Asset Reconstruction Company (India) Limited vs ALLIED STRIPS LTD AND ORS on 13 October 2026

**FINAL ORDER**

1. 1. The present O.A., filed on 11.03.2016 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, seeks recovery of Rs. 246,50,19,263/- (Rupees Two Hundred Forty-Six Crores Fifty Lakh Nineteen Thousand Two Hundred Sixty-Three only), along with pendent lite and future interest @ 15% per annum with monthly rests and penal interest @ 2% per annum from the date of filing till realization, with issuance of a Recovery Certificate in favour of the Applicant Bank and against Defendant Nos. 1 to 15. The Applicant, UCO Bank, is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Kolkata and Asset Management Branch at Parliament Street, New Delhi, through which the present O.A. has been instituted. Defendant No.1 had availed Term Loan and Working Capital facilities from the Applicant Bank's Flagship Corporate Centre Branch, New Delhi, and upon classification of the loan accounts as NPA, the accounts were transferred to the Asset Management Branch for recovery. The Applicant has further stated that Shri Nemi Chand, Chief Manager and constituted attorney, is conversant with the records and duly authorised to institute and prosecute the present O.A.

2. 2. It is pertinent here that this OA bearing No. 167/2016 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-I, Delhi to this Tribunal on 01.11.2022 and was numbered at TA-402/2022.

1. 3. The brief facts of the case are that the Applicant Bank, UCO Bank, is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 10, B.T.M. Sarani, Kolkata and, inter alia, an Asset Management Branch at 2nd Floor, UCO Bank Building, 5, Parliament Street, New Delhi. Defendant No.1 had availed Term Loan and Working Capital facilities from the Flagship Corporate Centre Branch of the Applicant Bank, Parliament Street, New Delhi. After classification of the loan accounts of Defendant No.1 as NPA, the said accounts were transferred to the Asset Management Branch, which is a specialised branch dealing with recovery of dues, and the present O.A. has been instituted through the said branch. The Applicant has stated that Shri Nemi Chand, Chief Manager and constituted attorney of the Applicant Bank, is conversant with the records and has been authorised to institute and prosecute the present O.A.

2. 4. Defendant No.1 is a limited company engaged in the manufacture and marketing of Cold Rolled Close Annealed (CRCA) Steel Coils/Strips/Sheets, Cold Rolled Full Hard (CRFH) Steel Coils/Strips/Sheets and Hot Rolled Pickled Oiled (HRPO) Steel Coils. The company was promoted by Defendant No.2, Shri Mohinder Kumar Agarwal, and had established its factory at 42 KM Stone, Delhi-Rohtak Road, Bahadurgarh, Haryana. The Applicant has stated that production of CRCA had commenced in the year 1994 with a production capacity of 24,000 tonnes.

3. 5. Defendant No.1 was already availing Working Capital, Term Loan and other financial facilities from Canara Bank, Defendant No.16, before approaching the Applicant Bank. Defendant No.1 thereafter approached the Applicant Bank for grant of Working Capital Cash Credit facilities. Canara Bank agreed to join the Applicant Bank as a member of the consortium and acted as the Lead Bank. The Canara Bank Consortium sanctioned aggregate credit facilities of Rs.74.46 Crores to Defendant No.1, out of which the Applicant Bank, vide sanction letter dated 15.07.2008, sanctioned a Working Capital limit of Rs.20 Crores.

1. 6. Defendant No.1 passed a Board Resolution dated 07.07.2008 authorising its Managing Director, Defendant No.2, Shri Mohinder Kumar Agarwal, to sign and execute the requisite loan and security documents on behalf of the company for availing the Applicant Bank's Working Capital facility of Rs.20 Crores. Defendant No.2, in his capacity as Managing Director, also furnished an undertaking dated 28.07.2008 regarding the sanctioned credit facility.

2. 7. Pursuant to the aforesaid sanction, Defendant No.2 executed, on 30.07.2008, the Demand Promissory Note on Form A-1 for Rs.20 Crores, Letter of Waiver on Form A-47 for Rs.20 Crores, Letter of Continuity on Form A-3 for Rs.20 Crores, Hypothecation and Book Debts Agreement to Secure Demand Cash Credit on Form A-9B for Rs.20 Crores, Hypothecation of Goods Agreement to Secure Demand Cash Credit on Form A-9 for Rs.20 Crores and Hypothecation of Plant and Machinery for Rs.20 Crores. Under the Hypothecation of Goods Agreement, the stocks of raw material, HR Coil, CRCA Scrap, goods, stores and spares lying at the factory/godown, including goods in transit, were hypothecated in favour of the Applicant Bank.

3. 8. Defendants No.2 to 4, namely Shri Mohinder Kumar Agarwal, Shri Gaurav Agarwal and Smt. Sunita Agarwal, executed separate personal Letters of Guarantee on Bank Form A-21 dated 30.07.2008 for Rs.20 Crores in favour of the Applicant Bank and thereby stood as personal guarantors for the said Working Capital facility. The Applicant Bank also got the modification of charge created by Defendant No.1 in respect of the said credit facility registered with the Registrar of Companies.

1. 9. Thereafter, Defendant No.1 requested enhancement of its credit facilities. The Applicant Bank, vide sanction letter dated 15.10.2008, enhanced the Working Capital Cash Credit limit from Rs.20 Crores to Rs.24 Crores and additionally sanctioned a Bank Guarantee limit of Rs.3.60 Crores, thereby making the enhanced aggregate exposure of the Applicant Bank Rs.27.60 Crores. Defendant No.1 accepted the terms and conditions of the sanction by signing and stamping the sanction letter and, vide its letter dated 15.10.2008, requested release of the enhanced Fund Based Working Capital limit of Rs.24 Crores.

2. 10. Defendant No.1 passed a Resolution dated 14.10.2008 authorising Defendant No.2 to execute the necessary loan documents in favour of the Applicant Bank. Defendant No.1 also furnished an undertaking that none of its Directors had been declared a wilful defaulter. Pursuant thereto, Defendant No.2 executed, on 16.10.2008, a Demand Promissory Note, Letter of Waiver, Letter of Continuity, Hypothecation and Book Debts Agreement and Hypothecation of Goods Agreement, each for Rs.24 Crores. The goods hypothecated comprised the stocks of raw materials, HR Coil, CRCA Scrap, goods, stores and spares lying at the factory/godown, including goods in transit.

3. 11. In addition, Defendant No.2 executed a Hypothecation of Plant and Machinery dated 16.10.2008 for Rs.24 Crores, an Agreement for Extension of Charge by way of Hypothecation over Current Assets to secure the Non-Fund Based facilities and an Omnibus Counter Guarantee for Rs.3.60 Crores in respect of the Bank Guarantee limit. Defendants No.2 to 4 executed separate personal guarantees dated 16.10.2008 for Rs.27.60 Crores. Canara Bank, as Lead Bank, confirmed the creation of first charge over the current assets, first pari-passu charge over the property situated at 14-B, Manohar Park, Rohtak Road, New Delhi, and second pari-passu charge over the factory property at 42 KM Stone, Delhi-Rohtak Road, Bahadurgarh, Haryana, including Plant and Machinery and other fixed assets. The Applicant Bank also got the modification of charge registered with the Registrar of Companies.

1. 12. Thereafter, Defendant No.1 passed a Resolution dated 22.01.2009 authorising Defendant No.3, Shri Gaurav Agarwal, who was then acting as Managing Director, to execute the Working Capital Consortium Agreement and Joint Deed of Hypothecation in favour of the Canara Bank Consortium. Defendant No.1 also passed a Resolution dated 03.03.2009 for availing loans and financial facilities from banks up to Rs.350 Crores. An Inter-se Agreement dated 27.03.2009 was executed between the Applicant Bank and Canara Bank, and the Applicant Bank authorised Canara Bank to act as Lead Bank. Defendant No.1 also informed Canara Bank vide letter dated 12.03.2009 that Defendant No.3 had become its Managing Director with effect from 03.03.2009 in place of Defendant No.2.

2. 13. On 27.03.2009, Defendant No.3, as Managing Director of Defendant No.1, executed the Working Capital Consortium Agreement and Joint Deed of Hypothecation in favour of the Canara Bank Consortium in respect of aggregate Fund Based and Non-Fund Based limits stated to be Rs.157.80 Crores. The Applicant Bank's exposure in the Fund Based limits was Rs.24 Crores, including an Open Cash Credit and Book Debt sub-limit of Rs.16.20 Crores. Defendants No.2 to 4 also executed a Joint Deed of Guarantee dated 27.03.2009 for Rs.76.80 Crores in favour of the Canara Bank Consortium and stood as personal guarantors for the loan facilities availed by Defendant No.1.

1. 14. Defendant No.1 thereafter requested the Canara Bank Consortium for further loan facilities of Rs.164 Crores. The consortium sanctioned the said facilities, in which the share/exposure of the Applicant Bank was Rs.50 Crores. Defendant No.1 passed a Resolution dated 09.11.2009 authorising Defendant No.3 to execute the requisite documents. On 17.11.2009, the Common Loan Agreement was executed, under which the Applicant Bank's exposure was a Term Loan of Rs.50 Crores, inclusive of BG/LC/FLC/FCLR limits, forming part of the total consortium limits of Rs.164 Crores. The Term Loan was repayable in 28 quarterly instalments of Rs.1,78,57,143/- each commencing from 31.12.2011 and ending on 30.09.2018.

2. 15. Along with the Common Loan Agreement dated 17.11.2009, a Joint Deed of Hypothecation, Security Agent Agreement, Facility Agent Agreement, Escrow Account Agreement and Inter-Creditor Agreement were also executed, recording the security and pari-passu arrangement amongst the consortium lenders. Defendants No.2 to 4 executed separate Agreements of Guarantee and Undertakings dated 17.11.2009 for the consortium exposure of Rs.164 Crores. Defendants No.9 to 11 also executed Corporate Agreements of Guarantee and Undertakings dated 17.11.2009 in favour of the Canara Bank Consortium.

3. 16. Defendant No.1 subsequently requested enhancement/renewal of its Working Capital Fund Based and Non-Fund Based facilities. The Applicant Bank, vide sanction letter dated 20.09.2010, allowed renewal-cum-enhancement and continued the Term Loan of Rs.50 Crores with a sub-limit of Rs.15 Crores for LC/FLC/ILC out of the total consortium limits of Rs.164 Crores. A search report dated 24.09.2010 was obtained from Shah Jindal &

Associates regarding the charges registered with the Registrar of Companies in respect of the credit facilities granted by Canara Bank and the Applicant Bank.

1. 17. Defendant No.1 passed a Resolution dated 24.09.2010 authorising Defendant No.3 to execute the security documents for availing the consortium facilities. Canara Bank, vide its letter dated 24.09.2010, ceded pari-passu charge over the assets of Defendant No.1 in favour of the Applicant Bank. Defendant No.1, vide letter dated 25.09.2010, requested release of the enhanced Working Capital limits.

2. 18. Pursuant thereto, Defendant No.3 executed on 25.09.2010 a Demand Promissory Note, Letter of Waiver, Letter of Continuity, Hypothecation and Book Debts Agreement and Hypothecation of Goods Agreement, each for Rs.30 Crores. The hypothecation extended to stocks of raw materials, HR Coil, CRCA Scrap, goods, stores and spares at the factory and other sites, including goods in transit. An Agreement for Extension of Charge over Current Assets was also executed to secure the Non-Fund Based facilities, together with an Omnibus Counter Guarantee of Rs.12 Crores in respect of the Bank Guarantee limit.

3. 19. Defendants No.2 to 4 executed separate Agreements of Guarantee dated 25.09.2010 for Rs.40 Crores in favour of the Applicant Bank and also furnished affidavits stating that they had not been declared wilful defaulters by RBI or CIBIL. Defendants No.9 to 11 executed Corporate Agreements of Guarantee dated 27.09.2010 for Rs.40 Crores. Defendant No.1 furnished an undertaking regarding the Working Capital limits, and Defendant No.3 requested release of the enhanced limits. The Applicant Bank states that the enhanced limits were released and duly availed by Defendant No.1.

20. A search report dated 07.10.2011 was thereafter submitted by Shah Jindal & Associates regarding the charges registered with the Registrar of Companies over the movable and immovable assets of Defendant No.1. Defendant No.1 had also requested modification in the securities and passed a Resolution dated 16.12.2010 for availing Working Capital limits from the consortium. An Additional Inter-se Agreement dated 20.10.2010 was executed amongst Canara Bank, UCO Bank and Dena Bank, recording, inter alia, the Applicant Bank's contribution of Rs.42 Crores in respect of Cash Credit/WCDL/EPC/FBP and LC limits and the Term Loan of Rs.50 Crores.

21. On 20.12.2010, Defendant No.3 executed the Supplementary and Amendatory Working Capital Consortium Agreement, Supplementary Joint Deed of Hypothecation and Amendatory Agreement in favour of the consortium. Defendants No.2 to 4 executed separate Guarantee Agreements dated 20.12.2010 for Rs.115 Crores, along with covering letters, undertakings and the letter of Defendant No.1. Defendants No.9 to 11 also executed separate Guarantee Agreements dated 20.12.2010 for Rs.115 Crores. Defendant No.1, through its Managing Director, confirmed extension of the equitable mortgage of its properties in favour of the consortium vide its intent letter dated 20.12.2010.

22. Defendant No.1 thereafter requested interchangeability of LC and BG limits. The Applicant Bank sanctioned the interchangeability vide sanction letter dated 10.01.2011, which was accepted by Defendant No.1. A Resolution dated 11.01.2011 authorised Defendant No.3 to execute the requisite documents. The Applicant Bank states that the interchangeability was allowed and duly availed by Defendant No.1 in its loan account.

23. During 2011, Defendant No.1 repeatedly requested enhancement of its Working Capital limits vide letters dated 23.03.2011, 27.06.2011, 02.07.2011, 03.08.2011 and 12.09.2011. The proposal was for Working Capital limits of Rs.105 Crores, comprising Fund Based limits of Rs.60 Crores and Non-Fund Based limits of Rs.45 Crores. Defendant No.1 also requested, vide letter dated 06.06.2011, a Short Term Loan of Rs.10 Crores for one year to meet its business cash requirements. After processing the proposal, the Applicant Bank sanctioned enhanced Working Capital limits of Rs.105 Crores vide sanction letter dated 14.09.2011. Defendant No.1 accepted the terms on 15.09.2011 and, vide letter dated 17.10.2011, requested release of the enhanced limits.

24. The Canara Bank Consortium thereafter sanctioned enhanced aggregate credit facilities of Rs.505 Crores to Defendant No.1. Defendant No.1 passed a Resolution dated 15.11.2011 authorising Defendant No.3 to execute the necessary loan and security documents. On 30.11.2011, the member banks executed an Interse Agreement and Defendant No.1 executed the Joint Working Capital Consortium Agreement for Rs.505 Crores, out of which the Applicant Bank's contribution was Rs.105 Crores, along with the Joint Deed of Hypothecation, Undertaking and Powers of Attorney appointing Canara Bank as Consortium Leader.

25. Defendants No.2 to 4 executed separate Agreements of Guarantee and Undertakings dated 30.11.2011 for the total consortium exposure of Rs.505 Crores and also furnished affidavits regarding their status as non-wilful defaulters. Defendants No.9 to 11 executed Corporate Agreements of Guarantee dated 30.11.2011 for Rs.505 Crores in respect of the Working Capital facilities. Defendant No.1 confirmed extension of the equitable mortgage over its immovable properties in favour of the consortium vide its intent letter dated 30.11.2011 for availing Working Capital and Term Loan limits aggregating to Rs.670.95 Crores. The modification of charge was registered with the Registrar of Companies, including the charge relating to the Applicant Bank's Rs.105 Crores exposure.

1. 26. Defendant No.1, vide letter dated 01.03.2012, requested reduction in the rate of interest and acknowledged that it had availed aggregate facilities of Rs.160 Crores from the Applicant Bank out of total limits of Rs.670.95 Crores, comprising Term Loan of Rs.50 Crores, Fund Based limits of Rs.60 Crores and Non-Fund Based limits of Rs.45 Crores. The Applicant Bank states that the consortium members thereafter reviewed the account and that Defendant No.1 had availed the sanctioned limits.

2. 27. Defendant No.1 again submitted a proposal dated 30.08.2012 seeking enhancement of Working Capital limits to Rs.145 Crores, comprising Fund Based limits of Rs.80 Crores and Non-Fund Based limits of Rs.65 Crores. Dena Bank, vide letters dated 04.12.2012 and 26.12.2012, and Canara Bank, vide letter dated 31.12.2012, ceded pari-passu charge over various securities of Defendant No.1 in favour of the Applicant Bank.

3. 28. Defendant No.1 thereafter submitted a detailed proposal dated 20.02.2013 seeking realignment and restructuring of its debt obligations. After processing the proposal, the Applicant Bank renewed the various credit limits vide sanction letter dated 05.04.2013. Defendant No.1 accepted the terms and passed a Resolution dated 08.04.2013 authorising Defendant No.3 to execute the requisite documents. On 11.04.2013, the member banks entered into an Inter-se Agreement for enhancement of the Working Capital limits from Rs.505 Crores to Rs.626.87 Crores. The Applicant Bank's contribution remained Rs.105 Crores.

4. 29. Defendant No.1 executed, on 11.04.2013, the Joint Working Capital Consortium Agreement for Rs.626.87 Crores, Joint Deed of Hypothecation, Undertaking and Powers of Attorney appointing Canara Bank as Consortium Leader. Defendants No.2

to 4 executed Agreements of Guarantee and Undertakings dated 11.04.2013 for Rs.626.87 Crores. Defendants No.9 to 12 executed Corporate Agreements of Guarantee dated 11.04.2013 for the same aggregate consortium exposure.

1. 30. Defendant No.1 confirmed extension of the equitable mortgage over its immovable properties vide intent letter dated 17.05.2013 in consideration of availing Working Capital and Term Loan facilities aggregating to Rs.792.82 Crores. The Applicant has further pleaded that the modification of charge was registered with the Registrar of Companies. Defendant No.3 also furnished an affidavit dated 05.07.2013 stating that he had not been declared a wilful defaulter. Canara Bank, vide communication dated 10.06.2013, confirmed that the original set of documents executed by Defendant No.1 in favour of the consortium was lying in its custody.

2. 31. The Applicant Bank thereafter noticed that no transactions were taking place in the Cash Credit account of Defendant No.1 and, vide letter dated 25.07.2013, called upon the company to route its transactions through the account maintained with the Applicant Bank in accordance with the consortium arrangement. The Applicant Bank subsequently sanctioned restructuring of the credit limits vide its letter dated 25.09.2013, subject to certain conditions, including examination of the accounts of Defendant No.1 through Forensic/Investigative Audit to ascertain whether there had been diversion of funds. The Corporate Debt Restructuring Cell submitted its report dated 28.09.2013 to Canara Bank regarding restructuring of the debts of Defendant No.1 under the CDR scheme.

3. 32. Defendant No.1, vide letter dated 28.09.2013, accepted the terms and conditions of restructuring. It passed a Resolution dated 28.09.2013 authorising Defendant No.3 to execute the necessary restructuring documents and another Resolution dated 30.09.2013 stating that its credit limits would not exceed Rs.1,000 Crores. Defendant No.1, through Defendant No.3, executed the Master Restructuring Agreement dated 30.09.2013 in favour of the Canara Bank Consortium.

1. 33. Defendant No.1 thereafter requested the Applicant Bank, vide letters dated 09.10.2013, 24.10.2013 and 25.11.2013, to waive the condition relating to examination of its accounts through Forensic/Investigative Audit. Defendant No.1 subsequently passed a Resolution dated 15.11.2013 authorising Defendant No.3 to execute the documents and complete the formalities for restructuring of the credit facilities.

2. 34. On 30.12.2013, the member banks executed an Inter-se Agreement, Supplementary Inter-se Agreement and documents confirming the pari-passu arrangement in connection with restructuring. Defendant No.1 executed the Supplementary Master Restructuring Agreement, Joint Deed of Hypothecation, Security Trustee Agreement and Trust and Retention Account Agreement dated 30.12.2013. Defendants No.2 to 4 executed separate Agreements of Guarantee and Undertakings dated 30.12.2013 in respect of the restructured credit limits, while Defendants No.9 to 14 executed Corporate Agreements of Guarantee and Undertakings for the restructured facilities, including the exposure of the Applicant Bank.

3. 35. Defendant No.1 thereafter confirmed continuation/extension of the equitable mortgage over its immovable properties vide Letter of Continuity dated 03.01.2014 in consideration of the restructuring. On 10.01.2014, Defendant No.1 executed the Second Supplementary Master Restructuring Agreement and Supplementary Security Trustee Agreement. Defendants No.2 to 6 and 9 to 15 executed a Deed of Pledge dated 10.01.2014 in favour of Canara Bank as Security Trustee of the consortium, thereby pledging their shares in the respective companies as security. An irrevocable Power of Attorney dated 10.01.2014 was also executed in favour of Canara Bank.

36. Defendant No.1, vide letter dated 08.01.2014, furnished details of the promoter shareholding pledged in favour of the consortium. Canara Bank informed the member banks vide letter dated 11.01.2014 regarding implementation of the CDR package in terms of the Letter of Approval dated 28.09.2013. In the meantime, the Special Investigative/Forensic Audit of Defendant No.1's accounts was conducted by D.C.G. & Company. According to the Applicant Bank, the audit report disclosed diversion of Working Capital funds by Defendant No.1 and its promoters for personal purposes and for acquisition of assets, causing erosion of the company's capital.

37. The Applicant Bank sought clarification from Defendant No.1 regarding the examination of its accounts, to which Defendant No.1 replied vide letter dated 24.02.2014. Defendant No.1 thereafter requested release of funds vide letters dated 27.02.2014 and 13.03.2014. Canara Bank also requested the Applicant Bank vide letter dated 27.03.2014 to release the second tranche of the Non-Fund Based limit under the CDR package. After examining the accounts and the investigative report, the Applicant Bank declined the request vide letter dated 19.04.2014 and informed Defendant No.1 that the account was under stress and that the Bank was required to report the matter to RBI if interest was not serviced regularly.

38. Defendant No.1 nevertheless continued requesting release of incremental Working Capital limits vide letters dated 21.04.2014 and 23.04.2014. The Applicant Bank, vide letter dated 19.05.2014, called upon Defendant No.1 to remit the instalments of FITL relating to Working Capital facilities which had fallen due on 31.03.2014 and to service the interest. Meanwhile, the CDR Cell submitted its review report dated 28.05.2014 to Canara Bank and it was decided that UCO Bank would release its share of additional Working Capital.

1. 39. Defendant No.1, vide letter dated 28.05.2014, requested release of its share of incremental Working Capital limits. By another letter dated 21.06.2014, Defendant No.1 expressed its intention to sell assets for repayment of the Applicant Bank's dues under the CDR package and for servicing its interest obligations. The Applicant Bank, vide letter dated 23.06.2014, again called upon Defendant No.1 to service the monthly interest for May 2014 and the quarterly instalment falling due in March 2014. The Applicant Bank also communicated the position of Defendant No.1's accounts to the consortium members vide letter dated 26.06.2014.

2. 40. Thereafter, the Applicant Bank, vide letter dated 01.07.2014, agreed to release its share of Rs.6.11 Crores of the Working Capital limits subject to stipulated conditions. Defendant No.1, vide letter dated 09.07.2014, expressed its thanks for release of the additional Working Capital limits under the CDR package. Defendant No.1 subsequently furnished its comments dated 09.08.2014 on the observations made in the Concurrent Audit Report of Shah Jindal & Associates and, vide letter dated 11.08.2014, undertook that its account would be cleared from the SMA-2 category.

3. 41. The Applicant Bank thereafter served a letter dated 10.09.2014 upon Defendant No.1 calling upon it to service interest in the overdrawn accounts and regularise the accounts. Vide letter dated 13.10.2014, the Applicant Bank informed Defendant No.1 that an LC of Rs.3.82 Crores had fallen due and called upon it to deposit the requisite funds in the Cash Credit account so that payment could be made. The Applicant Bank thereafter submitted the position of the accounts to the consortium members vide letter dated 07.11.2014 and again served a letter dated 11.11.2014 requiring Defendant No.1 to service interest and regularise the overdrawn accounts, failing which the Bank stated that it would report the position to RBI.

1. 42. The consortium members, in their meeting held on 24.11.2014, decided to exit from the CDR mechanism and pursue legal remedies for recovery of their respective dues against Defendant No.1. The Applicant Bank thereafter served another letter dated 24.12.2014 upon Defendant No.1 calling upon it to service interest and regularise the accounts, failing which, according to the Applicant, the accounts had technically become NPA on 30.11.2014. A legal notice dated 16.01.2015 was thereafter served upon Defendants No.1 to 13 demanding payment of the outstanding dues, but, according to the Applicant Bank, the defendants neither replied to the notice nor paid the dues.

2. 43. The Applicant Bank, vide letter dated 17.10.2015, informed Canara Bank that its Competent Authority had approved exit of Defendant No.1's account from the CDR mechanism and initiation of recovery proceedings. Canara Bank thereafter forwarded valuation reports dated 13.10.2015 relating to the immovable property of the factory and the Plant and Machinery of Defendant No.1. The Applicant Bank further pleaded that despite restructuring of the limits, Defendant No.1 failed to discharge the dues and that the Special Investigative Audit conducted by D.C.G. & Company had disclosed irregularities, fudging of accounts and entries, manipulation of books, vouchers and records.

3. 44. According to the Applicant Bank, Defendant No.1 failed to maintain financial discipline after availing the credit facilities and ultimately the loan accounts became non-operative and were declared NPA on 31.12.2014. The Applicant Bank has further pleaded that Defendant No.1, in an attempt to prevent recovery of the Bank's dues, filed a reference before the BIFR, which was registered as Case No.16/2015.

1. 45. The Applicant Bank has thereafter detailed the immovable securities created by Defendant No.1 from time to time. The first charge/pari-passu equitable mortgage included property comprised in Khasra Nos.3048/1, 3048/2 & 3 and 3049/1, measuring 5 Bighas 6 Biswas at Maundauthi, Bahadurgarh, Jhajjar, which was modified on 07.07.2009 and registered on 26.08.2009. Another property comprised in Khasra Nos.3096/395, 3097/395/396, measuring approximately 8 Bighas 8 Biswas at Asaudha Todran, Bahadurgarh, Jhajjar, was similarly modified on 07.07.2009 and registered on 26.08.2009.

2. 46. The securities further included landed properties situated at Khewat No.113 min and various Khasra numbers in village Ashoda, Tehsil Bahadurgarh, District Jhajjar, as well as the aforesaid properties at Maundauthi and Asaudha Todran under the Additional Inter-se Agreement dated 20.10.2010. Letters extending the equitable mortgage over the said immovable properties, including the land, buildings and machinery installed therein, were executed on 20.12.2010 and registered on 05.02.2011; another extension dated 14.07.2011 was registered on 16.08.2011; and a further extension dated 30.11.2011 was registered on 24.12.2011. The Applicant also relied upon the extension dated 17.05.2013 in respect of the enhanced limits. The security structure additionally included a first pari-passu charge over the Company's property situated at 14-B, Manohar Park, Rohtak Road, New Delhi.

3. 47. In respect of movable securities, the Applicant Bank pleaded that the entire current assets of Defendant No.1 were hypothecated on pari-passu basis, along with collateral charge over the Plant and Machinery. The initial hypothecation was created under the Hypothecation of Goods Agreement dated 30.07.2008 for Rs.20 Crores, covering raw materials, HR Coil, CRCA Scrap, goods, stores and spares, including goods in transit. The charge was registered with the Registrar of Companies on 23.09.2008 vide Charge ID No.10120822.

48. The subsequent security documents included the Agreement for Extension of Charge over Current Assets to secure Non-Fund Based limits, Hypothecation of Plant and Machinery as additional security dated 16.10.2008 and Hypothecation of Goods Agreement/Book Debts and Plant and Machinery as additional security for Rs.24 Crores. The corresponding charge over the current assets and Plant and Machinery was registered on 28.11.2009 vide Charge ID No.10130116. Plant and Machinery including Cold Rolling Mill, Skin Pass Mill, Slitting Line, Cut-to-Length Line, Roll Grinding Machine, Crane, Annealing Furnace and material handling equipment, purchased out of the Term Loan of Rs.10 Crores, was hypothecated on 21.05.2010 and registered on 09.07.2010 vide Charge ID No.10226561.

49. The movable security further comprised the whole of the current assets, stocks, stores, spares, book debts and all other movable assets and Plant and Machinery of Defendant No.1 described in the Additional Inter-se Agreement dated 20.10.2010, lying or stored at the factory and godown situated at 42 KM Stone, Delhi-Rohtak Road, Bahadurgarh, District Jhajjar, Haryana.

50. The Applicant Bank thereafter quantified the outstanding in the individual loan accounts. In Cash Credit Loan Account No.18610510000014, the principal book balance was stated to be Rs.34,06,54,379.71, together with unapplied interest of Rs.25,87,13,968.93 calculated at 14% per annum with monthly rests and penal interest at 2% simple, but not capitalised, up to 06.03.2016. The total outstanding in the said account was pleaded as Rs.59,93,68,348.64.

1. 51. In Term Credit Loan (TL-CDR) Account No.19450610003848, the principal book balance was stated to be Rs.42,84,00,000/- and the unapplied interest up to 06.03.2016 was Rs.11,42,17,162.25, calculated at 15% per annum with monthly rests and penal interest at 2% simple, not capitalised. Thus, the total outstanding in the said account was stated to be Rs.54,26,17,162.25.

2. 52. In FITL-WC Loan Account No.19450610003756, the principal balance was stated to be Rs.1,47,57,236.87 and unapplied interest was Rs.53,02,720.63, calculated at 15% per annum with monthly rests and penal interest at 2% simple, not capitalised, up to 06.03.2016, making a total of Rs.2,00,59,957.50.

3. 53. In WCTL Account No.19450610003763, the principal book balance was stated to be Rs.69,48,06,800/- and unapplied interest was Rs.18,52,65,162.60, calculated at 15% per annum with monthly rests and penal interest at 2% simple, not capitalised, up to 06.03.2016, making a total outstanding of Rs.88,00,71,962.60.

4. 54. In FITL (WCTL) Account No.19450610003770, the principal book balance was stated to be Rs.16,67,74,356.16 and unapplied interest was Rs.5,08,98,090.56, calculated at 15% per annum with monthly rests and penal interest at 2% simple, not capitalised, up to 06.03.2016, making a total outstanding of Rs.21,76,72,446.72.

5. 55. In FITL (TL) Account No.19450610003787, the principal book balance was stated to be Rs.10,26,95,849.07 and unapplied interest was Rs.3,13,40,236.22, calculated at 15% per annum with monthly rests and penal interest at 2% simple, not capitalised, up to 06.03.2016, making a total outstanding of Rs.13,40,36,085.29.

6. 56. In addition, in the Term Loan account prior to CDR, bearing Account No.18610610000540, the Applicant Bank claimed unapplied interest of Rs.7,11,93,300/- calculated at 15% per annum with monthly rests and penal interest at 2% simple, not capitalised, up to 06.03.2016. The said amount was pleaded as due and payable by Defendant No.1.

1. 57. On the basis of the aforesaid loan accounts, the Applicant Bank pleaded that a total sum of Rs.246,50,19,263/- was due and payable by Defendant No.1 as on 06.03.2016. The Applicant further claimed future interest at 15% per annum with monthly rests together with penal interest at 2% simple from the date of filing of the O.A. till realisation. It was specifically pleaded that the unapplied interest had not been capitalised in the statement of account after classification of the account as NPA in accordance with RBI guidelines and that penal interest and other charges had also not been capitalised. The Applicant relied upon the statements of account certified under the Bankers' Books Evidence Act and pleaded that the same formed part of the O.A.

2. 58. Defendant No.1 has been pleaded as the principal borrower, whereas Defendants No.2 to 15 were stated to have stood as personal/corporate guarantors and to have executed personal Letters of Guarantee, Deeds of Pledge and other security documents from time to time for and on behalf of Defendant No.1. On that basis, the Applicant Bank pleaded that Defendants No.2 to 15 were jointly and severally liable for payment of the entire outstanding amount of Rs.246,50,19,263/-.

3. 59. The Applicant Bank further pleaded that it had served a legal notice dated 16.01.2015 upon Defendants No.1 to 15 calling upon them to discharge the outstanding dues. According to the Applicant, despite service of the notice, the defendants failed to make payment, leaving the Applicant Bank with no alternative but to institute the present O.A. for recovery of its dues. Defendants No.16 to 19 were impleaded as pro-forma defendants as they were members of the Canara Bank Consortium which had sanctioned credit facilities to Defendant No.1.

1. 60. The Applicant Bank further pleaded that the O.A. was within limitation in terms of Section 24 of the RDDBFI Act, 1993, relying upon the various dates of execution of loan and security documents, restructuring documents, demands and other events mentioned in the limitation paragraph of the O.A. The Applicant asserted that the cause of action continued as the defendants had failed to clear the outstanding dues.

2. 61. On the question of jurisdiction, the Applicant Bank pleaded that Defendant No.1 had availed the loan facilities at New Delhi, the outstanding dues were payable at Delhi, the cause of action had arisen at New Delhi and the defendants were residing and/or working for gain at New Delhi. On that basis, the Applicant claimed that this Tribunal had the requisite territorial and pecuniary jurisdiction to entertain and decide the present O.A.

3. 62. The Applicant valued the present O.A. at Rs.246,50,19,263/- and stated that the requisite court fee of Rs.1,50,000/- had been paid vide Demand Draft No.147181 dated 05.03.2016 in favour of the Registrar, DRT, New Delhi. The Applicant accordingly sought issuance of a Recovery Certificate against Defendants No.1 to 15 jointly and severally for the said amount together with pendent lite and future interest at the claimed rate, attachment and sale of the mortgaged immovable properties, sale of the hypothecated movable assets and Plant and Machinery, costs of the proceedings and such other relief as may be deemed fit.

4. 63. The immovable properties for which attachment and sale were sought comprised, inter alia, the property situated at 14-B, Manohar Park, Rohtak Road, New Delhi; property comprised in Khasra Nos.3048/1, 3048/2 & 3 and 3049/1 measuring 5 Bighas 6 Biswas at Maundauthi, Bahadurgarh, Jhajjar; property comprised in Khasra Nos.3096/395, 3097/395/396 measuring approximately 8 Bighas 8 Biswas at Asaudha Todran, Bahadurgarh, Jhajjar; and properties comprised in Khewat No.113 min and various Khasra numbers situated at village Ashoda, Tehsil Bahadurgarh, District Jhajjar, together with buildings, structures and Plant and Machinery attached thereto.

1. 64. The Applicant also sought attachment and sale of the movable Plant and Machinery, stocks, finished goods, spares, tools, accessories and other movable assets of Defendant No.1, whether present or future, installed or loose, lying at the factory, premises, godowns or elsewhere or in transit, which had been charged in favour of the Applicant Bank. In addition, the Applicant sought sale of the Plant and Machinery purchased by Defendant No.1 out of the Term Loan granted by the Applicant Bank and secured by exclusive first charge, including the machinery situated at 42 KM Stone, Delhi-Rohtak Road, Bahadurgarh, District Jhajjar, Haryana.

2. 65. The Applicant also sought interim protection against creation of any third-party interest in the mortgaged immovable properties and the hypothecated Plant and Machinery, stocks and other movable assets of Defendant No.1. It further sought restraint against Defendants No.2 to 15 from dealing with or creating third-party interests in their personal immovable properties, disclosure on affidavit of their other movable and immovable properties, surrender of passports by Defendants No.2 to 6, appointment of a Receiver for inspection and inventory of the factory/godown/mortgaged properties and movable assets, production of audited balance sheets of the concerned companies and furnishing of substantial security in the nature of a Bank Guarantee for Rs.246,50,19,263/-.

66. Thus, according to the Applicant FI, Defendant No.1 initially availed the Working Capital Cash Credit facility of Rs.20 Crores in 2008, which was successively enhanced and supplemented by Bank Guarantee, Non-Fund Based, Term Loan and further Working Capital facilities under the Canara Bank-led consortium arrangement. The facilities were subsequently renewed, enhanced and restructured, including under the CDR mechanism, against various loan documents, hypothecation agreements, equitable mortgage, pari-passu charges, personal and corporate guarantees and pledge of shares. Despite repeated opportunities, restructuring and demands for regularisation, the Applicant states that Defendant No.1 failed to maintain financial discipline and discharge the dues, resulting in the accounts becoming irregular and ultimately being classified as NPA.

67. The Applicant has accordingly prayed for allowing the present O.A. and for directing Defendant Nos. 1 to 15, jointly and severally, to pay a sum of Rs. 246,50,19,263/- (Rupees Two Hundred Forty-Six Crores Fifty Lakh Nineteen Thousand Two Hundred Sixty-Three only), together with pendent lite and future interest @ 15% per annum with monthly rests, along with penal interest @ 2% per annum, from the date of filing of the present O.A. till realization of the entire outstanding amount, and for issuance of a Recovery Certificate for the aforesaid amount in favour of the Applicant FI and against Defendant Nos. 1 to 15.

68. To substantiate its case, the Applicant FI has filed the affidavit of Mr. Gaurav Kumar Dahiya, son of Shri Samaypal, working as Chief Manager (Legal) with the Applicant, Asset Reconstruction Company (India) Limited, having its office at Office No. 1008, 11th Floor, Westend Mall, Janakpuri District Centre, Janakpuri, New Delhi-110058. He has deposed that he is fully conversant with the facts of the present case on the basis of the records maintained by the Applicant and is duly authorised and competent to depose on its behalf. His authority to depose is evidenced by the Power of Attorney, which has been exhibited as Exhibit PW-1/1.

1. i. Power of Attorney of the Deponent – Exhibit PW 1/1.

2. ii. Original Application comprising Paragraphs 1 to 11, Pages 6 to 58 – Exhibit PW/A/2.

3. iii. Assignment Agreement executed between UCO Bank and M/s Asset Reconstruction Company (India) Limited (ARCIL) – Exhibit PW/A/3.

4. iv. Copy of the order dated 16.03.2018 passed by the Hon'ble National Company Law Tribunal, New Delhi, in CP (IB) No. 46(PB)/2018 – Exhibit PW/A/4.

5. v. Copy of the order dated 30.05.2019 passed by the Hon'ble National Company Law Tribunal, New Delhi, approving the Resolution Plan – Exhibit PW/A/5.

6. vi. Recast Statement of Account of M/s Allied Strips Limited as on 28.11.2023 – Exhibit PW/A/6.

7. vii. Copy of Power of Attorney executed by UCO Bank in favour of Mr. Nemichand – Exhibit PW 1/7.

8. viii. Original Extract of the Resolution dated 07.07.2008 passed by Defendant No. 1 – Exhibit PW 1/8.

9. ix. Original Extract of the Resolution dated 26.12.2007 passed by Defendant No. 1 – Exhibit PW 1/9.

10. x. Original Undertaking dated 28.07.2008 given by the M.D. of Defendant No. 1 – Exhibit PW 1/10.

11. xi. Original Demand Promissory Note on Form A-1 dated 30.07.2008 for Rs.20 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/11.

12. xii. Original Letter of Waiver on Form A-47 dated 30.07.2008 for Rs.20 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/12.

- xiii. Original Letter of Continuity on Form A-3 dated 30.07.2008 for Rs.20 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/13.

- xiv. Original Hypothecation & Book Debts Agreement to secure Demand Cash Credit on Form A9B dated 30.07.2008 for Rs.20 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/14.

- xv. Original Hypothecation of Goods Agreement to secure Demand Cash Credit on Form A-9 dated 30.07.2008 for Rs.20 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/15.

- xvi. Original Hypothecation of Plant and Machinery as Additional Security dated 30.07.2008 for Rs.20 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/16.

- xvii. Original Letters of Guarantee on Form A-21 dated 30.07.2008 for Rs.20 Crores executed by Defendants No.2 to 4 in favour of the Applicant – Exhibit PW 1/17.

- xviii. Form No.8 regarding modification of charge created by Defendant No.1 qua the movable and immovable assets of Defendant No.1 – Exhibit PW 1/18.

- xix. Original Sanction Letter dated 15.10.2008 of the Applicant Bank sanctioning enhanced CC/IL and BG limits of Rs.27.60 Crores from Rs.20 Crores, duly accepted by Defendant No.1, together with Defendant No.1's letters dated 15.10.2008 and Resolution dated 14.10.2008 – Exhibit PW 1/19.

- xx. Original Demand Promissory Note on Form A-1 dated 16.10.2008 for Rs.24 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/20.

- xxi. Original Letter of Waiver on Form A-47 dated 16.10.2008 for Rs.24 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/21.

- xxii. Original Letter of Continuity on Form A-3 dated 16.10.2008 for Rs.24 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/22.

- xxiii. Original Hypothecation & Book Debts Agreement to secure Demand Cash Credit on Form A9B dated 16.10.2008 for Rs.24 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/23.

- xxiv. Original Hypothecation of Goods Agreement to secure Demand Cash Credit on Form A-9 dated 16.10.2008 for Rs.24 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/24.

- xxv. Original Hypothecation of Plant and Machinery as Additional Security dated 16.10.2008 for Rs.27.60 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/25.

- xxvi. Original Agreement for extension of charge by way of Hypothecation over current assets to secure non-fund based facilities on Form A9D dated 16.10.2008 executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/26.

- xxvii. Original Omnibus Counter Guarantee covering several guarantees within the sanctioned limit – Exhibit PW 1/27.

- xxviii. Original Letters of Guarantee on Form A-21 dated 16.10.2008 for Rs.27.60 Crores executed by Defendants No.2 to 4 in favour of the Applicant – Exhibit PW 1/28.

- xxix. Original Canara Bank letter dated 16.10.2008 ceding pari-passu charge over movable and immovable properties of Defendant No.1 in favour of the Applicant Bank – Exhibit PW 1/29.

- xxx. Form No.8 regarding modification of charge created by Defendant No.1 qua its movable and immovable assets on 16.10.2008 – Exhibit PW 1/30.

- xxxi. Copy of Extract of Resolution dated 22.01.2009 and original Extract of Resolution dated 03.03.2009 passed by Defendant No.1 – Exhibit PW 1/31.

- xxxii. Original Canara Bank letter dated 02.05.2009 enclosing the joint documents, namely Inter-se Agreement, Letter of Authority by UCO Bank and Consent Letter for disclosure executed by Defendant No.1 on 27.03.2009 in favour of Canara Bank Consortium – Exhibit PW 1/32.

- xxxiii. Copy of Defendant No.1's letter dated 12.03.2009 addressed to Canara Bank regarding change in designation of Mr. Gaurav Aggarwal in place of Mr. Mohinder Kumar Aggarwal, along with Form No.32 – Exhibit PW 1/33.

- xxxiv. Copies of Working Capital Consortium Agreement and Joint Deed of Hypothecation dated 27.03.2009 executed by Defendant No.1 in favour of Canara Bank Consortium – Exhibit PW 1/34.

- xxxv. Copy of Deed of Guarantee dated 27.03.2009 for Rs.76.80 Crores executed by Defendants No.2 to 4 in favour of Canara Bank Consortium – Exhibit PW 1/35.

- xxxvi. Copy of Extract of Resolution dated 09.11.2009 passed by Defendant No.1 for availing enhanced limit of Rs.164 Crores from Canara Bank Consortium – Exhibit PW 1/36.

- xxxvii. Copies of Common Loan Agreement dated 17.11.2009, Joint Deed of Hypothecation, Security Agent Agreement, Facility Agent Agreement, Escrow Account Agreement and Inter-Creditor Agreement, all dated 17.11.2009 – Exhibit PW 1/37.

- xxxviii. Copy of Inter-Creditor Agreement for sharing of securities amongst Canara Bank, UCO Bank and Dena Bank dated 17.11.2009 – Exhibit PW 1/38.

- xxxix. Copies of separate Agreements of Personal Guarantees and Undertakings, both dated 17.11.2009 for Rs.164 Crores, executed by Defendants No.2 to 4 in favour of Canara Bank Consortium – Exhibit PW 1/39.

- xl. Copies of separate Agreements of Corporate Guarantees and Undertakings, both dated 17.11.2009 for Rs.164 Crores, executed by Defendants No.9 to 11 with their respective resolutions in favour of Canara Bank Consortium – Exhibit PW 1/40.

- xli. Original Applicant Bank Sanction Letter dated 20.09.2010 for renewal-cum-enhancement of limits issued in favour of Defendant No.1, with terms and conditions duly accepted and acknowledged by Defendant No.1 – Exhibit PW 1/41.

- xlii. Copy of Search Report dated 24.09.2010 of Shah Jindal & Associates, CA, giving details of various charges created by Defendant No.1 from time to time qua its movable and immovable assets charged/hypothecated/mortgaged with Canara Bank Consortium and its member Banks including the Applicant Bank – Exhibit PW 1/42.

- xliii. Original Extract of Resolution dated 24.09.2010 passed by Defendant No.1 for availing Rs.40 Crores from the Applicant Bank and enhanced limit of Rs.164 Crores from Canara Bank Consortium – Exhibit PW 1/43.

- xliv. Original Canara Bank letter dated 23.09.2010 addressed to Dena Bank informing the share of loans granted by UCO Bank and Canara Bank – Exhibit PW 1/44.

- xlv. Original Canara Bank letter dated 24.09.2010 addressed to the Applicant Bank ceding pari-passu charge over movable and immovable assets/properties of Defendant No.1 – Exhibit PW 1/45.

xlvi. Original Defendant No.1 letter dated 25.09.2010 addressed to the Applicant Bank for release of enhanced limits for the year 2010-2011 – Exhibit PW 1/46.

xlvii. Original Demand Promissory Note on Form A-1 dated 25.09.2010 for Rs.30 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/47.

xlviii. Original Letter of Waiver on Form A-47 dated 25.09.2010 for Rs.30 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/48.

xlix. Original Letter of Continuity on Form A-3 dated 25.09.2010 for Rs.30 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/49.

1. Original Hypothecation & Book Debts Agreement to secure Demand Cash Credit on Form A-9B dated 25.09.2010 for Rs.30 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/50.

li. Original Hypothecation of Goods Agreement to secure Demand Cash Credit on Form A-9 dated 25.09.2010 for Rs.30 Crores executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/51.

lii. Original Agreement for extension of charge by way of Hypothecation over current assets to secure non-fund based facilities on Form A9D dated 25.09.2010 executed by Defendant No.1 in favour of the Applicant – Exhibit PW 1/52.

liii. Original Omnibus Counter Guarantee for Rs.12 Crores – Exhibit PW 1/53.

liv. Original Letters of Personal Guarantee on Form A-21 dated 25.09.2010 for Rs.40 Crores executed by Defendants No.2

to 4 in favour of the Applicant, along with their respective affidavits – Exhibit PW 1/54.

- lv. Original Letters of Corporate Guarantees on Form A-21 for Rs.40 Crores executed by Defendants No.9 to 11 in favour of the Applicant, along with their respective extracts of Board Resolutions – Exhibit PW 1/55.

- lvi. Original Undertaking given by Defendant No.1 to the Applicant Bank regarding Hypothecation of Plant and Machinery as Additional Security dated 16.10.2008 for Rs.27.60 Crores – Exhibit PW 1/56.

- lvii. Copy of Search Report dated 07.10.2011 of Shah Jindal & Associates, CA, giving details of various charges created by Defendant No.1 from time to time qua its movable and immovable assets charged/hypothecated/mortgaged with Canara Bank Consortium and its member Banks including the Applicant – Exhibit PW 1/57.

- lviii. Copies of Extracts of Resolutions dated 16.10.2010 passed by Defendant No.1 – Exhibit PW 1/58.

- lix. Copy of Additional Inter-se Agreement amongst members of Canara Bank Consortium dated 20.12.2010 – Exhibit PW 1/59.

- lx. Copies of Supplemental and Amendatory Working Capital Consortium Agreement, Supplementary Joint Deed of Hypothecation and Amendatory Agreement, all dated 20.12.2010, executed between Defendant No.1 and Canara Bank Consortium – Exhibit PW 1/60.

- lxi. Copies of Guarantee Covering Letter, Company's Letter dated 20.12.2010, Defendant No.3's letter dated 20.12.2010 and Personal Guarantee Agreements of Defendant No.1 and Defendant No.2 in favour of Canara Bank Consortium in the sum of Rs.115 Crores – Exhibit PW 1/61.

- lxii. Copies of Guarantee Covering Letter, Company's Letter dated 20.12.2010, Defendant No.3's letter dated 20.12.2010 and Personal Guarantee Agreements of Defendant No.1 and Defendant No.3 in favour of Canara Bank Consortium in the sum of Rs.115 Crores – Exhibit PW 1/62.

- lxiii. Copies of Guarantee Covering Letter, Company's Letter dated 20.12.2010, Defendant No.3's letter dated 20.12.2010 and Personal Guarantee Agreements of Defendant No.1 and Defendant No.4 in favour of Canara Bank Consortium in the sum of Rs.115 Crores – Exhibit PW 1/63.

- lxiv. Copies of Corporate Guarantee Agreements of Defendants No.9 to 11 with their respective Board Resolutions in favour of Canara Bank Consortium in the sum of Rs.115 Crores – Exhibit PW 1/64.

- lxv. Copies of Extension of Charge Letters dated 20.12.2010 signed and submitted by Defendant No.1 in favour of Canara Bank Consortium – Exhibit PW 1/65.

- lxvi. Original Sanction Letter dated 10.01.2011 issued in favour of Defendant No.1 for interchangeability of LC/BG limit, with terms and conditions duly accepted by Defendant No.1 – Exhibit PW 1/66.

- lxvii. Original Extract of Company's Resolution dated 11.01.2011 – Exhibit PW 1/67.

- lxviii. Original Request Letters for enhancement of working capital limits dated 23.03.2011, 27.06.2011, 06.11.2011, 02.07.2011, 03.08.2011, 12.09.2011, 15.09.2011, 17.10.2011, 20.10.2011 and 13.12.2011 – Exhibit PW 1/68.

- lxiix. Original Sanction Letter dated 14.09.2011 issued in favour of Defendant No.1 for enhancement of working capital limits, with terms and conditions duly accepted by Defendant No.1 – Exhibit PW 1/69.

- lxx. Copy of Extract of Defendant No.1's Resolution dated 15.11.2011 for availing enhanced working capital limits of Rs.505 Crores from Canara Bank Consortium – Exhibit PW 1/70.

- lxxi. Copy of Inter-se Agreement with inter-se arrangement for sharing of securities dated 30.11.2011 executed between member Banks of Canara Bank Consortium – Exhibit PW 1/71.

- lxxii. Copy of Working Capital Agreement dated 30.11.2011 executed between Defendant No.1 and Canara Bank Consortium members – Exhibit PW 1/72.

- lxxiii. Copy of Joint Deed of Hypothecation Agreement dated 30.11.2011 executed by Defendant No.1 in favour of Canara Bank Consortium – Exhibit PW 1/73.

- lxxiv. Copy of Undertaking dated 30.11.2011 given by Defendant No.1 in favour of Canara Bank Consortium – Exhibit PW 1/74.

- lxxv. Copies of Letters of Authority given by UCO Bank, OBC, PNB and Dena Bank to Canara Bank, leader of the Consortium – Exhibit PW 1/75.

- lxxvi. Copies of Agreements of Personal Guarantees, Undertakings and Affidavits of Defendants No.1 to 4, all dated 30.11.2011, in favour of Canara Bank Consortium in the sum of Rs.505 Crores for working capital limits – Exhibit PW 1/76.

- lxxvii. Copies of Agreements of Corporate Guarantees and Undertakings executed by Defendants No.9 to 11, all dated 30.11.2011, with their respective Board Resolutions in favour of Canara Bank Consortium in the sum of Rs.505 Crores for working capital limits – Exhibit PW 1/77.

- lxxviii. Copies of Extension of Charge letters submitted by Defendant No.1 in favour of Canara Bank Consortium in respect of total limits of Rs.670.95 Crores qua the movable and immovable assets/properties of Defendant No.1, with Certificates of Registration of Charge under Section 132 read with Section 138 of the Companies Act, 1956 – Exhibit PW 1/78.

- lxxix. Original Defendant No.1 letter dated 01.03.2012 to Canara Bank Consortium and its members for reduction of interest on term loan and working capital limits – Exhibit PW 1/79.

- lxxx. Copy of Canara Bank letter dated 01.02.2012 to Defendant No.1 permitting modifications in term loan of Rs.80 Crores – Exhibit PW 1/80.

- lxxxi. Original Canara Bank letter dated 19.03.2012 to the Applicant Bank with minutes of meetings of Consortium members held on 15.03.2012 – Exhibit PW 1/81.

- lxxxii. Original Defendant No.1 proposal letter dated 30.08.2012 to the Applicant for sanction of working capital limits of Rs.145 Crores out of total Rs.725 Crores – Exhibit PW 1/82.

- lxxxiii. Original Dena Bank letters dated 04.12.2012 and 28.12.2012 and copy of Canara Bank letter dated 31.12.2012 to other members of Consortium ceding pari-passu charge over the assets and immovable mortgaged properties of Defendant No.1 – Exhibit PW 1/83.

- lxxxiv. Original Defendant No.1 request letter dated 20.02.2013 to Consortium members including the Applicant Bank for realignment of debt obligations of the Company – Exhibit PW 1/84.

- lxxxv. Original Sanction Letter dated 05.04.2013 issued by the Applicant Bank to Defendant No.1 regarding renewal of various credit limits, with terms and conditions duly accepted by Defendant No.1 – Exhibit PW 1/85.

lxxxvi. Copy of Extract of Defendant No.1's Resolution dated 08.04.2013 for availing enhanced working capital limits of Rs.626.87 Crores from Canara Bank Consortium – Exhibit PW 1/86.

lxxxvii. Original Canara Bank letter dated 24.05.2013 addressed to the Applicant Bank enclosing joint documents dated 11.04.2013 executed amongst members of the Consortium and by Defendants No.1 to 4 and 9 to 12 in favour of the Consortium – Exhibit PW 1/87.

lxxxviii. Copies of Inter-se Agreement with letter confirming pari-passu arrangement for sharing of securities, both dated 11.04.2013, executed between member Banks of Canara Bank Consortium – Exhibit PW 1/88.

lxxxix. Copies of Working Capital Agreement, Joint Deed of Hypothecation and Undertaking, all dated 11.04.2013, executed between Defendant No.1 and Canara Bank Consortium members – Exhibit PW 1/89.

xc. Copies of Powers of Attorney executed by members of Consortium in favour of Canara Bank, being the leader of the Consortium, dated 11.04.2013 – Exhibit PW 1/90.

xci. Copies of Agreements of Personal Guarantees and Undertaking of Defendants No.1 to 4, all dated 11.04.2013, in favour of Canara Bank Consortium in the sum of Rs.626.87 Crores for working capital limits – Exhibit PW 1/91.

xcii. Copies of Agreements of Corporate Guarantees executed by Defendants No.9 and 10, both dated 11.04.2013, with their respective Board Resolutions in favour of Canara Bank Consortium in the sum of Rs.626.87 Crores for working capital limits – Exhibit PW 1/92.

xciii. Copies of Agreements of Corporate Guarantees executed by Defendants No.11 and 12, both dated 11.04.2013, with their 

respective Board Resolutions in favour of Canara Bank Consortium in the sum of Rs.626.87 Crores for working capital limits – Exhibit PW 1/93.

- xciv. Copy of Search Report dated 04.01.2012 of Shah Jindal & Associates, CA, giving details of various charges created by Defendants No.1 and 9 to 11 from time to time qua their movable and immovable assets charged/hypothecated/mortgaged with Canara Bank Consortium and its member Banks including the Applicant – Exhibit PW 1/94.

- xcv. Copies of Extension of Charge Letters dated 17.05.2013 signed and submitted by Defendant No.1 in favour of Canara Bank Consortium in respect of total limits of Rs.792.82 Crores qua the movable and immovable assets/properties of Defendant No.1, with Certificates of Registration of Charge under Section 132 read with Section 138 of the Companies Act, 1956 – Exhibit PW 1/95.

- xcvi. Copies of Affidavit of Gaurav Aggarwal dated 05.07.2013, Defendant No.1's letter dated 04.07.2013 and e-mail dated 10.06.2013 sent by Canara Bank to the Applicant regarding holding of original documents of Consortium – Exhibit PW 1/96.

- xcvii. Copy of Bank's letter dated 25.07.2013 and copy of sanction – Exhibit PW 1/97.

- xcviii. Copy of Restructuring Proposal of Defendant No.1 approved by Corporate Debt Restructuring Cell dated 28.09.2013 – Exhibit PW 1/98.

- xcix. Copy of Defendant No.1's letter dated 28.09.2013 accepting the terms and conditions of restructuring of limits – Exhibit PW 1/99.

- c. Copy of Extract of Defendant No.1's Resolutions dated 28.09.2013 and 30.09.2013 for availing restructured working capital limits of Rs.983.35 Crores from Canara Bank Consortium – Exhibit PW 1/100.

- ci. Copy of Master Restructuring Agreement dated 30.09.2013 between Defendant No.1 and Canara Bank Consortium/Lenders regarding restructuring of limits by member Banks including the Applicant Bank – Exhibit PW 1/101.

- cii. Original Defendant No.1 request letters dated 09.10.2013, 24.10.2013 and 25.11.2013 to the Applicant Bank seeking waiver of the condition of forensic audit of the accounts of Defendant No.1 by an expert body – Exhibit PW 1/102.

- ciii. Copy of Extract of Defendant No.1's Resolution for availing restructured working capital limits in terms of Letter of Approval of CDR dated 28.09.2013 in favour of Canara Bank Consortium – Exhibit PW 1/103.

- civ. Copies of Inter-se Agreement with letter confirming pari-passu arrangement for sharing of securities and Supplementary Inter-se Agreement, all dated 30.12.2013, executed between member Banks of Canara Bank Consortium – Exhibit PW 1/104.

- cv. Copies of Supplementary Master Restructuring Agreement, Deed of Hypothecation, Security Trustee Agreement and Trust and Retention Account Agreement, all dated 30.12.2013, between Defendant No.1 and Canara Bank Consortium/Lenders regarding restructuring of limits by member Banks including the Applicant Bank – Exhibit PW 1/105.

- cvi. Copies of Agreements of Personal Guarantees and Undertaking of Defendants No.2 to 4, all dated 30.12.2013, in favour of Canara Bank Consortium in the sum of Rs.982.77 Crores for working capital limits – Exhibit PW 1/106.

- cvii. Copies of Agreements of Corporate Guarantees and Undertakings of Defendants No.9 to 14, all dated 30.12.2013, in favour of Canara Bank Consortium in the sum of Rs.982.77 Crores for working capital limits – Exhibit PW 1/107.

- cviii. Copies of Letters of Continuity and Extension of Charge dated 03.01.2014 signed and submitted by Defendant No.1 in favour of Canara Bank Consortium in respect of total limits of Rs.982.77 Crores qua the movable and immovable assets/properties of Defendant No.1 – Exhibit PW 1/108.

- cix. Copies of Second Supplementary Master Restructuring Agreement, Supplementary Security Trustee Agreement and Deed of Pledge, all dated 10.01.2014, amongst Canara Bank Consortium/Lenders and between Defendant No.1 to 15 and the Consortium regarding working capital limits – Exhibit PW 1/109.

- cx. Copies of Irrevocable Powers of Attorney dated 10.01.2014 executed by Defendants No.1 to 15 in favour of Canara Bank Consortium – Exhibit PW 1/110.

- cxii. Copy of Defendant No.1's letter dated 08.01.2014 pledging the shares of the promoters of the Company in favour of Canara Bank Consortium – Exhibit PW 1/111.

- cxiii. Copy of Canara Bank letter dated 11.01.2014 to member Banks regarding CDR package of Defendant No.1 in terms of LOA dated 28.09.2013 – Exhibit PW 1/112.

- cxiiii. Copy of Special Investigative/Forensic Audit Report of Defendant No.1 Company – Exhibit PW 1/113.

- cxv. Original Defendant No.1 letter dated 24.02.2014 regarding its comments on Forensic Audit Report – Exhibit PW 1/114.

- cxvi. Original Defendant No.1 letter dated 27.02.2014 for release of working capital limits – Exhibit PW 1/115.

- cxvi. Copy of Canara Bank letter dated 27.03.2014 for release of second tranche of incremental limit – Exhibit PW 1/116.

- cxvii. Original Applicant Bank's letters dated 19.04.2014 and 16.04.2014 addressed to Defendant No.1 – Exhibit PW 1/117.

- cxviii. Original Defendant No.1 request letters dated 21.04.2014 and 23.04.2014 for release of working capital limits – Exhibit PW 1/118.

- cxix. Original Bank letter dated 19.05.2014 to Defendant No.1 regarding service of instalments – Exhibit PW 1/119.

- cxx. Copy of CDR Report dated 28.05.2014 asking the Applicant Bank to release additional working capital limits – Exhibit PW 1/120.

- cxxi. Original Defendant No.1 request letters dated 28.05.2014 and 21.06.2014 for release of working capital limits – Exhibit PW 1/121.

- cxxii. Original Bank letter dated 23.06.2014 to Defendant No.1 regarding service of instalment – Exhibit PW 1/122.

- cxxiii. Copy of Bank letter dated 26.06.2014 giving the position of accounts of Defendant No.1 – Exhibit PW 1/123.

- cxxiv. Original Bank letter dated 01.07.2014 to Defendant No.1 regarding release of additional working capital limits subject to certain conditions – Exhibit PW 1/124.

- cxxv. Original Defendant No.1 request letters dated 09.07.2014, 09.08.2014 and 11.08.2014 for release of working capital limits – Exhibit PW 1/125.

- cxxvi. Original Bank letters dated 10.09.2014 and 13.10.2014 to Defendant No.1 regarding service of interest – Exhibit PW 1/126.

- cxxvii. Original Bank letter dated 07.11.2014 giving the position of accounts of Defendant No.1 – Exhibit PW 1/127.

- cxxviii. Original Bank letter dated 11.11.2014 to Defendant No.1 for service of overdues of various limits – Exhibit PW 1/128.

- cxxix. Copy of Minutes of Meeting held on 24.11.2014 by Canara Bank Consortium members – Exhibit PW 1/129.

- cxxx. Original Bank letter dated 24.12.2014 to Defendant No.1 for service of overdues of various limits – Exhibit PW 1/130.

- cxxxxi. Original Legal Notice dated 16.01.2015 served by the Applicant upon Defendants No.1 to 15 – Exhibit PW 1/131.

- cxxxii. Original Defendant No.1 letter dated 16.02.2015 regarding BIFR Case No.16/2015 – Exhibit PW 1/132.

- cxxxiii. Original Applicant Bank letter dated 17.10.2015 to Canara Bank regarding its exit from CDR mechanism and initiation of recovery action against Defendant No.1 – Exhibit PW 1/133.

- cxxxiv. Statement of Account No.18610510000014 in respect of Cash Credit Limit – Exhibit PW 1/134.

- cxxxv. Statement of Account No.19450610003848 in respect of Term Loan CDR – Exhibit PW 1/135.

- cxxxvi. Statement of Account No.19450610003756 in respect of FITL WC – Exhibit PW 1/136.

- cxxxvii. Statement of Account No.19450610003763 in respect of WCTL – Exhibit PW 1/137.

- cxxxviii. Statement of Account No.19450610003770 in respect of FITL and Account No.19450610003787, as filed in evidence – Exhibit PW 1/138.

- cxxxix. Statement of Account No.18610510000540 in respect of TL NPA, along with certificate under the Bankers' Books Evidence Act in respect of all the aforesaid accounts – Exhibit PW 1/139.

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

2. 15. In this TA, the Applicant FI has prayed for issuance of a Recovery Certificate against Defendants No.1 to 15. Defendant No.1 is the principal borrower to whom the financial facilities were sanctioned. However, in view of the insolvency proceedings and the orders passed by the Ld. NCLT and the Hon'ble NCLAT, New Delhi, the proceedings against Defendant No.1 stand discontinued and, accordingly, no relief is being granted against Defendant No.1 in the present TA. Defendant No.1 was deleted from the array of parties vide order dated 24.07.2026 passed by this Tribunal. Defendants No.2 to 15 are the personal/corporate guarantors and/or security providers of Defendant No.1, with Defendant No.3 having subsequently acted as its Managing Director. Defendants No.16 to 19 were proforma defendants and were deleted from the array of parties vide order dated 18.02.2025 passed by this Tribunal.

3. 16. Consequently, TA No. 402/2022 is hereby allowed in favour of the Applicant FI and against the Defendants No. 2 to 15, who are held jointly and severally liable to pay the dues of the Applicant FI, along with costs and pendentite lite and future interest @ 15% per annum, as claimed in the TA, from the date of filing of the present TA until full and final payment.

ORDER

TA No. 402/2022 stands allowed in favour of the Applicant FI and against the Defendants No. 2 to 15, who are held jointly and severally liable to pay the outstanding dues of the Applicant FI. The Defendants No. 2 to 15 are directed to pay, within 30 days, a sum of Rs. 246,50,19,263/- (Rupees Two Hundred Forty-Six Crores Fifty Lakh Nineteen Thousand Two Hundred Sixty-Three only), along with costs and pendente lite and future interest at the rate of 15% per annum, as claimed in the TA, from the date of filing till realization.

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

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

Further, in case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the Defendants No. 2 to 15.

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

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

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

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

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

- (ii). Parties are directed to appear before the Recovery Officer-I, DRT-III, Delhi on 01.12.2026.

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

File be closed and consigned to records.

(Pronounced in open court)

Dated: 13.10.2026

K. Singh

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