Debts Recovery Tribunals and Appellate Tribunals
UV ASSET RECONSTRUCTION COMPANY PVT LTD vs HARVEST HOTELS AND SERVICED APARTMENTS PVT on 31 July 2025
DEBTS RECOVERY TRIBUNAL-III, DELHI
4th Floor, Jeevan Tara Building,
Parliament Street, New Delhi
PRESIDING OFFICER: MR. SHIV KUMAR -I
(T.A. No.: 162/2022)
1. UV ASSET RECONSTRUCTION COMPANY (INDIA)
LTD. (Erstwhile Asset Reconstruction Company (India)
Ltd.)
Registered Office:
704, 7th Floor, Deepali Building, 92 Nehru Place, New Delhi- 110019
Corporate Office:
1304/1304A, 13th Floor, Chiranjiv Tower, 43 Nehru Place, New Delhi-110019
Through Mr. Vikram Singh Tanwar, Authorized Officer, Applicant FI.
........Applicant FI
Versus
1.
2.
Harvest Hotels and Serviced Apartments Pvt.
Ltd.(Borrower)
Registered Office:
301-302, Delhi Blue Apartments,
Main Ring Road, Near Safdarjung Hospital, New Delhi – 110029
Branch Office:
K-52-A, Second Floor, Kalkaji,
New Delhi – 110019
DEFENDANT NO. 1
Capt. Chander Mohan Sawhney(Director / Personal Guarantor)
Harvest Hotels and Serviced Apartments Pvt. Ltd.
4/14, First Floor, Nehru Enclave,
Kalkaji Extension, New Delhi – 110019
Also at:
Villa No. 127, Leburnam, Sushant Lok - I, Sector - 28, Gurgaon – 122009, Haryana
3. Shri Jasbir Singh(Personal Guarantor)
S/o Shri Kartar Singh
20-A, S.B.S. Colony,
Rajpura, Punjab - 140401
4. Capt. Manoj Airon(Personal Guarantor)
S/o Shri Krishan Kumar Airon
Flat No. 111, 3C3, Silver Oaks Apartments, DLF Phase - I, Gurugram - 122002
5. Harvest Holding Pvt. Ltd.(Corporate Guarantor)
301-302, Delhi Blue Apartments,
Main Ring Road, Near Safdarjung Hospital, New Delhi – 110029
6. State Bank of India(Erstwhile State Bank of Patiala)
(Lead Bank - since acquired by Applicant)
11, Parliament Street,
New Delhi – 110001
7. Central Bank of India(Lender Bank - since acquired by Applicant)
Branch Office:
Commercial Branch, Chandralok Building,
36, Janpath, New Delhi – 110001
8. Indian Bank(Erstwhile Allahabad Bank - since acquired by Applicant)
Branch Office:
First Floor, 17, Parliament Street,
New Delhi - 110001
Date of Institution: 29.05.2021
Date of Pronouncement: 31.07.2025
.....DEFENDANTS
Counsels: Ms. Usha Singh, for Applicant Bank.
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FINAL ORDER
1. This Original Application is filed by the Applicant, a company incorporated under the Companies Act, 1956, and
2.
3. registered as a Securitization and Asset Reconstruction Company under Section 3 of the SARFAESI Act, acts as trustee for "Arcil-AST-001-XIII Trust", "Arcil-AST-027-11 Trust", and "Arcil-AST-031-11 Trust", with its registered office at The Ruby, 10th Floor, 29, Senapati Bapat Marg, Dadar (W), Mumbai – 400028 and branch office at Plot No. 2, 2nd Floor, Sethi Chambers, DDA Shopping Centre, MOR Land, New Rajinder Nagar, New Delhi - 110060. The Applicant is also a "Financial Institution" under Section 2(h) of the Recovery of Debts and Bankruptcy Act, 1993 and is competent to file this Original Application under Section 19 of the said Act for recovery of Rs. 166,54,44,855/- (Rupees One Hundred Sixty-Six Crore Fifty-Four Lakh Forty-Four Thousand Eight Hundred Fifty- Five only), due and payable by Defendants No. 1 to 5 jointly and/or severally, including interest and penal interest up to 28.02.2021, and further pendent lite and future interest, as claimed in OA i.e. @13.5% per annum, costs, charges and expenses until realization. The debt was assigned to the Applicant by Defendant No. 6 to 8 (Assignor Banks) under Assignment Agreements dated 19.07.2019, 29.07.2019 and 25.09.2019, along with all rights, title, interest, and security interests therein. Mr. Vikram Singh Tanwar, duly authorized by Power of Attorney dated 15.02.2016, is competent to institute and verify this Application on behalf of the Applicant, as its duly empowered Authorized Representative to institute this Application, sign and verify all pleadings, and engage legal counsel on its behalf. The brief facts of the case are that Defendant No. 1 is a corporate entity registered under the Companies Act, 1956, primarily engaged in the business of hotels, camping sites, and short-stay accommodations. It is the principal borrower
4. who availed the financial facilities extended by the consortium of banks, namely Defendants No. 6 to 8. Defendants No. 2 to 4 are individuals who have executed personal guarantees and various undertakings to secure the repayment of the loan facility availed by Defendant No. 1. Defendant No. 5 is a corporate guarantor that has extended a corporate guarantee to cover the dues of Defendant No. 1. Defendants No. 6 to 8 are the original lenders or Assignor Banks, which sanctioned and disbursed the loan facilities to Defendant No. 1 and hold pari-passu charges on the borrower's assets. While Defendants No. 6 to 8 have been impleaded as proforma defendants in the application for reference and clarity, no relief is sought against them since the debt has been validly assigned to the Applicant. Consequently, Defendants No. 1 to 5 bear joint and several liability towards the repayment of the outstanding dues, which the Applicant is now entitled to recover as the lawful assignee of the debt. So far as, Defendant No. 5 is a corporate guarantor, since Defendant No. 2 and 4 are before Ld. NCLT, no orders can be passed against Defendant No. 2 & 4 at this stage concerning matters involving Defendant No. 2 and 4. However, it is directed that if the Applicant Banks receive any amounts from the proceedings pending before Ld. NCLT, such amounts shall be duly adjusted in the present recovery proceedings. Defendant No. 1 has been deleted from the array of parties by the order dated 14.03.2024, and Defendant No. 3 has been deleted by the order dated 19.03.2024. Defendant No. 2 and 5 have already been proceeded against ex-parte as of 02.02.2024. Defendants No. 6, 7, and 8 have been impleaded as proforma defendants.
ho
TA-162/2022
5. The present Original Application is being filed for recovery of amounts due from Defendant No. 1 to 5 in respect of the Rupee Term Loan extended to Defendant No. 1 for the construction of 102 luxurious serviced apartments in Bengaluru, Karnataka. To give effect to the said project, a Construction Agreement and a Construction Assignment Agreement, both dated 24.09.2010, were executed among Defendant No. 1, Defendant No. 5, and the builder, M/s. Shobha Developers Limited (formerly known as Sobha Developers Pvt. Ltd.),
6. Pursuant to the Borrower's request, the Assignor Banks, namely Defendant No. 6, 7, and 8, sanctioned financial facilities under a consortium arrangement through their respective sanction letters. These sanctioned facilities form the basis of the present claim filed by the Applicant against the Borrower and the guarantors.
7. It is stated that the Assignor Bank, Defendant No. 6, sanctioned loan facilities to Defendant No. 1 by way of a Term Loan amounting to Rs. 47,70,00,000/- (Rupees Forty- Seven Crores Seventy Lakhs Only) vide Sanction Letter bearing reference no. CBND/AMT-II dated 08.07.2011.
8. Additionally, Defendant No. 7 sanctioned a fund-based term loan facility for a sum of Rs. 22,46,00,000/- (Rupees Twenty-Two Crores Forty-Six Lakhs Only) vide Sanction Letter bearing reference no. BO/MCPAN/2012-2013 dated 11.01.2013, and Defendant No. 8 further extended loan facilities to Defendant No. 1 for an amount of Rs. 6,00,00,000/- (Rupees Six Crores Only) vide Sanction Letter bearing reference no. ZO/DNCR/ADV/2013-14/919 dated 29.11.2013. The terms and conditions of the respective sanction letters dated 08.07.2011, 11.01.2013, and 29.11.2013 were duly accepted and signed by Defendant No. 2 on behalf of Defendant No. 1.
9.
10. In furtherance of the sanction granted by Defendant No. 6, the Board of Directors of Defendant No. 1 approved the terms of the facility in their meeting held on 11.07.2011, and vide the said resolutions, authorized Defendant No. 2 to execute all documents, undertakings, and sign necessary papers in connection with the sanctioned facilities. Subsequently, to secure the aforesaid credit facilities, a Loan Agreement for Overall Limit dated 13.07.2011 was executed between Defendant No. 1 and Defendant No. 6, which was duly signed and accepted by Defendant No. 2 on behalf of Defendant No. 1. Documents Executed in Respect of Facilities Granted by Defendant No. 6 (Assignor Bank) under Sanction Letter dated 08.07.2011
i. Sanction letters along with the borrower's application dated 31.03.2011 as Annexure A-7
ii. Board Resolutions dated 11.07.2011 as Annexure A-8
iii. Loan Agreement dated 13.07.2011 as Annexure A-9.
iv. Letter confirming deposit of title deeds dated 26.08.201lasAnnexure A-10 v. Registered Absolute Sale Deed dated 20.08.2011asAnnexure A-10 vi. Title Search Report (undated) as Annexure A-10
vii. Declaration and Undertaking by Defendant No. 2 dated 25.08.2011, along with Memorandum of Deposit for creation of further charge as Annexure A-11
viii. Agreement of Hypothecation of Goods and Assets dated 13.07.2011 as Annexure A-12
ix. Agreement of Pledge of Goods and Assets dated 13.07.2011 as Annexure A-13
x. Deed of Guarantee by Defendant No. 2 and dated 13.07.2011as Annexure A-14
11.
xi. Deed of Guarantee by Defendant No. 5 dated 13.07.201las Annexure A-15 Documents Executed in Respect of Facilities Granted by Defendant No. 7 (Assignor Bank) under Sanction Letter dated 11.01.2013
i. Declaration cum Undertaking by Defendant No. 1 dated 18.01.2013 asAnnexureA-16
ii. Declaration dated 18.01.2013 signed by Defendant No. 2 on behalf of Defendant No. 1 as AnnexureA-17
iii. Guarantee dated 18.01.2013 by Defendant Nos. 2, 3, and 5 as AnnexureA-18
iv. Loan Agreement dated 18.01.2013 executed by Defendant No. 7 as AnnexureA-19 v. Revised Sanction Letter bearing reference no. CBND/AMT-II dated 23.10.2013 issued by Defendant No. 6 as AnnexureA-20
vi. Letter dated 23.10.2013 from Defendant No. 6 to Defendant No. 7 ceding pari-passu charge as AnnexureA-21
vii. Board Resolutions of Defendant No. 1 dated 31.10.2013 approving revision and authorizing Defendant No. 2 to execute documents as AnnexureA-22
viii. Letter dated 01.11.2013 issued by Defendant No. 7 ceding pari-passu charge to Defendant No. 6 as AnnexureA-23
ix. Agreement of Loan for Overall Limit dated 23.11.2013 executed between Defendant No. 1 and Defendant No. 6 as AnnexureA-24
x. Agreement of Hypothecation of Goods and Assets dated 23.11.2013 executed between Defendant No. 1 and Defendant No. 6 as AnnexureA-25
xi. Deed of Guarantee by Defendant No. 2 dated 23.11.2013 in favour of Defendant No. 6 as AnnexureA-26
xii. Deed of Guarantee by Defendant No. 3 dated 23.11.2013 in favour of Defendant No. 6 as AnnexureA-27
xiii. Deed of Corporate Guarantee by Defendant No. 5 dated 23.11.2013 in favour of Defendant No. 6 as AnnexureA-28
xiv. Letter dated 30.11.2013 issued by Defendant No. 8 to Defendant No. 6 ceding pari-passu charge under multiple banking arrangement as AnnexureA-29
12. Documents Executed in Respect of Facilities Granted by Defendant No. 8 Assignor Bank Under Sanction Letter Dated 29.11.2013
i. Term Loan Agreement dated 12.12.2013 executed inter se Defendant No. 1 and Defendant No. 8 as AnnexureA-30
ii. Undertaking dated 12.12.2013 by Defendant No. 2 as AnnexureA-31
iii. Declaration by Defendant No. 2 on behalf of Defendant No. 1 as borrower-mortgagor on affidavit dated 12.12.2013 as AnnexureA-32
iv. Guarantee dated 12.12.2013 by Defendant No. 5 as AnnexureA-33 v. Demand promissory notes, collectively annexed as AnnexureA-34 vi. General Letter of Hypothecation dated 12.12.2013 executed by Defendant No. 5 as AnnexureA-35