STATE BANK OF INDIA vs M/S K K MILK FESH INDIA LTD on 27 June 2025

**FINAL ORDER**

1. 1. This original application has been filed by the applicant bank, on 12.01.2018, through Mr. Narinder Kumar Sharma, Assistant General Manager, 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 the defendants no. 1 to 13 for recovery of a sum of Rs. 115,49,81,820.84 (Rupees One Hundred Fifteen Crore Forty Nine Lakh Eighty One Thousand Eight 

Hundred Twenty and Paise Eighty Four only) including interest up to 31.12.2017 along with future interest @3.95% above Base Rate per annum in Cash Credit Account and @4.15% above Base Rate per annum in Term Loan Account with monthly rests till the date of actual and final realization in full along with all costs, charges, expenses & other relief(s).

1.2 It is pertinent to note here that this OA bearing no. 264/2018 was originally filed before Ld. DRT-II, Delhi, however, in pursuance to Gazette Notification No. 4718 (E) dated 04.10.2022 issued by Government of India, Department of Financial Services, Ministry of Finance, this case file was transferred by Ld. DRT-II, Delhi to this Tribunal in October 2022 and was numbered at TA-67/2022.

2. The brief facts of the case are that the Applicant Bank i.e. State Bank of India, is a body corporate constituted under State Bank of India Act 1955. It is further stated that the Applicant Bank is filing the present OA through Mr. Narinder Kumar Sharma, Assistant General Manager 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 in terms of Notifications published in the Gazette of India dated 26.09.1959, 29.08.1972 and 02.05.1987.

2.1 It is stated in the OA that the Defendant no. 1 is the Borrower of the Applicant Bank and is inter-alia engaged in the business of manufacturing of Dairy Products which had availed various credit facilities from the applicant bank in the form of Term Loan and Working Capital Facility. The Defendants no. 2 to 8 are the personal guarantors who have executed Deed of Joint & Several Personal Guarantee towards the repayment of the loan amount under the credit facilities granted by the applicant bank to the defendant no. 1. So far as, defendants no. 9 to 13 are concerned, they are the corporate guarantors who have executed the Corporate Guarantee towards the repayment of the loan amount under the credit facilities granted by the applicant bank to the defendant no. 1. In addition to this, defendants no. 14 to 17 are the co-lenders along with the applicant bank under the consortium arrangements and the defendant no. 18 is the Security Trustee with whom the security was created by the defendants to secure the repayment of loan to the Applicant Bank and defendants no. 14 to 17. Thus, defendants no. 14 to 18 are the Performa Defendants as there is no relief is being prayed for against these defendants. Further, the defendant no. 1 and defendants no. 9 to 13 are the mortgagors of the immovable properties.

2.2 It is stated in the OA that defendant no. 1 through defendants no. 3 to 8 approached the applicant bank for sanction of credit facilities in the form of Term Loan of Rs. 75.0 Crore on 15.02.2013 & renewed the credit facilities in the form of Term Loan of Rs. 50.0 Crore & Bank Guarantee Rs. 4.0 Crore, Working Capital Facility of Rs. 19.50 Crore, FC Rs. 1.50 Crore Total Rs. 75.0 Crore on 17.04.2015 and again renewal of credit facilities in the form of Term Loan of Rs. 48.33 crore, Working Capital of Rs. 55.0 Crore Total Rs. 103.33 Crore and offered primary security i.e. primary 

security and collateral security [details given in Para 5(c) of OA].

On the representation of the defendants herein, the applicant bank sanctioned the credit facilities vide Sanction Letter dated 27.02.2013. It is further stated that to accept the terms and conditions of Sanction Letter dated 27.02.2013, the defendants no. 1 and 9 to 13 passed Board Resolutions dated 12.11.2013 and 09.09.2013 authorizing the persons to execute the loan and guarantee documents and also create equitable mortgage. Thereafter, the Corporate defendants and defendant in persona executed following loan documents :-

- (i) Facility Agreement dated 19.11.2013 for an amount of Rs. 247.0 Crore;

- (ii) Lenders' Agent Agreement dated 22.11.2013;

- (iii) Security Trustee Agreement dated 22.11.2013;

- (iv) Inter Creditor Agreement dated 22.11.2013;

- (v) Confirmation by the Company dated 22.11.2013 for an amount of Rs. 247.0 crore;

- (vi) Deed of Undertaking dated 19.11.2013 for an amount of Rs. 247.0 crore;

- (vii) Deed of Personal Guarantee dated 22.11.2013 by Sh. C.N. Kuchroo / defendant no. 3 for an amount of Rs. 247.0 crore;

- (viii) Deed of Personal Guarantee dated 22.11.2013 by Sh. S. Viswanathan / defendant no. 3 for an amount of Rs. 247.0 crore;

- (ix) Sponsor Support and Cost Over Run Agreement dated 22.11.2013 for an amount of Rs. 247.0 crore.

2.3 It is also stated in the OA that the Defendant no. 1, Defendant no. 12 and 13 had also offered immovable properties as collateral security towards repayment of the loan amount and in respect of the collateral securities offered by these defendants, equitable mortgage by deposit of title deeds was created by the defendants no. 1, 12 & 13 in favour of the defendant no. 18 which is the Proforma Defendant and Security Trustee for the applicant bank and Defendants no. 14 to 17.

It is stated in the OA that 15 properties (belonging to defendant no. 1), 5 properties (belonging to defendant no. 12) and 2 properties (belonging to defendant no. 13) were equitably mortgaged by these defendants on 08.07.2014 and the amount secured was Rs. 172.0 Crore [details of the properties, title deeds, amounts secured and the date of creation of mortgage have been detailed in Para 5(g) of the OA].

It is further stated that the mortgage charge of the Applicant Bank and defendants no. 14 to 17 over the properties of the defendants no. 1, 12 and 13 including the hypothecation charge over the assets of the Defendant no. 1 was registered with Registrar of Companies on 07.07.2014 in favour of the Defendant no. 18 which is the Security Trustee for the Applicant Bank and Defendants no. 14 to 17.

2.4 It is also stated in the OA that on exit of defendant no. 15 from the consortium of Banks and by the Applicant Bank, the consortium of Banks under the Leadership of

Applicant Bank was reconstituted in the month of September 2015, as the defendant no. 15 walked out of the consortium banks and showed its inability to disburse its share of Rs. 35.0 Crore and thus, the sanction letter of the defendant no. 15 was cancelled and again after reconstituting the consortium, fresh sanction letters dated 08.05.2015 and 11.06.2015 were issued by the consortium of Banks and also for acceptance of the terms of sanction letters issued by the consortium of bank, fresh Board Resolutions of the Corporate defendants, including Board Resolution dated 07.09.2015 of defendant no. 1 and Board Resolutions dated 21.11.2015 of defendants no. 9 to 13, were taken.

2.5 It is stated in the OA that after acceptance of the terms of sanction by the defendants, as the level of collateral security and primary security remained the same as was the documents dated 19.11.2013, following loan and security documents were executed by the respective defendants on 16.09.2015 for the total Term Loan Facility of Rs. 172.0 Crore:-

- (i) Supplemental Deed of Personal Guarantee executed by Dr. C.N. Kuchroo / defendant no. 2 in favour of SBICAP Trustee Company Ltd. dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (ii) Supplemental Deed of Personal Guarantee executed by Sh. S. Viswanathan / defendant no. 3 in favour of SBICAP Trustee Company Ltd. dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (iii) Supplemental Sponsor Support and Cost Over Run Agreement executed between Mr. Anmol Ratan Constructions and Builders Pvt. Ltd. / defendant no. 9 and other borrowers & guarantors dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (iv) Letter of Undertaking by M/s KSP International Pvt. Ltd. / defendant no. 11 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (v) Letter of Undertaking by M/s DIOS Hospitality Pvt. Ltd. / defendant no. 13 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (vi) Letter of Undertaking by M/s Samprash Foods Ltd. / defendant no. 10 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (vii) Letter of Undertaking by M/s Anmol Ratan Construction and Builders Pvt. Ltd. / defendant no. 9 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (viii) Letter of Undertaking by M/s KK Milk Fresh India Limited / defendant no. 1 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (ix) Letter of Undertaking by M/s Root Infratech Pvt. Ltd. / defendant no. 12 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (x) Supplemental Facility Agreement executed between Company Consortium Bank, SBICAPS Trustee Co. Ltd. and the Banks and Financial Inst. dated 16.09.2015 for an amount of Rs. 247.0 crore; 

- (xi) Supplemental Lenders Agent Agreement executed between Company Consortium Bank, SBICAPS Trustee Co. Ltd. and the Banks and Financial Inst. dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (xii) Supplemental Inter-Creditor Agreement executed between Consortium Leader, State Bank of India, SBICAPS Trustee Co. Ltd. and the Banks and Financial Inst. dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (xiii) Confirmation to Supplemental Inter-Creditor Agreement by M/s K.K. Milk Fresh India Limited / defendant no. 1 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (xiv) Supplemental Security Trustee Agreement between M/s K.K. Milk Fresh India Limited / defendant no. 1, State Bank of India (Lender's Agent), SBICAPS Trustee Co. Ltd., PNB and Corporation Bank dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (xv) Supplemental Deed of Hypothecation executed by M/s K.K. Milk Fresh India Limited / defendant no. 1 dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (xvi) Supplemental Share Pledge Agreement in favour of SBICAP Trustee Co. Limited dated 16.09.2015 for an amount of Rs. 247.0 crore;

- (xvii) Power of Attorney of Share Pledge of M/s Anmol Ratan Construction & Builders Pvt. Ltd. (defendant no. 9) & M/s KSP International Pvt. Ltd. (defendant no. 11) dated 16.09.2015 for an amount of Rs. 247.0 Crore

(xviii) Supplemental Deed of Corporate Guarantee of M/s Anmol Ratan Construction & Builders Pvt. Ltd. (defendant no. 9) dated 16.09.2015 for an amount of Rs. 247.0 Crore;

(xix) Supplemental Deed of Corporate Guarantee of M/s KSP International Pvt. Ltd. (defendant no.

11) dated 16.09.2015 for an amount of Rs. 247.0 Crore;

(xx) Supplemental Deed of Corporate Guarantee of M/s Root Infratech Pvt. Ltd. (defendant no.

12) dated 16.09.2015 for an amount of Rs. 247.0 Crore

(xxi) Supplemental Deed of Corporate Guarantee of M/s Samprash Foods Ltd. (defendant no. 10) dated 16.09.2015 for an amount of Rs. 247.0 Crore

(xxii) Supplemental Deed of Corporate Guarantee of M/s DIOS Hospitality P. Ltd. (defendant no.

13) dated 16.09.2015 for an amount of Rs. 247.0 Crore.

2.6 It is also stated in the OA that the Defendant no. 1, Defendant no. 12 and 13 also created equitable mortgage by constructive delivery of title deeds already deposited by the defendants no. 1, 12 & 13 in favour of the defendant no. 18 which is the Proforma Defendant and Security Trustee for the Applicant Bank and Defendants no. 14 to 17 on 08.07.2014 [details of the properties title deeds, amount secured and the date of creation of equitable mortgage have been given in Para 5(k) of OA].

2.7 It is stated in the OA that 15 properties (belonging to defendant no. 1), 5 properties (belonging to defendant no. 12) and 2 properties (belonging to defendant no. 13) were equitably mortgaged by these defendants on 16.09.2015 and the amount secured was Rs. 172.0 Crore [details of the properties, title deeds, amounts secured and the date of creation of mortgage have been detailed in Para 5(i) of the OA].

It is further stated that the mortgage charge of the Applicant Bank and defendants no. 14 to 17 over the properties of the defendants no. 1, 12 and 13 including the hypothecation charge over the assets of the Defendant no. 1 was modified and registered with Registrar of Companies on 27.11.2015 in favour of the Defendant no. 18 which is the Security Trustee for the Applicant Bank and Defendants no. 14 to 17.

2.8 In the month of October 2015, the defendants approached the applicant bank and defendants no. 14, 16 & 17 for grant of Working Capital Facility of Rs. 68.0 Crore and offered the same collateral security and Guarantee besides the primary security in the form of hypothecation of assets of the defendant no. 1 in favour of the applicant bank and the performa defendant banks. The Working Capital Facility was sanctioned and granted by the Applicant Bank and the performa defendant banks vide Sanction Letter dated 11.06.2015. Further, to execute the loan and security documents and to accept the terms and sanctions of the loan, the Corporate Defendants passed respective copies of Board Resolution dated 07.09.2015 of defendant no. 1 and Board Resolutions dated 21.11.2015.

2.9 It is stated in the OA that after accepting the terms and conditions of sanction letters, the defendants executed following working capital facility loan and security documents dated 26.11.2015 and also created mortgage in favour of the defendant no. 18, the Security Trustee by constructive delivery of title deeds :-

- (i) Shipping Lien Agreement executed by M/s K.K. Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (ii) Borrower Undertaking executed by Company dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (iii) Deed of Corporate Guarantee executed by M/s Anmol Ratan Construction and Builders P. Ltd. (defendant no. 9) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (iv) Deed of Corporate Guarantee executed by M/s Root Infratech Pvt. Ltd. (defendant no. 12) 26.11.2015 for an amount of Rs. 68.0 Crore;

- (v) Deed of Corporate Guarantee executed by M/s Samprash Foods Ltd. (defendant no. 10) 26.11.2015 for an amount of Rs. 68.0 Crore;

- (vi) Deed of Corporate Guarantee executed by M/s DIOS Hospitality P. Ltd. (defendant no. 13) 26.11.2015 for an amount of Rs. 68.0 Crore;

- (vii) Deed of Corporate Guarantee executed by KSP International P. Ltd. (defendant no. 11) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (viii) Personal Guarantee executed by Dr. C.N. Kuchroo (defendant no. 2) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (ix) Personal Guarantee executed by Sh. S. Viswanathan (defendant no. 3) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (x) Memorandum of Entry of KK Milk Fresh India Limited (defendant no. 1) dated 27.11.2015 for an amount of Rs. 68.0 Crore;

- (xi) Directors Declaration of KK Milk Fresh India Limited (defendant no. 1) executed by Shri C.N. Kuchroo (defendant no. 2) on behalf of defendant no. 1 dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (xii) Memorandum of Entry of Root Infratech P. Ltd. (defendant no. 12) dated 27.11.2015 for an amount of Rs. 68.0 Crore;

- (xiii) Directors Declaration of Root Infratech P. Ltd. (defendant no. 12) executed by Shri Mr. Raagsarva Khuller on behalf of defendant no. 12 dated 26.11.2015 for an amount of Rs. 68.0 Crore;

- (xiv) Memorandum of Entry of DIOS Hospitality Pvt. Ltd. (defendant no. 13) dated 27.11.2015 for an amount of Rs. 68.0 Crore;

- (xv) Directors Declaration of DIOS Hospitality Pvt. Ltd. (defendant no. 13) executed by Shri Mr.

Raagsarva Khuller on behalf of defendant no. 13 dated 26.11.2015 for an amount of Rs. 68.0 Crore;

(xvi) Demand Promissory Note executed by KK Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

(xvii) Letter of Continuity executed by KK Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

(xviii) Letter of Undertaking executed by M/s Samprash Foods Ltd. / defendant no. 10 dated 26.11.2015 for an amount of Rs. 68.0 crore;

(xix) Working Capital Facility Agreement between KK Milk Fresh India Limited (defendant no. 1), State Bank of India (Lead Bank), Banks and financial institution and SBICAP Trustee Company Ltd. dated 26.11.2015 for an amount of Rs. 68.0 Crore;

(xx) Inter-Creditor Agreement between State Bank of India (Lead Bank) and the Banks and Financial Institution and SBICAP Trustee Co. Ltd. dated 26.11.2015 for an amount of Rs. 68.0 crore;

(xxi) Confirmation by the Borrower to the Inter Creditor Agreement by K.K. Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore;

(xxii) Security Trustee Agreement between K.K. Milk Fresh India Limited (defendant no. 1), State Bank of India (Lead Bank) and the Banks and Financial Institutions and SBICAP Trustee Co. Ltd. dated 26.11.2015 for an amount of Rs. 68.0 crore;

(xxiii) Deed of Hypothecation by K.K. Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 crore.

2.10 It is further stated in the OA that the defendants despite regular follow up by the Applicant Bank, failed to adhere to maintain financial discipline and started committing default and the Applicant Bank issued Demand cum Loan Recall Notice dated 10.10.2017 demanding repayment of entire loan amount of Rs. 111,89,59,417.52 as on 30.09.2017. But despite receipt of same, defendants failed to make any payment and thus, the applicant bank has been compelled to file this Application before this Tribunal.

3. Notices of this O.A. were issued to the defendants, and initially, some of the defendants i.e. defendants no. 3; 4 & 17 appeared through their respective counsels / in person but the WS(s) was filed by defendants no. 3 & 4 only.

3.1 It is matter of record that the defendants no. 1 and 2 as well as defendants no. 5 to 18 did not file any WS nor appeared before this Tribunal. So far as defendant no. 3 is concerned, after filing the WS, he also stopped entering before this Tribunal. Hence the case was proceeded ex parte qua defendants no. 1 to 3 and 5 to 18 vide order dated 20.11.2018 of the Tribunal.

3.2 Subsequently, defendant no. 16 appeared through counsel and filed the WS as well. It is pertinent to note here that defendants no. 14 to 18 are performa defendants against whom no relief has been claimed by applicant bank.

4. In the WS of defendant no. 3, following main objections have been raised :-

- (i) That present OA has not been signed, verified and filed by a duly authorized and a competent person;

- (ii) That the OA is barred by law of limitation;

- (iii) That the defendant no. 3 is neither or nor a proper party to the present OA. It is stated that the alleged loan transaction is beyond the knowledge of the defendant no. 3 as defendant no. 3 was only a non-working Director of the Company who never attended any board meeting of directors nor singed on any resolution, minutes or meeting or any loan / guarantee agreement etc.;

- (iv) That defendant no. 2 and his son Akshar Kuchroo have forged the signatures of defendant no. 3 on various documents and defendant no. 3 has also obtained a hand writing expert's opinion which clearly states that the signature of defendant no. 3 had been forged and fabricated;

- (v) That State Bank of India in its Forensic Audit Report dated 18.02.2019 addressed to defendants has pointed out various fraudulent act which clearly make out a case of cheating, forgery and fraud by defendant no. 2 and his son and their associates and conspirators against the Banks;

- (vi) That in 2018, defendant no. 3 received letter(s) from Dewan Housing Finance Limited (DHFL) and demand letter from Consortium Banks led by Union Bank of India demanding their respective dues. Thereafter many banks filed the recovery cases for over Rs. 200.0 Crore before DRTs, New Delhi. Hence, defendant no. 3 appeared in person and got the voluminous documents and shocked to find that his signatures were forged on various documents.

- (vii) That defendant no. 3 resigned from the defendant no. 1 company on 29.01.2019;

- (viii) That on 21.02.2019, defendant no. 3 got another shock when he received a notice dated 18.02.2019 from SBI wherein various serious allegations were made against defendant no. 1 with regard to obtaining various loans from bank;

- (ix) That defendant no. 2 and his son, in active consultation and conspiracy with each other, have borrowed huge amount of money from various banks by forging defendant no. 3's signatures and thereby cheating and defrauding defendant no. 3 as well as so many banks. Till now the amount to which they have defrauded to defendant no. 3's knowledge is to the tune of Rs. 410.0 Crore;

- (x) That defendant no. 3 has filed a written compliant in Economic Offence Wing against defendant no. 2 and his son.

5. So far as, defendant no. 4 is concerned, in his WS he has raised following main objections:-

- (i) That present OA has not been signed, verified and filed by a duly authorized and a competent person;

- (ii) That present OA has not been valued properly for the purpose of application fee nor has proper application fee has been affixed on the plaint / OA;

- (iii) That the alleged statement of accounts are not supported by any affidavit stating therein that same has been drawn up strictly in compliance with the decision of Hon'ble Supreme Court of India in the matter of Central Bank of India Vs. Ravindra & Ors;

- (iv) That the answering defendant has joined the defendant no. 1, the principal borrower, as independent Director on 27.04.2015 and has resigned on 15.09.2017 [status and search report dated 12.01.2019 of defendant no. 4 conducted on the official website of the Ministry of Corporate Affairs regarding the Directorship of the answering defendant is filed with the WS]. Moreover, the answering defendant has never executed any guarantee with regard to the facilities extended by the applicant bank to defendant no. 1.


- (v) That no document has been filed by the applicant bank on the basis of which a personal liability can be fastened upon the answering defendant;

- (vi) That the OA is hopelessly barred by limitation;

- (vii) That defendant no. 4 never executed any Deed of Joint and Several Personal Guarantee.

In nutshell, all the allegations levelled against defendant no. 4 have been denied in his WS.

6. So far as, defendant no. 16 / Vijaya Bank is concerned, it is a performa defendant and no relief has been claimed against this defendant by the applicant bank.

6.1 It is stated in the WS that defendant no. 16 bank, at the request of the defendant / borrower, sanctioned various loan facilities and defendants executed various loan/security documents and created mortgage as well [details given in the preliminary submission of WS]. It is further stated that after availing the facilities, defendant no. 1 and its directors did not adhere to financial discipline and failed to deliver on the financial commitments. The defendant no. 16 bank from time to time demanding/informing the defendant no. 1 and its directors to clear the overdues / loan amount but they did not do so. Thus, the account of defendant no. 1 was declared as NPA on 30.09.2016. Therefore, defendant no. 16 issued notice under Section 13(2) of SARFAESI Act on 24.07.2017 which was duly served upon the defendant no. 1 and its directors, managing directors and guarantors. It is further stated that a sum of Rs. 48.0 crore (approx.) is due and outstanding as on 30.05.2018 along with future interest by the defendants to the answering defendant no. 16

6.2 It is also stated in the WS that present application does not disclose any cause of action in favour of applicant and against the answering defendant, hence, same is liable to be dismissed qua defendant no. 16. It is further stated that the State Bank of India, is the Lead Bank and applicant along with other banks have given the loan by way of sharing of securities on pari-passu basis. The original title documents of all the mortgaged properties are lying with the State Bank of India, which is the lead bank, and further entire plant and machinery / equipment and other fixed assets are also hypothecated with the defendant no. 16 bank as well as other defendant banks.

6.3 In the light of above, request is made to dismiss the OA of the applicant bank against defendant no. 16.

7. To prove its case, the Applicant Bank leads its evidence by filling the affidavit of Mr. Narinder Kumar Sharma, Assistant General Manager of the Applicant bank.

7.1 Mr. Narinder Kumar of applicant bank has placed reliance upon the documents filed by the Applicant Bank which includes:-

- (i) Relevant Notifications published in the Gazette of India (Ex. AW-1);

- (ii) Sanction Letter dated 27.02.2013 of applicant bank (Ex. AW-2);

- (iii) Board Resolutions dated 12.11.2013 and 09.09.2013 executed by defendants no. 1 and 9 to 13 (Ex. AW-3 & 4);

- (iv) Facility Agreement dated 19.11.2013 for an amount of Rs. 247.0 Crore (Ex. AW-5);

- (v) Lenders' Agent Agreement dated 22.11.2013 (Ex. AW-6);

- (vii) Security Trustee Agreement dated 22.11.2013 (Ex. AW-7);

- (viii) Inter Creditor Agreement dated 22.11.2013 (Ex. AW-8);

- (ix) Confirmation by the Company dated 22.11.2013 for an amount of Rs. 247.0 crore (Ex. AW-9);

- (x) Deed of Undertaking dated 19.11.2013 for an amount of Rs. 247.0 crore (Ex. AW-10);

- (xi) Deed of Personal Guarantee dated 22.11.2013 by Sh. C.N. Kuchroo / defendant no. 3 for an amount of Rs. 247.0 crore (Ex. AW-11);

- (xii) Deed of Personal Guarantee dated 22.11.2013 by Sh. S. Viswanathan / defendant no. 3 for an amount of Rs. 247.0 crore (Ex. AW-12);

- (xiii) Sponsor Support and Cost Over Run Agreement dated 22.11.2013 for an amount of Rs. 247.0 crore (Ex. AW-13);

- (xiv) Title Deeds of the property no. 1 (belonging to defendant no. 1) (Ex. AW-14 & AW-15);

- (xv) Title Deeds of the property no. 2 (belonging to defendant no. 1) (Ex. AW-16 to AW-18);

- (xvi) Title Deeds of the property no. 3 (belonging to defendant no. 1) (Ex. AW-19 to AW-21);

- (xvii) Title Deeds of the property no. 4 (belonging to defendant no. 1) (Ex. AW-22 & AW-23);

- (xviii) Title Deeds of the property no. 5 (belonging to defendant no. 1) (Ex. AW-24 & AW-25);

- (xix) Title Deeds of the property no. 1 (belonging to defendant no. 13) (Ex. AW-26 to AW-32);

- (xx) Title Deeds of the property no. 2 (belonging to defendant no. 13) (Ex. AW-33 to AW-39);

- (xxi) ROC Charge registration with regard to mortgaged properties (Ex. AW-40);

- (xxii) Copies of Sanction Letters dated 08.05.2015 and 11.06.2015 and the Board Resolution dated 07.09.2015 of defendant no. 1 (Ex. AW-41);

- (xxiii) Board Resolutions dated 21.11.2015 of defendants no. 9 to 13 (Ex. AW-42);

- (xxiv) Supplemental Deed of Personal Guarantee executed by Dr. C.N. Kuchroo / defendant no. 2 in favour of SBICAP Trustee Company Ltd. dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-43);

- (xxv) Supplemental Deed of Personal Guarantee executed by Sh. S. Viswanathan / defendant no. 3 in favour of SBICAP Trustee Company Ltd. dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-44);

- (xxvi) Supplemental Sponsor Support and Cost Over Run Agreement executed between Mr. Anmol Ratan Constructions and Builders Pvt. Ltd. / defendant no. 9 and other borrowers & guarantors dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-45);

- (xxvii) Letter of Undertaking by M/s KSP International Pvt. Ltd. / defendant no. 11 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-46);

- (xxviii) Letter of Undertaking by M/s DIOS Hospitality Pvt. Ltd. / defendant no. 13 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-47);

- (xxix) Letter of Undertaking by M/s Samprash Foods Ltd. / defendant no. 10 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-48);

- (xxx) Letter of Undertaking by M/s Anmol Ratan Construction and Builders Pvt. Ltd. / defendant no. 9 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-49);

- (xxxi) Letter of Undertaking by M/s KK Milk Fresh India Limited / defendant no. 1 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-50);

- (xxxii) Letter of Undertaking by M/s Root Infratech Pvt. Ltd. / defendant no. 12 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-51);

- (xxxiii) Supplemental Facility Agreement executed between Company Consortium Bank, SBICAPS Trustee Co. Ltd. and the Banks and Financial Inst. dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-52);

- (xxxiv) Supplemental Lenders Agent Agreement executed between Company Consortium Bank, SBICAPS Trustee Co. Ltd. and the Banks and Financial Inst. dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-53);

- (xxxv) Supplemental Inter-Creditor Agreement executed between Consortium Leader, State Bank of India, SBICAPS Trustee Co. Ltd. and the Banks and Financial Inst. dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-54);

- (xxxvi) Confirmation to Supplemental Inter-Creditor Agreement by M/s K.K. Milk Fresh India Limited / defendant no. 1 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-55);

- (xxxvii) Supplemental Security Trustee Agreement between M/s K.K. Milk Fresh India Limited / defendant no. 1, State Bank of India (Lender's Agent), SBICAPS Trustee Co. Ltd., PNB and Corporation Bank dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-56);

- (xxxviii) Supplemental Deed of Hypothecation executed by M/s K.K. Milk Fresh India Limited / defendant no. 1 dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-57);

- (xxxix) Supplemental Share Pledge Agreement in favour of SBICAP Trustee Co. Limited dated 16.09.2015 for an amount of Rs. 247.0 crore (Ex. AW-58);

- (xl) Power of Attorney of Share Pledge of M/s Anmol Ratan Construction & Builders Pvt. Ltd. (defendant no. 9) & M/s KSP International Pvt. Ltd. (defendant no. 11) dated 16.09.2015 for an amount of Rs. 247.0 Crore (Ex. AW-59);

- (xli) Supplemental Deed of Corporate Guarantee of M/s Anmol Ratan Construction & Builders Pvt.

Ltd. (defendant no. 9) dated 16.09.2015 for an amount of Rs. 247.0 Crore (Ex. AW-60);

(xlii) Supplemental Deed of Corporate Guarantee of M/s KSP International Pvt. Ltd. (defendant no. 11) dated 16.09.2015 for an amount of Rs. 247.0 Crore (Ex. AW-61);

(xliii) Supplemental Deed of Corporate Guarantee of M/s Root Infratech Pvt. Ltd. (defendant no. 12) dated 16.09.2015 for an amount of Rs. 247.0 Crore (Ex. AW-62);

(xliv) Supplemental Deed of Corporate Guarantee of M/s Samprash Foods Ltd. (defendant no. 10) dated 16.09.2015 for an amount of Rs. 247.0 Crore (Ex. AW-63);

(xlv) Supplemental Deed of Corporate Guarantee of M/s DIOS Hospitality P. Ltd. (defendant no. 13) dated 16.09.2015 for an amount of Rs. 247.0 Crore (Ex. AW-64);

(xlvi) ROC Charge Registration done on 27.11.2015 (Ex. AW-65);

(xlvii) Sanction Letter dated 11.06.2015 of applicant bank (Ex. AW-66);

(xlviii) Board Resolution dated 07.09.2015 of defendant no. 1 (Ex. AW-67);

(xlix) Board Resolutions dated 21.11.2015 (Ex. AW-68);

(l) Shipping Lien Agreement executed by M/s K.K. Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-69);

- (li) Borrower Undertaking executed by Company dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-70);

- (lii) Deed of Corporate Guarantee executed by M/s Anmol Ratan Construction and Builders P. Ltd. (defendant no. 9) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-71);

- (liii) Deed of Corporate Guarantee executed by M/s Root Infratech Pvt. Ltd. (defendant no. 12) 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-72);

- (liv) Deed of Corporate Guarantee executed by M/s Samprash Foods Ltd. (defendant no. 10) 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-73);

- (lv) Deed of Corporate Guarantee executed by M/s DIOS Hospitality P. Ltd. (defendant no. 13) 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-74);

- (lvi) Deed of Corporate Guarantee executed by KSP International P. Ltd. (defendant no. 11) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-75);

- (lvii) Personal Guarantee executed by Dr. C.N. Kuchroo (defendant no. 2) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-76);

- (lviii) Personal Guarantee executed by Sh. S. Viswanathan (defendant no. 3) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-77); 

- (lix) Memorandum of Entry of KK Milk Fresh India Limited (defendant no. 1) dated 27.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-78);

- (lx) Directors Declaration of KK Milk Fresh India Limited (defendant no. 1) executed by Shri C.N. Kuchroo (defendant no. 2) on behalf of defendant no. 1 dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-79);

- (lxi) Memorandum of Entry of Root Infratech P. Ltd. (defendant no. 12) dated 27.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-80);

- (lxii) Directors Declaration of Root Infratech P. Ltd. (defendant no. 12) executed by Shri Mr. Raagsarva Khuller on behalf of defendant no. 12 dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-81);

- (lxiii) Memorandum of Entry of DIOS Hospitality Pvt. Ltd. (defendant no. 13) dated 27.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-82);

- (lxiv) Directors Declaration of DIOS Hospitality Pvt. Ltd. (defendant no. 13) executed by Shri Mr. Raagsarva Khuller on behalf of defendant no. 13 dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-83);

- (lxv) Demand Promissory Note executed by KK Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-84);

- (lxvi) Letter of Continuity executed by KK Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-85);

(lxvii) Letter of Undertaking executed by M/s Samprash Foods Ltd. / defendant no. 10 dated 26.11.2015 for an amount of Rs. 68.0 crore (Ex. AW-86);

(lxviii) Working Capital Facility Agreement between KK Milk Fresh India Limited (defendant no. 1), State Bank of India (Lead Bank), Banks and financial institution and SBICAP Trustee Company Ltd. dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-87);

(lxxix) Inter-Creditor Agreement between State Bank of India (Lead Bank) and the Banks and Financial Institution and SBICAP Trustee Co. Ltd. dated 26.11.2015 for an amount of Rs. 68.0 crore (Ex. AW-88);

(lxxx) Confirmation by the Borrower to the Inter Creditor Agreement by K.K. Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 Crore (Ex. AW-89);

(lxxi) Security Trustee Agreement between K.K. Milk Fresh India Limited (defendant no. 1), State Bank of India (Lead Bank) and the Banks and Financial Institutions and SBICAP Trustee Co. Ltd. dated 26.11.2015 for an amount of Rs. 68.0 crore (Ex. AW-90);

(lxxii) Deed of Hypothecation by K.K. Milk Fresh India Limited (defendant no. 1) dated 26.11.2015 for an amount of Rs. 68.0 crore (Ex. AW-91);

- (lxxiii) Demand cum Loan Recall Notice dated 10.10.2017 issued by applicant bank (Ex. AW-92);

- (lxxiv) Statement of Account maintained by the applicant bank in ordinary course of business and copy of interest ledger showing un-debited interest upto 28.09.2016 Working Capital & 27.06.2016 Term Loan maintained by the Bank in the ordinary course of business supported with the certificate under Bankers Book Evidence Act (Ex. AW-93).

8. So far as, defendant no. 3 is concerned, defendant no. 3 did not chose to file any evidence and stopped entering before this Tribunal, hence, the case was proceeded ex parte qua defendant no. 3 vide order dated 20.11.2018.

9. So far as, defendant no. 4 / Mr. Murtaza Kamal Hasan Khan, is concerned, he has filed the evidence as well as additional evidence by way of his affidavit. He has relied upon the following documents :-

- (i) Status and Search Report dated 12.01.2019 of defendant no. 4 conducted on the official website of the Ministry of Corporate Affairs regarding the Directorship of the answering defendant by the Company Secretary (Ex. DW4/1);

- (ii) copy of Form No. DIR 12 along with annexures (Ex. DW4/2);

- (iii) copy of the general circular no. 01/2020 dated 02.03.2020 (Ex. DW4/3);

- (iv) copy of order dated 07.09.2021 passed by Hon'ble High Court in WP(C) No. 9795/2021 (Ex. DW4/4);

- (v) copy of letter dated 09.09.2021 of Central Bank of India (Ex. DW4/5);

- (vi) copy of case Status of OA No. 595/2021 filed by Vijaya Bank (Ex. DW4/6).

10. During the pendency of this OA, names of defendants no. 15 & 16 i.e. UBI and Vijaya Bank were substituted with Punjab National Bank (PNB) and Bank of Baroda (BOB) vide order dated 08.11.2024 passed in IA No. 1209/2024 by this Tribunal.

11. During the pendency of this OA, it was informed by the Ld. counsel for the Applicant Bank that CIRP proceedings have been initiated qua defendant no. 1 company before Ld. NCLT, Delhi. It was also informed by the applicant bank that personal insolvency proceedings have also been initiated qua defendants no. 2 & 3 before Ld. NCLT, Delhi.

12. Heard Ld. counsels for the applicant bank and perused the entire record.

12.1 It is pertinent to note here that during the pendency of this OA, one application being IA No. 212/2025 was filed by the applicant bank praying therein to pass an order for dropping the name of defendants no. 4 to 8 from the array of parties and the said IA was allowed vide order dated 28.03.2025 passed by this Tribunal.

12.2 It is also matter of record that CIRP proceedings have been initiated qua defendant no. 1 company before Ld. NCLT, Delhi, hence, no final order can be passed qua defendant no. 1, at this stage. Similarly, personal insolvency proceedings have also been initiated qua defendants no. 2 & 3 before Ld. NCLT, Delhi and the moratorium is under operation, hence, no final can also be passed qua defendants no. 2 & 3 as well.

However, it is directed that applicant bank shall be at liberty to revive the OA qua defendant no. 1 in case NCLT / CIRP proceedings are quashed / withdrawn in future, in accordance with law.

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

12.3 It is also matter of record that defendant no. 3 had filed the WS, however, as defendant no. 3 is also before Ld. NCLT, New Delhi, hence, there is no need to deal with the WS filed by defendant no. 3.

Since defendants no. 2 & 3 are also before Ld. NCLT, Delhi, hence, no order qua defendants no. 2 & 3 also can be passed against said defendant at this stage.

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

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

12.4 So far as, rest of defendants i.e. defendants no. 9 to 13 are concerned, they are already ex parte since 20.11.2018, hence, the case of applicant bank remained unrebutted / uncontested.

12.5 So far as, defendants no. 14 to 18 are concerned, they are performa defendants and no relief has been claimed against these defendants by the applicant bank.

12.6 On the other hand, the witness of applicant bank has fully corroborated the averments made in the OA. Even otherwise the whole case of the applicant bank is based on the documents and the witness has duly proved all these documents. The evidence filed by the applicant bank gone unrebutted 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 no. 9 to 13 along with pendentelite and future interest @12.05% p.a. and cost of this OA.

12.7 In this OA, applicant bank has prayed to issue recovery certificate against defendants no. 1 to 13 wherein the defendant 1 is principal borrower and defendants no. 2

to 13 are personal / corporate guarantors and/or mortgagors.

12.8 So far as, defendants no. 14 to 18 are concerned, no relief has been claimed by applicant bank qua these defendants being performa defendants.

12.9 It is pertinent to note here that during the pendency of this OA, it was informed by the Applicant Bank that CIRP as well as personal insolvency proceedings have been commenced qua defendants no. 1 to 3 before Ld. NCLT, New Delhi. Moreover, in the written submissions also, applicant bank has stated that defendants no. 1 to 3 are before Ld. NCLT.

In the light of above, no order can be passed against defendants no. 1 to 3, at this stage till the relevant order(s) of Ld. NCLT are withdrawn / quashed. However, applicant shall be at liberty to revive the OA qua defendants no. 1 to 3 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.

12.10 It is also matter of record that the names of defendants no. 4 to 8 have already been dropped from the array of parties vide order dated 28.03.2025 passed in IA No. 212/2025 by this Tribunal.

12.11 Consequently, TA No. 67/2022 is liable to be allowed in favour of applicant bank against defendants no. 9 to 13 only (being corporate guarantors and/or mortgagors), who are liable to pay the dues of the applicant bank along with costs and pendentelite & future interest @12.50% p.a. from the date of filing of present OA, till the date of payment in full.

ORDER

- (i) TA No. 67/2022 stands allowed and the defendants no. 9 to 13 are directed to pay to the applicant bank, within 30 days, a sum of Rs. 115,49,81,820.84 (Rupees One Hundred Fifteen Crore Forty Nine Lakh Eighty One Thousand Eight Hundred Twenty and Paise Eighty Four only) along with pendentelite and future interest @12.50% p.a. from the date of filing of this OA till realization of the entire dues of the Applicant Bank failing which, the aforesaid amount shall be recovered from the sale of secured assets / mortgaged properties / hypothecated assets / stocks etc. belonging to defendants no. 9 to 13.

In case of shortfall, same shall be recovered from the movable and immovable assets of defendants no. 9 to 13 only.

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

However, applicant shall be at liberty to revive the OA qua defendants no. 1 to 3 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) It is also directed that the sale proceeds of the secured assets shall be distributed between the consortium members, as per inter-se agreements executed amongst them.

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

- (vi) Parties are directed to appear before the Recovery Officer-II, DRT-III, Delhi on 27.08.2025.

TA-67/2022

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

File be closed and consigned to records.

27.06.2025

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

(Pronounced in open court)

Dated: 27.06.2025