BANK OF BARODA vs RAHUL GAUR AND ORS on 9 September 2025

FINAL ORDER

1. 1. The present Original Application has been filed on 28.01.2021 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 by the Applicant, Bank of Baroda (BOB), a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Baroda Bhavan, R.C. Dutt Road, Alkapuri, Baroda – 390007, Gujarat, seeking recovery of Rs. 104,84,35,769.13/- (Rupees One Hundred Four Crore Eighty-Four Lakh Thirty-Five Thousand Seven Hundred Sixty-Nine and Thirteen Paise Only), together with interest at the rate of 4.25% above the base rate, i.e., presently 15% per annum, with monthly rests. The credit facilities in question were originally sanctioned by the Applicant's Parliament Street Branch, New Delhi, and the account has thereafter been transferred to the Stressed Asset Management Branch, 4th Floor, Rajendra Bhawan, Rajendra Place, New Delhi – 110008, through which the present application has been instituted (Annexure A-1). The application has been duly signed, verified, and filed by Mr. Anshu Kumar, Chief Manager, Stressed Asset Management Branch, New Delhi, who is duly authorized under a Power of Attorney dated 04.04.2019 to institute recovery proceedings on behalf of the Applicant Bank (Annexure A-2).

2. 2. It is pertinent here that the present OA bearing No. 154/2021 was originally instituted before the DRT-III, Delhi. However, in pursuance of Gazette Notification No. 4718(E) dated 04.10.2022 issued by the Government of India, Department of Financial Services, Ministry of Finance, and in compliance with the directions of the Hon'ble DRAT, Delhi, the matter was transferred to DRT-I, Delhi, where it was inadvertently registered as TA No. 704/2022. Since the case involves an amount of Rs. 100 crores and above, the same has been duly received back from DRT-I, Delhi and has now been correctly registered before this Tribunal as TA No. 514/2022, DRT-III, Delhi.

1. 3. The brief facts of the case are that Defendant No.1, Sh. Rahul Gaur, and Defendant No.2, Smt. Navneet Bhadla, stood as personal guarantors in respect of the credit facilities sanctioned by the Applicant Bank to Defendant No.3/M/s BRYS Hotel Pvt. Ltd., and executed various loaning and security documents including Term Loan Agreement, Agreement of Hypothecation, Demand Promissory Notes, Guarantee Deed and undertakings dated 12.09.2011, thereby making their liability joint and several with that of the principal borrower; whereas Defendant No.3/M/s BRYS Hotel Pvt. Ltd., being the principal borrower, availed the sanctioned term loan and cash credit facilities aggregating Rs.32 Crores and additional term loan of Rs.40 Crores, created security by way of mortgage of immovable properties and hypothecation of assets, but is presently undergoing Corporate Insolvency Resolution Process under the IBC by virtue of Ld. NCLT, New Delhi's order dated 18.03.2019, and has therefore been impleaded only as a pro forma party with no substantive relief sought against it, while the present proceedings are restricted against Defendants No.1 and 2 as guarantors.

2. 4. So far as, all the Defendants have remained ex parte since 13.05.2025, Despite due service of summons, the said Defendants failed to appear or file their response before this Tribunal, and accordingly, proceedings against them were initiated and continued ex parte.

1. 5. It is pertinent that Defendant No. 3 is concerned, Since Defendant No. 3, M/s Brys Hotels Pvt. Ltd., the principal borrower, is presently undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 pursuant to the order dated 18.03.2019 passed by the Ld. NCLT, New Delhi Bench in CP (IB)-1527(PB)/2018, and has therefore been impleaded as a pro forma party with no substantive relief sought against it.

2. 6. It is further stated that Defendant No. 3, M/s Brys Hotels Pvt. Ltd., for the attainment of its business objectives, approached the Applicant Bank for financial assistance, and after due consideration, the Applicant Bank vide its Sanction Letter No. PARLIA/ADV/2011-12 dated 02.09.2011, granted credit facilities aggregating Rs. 32 Crores comprising a Term Loan of Rs. 31 Crores and a Cash Credit facility of Rs. 1 Crore. The Term Loan was sanctioned for financing the consortium hotel project "Brys Fort" at Jodhpur Road, Jaisalmer, Rajasthan, secured primarily by mortgage of leasehold rights of land with superstructure situated at Plot No. 7, Khasra Nos. 401, 402/981, 414 and 415, admeasuring 21.05 bighas (41,624 sq. yds.), and collaterally by the personal guarantees of Defendant No. 1, Sh. Rahul Gaur, and Defendant No. 2, Smt. Navneet Bhadla. The loan carried interest at 4.25% above the base rate, repayable over a door-to-door tenor of 103 months including 21 months' moratorium, with repayment structured in 28 quarterly instalments of varying amounts. The Cash Credit limit of Rs. 1 Crore was sanctioned for working capital purposes, secured by hypothecation of stocks and book debts with 25% margin, and collaterally by mortgage of the said hotel property along with the personal guarantees of Defendants No. 1 and 2. Pursuant to the said sanction letter and its acceptance vide Board Resolution dated 30.09.2011, Defendant No. 3 along with the guarantors executed the requisite loaning and security documents in favour of the Applicant Bank.

- i. Sanction Letter No. PARLIA/ADV/2011-12 dated 02.09.2011, whereby the Applicant Bank sanctioned aggregate credit facilities in favour of Defendant No. 3, (Annexure A-5)

- ii. Board Resolution dated 30.09.2011 (Annexure A-6)

- iii. Defendants executed a series of loaning and security documents in favour of the Applicant Bank. (Term Loan Agreement dated 12.09.2011) executed by Defendants No. 1, 2 and 3 (Annexure A-7)

- iv. Agreement of Hypothecation dated 12.09.2011 (Annexure A-8)

- v. Demand Promissory Note for Rs. 31 Crores dated 12.09.2011 (Annexure A-9)

- vi. Demand Promissory Note for Rs. 1 Crore dated 12.09.2011 (Annexure A-10)

- vii. Letter of Continuing Security with respect to the said demand promissory note dated 12.09.2011 (Annexure A-11)

- viii. Defendant No. 1, on behalf of Defendant No. 3, executed a Letter of Undertaking in respect of book debts dated 12.09.2011 (Annexure A-12)

- ix. Power of Attorney in respect of book debts facility dated 12.09.2011 (Annexure A-13)

- x. Letter of Installment with Acceleration Clause for the term loan of Rs. 31 Crores dated 12.09.2011 (Annexure A-14)

- xi. General Undertaking dated 12.09.2011 (Annexure A-15)

- xii. Defendants No. 1, 2 and 3 executed an Undertaking not to withdraw amounts deposited by directors/family members dated 12.09.2011 (Annexure A-16)

- xiii. Guarantee Deeds by Defendants No. 1 and 2 covering the sanctioned facilities of Rs. 32 Crores dated 12.09.2011 (Annexure A-17)

- xiv. Declaration-cum-Undertaking-cum-Authority dated 12.09.2011 (Annexure A-18)

- xv. Defendant No. 3 created a mortgage by deposit of title deeds over its property admeasuring 21.05 bighas (41,624 sq. yds.) with the superstructure of Hotel Brys Fort at Jodhpur Road, Jaisalmer, evidenced by Declaration dated 12.09.2011 (Annexure A-19)

- xvi. Memorandum of Entry dated 12.09.2011 together with original title deeds (Annexure A-20 Colly)

- xvii. Letter of Confirmation of deposit of title deeds dated 13.09.2011 (Annexure A-21)

- xviii. The said charges were duly registered with the Registrar of Companies vide statutory filings in Form-8 (Annexure A-22 Colly)

- xix. The cash credit account and term loan account were initially maintained at the Applicant Bank's Parliament Street Branch, and the entire facilities were disbursed to Defendant No. 3, which was acknowledged by it vide its Letter dated 09.07.2013 (Annexure A-23).

7. That subsequently, in November 2011, Defendant No. 3, M/s Brys Hotels Pvt. Ltd., again approached the Applicant Bank for additional financial assistance, and upon due consideration, the Bank vide Sanction Letter No. PARLIA/ADV/2011-12 dated 12.03.2012 sanctioned aggregate facilities of Rs. 72 Crores. These comprised Term Loan-I of Rs. 31 Crores (review) for the consortium hotel project "Brys Fort" at Jodhpur Road, Jaisalmer, secured by mortgage of leasehold rights and superstructure at Plot No. 7, Khasra Nos. 401, 402/981, 414 and 415 admeasuring 21.05 bighas (41,624 sq. yds.), together with hypothecation of current assets and personal guarantees of Defendants No. 1 and 2; Term Loan-II of Rs. 40 Crores for the hotel project "Brys Elan" at Sahibabad, Ghaziabad, secured by mortgage of leasehold rights of land and superstructure at Plot No. 41/7, Site-4, Industrial Area, Sahibabad, admeasuring 2267.32 sq. mtrs. and valued at Rs. 60.45 Crores as per project cost (approx. Rs. 25 Crores as per valuation report dated 07.12.2011), with collateral hypothecation of current assets and personal guarantees of Defendants No. 1 and 2; and continuation of the existing Cash Credit facility of Rs. 1 Crore for working capital, secured by hypothecation of stocks and book debts with 25% margin. The facilities carried interest at 4.25% above the base rate (15% per annum with monthly rests), Term Loan-I being repayable in 28 quarterly instalments after a moratorium of 21 months, Term Loan-II in 26 quarterly instalments after a moratorium of 33 months, and the Cash Credit facility sanctioned with a tenor of 12 months.

1. i. Sanction Letter No. PARLIA/ADV/2011-12 dated 12.03.2012 (Annexure A-24)

2. ii. Board Resolution dated 14.03.2012 (Annexure A-25)

3. iii. Defendants No. 1, 2 and 3 executed in favour of the Applicant Bank the Term Loan Agreement dated 20.03.2012 (Annexure A-26)

- iv. Supplemental Composite Agreement of Hypothecation dated 20.03.2012 (Annexure A-27)

- v. Demand Promissory Note of Rs. 40 Crores dated 20.03.2012 (Annexure A-28)

- vi. Letter of Undertaking in respect of book debts dated 20.03.2012 (Annexure A-29)

- vii. Power of Attorney in respect of book debts dated 20.03.2012 (Annexure A-30)

- viii. Letter of Installment with Acceleration Clause dated 20.03.2012 (Annexure A-31)

- ix. General Undertaking dated 20.03.2012 (Annexure A-32)

- x. Undertaking not to withdraw deposits by directors/family members dated 20.03.2012 (Annexure A-33)

- xi. Guarantee Deed executed by Defendant No. 1, Sh. Rahul Gaur, and Defendant No. 2, Smt. Navneet Bhadla, dated 20.03.2012 (Annexure A-34)

- xii. Declaration-cum-Undertaking-cum-Authority dated 20.03.2012 (Annexure A-35)

8. That further, Defendants No. 1, 2, and 3 duly acknowledged their indebtedness to the Applicant to the tune of Rs. 20.70 Crores as on 19.03.2012, by executing a Letter of Acknowledgment dated 20.03.2012 (Annexure A-36).

9. That further, in terms of Sanction Letter dated 12.03.2012, the immovable property of Defendant No.3, admeasuring 2267.32 sq. mtrs. along with the superstructure of Hotel "BRYS EL-AN" situated at Plot No. 41/7 within Industrial Area, Site-IV, Sahibabad, U.P., was mortgaged by Defendant No.3/BRYS Hotel in favour of the Applicant Bank by deposit of original title deeds, accompanied by execution of the following documents:

- i. Declaration in the matter of deposit of title deeds dated 16.05.2012 executed by Defendant No.1 on behalf of Defendant No.3 in favour of the Applicant Bank, (Annexure A-37)

- ii. Memorandum of Entry of deposit of title deeds dated 16.05.2012, along with copies of the original title deeds, (Annexure A-38)

- iii. Letter of Confirmation of deposit of title deeds dated 17.05.2012 executed by Defendant No.1 on behalf of Defendant No.3 in favour of the Applicant Bank, (Annexure A-39).

- iv. The charges created by the Defendants in respect thereof were duly recorded with the Registrar of Companies, (Annexure A-40).

10. Pursuant thereto, the Term Loan Facility of Rs.40 Crores was disbursed to Defendant No.3/Brys Hotel, initially maintained at the Parliament Street Branch of the Applicant Bank, and was subsequently, upon request of Defendant No.3/Brys Hotel, transferred to the NOIL Corporate Branch, 3rd Floor, Bank of Baroda Building, 16, Sansad Marg, Connaught Place, New Delhi-110001, vide Request Letter dated 20.06.2013 along with Board Resolution (Annexure A-41).

11. Furthermore, the lease of Defendant No.3/Brys Hotel's property at Jaisalmer was renewed by the Government of Rajasthan vide Renewal Lease Deed dated 04.02.2013, and since the said property was already mortgaged with the Applicant Bank, the original lease deed dated 31.08.2012 along with the renewal lease deed dated 04.02.2013 were submitted to the Applicant Bank under Covering Letter dated 07.08.2013, (Annexure A-42).

12. The credit facilities so extended to Defendant No.3/Brys Hotel were thereafter reviewed by the Applicant Bank vide Review Sanction Letter No. MIDCORP/DMR-1/ADV/2013-14/300(1) dated 09.09.2013, duly accepted by the Defendants, (Annexure A-43). The review of the facilities are briefly summarized here under:- <table border="1"> <thead> <tr> <th>Credit Facilities</th> <th>Limits</th> <th>Revised Limit</th> </tr> </thead> <tbody> <tr> <td>Term Loan I</td> <td>31.00</td> <td>30.25</td> </tr> <tr> <td>Term Loan II</td> <td>40.00</td> <td>40.00</td> </tr> <tr> <td>Cash Credit (Hyp of Stocks &amp; Book Debts)</td> <td>1.00</td> <td>1.00</td> </tr> <tr> <td>FB-Total</td> <td>72.00</td> <td>71.25</td> </tr> <tr> <td>NFB-Total</td> <td></td> <td></td> </tr> <tr> <td>Total</td> <td>72.00</td> <td>71.25</td> </tr> </tbody> </table>

Rs. In Crores

1. 13. That the credit facilities extended to Defendant No.3/Brys Hotel were reviewed by the Applicant Bank vide Review Sanction Letter No. BR/MIDDEL/ADV/2014-15/1504 dated 24.02.2015, which was duly accepted by the Defendants. The details of the reviewed facilities are briefly as under:

2. 14. That under the Review Sanction Letter dated 24.02.2015, the credit facilities of Defendant No.3/Brys Hotel were revised whereby the term loan for construction of Hotel "Brys Fort" at Jaisalmer was reduced from Rs.30.25 Crores to Rs.25.75 Crores, the term loan for construction of Hotel "Brys El-An" at Sahibabad was continued at Rs.40.00 Crores, and the working capital facility was renewed at Rs.1.00 Crore, thereby bringing the total aggregate limit from Rs.71.25 Crores to Rs.66.75 Crores. The said facilities carried interest at 3.75% above the base rate applicable to CFR-5 rated accounts, with monthly rests, interest being payable as and when charged in the account.

3. 15. That pursuant to its Board Resolution dated 12.02.2015, Defendant No.3/Brys Hotel along with Defendants No.1 and 2

acknowledged the outstanding debt of Rs.65,03,28,340/- as on 06.02.2015 and further confirmed the enforceability of the loan and security documents executed on 12.09.2011 and 20.03.2012 as well as the mortgages created on 12.09.2011 and 16.05.2012. However, despite such acknowledgment, the Defendants failed to adhere to the repayment schedule, and their loan accounts became irregular from 30.03.2015, necessitating repeated reminders by the Applicant Bank. As the Defendants did not regularize the accounts, the loan account of Defendant No.3 was classified as a Non-Performing Asset (NPA) with effect from 26.12.2015 in accordance with the RBI's Master Circular on Asset Recognition. Consequently, the Applicant Bank issued notices dated 04.04.2016 under Section 13(2) of the SARFAESI Act, 2002, to Defendant No.3 for recall of the credit facilities, and separately to Defendants No.1 and 2 invoking their guarantees.

1. 16. That subsequently, Defendant No.1, on behalf of Defendant No.3, approached the Applicant Bank with a proposal dated 03.06.2016, wherein while acknowledging their debts and defaults in respect of the credit facilities, they proposed takeover of the immovable property situated at Jaisalmer by an investor, M/s Damont Developers Pvt. Ltd., who would repay the outstanding dues of the Applicant Bank. The said proposal was accompanied by a declaration by the Defendants to deposit certain payments on or before 15.06.2016, including Rs. 4-5 Crores towards Term Loan-I as well as the outstanding dues of Term Loan-II. Further, by letter dated 24.08.2016, the Defendants again acknowledged their outstanding debt towards the Applicant Bank, and pursuant to a Board Resolution dated 30.03.2017, Defendant No.3/Brys Hotel along with Defendants No.1 and 2 acknowledged the total outstanding debt of Rs.65,98,49,757.04 as on 30.06.2017 and confirmed the enforceability of the loan and security documents executed on 12.09.2011 and 20.03.2012, as well as the mortgages created on 12.09.2011 and 16.05.2012.

1. 17. Thereafter, the Applicant Bank issued a demand notice dated 05.08.2020 and 15.09.2020, called upon Defendants No.1 and 2 to repay the outstanding dues and simultaneously invoked their guarantees; both the said notices were also duly published in the newspapers.

2. 18. That the understanding between Defendant No.3/BRYS Hotel and M/s Damont Developers Pvt. Ltd. subsequently collapsed, whereupon M/s Damont Developers Pvt. Ltd. filed a petition under Section 9 of the Arbitration and Conciliation Act, 1996 before the Hon'ble Delhi High Court, registered as OMP (I) COMM. No. 338 of 2018, impleading Defendant No.3/BRYS Hotel as Respondent No.1 and the Applicant Bank as Respondent No.2.

3. 19. In the said proceedings, it was recorded that though disputes had arisen under the MOU dated 17.09.2016 and Respondent No.1 had issued a termination notice dated 19.07.2018 invoking the arbitration clause, no relief was sought against the Applicant Bank, and the Hon'ble Court clarified vide its order dated 27.08.2018 that the pendency of the said petition would not bar the Applicant Bank from continuing proceedings under the SARFAESI Act, 2002.

4. 20. Thereafter, as the Defendants failed to regularize their accounts despite repeated proposals, the Applicant Bank initiated proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 before the Ld. NCLT, New Delhi, wherein vide order dated 18.03.2019 passed in CP No. IB-1527(PB)/2018, Defendant No.3 was admitted into Corporate Insolvency Resolution Process. Consequently, upon commencement of the said process, the Applicant Bank has no recourse to the assets of Defendant No.3/Brys Hotel in the present proceedings.

1. 21. That the contractual rate of interest applicable on the above-mentioned loan accounts, as on the date of filing of the present Original Application, is Base Rate + 3.75% per annum with monthly rests in respect of Cash Credit Facility (A/c No. 05860500000113), Term Loan-I (A/c No. 05860600003767), and Term Loan-II (A/c No. 05860600003994). In addition, the Applicant Bank is entitled to charge penal interest @2% per annum with monthly rests on the outstanding amounts. The Defendants No. 1 and 2, being personal guarantors for the credit facilities availed by Defendant No. 3, are jointly and severally liable along with Defendant No. 3 to repay the outstanding dues and all other charges as claimed by the Applicant Bank in the present Original Application.

2. 22. That the present Original Application is filed without prejudice to the claim already lodged by the Applicant Bank before the Resolution Professional of Defendant No.3, and the Applicant Bank undertakes to duly inform this Tribunal and revise the claim amount herein in case of any recoveries made during the pendency of these proceedings. It is further submitted that the security interest over the assets of Defendant No.3 has been duly registered with the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI). Moreover, in view of the Order dated 23.03.2020 passed by the Hon'ble Supreme Court of India in Suo Motu Writ Petition No. 3/2020, whereby limitation for filing of all suits and proceedings was extended with effect from 15.03.2020 until further orders, the present Original Application is well within limitation.

3. 23. That the cause of action for filing the present Original Application is continuous and arose on multiple occasions,

beginning on 02.09.2011 when the Applicant Bank sanctioned credit facilities in favour of Defendant No.3/Brys Hotel, followed by execution of loan and security documents on 12.09.2011, creation of equitable mortgage over property at Jaisalmer on 13.09.2011, sanction of an additional term loan on 12.03.2012, execution of further security documents on 20.03.2012, and creation of equitable mortgage over property at Sahibabad on 16.05.2012. It further arose on 09.09.2013 and 24.02.2015 when the Applicant Bank reviewed the credit facilities, on 12.02.2015 and 30.06.2017 when Defendants executed Acknowledgements of Debt, on 30.09.2015 when the account was classified as Non-Performing Asset, on 04.04.2016 upon issuance of notices under Section 13(2) of the SARFAESI Act, on 03.06.2016 when Defendants submitted a proposal for takeover of the property by M/s Damont Group, on 17.08.2018 when the Hon'ble Delhi High Court permitted the Applicant Bank to continue proceedings under SARFAESI, on 18.03.2019 when Defendant No.3 was admitted to Corporate Insolvency Resolution Process by the Ld. NCLT, and on 05.08.2020 and 15.09.2020 when the Applicant Bank issued demand notices to Defendants No.1 and 2 invoking their guarantees and publishing the same in newspapers. The debts of the Applicant Bank continue to be acknowledged in the list of creditors in the Corporate Insolvency Resolution Process for Defendant No.3/Brys Hotel as well as in the annual balance sheet of Brys Hotel Pvt. Ltd., and the cause of action remains continuous and recurring until the outstanding dues are fully liquidated, with Defendants No.1 and 2 remaining in default as on the date of filing of the present Original Application. The contents of the documents relied upon in the present Original Application are to be read as part and parcel thereof and are not repeated herein for the sake of brevity.

24. To substantiate its case, the Applicant Bank has filed the affidavit of Mr. Anshu Kumar, Chief Manager, currently posted at the Stressed Asset Management Branch, Bank of Baroda, Rajendra Bhawan, Rajendra Palace, New Delhi - 110008. being the Power of Attorney holder of the Applicant Bank, do hereby solemnly affirm and declare that he is the Authorized Representative/Attorney Holder of the Applicant Bank, duly authorized vide Power of Attorney dated 04.04.2019, and is well conversant with the facts and circumstances of the present case based on the records available with the Applicant Bank and hence competent to swear this affidavit; the credit facilities in the present matter were initially sanctioned by the Parliament Street Branch of the Applicant Bank, and the said account has now been transferred to the 'Stressed Asset Management Branch, through which the present Original Application is filed. The Applicant Bank relies upon the following documents in support of the present Original Application.

1. i. Power of Attorney of the Applicant Bank dated 04.04.2019 (EX-AW 1/1)

2. ii. Letter of Transfer of account from Parliament Street Branch to Stressed Asset Management Branch (EX-AW 1/2)

3. iii. Master Data of Brys Hotel Pvt. Ltd. (EX-AW 1/3)

4. iv. NCLT Order admitting Defendant No.3 to Corporate Insolvency Resolution Process dated 18.03.2019 (EX-AW 1/4)

5. v. Sanction Letter of credit facilities dated 02.09.2011 (EX-AW 1/5)

6. vi. Board Resolution of Defendant No.3 accepting the same dated 30.09.2011 (EX-AW 1/6)

7. vii. Term Loan Agreement (EX-AW 1/7)

8. viii. Agreement of Hypothecation (EX-AW 1/8)

- ix. Demand Promissory Notes of Rs.31 Crores and Rs.1 Crore (EX-AW 1/9 & 1/10)

- x. Letter of Continuing Security (EX-AW 1/11)

- xi. Letter of Undertaking in respect of Book Debts (EX-AW 1/12)

- xii. Power of Attorney in respect of Book Debts Facility (EX-AW 1/13)

- xiii. Letter of Installment with Acceleration Clause (EX-AW 1/14)

- xiv. General Undertaking (EX-AW 1/15)

- xv. Undertaking regarding deposits by directors/family members (EX-AW 1/16)

- xvi. Guarantees executed by Sh. Rahul Gaur and Smt. Navneet Bhadla (EX-AW 1/17)

- xvii. Declaration cum Undertaking cum Authority (EX-AW 1/18)

- xviii. Declaration regarding deposit of title deeds (EX-AW 1/19)

- xix. Memorandum of Entry of deposit of title deeds (EX-AW 1/20)

- xx. Letter of Confirmation of Deposit of Title Deeds (EX-AW 1/21)

- xxi. Form-8 recording charges in Registrar of Companies (EX-AW 1/22)

- xxii. Letter of Acknowledgment of complete disbursement of Term Loan dated 09.07.2013 (EX-AW 1/23)

- xxiii. Sanction Letter of fresh Term Loan-II of Rs.40 Crores dated 12.03.2012 (EX-AW 1/24).

- xxiv. Board Resolution dated 14.03.2012 (EX-AW 1/25)

- xxv. Term Loan Agreement dated 20.03.2012 (EX-AW 1/26)

- xxvi. Supplemental Composite Agreement of Hypothecation dated 20.03.2012 (EX-AW 1/27)

- xxvii. Demand Promissory Note dated 20.03.2012 (EX-AW 1/28)

- xxviii. Letter of Undertaking dated 20.03.2012 (EX-AW 1/29)

- xxix. Power of Attorney dated 20.03.2012 (EX-AW 1/30)

- xxx. Letter of Installment with Acceleration Clause dated 20.03.2012 (EX-AW 1/31)

- xxxi. General Undertaking dated 20.03.2012 (EX-AW 1/32)

- xxxii. Undertaking not to withdraw amounts deposited by directors/family members dated 20.03.2012 (EX-AW 1/33)

- xxxiii. Guarantee executed by Sh. Rahul Kumar Gaur and Smt. Navneet Bhadla dated 20.03.2012 (EX-AW 1/34)

- xxxiv. Declaration cum Undertaking cum Authority dated 20.03.2012 (EX-AW 1/35)

- xxxv. Letter of Acknowledgment dated 19.03.2012 (EX-AW 1/36)

- xxxvi. Declaration in the matter of deposit of title deeds dated 16.05.2012 (EX-AW 1/37)

- xxxvii. Memorandum of Entry of Deposit of Title Deeds dated 16.05.2012 (EX-AW 1/38)

- xxxviii. Letter of Confirmation of Deposit of Title Deeds (EX-AW 1/39)

- xxxix. Form-8 regarding charges created by the Defendants (EX-AW 1/40)

- xl. Request Letter along with Board Resolution dated 20.06.2013 (EX-AW 1/41)

- xli. Covering Letter with Renewal Lease Deed dated 07.08.2013 (EX-AW 1/42)

- xlii. Review Sanction Letter dated 09.09.2013 (EX-AW 1/43)

- xliii. Review Sanction Letter dated 24.02.2015 (EX-AW 1/44)

- xliv. Board Resolution and Debt Acknowledgment dated 12.02.2015 (EX-AW 1/45)

- xlv. Reminder Letters (EX-AW 1/46)

- xlvi. Notices under Section 13(2) of SARFAESI Act dated 04.04.2016 (EX-AW 1/47)

- xlvii. Proposal dated 03.06.2016 and Declaration dated 10.06.2016 (EX-AW 1/48)

- xlviii. Board Resolution and Debt Acknowledgment dated 30.03.2017 (EX-AW 1/49)

- xlix. Demand Notice dated 05.08.2020 (EX-AW 1/50)

- i. Demand Notice dated 15.09.2020 (EX-AW 1/51)

- ii. OMP (I) COMM. No. 338 of 2018 (EX-AW 1/52)

- iii. Order dated 27.08.2018 (EX-AW 1/53)

- iiii. Statement of Accounts and Certificate of Outstanding Amount (EX-AW 1/54)

- liv. CERSAI Record (EX-AW 1/55)

- lv. Order dated 23.03.2020 in Suo Moto Writ Petition No.- 3/2020 (EX-AW 1/56).

14. The witness of Applicant Bank has fully corroborated the averments made in the A. 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 Bank has proved its case beyond reasonable doubts. Accordingly, the bank is entitled to recover the entire amount along with pendentelite interest and future costs as agreed between the parties. I hereby allow this OA as the Applicant Bank has proved its claim beyond any doubt.

15. In this TA, Applicant Bank has prayed to issue recovery certificate against Defendants No. 1& 2. In the present matter, the Defendant No.1 and Defendant No.2 are personal guarantors for the credit facilities granted to Defendant No.3/Brys Hotel, the principal borrower currently under Corporate Insolvency Resolution. The present Original Application is limited to claims against Defendant No.1 and No.2, who, pursuant to the Sanction Letter dated 02.09.2011, executed the loan and security documents along with Defendant No.3, including the Term Loan Agreement.

1. 16. Consequently, TA No. 514/2022 stands allowed in favour of Applicant Bank and against Defendants no. 1 & 2, who are liable to pay the dues of the Applicant Bank along with costs and pendentelite & future interest @ 11.50% per annum, as claimed in the OA, from the date of filing of present OA, till the date of payment in full.

ORDER

TA No. 514/2022 stands allowed and the Defendants No. 1 & 2 are directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 104,84,35,769.13/- (Rupees One Hundred Four Crore Eighty-Four Lakhs Thirty-Five Thousand Seven Hundred Sixty-Nine and Thirteen Paise Only) less the amount received from the sale/ release of mortgaged properties along with cost and pendentelite and future interest, as claimed in OA i.e. @ 11.50% per annum rests from the date of filing of this OA till the date of realization failing which, the aforesaid amount shall be recovered from the sale of hypothecated/charged stocks/tangible movables and available mortgaged properties.

Further, in case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the Defendants No. 1 & 2.

So far as, Defendant No. 3 is concerned, since Defendant No. 3 is before Ld. NCLT and a pro forma party, hence, no order qua Defendant No. 3 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 Defendant No. 3 in case NCLT are quashed / withdrawn in future, in accordance with law.

It is further directed that in case Applicant Bank 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-II, Debt Recovery Tribunal-III, Delhi.

- (ii). Parties are directed to appear before the Recovery Officer-II, DRT-III, Delhi on 28.10.2025.

- (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: 09.09.2025

K. Singh

09.2025 (SHIV KUMAR - I) PRESIDING OFFICER, DRT-III, DELHI