AXIS BANK vs M/S THREE C UNIVERSAL DEVELOPERS PRIVATE LIMITED on 11 June 2026

**FINAL ORDER**

1. This original application has been filed by the Applicant Bank on 02.02.2021, through Sh. Shailendra Kumar, Constituted Attorney, being the authorized officer of the Applicant Bank, under Section 19 of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 against all the Defendants No. 1 to 6, jointly and severally, for recovery of a sum of Rs. 169,83,22,183.76 (Rupees One Hundred Sixty Nine Crore Eighty Three Lakh Twenty Two Thousand One Hundred Eighty Three and Paise Seventy Six only) as on 31.12.2020 along with pendentelite and future interest @5.15% over Axis Bank Base Rate i.e. 9.40% p.a. compounded monthly from 01.01.2021 till actual date of payment along with other costs and charges & other relief(s).

1.2 It is also important to note here that Applicant Bank has also sought some other relief(s) qua other Defendants (apart from Defendants no. 1 to 6) which are as follows:-

- (i) to sell the 6000 and 4000 pledged equity shares held by Defendants no. 7 & 9 respectively in Defendant no. 10 (including new Shares as defined in the said Agreement) constituting 62.50% equity share capital of Defendant no. 10 and share the proceeds on pari passu basis with the Debenture Holders and the Applicant Bank;

- (ii) to sell the 7650 and 2500 pledged equity shares held by Defendants no. 1 & 9 in Defendant no. 3;

- (iii) to direct the Defendant no. 11 the Debenture Trustee to pay the proportionate share of the Applicant Bank in the following assets of the Defendant no. 3 being part of Defendant no. 3 Security, after liquidation thereof if required :-

- (a) All the Defendant no. 3's Assets, both present and future (other than the properties charged above);

- (b) 20,000 (twenty thousand) equity shares constituting 100% (one hundred) of the issued and paid up capital of Defendant no. 3;

- (c) 10,10,000 Compulsory Convertible Debentures of Rs. 100/- each carrying a coupon rate of 17.75% per annum held by Defendant no. 12;

- (d) 57,48,980 Optionally Convertible Debentures issued by Defendant no. 3 and held by Defendant no. 1 and share the proceeds on pari passu basis with the Debenture Holders and the Applicant Bank, and;

- (e) 2,49,940 fully compulsorily convertible debentures of Rs. 1000/- each held by Defendant no. 13.

1.3 It is pertinent to note here that this OA bearing no. 261/2021 was originally filed before Ld. DRT-I, 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-I, Delhi to this Tribunal in October 2022 and was numbered at TA-212/2022.

2. The brief facts of the case are that the Applicant Bank i.e. Axis Bank Ltd. is a company incorporated under the Companies Act and is licensed as a Scheduled Commercial Bank under the Banking Regulations Act, 1949 to carry out the business of Banking in India. It is stated in the OA that the Applicant Bank is a Scheduled Commercial Bank having license to carry on the banking business from Reserve Bank of India.

It is further stated that the Applicant Bank is filing the present OA through Sh. Shailendra Kumar, Constituted Attorney of the Applicant Bank who is competent and authorized to institute, sign, verify the plaint and institute the OA and to compete all the legal formalities on behalf of the Applicant Bank by virtue of Power of Attorney dated 25.11.2008 of Applicant Bank.

2.1 It is stated in the OA that the Defendant no. 10 is a company registered under the Companies Act, 1956 engaged in the business of constructing and developing various housing and commercial projects.

Defendants no. 1 to 3 are the group companies who are also engaged in the business of constructing and developing various housing and commercial projects.

The Defendants no. 1 to 6 are the corporate / personal guarantors who have executed their respective Deeds of Guarantee in favour of the Applicant Bank, thereby guaranteeing that in the event of default by Defendant no. 10, they shall be jointly, severally and co-extensively liable to make the payment forthwith under the Loan Facility granted to the Defendant no. 10 without any demur all/part of the amounts demanded by the Applicant Bank payable by the Defendant no. 10 being the Principal Borrower, thus, the present Application has been filed against the Defendants no. 1 to 6 in the capacity being the guarantors to the credit facilities availed by the Defendant no. 10.

Defendants no. 7 & 8 have pledged their shares in the Defendant no. 10 and Defendants no. 1 and 9 have pledged shares in Defendant no. 3, thus, they have been arrayed in the capacity of Pledgors.

The Defendant no. 11 is the Debenture Trustee being the Trustee of Debenture Holders who have provided loan to the extent of Rs.375.00 Crore to the Defendant no. 10 / Borrower on pari passu security basis, hence, no pecuniary claim is being claimed against them and they have been arrayed as Proforma Defendants in the present Application.

Further the Defendants no. 12 & 13 are the companies whose compulsory convertible debentures are the security of the Applicant Bank pursuant to Inter Creditor Agreement dated 19.01.2013 and thus have been impleaded as a necessary and proper party in this OA.

2.2 It is stated in the OA that pursuant to an application filed under Section 9 of Insolvency and Bankruptcy Code, 2016 (IBC 2016) the Defendant no. 10 has been admitted for corporate insolvency resolution process in accordance with the terms of the IBC 2016 vide the Order dated 08.02.2019 passed by Hon'ble NCLT, New Delhi. Pursuant to the above, an interim resolution professional / resolution professional has been appointed by Ld. NCLT in relation to Defendant no. 10 who has initiated corporate insolvency resolution process of the Defendant no. 10 in accordance with the terms of IBC 2016. Further, Ld. NCLT, vide Order dated 08.02.2019, has declared moratorium in accordance with the provisions of Section 14 of the IBC which amongst other prohibits transferring, encumbering, alienating or disposing off the assets of the Defendant no. 10 and foreclosure recovery or enforcement of the security interest created over the assets of the Defendant no.10. It is also stated that the corporate insolvency resolution process has been further extended by the Ld. NCLT, vide its Order dated 06.11.2019.

Therefore, Applicant Bank has only impleaded the Defendant no. 10 in the present OA in the capacity of a Proforma Defendant without claiming any monetary relief from Defendant no. 10 or enforcing any asset owned and/or charged by it. Thus, the Applicant Bank, without relinquishing its right of recovery against Defendant no. 10 and/or without relinquishing security interest on its charged / hypothecated / mortgaged assets in any manner whatsoever reserves its right to recover the amount claimed in the present OA from the Defendant no. 10 and its assets under the provisions of the IBC 2016.

2.3 It is stated in the OA that at the request of Defendant no. 10, a Term Loan Facility of Rs. 175.00 Crore (enhanced from Rs. 150.00 Crore) (hereinafter referred to as the "Term Loan") was sanctioned by the Applicant Bank vide Sanction Letter dated 23.09.2015 on terms and conditions as contained therein. The said Sanction Letter was duly signed on behalf of the Defendants as a token of acceptance of the terms contained therein.

The Board of Directors of Defendant no. 10 in their meeting held on 06.10.2015, resolved to avail the Term Loan facility of Rs. 175.00 Crore sanctioned by the Applicant Bank and create security in favour of the Applicant Bank on the assets mentioned therein and authorized its officials to execute / sign all loan and security documents.

Further, the Board of Directors of Defendants no. 1 to 3 in their respective Board meetings held on 06.10.2015, resolved to provide their corporate guarantees as security for the Term Loan facility of Rs. 175.00 Crore sanctioned by the Applicant Bank to the Defendant no. 10 and provide security on the assets mentioned in the board resolutions and authorized their officials to execute / sign all loan and security documents.

In order to avail the Term Loan Facility, following loan / security documents were executed by the Defendants:-

- (i) Term Loan Agreement dated 16.10.2015 executed by the Defendant no. 10 for a sum of Rs. 175.0 Crore [details given in Para 5(5.10) and (5.11) of the OA];

- (ii) Corporate Guarantees all dated 16.10.2015 executed by Defendants no. 1 to 3 [details given in Para 5(5.12) of the OA];

- (iii) Deeds of Guarantees all dated 16.10.2015 executed by Defendants no. 4 to 6 [details given in Para 5(5.13) of the OA];

- (iv) Security Trustee Agreement dated 16.10.2015 executed by Defendant no. 10 in favour of the Applicant Bank thereby appointing Axis Trustee Security Ltd., as a security trustee for creation of security interest over the various assets of Defendant no. 10 in favour of the Security Trustee to be held for the benefit of the Applicant Bank [detail given in Para 5(5.14) of the OA].

2.4 It is pertinent to mention here that Defendant no. 10 pursuant to the Debenture Trust Deed dated 19.10.2015, had borrowed a sum of Rs. 375.00 Crore by issuing Non-Convertible Debentures in favour of various Debenture Holders and appointed IDBI Trusteeship Services Ltd. as Debenture Trustee. It is stated in the OA that the Debenture Trustee was holding / to hold certain security created / to be created by Defendant no. 10 and Defendant no. 3 as security for the Debenture Holders.

2.5 It is stated in the OA that with intent to extend / create the security to secure the Term Loan Facility, the Defendant no. 10, the Applicant Bank, the Security Trustee, the Debenture Trustee and Defendant no. 3 executed an Inter-Creditor Agreement dated 19.10.2015 wherein it was agreed between the parties that all monies resulting from enforcement or realization of securities including enforcement of corporate guarantees and/or personal guarantees provided to the Trustees under respective loan documents and/or Debenture Holders shall be available for distribution between the secured creditors i.e. the Applicant Bank and Debenture Holders inter-se on pro-rata basis in the ratio of their outstanding without any preference or priority to one over the other for all intents and purposes.

[details of security i.e. charge over mortgaged property, hypothecation, equity shares, fully compulsorily convertible debentures have been given in Para 5(5.16) of the OA].

2.6 It is further stated in the OA that the Applicant Bank, in the present OA, is exercising its right and claim only on certain assets / properties owned by the Defendant no. 3 mentioned in the Common Security and not on the assets / properties owned by Defendant no. 10 since the said Company is under moratorium. [details of properties owned by Defendant no. 3, amongst the Common Security, have been given in Para 5.17 of the OA].

2.7 It is also stated in the OA that to further secure the Term Loan Facility (besides execution of Unattested Deed of Hypothecation dated 26.11.2015 by Defendant no. 10), the Defendant no. 3 also executed an Unattested Deed of Hypothecation dated 26.11.2015 in favour of Security Trustee for the benefit of the Applicant Bank [details given in Para 5(5.18) of the OA].

It is also stated that the charge created by Defendant no. 3 over Hypothecated Assets was duly registered by filing Form No. CHG-1 and a Certificate of Registration dated 27.11.2015 was issued by the ROC.

2.8 It is stated in the OA that to further create securities in the nature of Pledge of Shares, the Defendants no. 10, 7 & 8 executed a Security Pledge Agreement –I dated 02.12.2015 in terms of which Defendants no 7 & 8 pledged their shareholding to the extent of 6000 and 4000 equity shares held by them in Defendant no. 10 (including new Shares as defined in the said Agreement) constituting 62.50% equity share capital of Defendant no. 10 in favour of Debenture Trustee.

It is pertinent to mention here that the aforesaid Pledge Agreement was executed by the Defendants no. 7 & 8 pursuant to Resolution passed by the Board of Directors of the Defendants no. 7 & 8 in their board meetings held on 06.10.2015 and 23.09.2015 respectively.

2.9 It is also stated in the OA that Defendants no. 1 & 9 also pledged their respective shareholding to the extent of 7650 and 2500 equity shares held by them in Defendant no. 3 in favour of the Debenture Trustee, the Defendant no. 11 for benefit of Debenture Holders as well as the Applicant Bank. Further, vide same agreement, the Defendant no. 1 also pledged 57,48,980 Optionally Convertible Debentures (OCDs) held by them which were issued by Defendant no.

3, in favour of the Debenture Trustee, the Defendant no. 11, for the benefit of Debenture Holders as well as the Applicant Bank. Thus, not only 10,200 equity shares but also 57,48,980 OCDs were pledged by Defendant no. 1 in favour of the Debenture Trustee by virtue of Securities Pledge Agreement – II dated 02.12.2015.

The Pledge so created by Defendant no. 1 was duly registered and a Certificate of Registration of Charge dated 09.12.2015 was issued by the ROC. Similarly, the Pledge created by Defendant no. 7 was duly registered and a Certificate of Registration of Charge dated 09.12.2015 was issued by the ROC.

2.10 It is stated in the OA that initially Defendant no. 10 paid quarterly instalments timely, however, later on it started committing default in payment of the quarterly instalments, hence, the Applicant Bank was constrained to classify the account of Defendant no. 10 as NPA on 31.12.2017. Thereafter, the Applicant Bank called upon the Defendant no. 10 to pay a sum of Rs. 105,58,58,554/- due as on 31.12.2017 along with further interest w.e.f. 01.01.2018. However, despite expiry of the stipulated time period, Defendant no. 10 did not make the payment, thus, the Applicant Bank left with no other option but to invoke the guarantees executed by Defendants no. 1 to 6 vide Notice of Invocation of Guarantee dated 03.04.2018 and 18.08.2018 but all in vain.

Thus, the Applicant Bank has been compelled to file this Application before this Tribunal for recovery of its dues i.e.

Rs. 146,49,99,363.18 due as on 15.01.2020 along with interest etc.

3. Notices of this O.A. were issued to the defendants, and initially, some of the defendants i.e. Defendants no. 1 & 6 appeared through their respective counsels person but did not file any WS.

3.1 It is pertinent to note here that during the pendency of this OA, it was informed by the parties that Defendants no. 1, 3 & 10 are before Ld. NCLT, Delhi.

3.2 So far as, rest of the Defendants are concerned, they neither appeared before this Tribunal nor filed any WS. Consequently, the case was directed to proceed ex parte qua Defendants n. 2, 4, 5 to 9 & 11 to 13 vide Order dated 20.05.2024 of this Tribunal.

3.3 Subsequently, Defendant no. 4 filed IA No. 1232/2024 for setting aside ex parte Order dated 20.05.2024 passed by this Tribunal. The said IA was allowed vide Order dated 06.12.2024 of this Tribunal subject to payment of cost of Rs. 50,000/- to be deposited with Prime Minister's Relief Fund within 15-days from the date of said order.

Though, Defendant no. 4 filed the WS along with IA No. 463/2025 for seeking directions to take his Reply on record. Since, the WS of Defendant no. 4 was filed with a delay of 53-days, hence, IA No. 463/2025 was dismissed vide Order dated 04.07.2025 of this Tribunal. Thus, the WS of Defendant no. 4 was not taken on record.

3.4 Similarly, Defendant no. 5 filed IA No. 1107/2024 for setting aside ex parte Order dated 20.05.2024 passed by this Tribunal. The said IA was allowed / disposed off vide Order dated 15.01.2025 of this Tribunal subject to payment of cost of Rs. 50,000/- to be deposited with Prime Minister's Relief Fund within 15-days from the date of said order.

Consequently, Defendant no. 5 paid the cost as well as filed the WS.

4. In his WS, Defendant no. 5 / Mr. Vidur Bhardwaj has raised following main objections :-

- (i) Defendant no. 5 has raised an objection that the guarantee of Defendant no. 5 was never invoked by the Applicant Bank and the alleged invocation is disputed as being fraudulent and forged, hence, it cannot form the basis of recovery proceedings before the DRT. It is stated that if the guarantee remains un-invoked or improperly invoked, no liability arises against the guarantor i.e. a guarantee cannot be enforced unless it is invoked as per its terms.

- (ii) Next objection of Defendant no. 5 is that the Applicant Bank has not made complete disclosure of documents as are necessary for adjudication of liability qua the answering Defendant. It is stated that the Applicant has violated the provisions contained in Rule 9 of the DRT(Procedure) Rules 1993. The relevant and crucial documents have been deliberately suppressed and concealed from this Hon'ble Tribunal.

- (iii) Defendant no. 5 has also taken a plea that the signatures of the individual was induced on blank documents which were later manufactured by the officials of the original Lender.

- (iv) Defendant no. 5 has raised an objection that the alleged statement of account contains incorrect debit entries, especially, those relating to imposition of interest and penal interest. It is stated that the alleged certificate purportedly issued under the provisions of Bankers Books Evidence Act, 1891 is defective. Moreover, no certificate under Section 65B of Indian Evidence Act, 1872 has been annexed with the captioned OA, which is a pre-requisite of law. Further, the complete statement of accounts have not been filed. Moreover, the Applicant is also guilty of capitalizing and compounding penal interest which is violative of dictum of *Central Bank of India Vs. Ravindra AIR 2001 SC 3095*.

In the light of above, request is made to dismiss the present OA.

- 5. Rejoinder to the WS of Defendant no. 5 has also been filed by the Applicant Bank denying the allegations levelled against it and reiterating the averments made in the OA.

- 6. To prove its case, the Applicant Bank leads its evidence by filling the affidavit of Mr. Shailendra Kumar, Constituted Attorney of the Applicant bank.

- 6.1 Mr. Shailendra Kumar, Officer of applicant bank has placed reliance upon the documents filed by the Applicant Bank which includes:-

- (i) Power of Attorney dated 25.11.2008 executed by the Applicant Bank in favour of the Deponent (Ex. AW1/1);

- (ii) Order(s) dated 08.02.2019 & 06.11.2019 passed by Ld. NCLT, Delhi with regard to Defendant no. 10 / Borrower (Ex. AW1/2 & AW1/3);

- (iii) Sanction Letter dated 25.03.2015 of Applicant Bank (Ex. AW1/4);

- (iv) Sanction Letter dated 23.09.2015 of Applicant Bank (Ex. AW1/5);

- (v) Board Resolution dated 06.10.2015 passed by Defendant no. 10 (Ex. AW1/6);

- (vi) Board Resolutions dated 06.10.2015 passed by Defendants no. 1 to 3 (Ex. AW1/7, AW1/8 & AW1/9);

- (vii) Term Loan Agreement dated 16.10.2015 executed by the Defendant no. 10 for a sum of Rs. 175.0 Crore (Ex. AW1/10);

- (viii) Corporate Guarantees all dated 16.10.2015 executed by Defendants no. 1 to 3 (Ex. AW1/11, AW1/12 & AW1/13);

- (ix) Deeds of Guarantees all dated 16.10.2015 executed by Defendants no. 4 to 6 (Ex. AW1/14, AW1/15 & AW1/16);

- (x) Security Trustee Agreement dated 16.10.2015 executed by Defendant no. 10 in favour of the Applicant Bank thereby appointing Axis Trustee Security Ltd., as a security trustee for creation of security interest over the various assets of Defendant no. 10 in favour of the Security Trustee to be held for the benefit of the Applicant Bank (Ex. AW1/17);

- (xi) Inter-Creditor Agreement executed amongst the Defendant no. 10, the Applicant Bank, the Security Trustee, the Debenture Trustee and Defendant no. 3 (Ex. AW1/18);

- (xii) Unattested Deed of Hypothecation dated 26.11.2015 executed by Defendant no. 3 in favour of Security Trustee for the benefit of the Applicant Bank (Ex. AW1/19);

- (xiii) Certificate of Registration of Charge dated 27.11.2015 issued by the ROC with regard to charge created by Defendant no. 3 over hypothecated assets (Ex. AW1/20);

- (xiv) Security Pledge Agreement – I dated 02.12.2015 executed by Defendants no. 10, 7 & 8 (Ex. AW1/21);

- (xv) Resolution passed by the Board of Directors of the Defendants no. 7 & 8 in their board meetings held on 06.10.2015 and 23.09.2015 (Ex. AW1/22 & AW1/23);

- (xvi) Securities Pledge Agreement – II dated 02.12.2015 (Ex. AW1/24);

- (xvii) Certificate of Registration of Charge dated 09.12.2015 issued by the ROC with regard to pledge so created by Defendant no. 1 (Ex. AW1/25);

- (xviii) Certificate of Registration of Charge dated 09.12.2015 issued by the ROC with regard to pledge created by Defendant no. 7 (Ex. AW1/26);

- (xix) Loan Recall Notice dated 31.03.2018 issued by the Applicant Bank to the Defendant no. 10 (Ex. AW1/27);

- (xx) Notice of Invocation of Guarantee dated 03.04.2018 and 18.08.2018 issued by Applicant Bank to Defendants no. 1 to 6 (Ex. AW1/28 & AW1/29);

- (xxi) Statement of Account along with Certificate under Bankers Books Evidence Act (Ex. AW1/30-colly).

7. So far as, Defendant no. 5 is concerned, he filed the Evidence by way of his own affidavit and placed reliance upon following documents:-

- (i) copy of Order dated 20.05.2024 whereby Defendant no. 5 was proceeded ex parte (Ex. DW-5/1);

- (ii) copy of the Order dated 25.10.2024 with regard to first hearing in IA No. 1107/2024 (Ex. DW-5/2);

- (iii) copy of the Order dated 15.01.2025 with regard to order passed in IA No. 1107/2024 (Ex. DW-5/3);

- (iv) copy of the payment receipt to PM Relief Fund dated 30.01.2025 (Ex. DW-5/4);

- (v) Copy of email dated 04.02.2025 which shows receipt of complete set of the OA on said date (Ex. DW-5/5).

8. During the pendency of this OA, one application being IA No. 843/2025 was filed by Defendant no. 5 seeking stay of the proceedings under Section 96 of the Insolvency and Bankruptcy Code 2016 alongwith Order dated 28.08.2025 passed by Ld. NCLT.

It is matter of record that vide order dated 12.01.2026 while disposing the IA No. 843/2025, it was directed that *in view of the moratorium declared therein, the present proceedings shall remain stayed qua Defendant no. 5 for so long as the moratorium continues to remain in force.*

In the light of above, it is clear that personal insolvency proceedings are pending qua Defendant no. 5 before Ld. NCLT, Delhi.

9. Similarly, one more application being IA No. 31/2026 was also filed by Defendant no. 4 seeking stay of the present proceedings on the ground that Defendant no. 4 is before Ld. NCLT and an interim moratorium has been triggered against Defendant no. 4.

It is also evident from the record of this OA that vide order dated 31.01.2026 while disposing the IA No. 31//2026, it was directed that *in view of the subsisting interim moratorium, the proceedings against Defendant no. 4 shall remain stayed till the moratorium is vacated.*

In the light of above, it is clear that personal insolvency proceedings are pending qua Defendant no. 4 as well before Ld. NCLT, Delhi.

10. It is also important to note here that during the pendency of this OA the Name of Defendant no. 10 was directed to be deleted vide Order dated 01.10.2025 passed in IA No. 761/2025 by this Tribunal.

11. Heard Ld. counsels for the Applicant Bank and perused the entire record.

11.1 It is matter of record that Defendants no. 1, 3 & 10 are already before Ld. NCLT, Delhi. Further more, personal insolvency proceedings have also been commenced qua Defendants no. 4 & 5 as well before Ld. NCLT, Delhi.

11.2 It is also matter of record that the name of Defendant no. 10 has already been deleted from the array of parties vide Order dated 01.10.2025 passed in IA No. 761/2025 by this Tribunal.

11.3 Since, CIRP proceedings have been initiated qua Defendants no. 1 & 3 company before Ld. NCLT, Delhi, hence, no final order can be passed qua Defendants no. 1 & 3, at this stage. Similarly, personal insolvency proceedings have also been initiated qua Defendants no. 4 & 5 before Ld. NCLT, Delhi and the moratorium is under operation, hence, no final can also be passed qua Defendants no. 4 & 5 as well.

However, it is directed that applicant bank shall be at liberty to revive the OA qua Defendant no. 1 & 3 as well as Defendants no. 4 & 5 in case CIRP / personal insolvency proceedings pending before Ld. NCLT, Delhi are quashed / withdrawn in future, in accordance with law.

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

11.4 Though, Defendant no. 5 has filed the WS as well as evidence, however, it is also matter of record that personal insolvency proceedings have been commenced qua Defendant no. 5. In these circumstances, there is no need to deal with the defence taken by Defendant no. 5 in its WS.

In the present case, Defendants no. 6 to 9 and 11 to 13 are already ex parte vide Order dated 20.05.2024 of this Tribunal.

11.5 So far as, rest of defendants i.e. Defendants no. 2, 7 to 9 and 11 to 13 are concerned, they are already ex parte since 20.05.2025, hence, the case of Applicant Bank remained unrebutted / uncontested.

11.6 It is matter of record that Applicant Bank has sought relief qua Defendants no. 7 & 9 for selling the pledged equity shares held by these Defendants in Defendant no. 10 / Borrower company.

Since, Defendant no. 10 was already before Ld. NCLT, Delhi and moreover the name of Defendant no. 10 has already been deleted from this OA, as discussed above, hence, no such relief can be granted qua Defendants no. 7 & 9 by this Tribunal.

11.7 Similarly, Applicant Bank has also sought relief qua Defendants no. 1 & 9 to sell the pledged equity shares held by these Defendants in Defendant no. 3.

Since, Defendant no. 3 is already before Ld. NCLT, Delhi, hence, no such relief can be granted qua Defendants no. 1 & 9 by this Tribunal.

11.8 Similarly, Applicant Bank has sought relief qua Defendant no. 11 / the Debenture Trustee to pay the proportionate share of the Applicant Bank in the assets of the Defendant no. 3 being part of Defendant no. 3 Security, after liquidation thereof if required.

Since, Defendant no. 3 is already before Ld. NCLT, Delhi, hence, no such relief can be granted qua Defendant no. 11 by this Tribunal.

11.9 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 Bank is based on the documents and the witness has duly proved all these documents. The evidence filed by the Applicant Bank gone unrebuted and there is no question of disbelieving the evidence lead by the Applicant Bank and Applicant has proved its case beyond reasonable doubts. Accordingly, the Applicant bank is entitled to recover the entire amount, as claimed in the OA from the Defendants along with pendentelite and future interest @14% p.a. and cost of this OA.

11.10 In this OA, Applicant Bank has prayed to issue recovery certificate against Defendants no. 1 to 6 wherein the Defendants no. 1 to 3 are the corporate guarantors and Defendants no. 4 to 6 are personal guarantors (to the Borrower Company).

11.11 Since, Defendants no. 1, 3, 4 & 5 are already before Ld. NCLT, Delhi, hence, no final order can be passed qua these Defendants, at this stage (as discussed in above paras).

11.12 Consequently, TA No. 212/2022 is liable to be allowed in favour of Applicant Bank against Defendants no. 2 & 6 only (being corporate and personal guarantors), who are liable to pay the dues of the Applicant Bank along with costs and pendentelite & future interest @14% p.a. from the date of filing of present OA, till the date of payment in full.

11.13 So far as, relief(s) sought qua Defendants no. 1, 7, 9 and 11 are concerned, same cannot be granted, as discussed in above paras.

ORDER

- (i) TA No. 212/2022 stands allowed in favour of Applicant Bank and the Defendants no. 2 & 6 for a sum of Rs. 169,83,22,183.76 (Rupees One Hundred Sixty Nine Crore Eighty Three Lakh Twenty Two Thousand One Hundred Eighty Three and Paise Seventy Six only) along with pendentelite and future interest @14% p.a. from the date of filing of this OA till realization of the entire dues of the Applicant Bank along with costs of this OA. Now Defendants no. 2 & 6 are directed to pay the aforesaid amount to the Applicant Bank, within 30 days, failing which, the aforesaid amount shall be recovered from the sale of secured assets / mortgaged properties / hypothecated assets / stocks etc. belonging to Defendants no. 2 & 6.

In case of shortfall, same shall be recovered from the movable and immovable assets of Defendants no. 2 & 6 only.

- (ii) So far as, Defendants no. 1, 3, 4 & 5 are concerned, since CIRP as well as personal insolvency proceedings have been commenced qua these Defendants before Ld. NCLT, New Delhi, no order can be passed against Defendants no. 1, 3, 4 & 5, at this stage till the relevant order(s) of Ld. NCLT are withdrawn / quashed.

However, Applicant Bank shall be at liberty to revive the OA qua Defendants no. 1, 3, 4 & 5 in case NCLT proceedings are quashed / withdrawn in future, in accordance with law.

It is also directed that in case Applicant Bank receives any amount from the CIRP and/or personal insolvency proceedings pending before Ld. NCLT, Delhi it shall give due adjustment of the same in the recovery proceedings.

- (iii) It is also directed that the applicant shall adjust the amount(s), if any, received from the Defendants 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 13.08.2026.

- (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.

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

(Pronounced in open court) Dated: 11.06.2026

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