Punjab National Bank (member bank) in favour of Consortium Lenders in respect of the immovable properties of Defendant No. 2 - Shri Vishal Goel:-

- (a) Plot No. D-1112, New Friends Colony, New Delhi admeasuring 382.50 Sq. yards;

- (b) MCD no 268, Khasra No 358, AALI INDL Complex Mathura Road, Delhi- 110044, measuring approximately 324 sq yards.

In the this regard, the copy of Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with Punjab National Bank (member bank) along-with title deeds is also annexed with the OA.

Further more, in order to secure the aforesaid working capital facilities by creation of the mortgage in favour of the Applicant Bank, mortgage was created by deposit of title deeds created by Defendant No. 1 - Shri Mukesh Kumar Gupta with Punjab National Bank (member bank) in favour of Consortium Lenders in respect of the following immovable properties of Defendant No. 1 Shri Mukesh Kumar :-

- (a) House No.269, khasra No.358, situated within abadi Lal Dora of Village, AAli, Tehsil Mehrauli, New Delhi-110044 admeasuring 300 Sq. yards.

- (b) Old House No.21 (New House No.134), Khasra No.358, situated within abadi Lal Dora of Vilage, AAli, Tehsil Mehrauli, New Delhi 110044 admeasuring 167 Sq. yards.

In the this regard, the copy of Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with Punjab National Bank (member bank) along-with title deeds is also annexed with the OA.

2.5 It is stated in the OA that the Defendants also agreed to pay interest and other charges to the Applicant on the principal amount of the said credit facilities from time to time as per terms and conditions set out in the said security documents.

2.6 It is further stated in the OA that pursuant to the aforesaid documents executed and securities created/extended from time to time, the Applicant Bank disbursed the said Working Capital facilities (Credit facilities) to the Defendant No. 7 from time to time. It is stated that the said Cash Credit facilities and other facilities accounts in the name of Defendant No.7 with the Applicant Bank were not being operated in accordance with the banking norms and in accordance with the terms and conditions of the sanction of the facilities and were grossly out of order. The Defendants failed to maintain the financial discipline and violated the contractual stipulation and spirit of their contractual obligations and have persistently failed to pay the outstanding amounts and interest thereon in the credit facilities account. Thus, the said Cash Credit facilities accounts with the Applicant Bank were classified as NPA w.e.f 30.06.2017 in accordance with RBI guidelines.

The Applicant Bank was in the circumstances constrained to request and remind the Defendants to bring the same in order and to conduct the same in accordance with the terms and conditions of sanction, however, said Working Capital Facilities – Cash Credit facilities account remained grossly out of order.

Thus, the Applicant Bank (erstwhile Vijaya Bank) was in the circumstances constrained to issue Notice dated 04.12.2017 under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.

It is stated in the OA that despite services of various reminders to the Defendants, said Working capital facilities - Cash Credit facilities accounts remained out of order and in these circumstances, the Applicant Bank (Bank of Baroda) sent a Demand/ invocation of Guarantee Notice dated 19.03.2019 calling upon Defendant Nos. 1 to 5 to pay jointly and severally, sum of Rs. 39,24,45,575.71 P, being the amount due as on 18.03.2019 together with further interest thereon till the date of realization of entire outstanding amount along with all costs, charges and expenses. Further, the Applicant Bank (erstwhile Vijaya Bank) also sent Demand Notice dated 02.08.2017 and also Invocation of Guarantee Notices dated 18.01.2018 calling Defendant Nos. 1 to 5 to pay jointly and severally, sum of Rs. 59,05,57,847.63 P, being the amount due as on 31.12.2017 together with further interest thereon till the date of realization of entire outstanding amount along with all costs, charges and expenses.

2.7 It is stated since all the Defendants miserably failed to comply with the said Demand Notices. In these circumstances, the Applicant Bank has no other alternative except to file the present OA before this Hon'ble Tribunal for recovery of its dues and enforcement of securities.

3. Notices of this O.A. were issued to the Defendants and the Defendants no. 2 to 5 appeared through counsel but did not chose to file any WS till date.

3.1 It is pertinent to note here that during the pendency of this OA, it was informed by Ld. counsel for Defendants no. 2 & 3 that Defendant no. 1 has been expired. Consequently, an application being IA No 1108/2021 was filed by the Applicant Bank for seeking substitution of LRs of Defendant no. 1 (since deceased) which was allowed vide Order dated 26.05.2022 of this Tribunal and accordingly, amended memo of parties was also filed. It is pertinent to note here that Defendants no. 1-A to 1-D are the LRs of deceased Defendant no. 1 and Defendants no. 1-B & 1-C have also been impleaded in this OA as Defendants no. 2 & 3 (personal guarantors of Borrower Company) respectively.

It is also matter of record that LRs of Defendant no. 1 were served through publication but they neither appeared before this Tribunal nor filed any WS till date.

3.2 So far as, Defendants no. 6 & 7 are concerned, they neither appeared nor filed any WS. However, it is matter of record that since these Defendants are before Ld. NCLT, Delhi, hence, no relief is claimed by the Applicant Bank qua these Defendants in this OA.

3.3 It is also matter of record that since Defendants no. 4 & 5 also stopped entering before the Tribunal, hence, the case was directed to proceed ex parte qua Defendants no. 4 to 7 vide Order dated 15.05.2024.

3.4 So far as, Proforma Defendants no. 8 to 19 are concerned, some of Defendants i.e. Union Bank of India and Canara Bank appeared through their respective counsel(s) but no WS was filed by any of the Proforma Defendant.

It is pertinent to note here that Defendants no. 8 to 19 have been impleaded as Proforma Defendants and no relief is claimed by the Applicant Bank qua these defendants.

4. To prove its case, the Applicant Bank i.e. BOB leads its evidence by filling the affidavit of Mr. Anshu Kumar, Chief Manager / Principal Officer & Constituted Attorney of Applicant Bank.

4.1 Mr. Anshu Kumar, Officer of Applicant Bank has placed reliance upon following documents:-

- (i) True Copy of Gazette of India, Notification dated 02.01.2019 whereby Vijaya Bank and Dena Bank were amalgamated with Bank of India (Ex. AW-1/1);

- (ii) Power of Attorney dated 04.04.2019 executed by the Applicant Bank in favour of the deponent (Ex. AW-1/2);

- (iii) NCLT Order dated 24.05.2017 passed by Ld. NCLT, Delhi with regard to Defendant no. 7 (Borrower) (Ex. AW-1/3);

- (iv) NCLT Order dated 14.03.2018 passed by Ld. NCLT, Delhi with regard to Defendant no. 6 (Corporate Guarantor) (Ex. AW-1/4);

- (v) Bank of Baroda's sanction letter dated 12.07.2012 (Ex. AW-1/5);

- (vi) Vijaya Bank's sanction letter dated 25.11.2014 (Ex. AW-1/6);

- (vii) Extract of Board Resolution dated 06.03.2017 passed by the Board of Directors of Defendant no. No.7 (Borrower) (Ex. AW-1/7);

- (viii) Extract of Board Resolution dated 06.03.2017 passed by the Board of Directors of Defendant no. No.4 (Ex. AW-1/8);

- (ix) Extract of Board Resolution dated 06.03.2017 passed by the Board of Directors of Defendant no. No. 5 (Ex. AW-1/9);

- (x) Extract of Board Resolution dated 06.03.2017 passed by the Board of Directors of Defendant no. No.6 (Ex. AW-1/10);

- (xi) Lender's Agent Agreement dated 07.03.2017 executed between the Defendant No. 7 - Borrower, IDBI Bank Limited (Lead Bank), IDBI Bank Limited (Lender's Agent) and other Lenders (Ex. AW-1/11);

- (xii) Amendatory and Restated Working Capital Consortium Facility Agreement dated 07.03.2017 executed between Defendant No. 7 -Borrower (Shilpi Cable Technologies Limited), IDBI Bank Ltd. (a lead bank and lender) and other lenders (Ex. AW-1/12); 

- (xiii) Amended and Restated Inter-se Agreement dated 07.03.2017 executed among IDBI Bank - lead bank and other consortium lenders (Ex. AW-1/13);

- (xiv) Conformation of Inter-se Agreement and Lender's Agent Agreement dated 7.03.2017 by Defendant No. 7 - Borrower (Shilpi Cable technologies Limited) (Ex. AW-1/14);

- (xv) Letter of Authority dated 07.03.2017 signed by other consortium lenders in favour of IDBI Bank Ltd. (Ex. AW-1/15);

- (xvi) Declaration and undertaking dated 07.03.2017 by Defendant No.1 Mr. Mukesh Kumar Gupta (Ex. AW-1/16);

- (xvii) Declaration and undertaking dated 07.03.2017 by Defendant No. 2 Mr. Vishal Goel (Ex. AW-1/17);

- (xviii) Declaration and undertaking dated 07.03.2017 by Defendant No.7 M/s. Shilpi Cable Technologies Ltd. (Ex. AW-1/18);

- (xix) Declaration and undertaking dated 07.03.2017 by Defendant No. 6- M/s. Shilpi Cables Pvt. Ltd. (Ex. AW-1/19);

- (xx) Undertaking dated 07.03.2017 by Defendant No. 1 - Mr. Mukesh Kumar Gupta (Ex. AW-1/20);

- (xxi) Affidavit dated 07.03.2017 of Defendant No. 1 - Mr. Mukesh Kumar Gupta (Ex. AW-1/21);

- (xxii) Undertaking dated 07.03.2017 of Defendant No. 2 - Mr. Vishal Goel (Ex. AW-1/22);

- (xxiii) Affidavit dated 07.03.2017 of Defendant No. 2 - Mr. Vishal Goel (Ex. AW-1/23);

- (xxiv) Undertaking dated 07.03.2017 of Defendant No. 3 - Mr. Manish Goel (Ex. AW-1/23A);

- (xxv) Joint Deed of Hypothecation dated 07.03.2017 executed by Defendant – Shilpi Cable Technologies in favour of Consortium Banks (Ex. AW-1/24);

- (xxvi) Deed of Corporate Guarantee dated 07.03.2017 by Defendant no. 6 – M/s Shilpi Cables Private Limited (Ex. AW-1/25);

- (xxvii) Deed of Corporate Guarantee dated 07.03.2017 by Defendant no. 4 – M/s Shilpi Communications Private Limited (Ex. AW-1/26);

- (xxviii) Deed of Corporate Guarantee dated 07.03.2017 by Defendant no. 5 – M/s MVM Impex Private Limited (Ex. AW-1/27);

- (xxix) Agreement for Pledge of Shares dated 10.03.2017 executed between Defendant no. 4 – M/s Shilpi Communications Private Limited, IDBI Bank Ltd. (as Lead Bank) and Defendant no 7 – Shilpi Cable Technologies Limited (Borrower) (Ex. AW-1/28);

- (xxx) Share Pledge Power of Attorney dated 10.03.2017 executed between Defendant no. 4 – M/s Shilpi Communications Private Limited (Ex. AW-1/29);

- (xxxi) Deed of Guarantee dated 07.03.2017 executed by Personal Guarantors namely: Defendant no. 1 – Sh. Mukesh Kumar Gupta, Defendant no. 2 – Sh. Vishal Goel and Defendant no. 3 : Sh. Manish Goel in favour of lenders (Ex. AW-1/30);

- (xxxii) Deed of Joint Omnibus Counter Guarantee dated 07.03.2017 executed by Defendant no 7 – Shilpi Cable Technologies Limited (Borrower) (Ex. AW-1/31);

- (xxxiii) Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with IDBI Bank Ltd.


along-with title deeds of the Mortgage created in favour of Consortium Lenders in respect of immovable property of Defendant No. 7 -M/s. Shilpi Cables Technologies Ltd. situated at Plot No. SP-1037, RIICO Industrial Area, Chopanki, District Alwar, Rajasthan admeasuring 37652 Sq. Mtrs. (Ex. AW-1/32-colly);

(xxxiv) Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with IDBI Bank Ltd. along-with title deeds of the Mortgage created in favour of Consortium Lenders in respect of immovable property of Defendant No. 6 - M/s. Shilpi Cables Private Ltd., situated at Plot No. E-138, RIICO Industrial Area, Chopanki, Bhiwadi District, Alwar, Rajasthan admeasuring 4000Sq. Mtrs. (Ex. AW-1/33-colly);

(xxxv) Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with PNB (member bank) along-with title deeds in respect of the immovable properties of Defendant No. 2 - Shri Vishal Goel i.e. (a) Plot No. D-1112, New Friends Colony, New Delhi admeasuring 382.50 Sq. yards; and (b) MCD no 268, Khasra No 358, AALI INDL Complex Mathura Road, Delhi- 110044, measuring approximately 324 sq yards. (Ex. AW-1/34-colly);

(xxxvi) Memorandum of Entry dated 26.04.2017 for deposit of title deeds recorded with PNB (member Bank) along-with title deeds in respect of the immovable properties of Defendant No. 1 Shri Mukesh Kumar i.e. (a) House No.269, khasra No.358, situated within abadi Lal Dora of Village, AAli, Tehsil Mehrauli, New Delhi-110044 admeasuring 300 Sq. yards. and Old House No.21 (New House No.134), Khasra No.358, situated within abadi Lal Dora of Vilage, AAli, Tehsil Mehrauli, New Delhi 110044 admeasuring 167 Sq. yards. (Ex. AW-1/35-colly);

(xxxvii) Notice dated 04.12.2017 issued by the Applicant Bank (erstwhile Vijaya Bank) under section 13(2) of the SARFAESI Act (Ex. AW-1/36\_; (xxxviii) Demand/ invocation of Guarantee Notice dated 19.03.2019 sent by the Applicant Bank (BOB) to Defendant Nos. 1 to 5 (Ex. AW-1/37-colly);

(xxxix) Demand Notice dated 02.08.2017 and also Invocation of Guarantee Notices dated 18.01.2018 sent by Applicant Bank (erstwhile Vijaya Bank) to Defendants no. 1 to 5 (Ex. AW-1/38-colly);

(xl) Statement of account in respect of Working Capital Facilities – Cash credit facilities accounts with the Applicant Bank (BOB and erstwhile Vijaya Bank) under the provisions of the Bankers Books Evidence Act, 1891 and Information Technology Act (Ex. AW-1/39-colly);

(xli) Certificate under Section 2A of Bankers Books Evidence Act, 1891 and Information Technology Act in resepect of said Working Capital facilities – Cash Credit facilities accounts (Ex. AW-1/40-colly).

5. Heard and perused the entire record.

5.1 It is pertinent to note here that during the pendency of this OA, it was informed by the Applicant Bank that personal insolvency proceedings have been initiated qua Defendants no. 2 & 3 (who are also Defendants no. 1-B and 1-C).

Since, personal insolvency proceedings are pending qua Defendants no. 2 & 3 [who are also impleaded as Defendants no. 1-B and 1-C as well being LR of deceased Defendant no. 1] before Ld. NCLT, Delhi, hence, no final order can be passed qua these defendants.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendants no. 2 & 3 [who are also impleaded as Defendants no. 1-B and 1-C as well being LR of deceased Defendant no. 1] in case personal insolvency proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant Bank receives any amount from personal insolvency proceedings, they shall give due adjustment of the same in the recovery proceedings.

5.2 So far as, Defendants no. 1-A and 1-D & Defendants no. 4 & 5 are concerned, they did not chose to file any WS, hence, the case of these Defendants remained uncontested / unrebuted.

Since, Defendants no. 1-A and 1-D are impleaded in the capacity of LRs of deceased Defendant no. 1, hence, their liability shall be restricted to the extent of estate inherited by them from Defendant no. 1. It is further made clear that Applicant Bank shall also be entitled to sell the properties mortgaged by deceased Defendant no. 1 in favour of Consortium Lenders and sale proceeds of the same shall be distributed amongst the consortium members, as per inter-se agreements executed by them.

So far as, Defendants no. 1-B and 1-C are concerned, they are already impleaded as Defendants no. 2 & 3 in this OA, hence, they shall be liable to pay the dues of the Applicant Bank in their personal capacity as well as being LR's of deceased Defendant no. 1. Since, Defendants no. 2 & 3 are already before Ld. NCLT, Delhi, hence, no final order can be passed by this Tribunal qua these defendants at this stage, as discussed above.

5.3 So far as, Defendants no. 6 & 7 are concerned, no relief is claimed by the Applicant Bank qua these defendants as they are already before Ld. NCLT, Delhi.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendants no. 6 & 7 in case CIRP proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant Bank receives any amount from CIRP proceedings, they shall give due adjustment of the same in the recovery proceedings.

5.4 As regards, Defendants no. 8 to 19 are concerned, these Defendants have been impleaded as Proforma Defendants and no relief is claimed qua these Defendants.

5.5 In the light of above, this Tribunal is of the view that once the Defendants did not chose to file the WS, hence, this Tribunal is of the considered view that in the absence of any WS / pleadings and Evidence, the case of Applicant remained uncontested by all the Defendants including Defendants no.

1-A & 1-C as well as Defendants no. 4 & 5, hence, this Tribunal is empowered to pass the judgment in favour of the Applicant on the basis of the Original Application and Evidence filed by the Applicant Bank.

5.6 On the other hand, the witness of Applicant Bank 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 Applicant gone unrebutted and there is no question of disbelieving the evidence lead by the Applicant and Applicant has proved its case beyond reasonable doubts. Accordingly, the Applicant is entitled to recover the entire amount, as claimed in the OA from the defendants along with pendentelite interest i.e. @11.50 % p.a. and costs as agreed between the parties.

5.7 In this OA, applicant has prayed to issue recovery certificate against defendants no. 1 to 5 wherein the Defendants 1 to 3 are personal guarantors and Defendants no. 4 & 5 are the corporate guarantors.

Since, personal insolvency proceedings are pending qua Defendants no. 2 & 3 [who are also impleaded as Defendants no. 1-B and 1-C as well being LR of deceased Defendant no. 1] before Ld. NCLT, Delhi, hence, no final order can be passed qua these defendants, as discussed above.

Similarly, it is matter of record that Defendants no. 6 & 7 are also before Ld. NCLT, Delhi, hence, no final order can be passed qua these defendants as well, as discussed above.

5.8 In the light of above discussion, TA No. 133/2022 is liable to be allowed in favour of the Applicant Bank and against Defendants no. 1-A and 1-D as well as Defendants no. 4 & 5 who are liable to pay the dues of the Applicant along with costs and pendentelite & future interest @11.50 % p.a., from the date of filing of present OA, till the date of payment in full. **However, it is made clear that the liability of Defendants no. 1-A & 1-B shall be limited to the extent of estate inherited by them from deceased Defendant no. 1. It is further made clear that Applicant Bank shall also be entitled to sell the properties mortgaged by deceased Defendant no. 1 in favour of Consortium Lenders and sale proceeds of the same shall be distributed amongst the consortium members, as per inter-se agreements executed by them.**

ORDER

(i) TA No. 133/2022 stands allowed in favour of Applicant and against Defendants no. 1-A, 1-D and Defendants no. 4 & 5 for a sum of Rs. 114,00,56,332.86 P. (Rupee One Hundred Fourteen Crore Fifty Six Thousand Three Hundred Thirty Two and Paise Eighty Six only) along with pendentelite and future interest @11.50% p.a. from the date of filing of the OA till its actual realization in full; along with costs of this OA. Now Defendants no. 1-A, 1-D and Defendants no. 4 & 5 are directed to pay to the Applicant the aforesaid amount, within 30 days, failing which, the aforesaid amount shall be recovered by the Applicant Bank from the sale of secured assets / mortgaged properties /

hypothecated assets / stocks / pledged shares etc. belonging to the Defendants no. 1, 4 & 5.

**However, it is made clear that the liability of Defendants no. 1-A & 1-B shall be limited to the extent of estate inherited by them from deceased Defendant no. 1.**

**It is further made clear that Applicant Bank shall also be entitled to sell the properties mortgaged by deceased Defendant no. 1 in favour of Consortium Lenders and sale proceeds of the same shall be distributed amongst the consortium members, as per inter-se agreements executed by them.**

In case of shortfall, same shall be recovered from the movable and immovable assets of Defendants no. 4 & 5 only.

- (ii) Since, personal insolvency proceedings are already pending qua Defendants no. 2 & 3 [who are also impleaded as Defendants no. 1-B and 1-C as well being LR of deceased Defendant no. 1] before Ld. NCLT, Delhi, hence, no final order can be passed qua these defendants, as discussed above.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendants no. 2 & 3 [who are also impleaded as Defendants no. 1-B and 1-C as well being LR of deceased Defendant no. 1] in case personal insolvency proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant Bank receives any amount from personal insolvency proceedings, they shall give due adjustment of the same in the recovery proceedings.

- (iii) Since, Defendants no. 6 & 7 are also before Ld. NCLT, Delhi, hence, no final order can be passed qua these defendants as well, as discussed above.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendants no. 6 & 7 in case CIRP proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant Bank receives any amount from CIRP proceedings, they shall give due adjustment of the same in the recovery proceedings.

- (iv) It is also directed that the sale proceeds of the secured assets shall be distributed between the Applicant and proforma defendants, as per inter-se agreements executed amongst them.

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

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

TA-133/2022

(vii) Parties are directed to appear before the Recovery Officer-I, DRT-III, Delhi on 20.07.2026.

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

File be closed and consigned to records.

20.05.2026

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

(Pronounced in open court) Dated: 20.05.2026

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