BANK OF INDIA vs SVOGL OIL GAS AND ENERGY LTD AND ORS on 18 September 2025

**FINAL ORDER**

1. 1. This Original Application is filed on 16.01.2017 by the Applicant, Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Mumbai and branch office at New Delhi, is maintainable under Section 2(d) of the Recovery of Debts and Bankruptcy Act, 1993. The Applicant Bank had extended term loan facilities to Defendant No. 1 Company, and Mr. Hemant Kumar Harish, Assistant General Manager, duly authorized by Power of Attorney dated 07.01.2009, has instituted these proceedings. It is prayed that this Tribunal may pass an order directing Defendants No. 1 to 5, including Defendants No. 2 and 3 in their personal capacities, to pay jointly and severally a sum of Rs. 150,08,55,560.36 (Rupees One Hundred Fifty Crore Eight Lakh Fifty-Five Thousand Five Hundred Sixty and Thirty-Six Paisa Only) with pendent lite and future interest at 14.96% p.a. with monthly rests from 08.02.2017 till realization, along with costs of this application.

2. 2. It is pertinent here that this OA bearing no. 284/2017 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 on 28.10.2022 and was numbered at TA-207/2022.

1. 3. The brief facts of the case are that the Defendant No. 1 Company, incorporated under the provisions of the Companies Act, 1956, and formerly known as *ShivVani Oil & Gas Exploration Services Limited*, is the principal borrower which had approached the then *New Delhi Corporate Banking Branch* of the Applicant Bank at 37, Shaheed Bhagat Singh Marg, New Delhi-110001 for financial assistance and was sanctioned Term Loan facilities of Rs. 5000 lakhs, the borrowing accounts of which were subsequently transferred to the present Applicant branch, namely *New Delhi Large Corporate Branch*; Defendants No. 2 and 3 have executed their personal guarantees and Defendants No. 4 and 5 have executed corporate guarantees in favour of the Applicant Bank to secure the said credit facilities; Defendants No. 6 to 30 are arrayed as proforma defendants, wherein Defendant No. 6 is the Security Trustee with whom all loaning and security documents, including the securities created on behalf of all lenders, including the Applicant Bank, are held; Defendant No. 7 is the Monitoring Institution in respect of the restructuring of Defendant No. 1's loan accounts carried out under the aegis of the Corporate Debt Restructuring (CDR) Cell; Defendant No. 8, being a branch of ICICI Bank Limited, is the designated Account Bank maintaining the Trust and Retention Account (TRA) of Defendant No. 1 pursuant to the said CDR restructuring; Defendant No. 9 is the CDR Cell which operates and monitors the CDR mechanism, a voluntary and non-statutory system based on the Debtor-Creditor Agreement (DCA) and Inter-Creditor Agreement (ICA), under whose aegis the restructuring of Defendant No. 1's loan accounts was carried out; and Defendants No. 10 to 29 are Banks and Financial Institutions which sanctioned and disbursed loans to Defendant No. 1 under the Multiple Banking system and hold pari passu charge on the securities of the company jointly with the Applicant Bank.

4. So far as, the Defendants No. 4 to 6 have remained ex parte since 07.01.2025, 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. Defendant No. 1 is under liquidation proceedings, and the Official Liquidator has already been appointed and is on record in the present TA. Defendants No. 2 and 3 are presently facing proceedings before the Ld. NCLT. Defendants No. 6 to 30 have been impleaded as proforma defendants, being other lenders, the account bank, and the security trustee under the CDR mechanism, whose presence is necessary for proper adjudication of the matter, though no substantive relief has been sought against them.

5. It is further stated that Defendant No. 1 Company approached the Applicant Bank, then operating through its branch known as the "New Delhi Corporate Banking Branch" at 37 Shaheed Bhagat Singh Marg, New Delhi-110001, seeking credit facilities in the form of a Term Loan of Rs. 50 Crores (Rupees Fifty Crore Only), and pursuant to such request, the Applicant Bank vide its Sanction Letter No. NDCBB/CAD/SCM/08-09/2214 dated 06.01.2009, sanctioned the aforesaid credit facilities on various terms and conditions, The nature and terms of the sanctioned facility are as follows: a Fund-Based Term Loan facility of Rs. 50.00 Crore was sanctioned with a margin of 25% and an effective rate of interest/commission of 10% over BPI-R, which at the time of sanction stood at 13.50% per annum, resulting in a total sanctioned limit of Rs. 50.00 Crore.

1. 6. That the Term Loan of Rs. 50.00 Crore to Defendant No. 1 Company was secured by a first pari-passu charge on its fixed assets and the joint and several personal guarantees of Mr. Prem Singhee, CMD, and Mr. Padam Singhee, Executive Director. The loan was repayable in 48 monthly installments, with interest serviced monthly, commencing 12 months after first disbursement, for a door-to-door tenor of five years. Defendant Nos. 1 to 3 accepted the facility by signing and returning the sanction letter dated 06.01.2009 (Annexure A-2).

2. 7. Pursuant thereto, Defendant No. 1 passed a Board Resolution on 06.01.2009 authorizing execution of all requisite documents (A Annexure A-3) and provided extracts from the AGM of 30.07.2007 enhancing the Board's borrowing powers up to Rs. 2,500 Crore under Section 293(1)(d) of the Companies Act, 1956 (Annexure A-4). The aforesaid resolution and in terms thereof, Defendants executed the documents.

1. i. Term Loan Agreement dated 12.01.2009 (Annexure A-5)

2. ii. Agreement of Hypothecation of Plant & Machinery, Stocks, and Book-Debts for Rs. 50.00 Crore dated 12.01.2009 (Annexure A-6)

3. iii. Agreement of Confirmation/Declaration/Undertaking for the Term Loan, including the grant of General Lien and related rights dated 12.01.2009 (Annexure A-7)

4. iv. Letter of Declaration and Undertaking dated 12.01.2009 (Annexure A-8)

5. v. Deed of Guarantee executed by Defendant Nos. 2 & 3 for Rs. 50.00 Crore dated 12.01.2009 (Annexure A-9)

3. 8. Pursuant to the execution of the aforesaid security documents and the Deed of Personal Guarantees, Defendant No. 1 submitted a request letter dated 15.01.2009, along with a copy of the CA certificate and copies of three purchase orders, seeking disbursement of Rs. 14.16 Crore (Annexure A-10 and A-11).

1. 9. Thereafter, Defendant No. 1 submitted a revised request letter dated 09.02.2009 for disbursement of Rs. 12.72 Crore, (Annexure A-12), pursuant to which the Applicant Bank commenced disbursement of the Term Loan of Rs. 50.00 Crore to Defendant No. 1's account No. 604165410000067 w.e.f. 09.02.2009. Further disbursement requests were made by Defendant No. 1 on 10.02.2009, 02.03.2009, and 20.03.2009 for amounts of Rs. 4.44 Crore, Rs. 20.25 Crore, and Rs. 12.5855 Crore, respectively, and disbursements were made on 28.02.2009, 17.03.2009, and 31.03.2009, completing the total sanctioned amount of Rs. 50.00 Crore. (Annexure A-13, A-14, and A-15).

1. 10. Subsequently, letters ceding charge on a pari-passu basis over the common security of Defendant No. 1 were exchanged between various lender banks, copies of which received by the Applicant Bank include:

UCO Bank dated 30.04.2010 (ANNEXURE A-18), United Bank of India dated 17.06.2010 (ANNEXURE A-19), Union Bank of India dated 11.05.2010 (Annexure A-20), Infrastructure Finance Ltd dated 12.05.2010 (Annexure A-21), Life Insurance Corporation of India dated 18.03.2010 (Annexure A-22), and State Bank of Patiala dated 05.05.2010 (Annexure A-23).

1. 11. Thereafter, on 22.12.2011, Defendant No. 1 Company approached the Applicant Bank at its New Delhi Large Corporate Branch, then located at PTI Building, 4, Sansad Marg, New Delhi-110001, seeking additional credit facilities in the form of a Term Loan of Rs. 75.00 Crore (Annexure A-24).

12. The Applicant Bank considered the request favorably and sanctioned an additional Term Loan-II of Rs. 75.00 Crore to Defendant No. 1 Company vide Sanction Letter No. NDLCB/2012-13/SG/499 dated 14.06.2012 (Annexure A-25) on various terms and conditions. The loan is secured by a first pari-passu charge on the fixed assets of the company, excluding assets under exclusive charge, and by post-dated cheques for principal and interest, along with the joint and several personal guarantees of Mr. Prem Singhee and Mr. Padam Singhee. The Term Loan-II is repayable in 20 quarterly instalments of Rs. 3.75 Crore each, after a moratorium period of 24 months from the date of first disbursement, with a door-to-door tenor of 7 years, and interest is to be serviced monthly as and when applicable, the salient features of which are as follows:

1. i. Term Loan-I with an existing limit of Rs. 30.05 Crore and fresh/proposed limit of Rs. 25.85 Crore, at a margin of 25% and effective ROI of 14.50% p.a. (4% over Base Rate at the time of sanction);

2. ii. Term Loan-II of Rs. 75.00 Crore at a margin of 25.09% and effective ROI of 13.00% p.a. (2.50% over Base Rate at the time of sanction), making the total sanctioned limit Rs. 100.85 Crore.

13. Pursuant to the sanction of Term Loan-II of Rs. 75.00 Crore, Defendant No. 1 Company, in its Board of Directors meeting held on 15.06.2012, inter alia, accepted the sanctioned credit facility and authorized execution of all requisite documents in favour of the Applicant Bank by Mr. Prem Singhee, Chairman & Managing Director, and Mr. Padam Singhee, Joint Managing Director, severally, (Annexure A-26). The Company also provided extracts from the Annual General Meeting of shareholders held on 30.09.2010, enhancing the Board's borrowing powers up to Rs. 5,000 Crore under Section 293(1)(d) of the Companies Act, 1956, (Annexure A-27). Pursuant to the said resolutions and in terms thereof, Defendant No. 1 executed the requisite security documents through Mr. Padam Singhee, Joint Managing Director, Defendant No. 3 herein.

1. i. Credit Facility Agreement- dated 19.06.2012 (Annexure A-28) (details of facilities availed as on 31.03.2012: Term Loans Rs. 1,738.92 Crore; Working Capital Rs. 344.36 Crore)

2. ii. Supplemental Deed of Hypothecation - dated 19.06.2012 (Annexure A-29)

3. iii. Letter of Agreement/Undertaking/Assurance incorporating various financial undertakings and terms - dated 19.06.2012 (Annexure A-30)

4. iv. Letter of Agreement/Undertaking/Assurance including submission of audited financial statements, consent for disclosure to CIBIL, RBI, ECGC, etc. - dated 19.06.2012 (Annexure A-31)

5. v. Letter of Agreement/Undertaking/Assurance confirming directors/promoters/guarantors/associate concerns are not on defaulters/caution lists, along with other financial covenants - dated 19.06.2012 (Annexure A-32)

6. vi. Joint and Several Guarantee executed by Defendant Nos. 2 & 3 for Rs. 75.00 Crore, including interest, penal/additional interest, costs, commissions, and other charges - dated 19.06.2012 (Annexure A-33)

14. That pursuant to the execution of the aforesaid security documents and the Deed of Personal Guarantee, the Applicant Bank disbursed the Term Loan Facility of Rs. 75.00 Crore to Defendant No. 1 Company in their account No.

605965410000100 w.e.f. 20.06.2012, and the said amount was duly availed and utilized by the Company. Vide letter dated 13.08.2013, the Applicant Bank notified the amounts outstanding in Term Loan-I (Account No. 604165410000067) and Term Loan-III (Account No. 605965410000100) as on 13.08.2013, along with further interest due from 31.07.2013, which was acknowledged and confirmed by Defendant No. 1 and the Guarantors, Defendant Nos. 2 and 3, for the purposes of Section 18 of the Limitation Act, 1983 (ANNEXURE A-34).

1. 15. During the intervening period, as the loan accounts of Defendant No. 1 Company with various lenders remained irregular and the Company faced financial difficulties, it submitted a Flash Report dated 27.06.2013 to the Corporate Debt Restructuring Cell, IDBI Towers, Mumbai, for admission into the CDR mechanism, with copies to all lenders (Annexure A-35).

2. 16. On the request of Defendant No. 1 Company, the Applicant Bank considered its proposal for restructuring, pending formal and final approval by the CDR Cell, and conveyed its acceptance. Pursuant thereto, and for availing the restructuring/rescheduling of existing debts, Defendant No. 1 Company passed a resolution in its Board of Directors meeting held on 30.12.2013, inter alia accepting the restructuring/rescheduling of existing facilities and sanction of new facilities on the terms provided by the Bank, and authorizing the directors to execute all necessary documents and affix the common seal wherever required, (Annexure A-36).

3. 17. In furtherance of the said resolution, Defendant No. 1 executed the requisite security documents for the restructuring/rescheduling of the existing facilities through Mr.

Padam Singhee, Joint Managing Director, Defendant No. 3 herein.

- i. Master Restructuring Agreement dated 30.12.2013, (Annexure A-37).

- ii. Supplemental Deed of Hypothecation dated 30.12.2013, (Annexure A-38).

- iii. Deed of Declaration dated 30.12.2013, (Annexure A-39) (Colly).

- iv. Joint and Several Guarantee Letter executed by Defendant Nos. 2 and 3 dated 30.12.2013, (Annexure A-40).

18. That in pursuance to the approval for restructuring/rescheduling of the existing credit facilities and execution of the aforesaid documents, the existing and outstanding loan accounts of Defendant No. 1 Company were restructured by the Applicant Bank on 31.12.2013 in the following manner:

<thead> <tr> <th>Sr. No.</th> <th>Account Number</th>

</tr> </thead> <tbody> <tr>

<td>Term Loan- I</td> <td>Rs. 10,45,72,664.00</td> </tr> <tr>

<td>Term Loan- I</td> <td>Rs. 77,15,84,026.00</td> </tr> <tr>

<td>FITL (opening balance)</td> <td>Rs. 7,36,07,409.00</td> </tr> <tr> <td></td> <td>Total</td> <td></td> <td>Rs.94,97,64,099.00</td> </tr> </tbody> </table>

19. That subsequently, on 28.02.2014, the Corporate Debt Restructuring (CDR) Cell, Mumbai, vide its Letter of Approval (LOA) bearing reference number BY.1084/2013-14, conveyed that the final restructuring package in respect of Defendant No. 1 Company was approved by the CDR Empowered Group in its meeting held on 24.01.2014, the details whereof are set out in (Annexure-I) (CDR Package), (Annexure A-41), wherein ICICI


Bank Ltd. was appointed as the Monitoring Institution (MI). Pursuant to the said LOA of the CDR Cell and in terms thereof, the parties executed the requisite documents.

1. i. Master Restructuring Agreement (MRA) dated 18.03.2014 (Annexure A-42)

2. ii. Deed of Guarantee by Defendant No. 2 (Mr. Prem Singhee) dated 18.03.2014 (Annexure A-43)

3. iii. Deed of Guarantee by Defendant No. 3 (Mr. Padam Singhee) dated 18.03.2014 (Annexure A-44)

4. iv. Security Trustee Agreement dated 20.03.2014 (Annexure A-45)

5. v. Unattested Deed of Hypothecation dated 28.03.2014 (Annexure A-46)

6. vi. Trust and Retention Account Agreement dated 28.03.2014 (Annexure A-47)

7. vii. Irrevocable Power of Attorney dated 28.03.2014 (Annexure A-48)

8. viii. Deed of Guarantee by Defendant No. 4 (M/s Dharti Oil Services Pvt. Ltd.) dated 28.03.2014 (Annexure A-49)

9. ix. Deed of Guarantee by Defendant No. 5 (M/s T.R.S. Technology Pvt. Ltd.) dated 28.03.2014 – ANNEXURE A-50

10. x. Letter No. 0416 dated 08.05.2014 issued by IL&FS Trust Company Ltd. (Defendant No. 6) to ICICI Bank Ltd., the Monitoring Institution, confirming execution of documents referred to in sub-paras (iv), (v), (vi), and (vii) of para 5.21 (Annexure A-51).

11. xi. Certificate of Registration of Charge dated 27.05.2014 issued by the Registrar of Companies, Delhi, evidencing creation of charge by Defendant No. 1 Company in favour of IL&FS Trust Company Ltd. (Security Trustee) pursuant to Deed of Hypothecation dated 28.03.2014 (Annexure A-52).

20. That pursuant to the execution of the aforesaid security documents, deeds of guarantees and creation of charge, the loan accounts of Defendant No. 1 Company were again restructured, and a fresh Priority Term Loan was disbursed by the Applicant Bank in terms of the Master Restructuring Agreement (MRA)

and other CDR documents on 23.07.2014, under which various loan accounts were maintained, including;

<thead> <tr>

</tr> </thead> <tbody> <tr>

<td></td> <td>Rs. 10,08,58,765.00</td> </tr> <tr>

<td></td> <td>Rs. 75,03,37,080.00</td> </tr> <tr>

<td></td> <td>Rs. 12,02,20,866.00</td> </tr> <tr>

<td></td> <td>Rs. 2,91,28,450.00</td> </tr> <tr> <td></td> <td>Total</td> <td></td> <td>Rs. 100,05,45,161.00</td> </tr> </tbody> </table>

1. 21. Thereafter, the Defendant No. 1 Company, vide its letter dated 21.01.2015, addressed to all the lender banks including the Applicant Bank, requested, inter alia, for conversion of three months' overdue interest from 01.10.2014 to 31.12.2014 into equity (Annexure A-53).

2. 22. That the Applicant Bank, vide letter dated 04.03.2015, accepted the request of Defendant No. 1 Company for conversion of its overdue amount from October 2014 to February 2015 into equity shares at Rs. 9.90 per share, while noting defaults aggregating to about Rs. 4.89 crores and clarifying that all outstanding indebtedness remained payable on first demand. (Annexure A-54). Pursuant thereto, Defendant No. 1 Company, vide letter dated 28.03.2015, confirmed that its Board of Directors in the meeting held on the same date had approved such conversion and enclosed a certified true copy of the resolution passed. (Annexure A-55).

3. 23. That pursuant thereto, parts of the overdue amounts in the four loan accounts of Defendant No. 1 were segregated by the Applicant Bank on 30.03.2015 for conversion into equity, as per the details of the respective accounts and amounts, with the outstanding balances adjusted accordingly.

<thead> <tr>

<th>Amount segregated for conversion to equity</th> <th>Outstanding Balance as on 30.03.2015 after segregation of part overdue amounts for conversion into equity</th> </tr> </thead> <tbody> <tr>

<td>Term Loan-I</td> <td>Rs.<br/>47,78,148.00</td> <td>Rs.<br/>10,08,58,764.69</td> </tr> <tr>

<td></td> <td>Rs.<br/>3,49,00,187.00</td> <td>Rs.<br/>75,01,68,540.00</td> </tr> <tr>

<td></td> <td>Rs.<br/>63,74,748.00</td> <td>Rs.<br/>14,08,00,000.00</td> </tr> <tr>

<td></td> <td>Rs.<br/>4,88,99,960.00</td> <td>Rs.<br/>5,60,95,498.00</td> </tr> <tr> <td></td> <td>Total</td> <td></td> <td>Rs.<br/>4,88,99,960.00</td> <td>Rs.<br/>104,79,22,802.69</td> </tr> </tbody> </table>

24. Subsequently, IL&FS Trust Company Ltd., the Security Trustee, Defendant No. 6, vide letter Ref. No. 7252 dated 31.03.2015, confirmed to ICICI Bank Ltd., the Monitoring Institution, the execution of an Unattested Deed of Hypothecation dated 30.03.2015 to realign the working capital limits among the lenders and filing of Form CHG 1 with the Registrar of Companies, along with the Certificate of Registration, (Annexure A-56).

25. Thereafter, Defendant No. 1 Company, vide its letter dated 06.06.2015, requested conversion of overdue interest of Rs. 2.97 crores for the period 01.03.2015 to 31.05.2015 into equity as per the CDR proposal and SEBI guidelines, seeking a sanction letter to process the conversion, (Annexure A-57); however, due to protracted defaults by Defendant No. 1 Company in servicing its interest/repayment, the request was not considered. Subsequently, IL&FS Trust Company Ltd., the Security Trustee, Defendant No. 6, vide letter Ref. No. 4923 dated 21.10.2015, confirmed to ICICI Bank Ltd., the Monitoring Institution, that the shares of Shiv-Vani Oil & Gas Exploration Services Limited, as Defendant No. 1 was then known, were pledged with it in its depository participant account, (Annexure A-58).

1. 26. That even after repeated restructuring/rescheduling of the accounts of Defendant No. 1 Company and conversion of part of the overdue amount into equity, the Defendant No. 1 failed to service the interest in its loan accounts with the Applicant Bank from April, 2015 onwards. Consequently, the account of Defendant No. 1 Company was classified as a Non-Performing Asset (NPA) on 30.09.2015, with effect from the cut-off date of CDR restructuring i.e., 01.04.2013, being a case of failure of restructuring whereby the account stood classified as NPA from the date of implementation of restructuring under CDR, in terms of the guidelines of the Reserve Bank of India.

2. 27. In view thereof, the Applicant Bank, vide letter dated 03.11.2015 issued by its CDR Cell, Head Office, Mumbai, conveyed its intimation under clause 20 of the CDR Master Circular dated 29.04.2015 to the CDR Cell, communicating revocation of the restructuring scheme and initiation of legal action for recovery. (Annexure A-59).

3. 28. It is pertinent to mention that the CDR Cell, Mumbai, thereafter, vide its letter dated 08.11.2016, conveyed to all lender banks including the Applicant Bank that the account of Defendant No. 1 Company stands exited from the CDR system on account of failure of the restructuring package, (Annexure A-60). That pursuant to such revocation of the restructuring scheme and consequent failure thereof, the Applicant Bank has worked out the outstanding dues in various loan accounts of Defendant No. 1 Company, and the outstanding amounts as on 30.04.2016 are as under.

<thead> <tr>

</tr> </thead> <tbody> <tr>

<td>Term Loan – I</td> <td>Rs. 14,96,80,790.00</td> </tr> <tr>

<td>Term Loan – II</td> <td>Rs. 93,78,49,305.00</td> </tr> <tr>

<td>FITL</td> <td>Rs. 16,98,29,160.00</td> </tr> <tr>

<td>Priority Term Loan</td> <td>Rs. 7,70,61,914.00</td> </tr> <tr> <td></td> <td>Total</td> <td></td> <td>Rs. 133,44,21,169.00</td> </tr> </tbody> </table>

29. That the Applicant Bank, in order to secure repayment, repeatedly requested and called upon Defendants No. 1 to 5 to clear the overdue amounts in their loan accounts and adhere to the original repayment schedules, and for this purpose held several meetings with the directors and executives of Defendant No. 1 Company as well as with Defendants No. 2 and 3, who had executed personal guarantees, and Defendants No. 4 and 5, who had executed corporate guarantees; however, despite such opportunities, the said Defendants deliberately neglected to comply, thereby evidencing their lack of intention or willingness to honour their obligations.

30. Consequently, the Applicant Bank issued a statutory demand notice under Section 13(2) of the SARFAESI Act vide letter Ref. No. NDLCB/2016-17/SVOGL dated 30.04.2016 to Defendants No. 1 to 5, demanding repayment of Rs. 133,44,21,169.00 (Rupees One Hundred Thirty-Three Crores Forty-Four Lakhs Twenty-One Thousand One Hundred Sixty-Nine only) being the contractual dues as on 30.04.2016, together with further interest at 4% over the Base Rate (effective 13.70% p.a. with monthly rests w.e.f. 01.05.2016), (Annexure A-61).

1. 31. Notwithstanding the service of the said statutory notice, the Defendants failed to repay, whereupon the Applicant Bank, through its legal counsel M/s. MV Kini Law Firm, New Delhi, issued a further Legal Notice of Demand dated 23.06.2016 to Defendants No. 1 to 5 reiterating the demand of Rs. 133,44,21,169.00 with further contractual and penal interest, (Annexure A-66).

2. 32. It is relevant to mention that Defendants No. 2 and 3 had earlier submitted their individual profiles of assets and liabilities dated 15.06.2012 in prescribed format CBD-23, duly certified by a Chartered Accountant, (Annexure A-62 & A-63), and had subsequently submitted fresh particulars of personal assets dated 21.08.2014, also certified by a Chartered Accountant, (Annexure A-64 and A-65).

3. 33. Further, during the course of dealings, Defendant No. 1 Company provided a copy of its Annual Report dated 14.08.2015 for the financial year 2014-15, wherein the Applicant Bank's name appears in the list of bankers, and wherein its Balance Sheet as on 31.03.2015 reflects long-term borrowings of Rs. 3069,53,19,880/- with fixed assets comprising Tangible Assets of Rs. 2292,73,88,888/- and Capital Work-in-Progress of Rs. 52,62,55,607/-, (Annexure A-67).

4. 34. That the Applicant Bank maintains its Books of Accounts in the regular and usual course of its banking business, and after duly giving credit for all payments made by Defendant No. 1 Company, a sum of Rs. 150,08,55,560.36 (Rupees One Hundred Fifty Crores Eight Lakhs Fifty-Five Thousand Five Hundred Sixty and Thirty-Six Paisa only) remains outstanding and payable jointly and severally by Defendants No. 1 to 5 as on 07.02.2017, together with further interest from 08.02.2017 at the contracted rate of 4% over the Base Rate of the Applicant Bank (the present Base Rate being 9.65% per annum, subject to change from time to time) along with penal interest at the rate of 2% per annum with monthly rests until the date of actual payment thereof, the details whereof are as under.

<thead> <tr>

</tr> </thead> <tbody> <tr>

<td>Term Loan – I</td> <td>Rs. 14,35,52,931.73</td> </tr> <tr>

<td>Term Loan – II</td> <td>Rs. 106,96,01,837.37</td> </tr> <tr> <td>3.</td> <td>605965410000014</td> <td>FITL</td> <td>Rs. 19,69,95,060.76</td> </tr> <tr>

<td>Priority Term Loan</td> <td>Rs. 9,07,05,730.50</td> </tr> <tr> <td></td> <td>Total</td> <td></td> <td>Rs. 150,08,55,560.36</td> </tr> </tbody> </table>

35. That the Applicant Bank further stated that interest and compound interest have been applied to the said loan accounts at such rates and capitalized at such periodic rests as are permissible under, and not in contravention of, the directives of the Reserve Bank of India, and that penal interest charged to the accounts has not been compounded or capitalized after the accounts became NPA; the rate of interest charged being linked to the Base Rate (BR) of the Applicant Bank, the movement whereof during the period of availment of the credit facilities is reflected in (Annexure A-68). Since the entries in the loan accounts of Defendant No. 1 Company are numerous and voluminous, the detailed statements of the said four accounts from inception, together with statements of interest accrued/not charged up to 07.02.2017, duly certified under the Bankers' Books Evidence Act, 1891, (Annexure A-69).

36. The Applicant further stated that it is ready and willing to provide inspection of all documents referred to in the present O.A. which are in its custody, as and when requested by the Defendants through this Tribunal, and as regards documents in the custody of Defendant No. 6, the Security Trustee, the Applicant prayed that suitable directions may be issued to the said Defendant for inspection, if so requested by the Defendants. The Applicant also reserves its right to amend, vary or modify the averments herein, to place on record additional documents, and to make further submissions as circumstances may so require; and for the purpose of court fees, the Applicant values the claim of the present suit accordingly.

37. To substantiate its case, the Applicant Bank has filed the affidavit of Mr. Pawan Kumar, S/o Late Shri Sita Ram, presently working as Chief Manager with the Applicant Bank, namely Bank of India, incorporated under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, and being a Scheduled Nationalized Bank within the meaning of the Banking Regulation Act, 1949, having its Head Office at "Star House", C-5, G Block, Bandra Kurla Complex, Bandra (East), Mumbai – 400051, and amongst other places, having its Branch Office at Large Corporate Branch, Chanderlok Building, 36, Janpath, New Delhi – 110001, do hereby solemnly affirm and state on oath that I have been duly authorised vide Power of Attorney dated 20.04.2017 to file, present, depose, lead evidence and sign the present affidavit on behalf of the Applicant Bank.

- i. Power of Attorney dated 20.04.2017 as Exhibit AW-1/A (OSR)

- ii. Sanction Letter No. NDCBB/CAD/SCM/08-09/2214 dated 06.01.2009 as Exhibit AW-1/B (OSR)

- iii. Board Resolution of Defendant No. 1 dated 16.01.2009 as Exhibit AW-1/C (OSR)

- iv. Resolution of Shareholders enhancing borrowing powers dated 30.07.2007 as Exhibit AW-1/D (OSR)

- v. Term Loan Agreement dated 12.01.2009 as Exhibit AW-1/E (OSR)

- vi. Agreement of Hypothecation dated 12.01.2009 as Exhibit AW-1/F (OSR)

- vii. Confirmation/Undertaking dated 12.01.2009 as Exhibit AW-1/G (OSR)

- viii. Letter of Declaration dated 12.01.2009 as Exhibit AW-1/H (OSR)

- ix. Deed of Guarantee executed by Defendants 2 and 3 dated 12.01.2009 as Exhibit AW-1/I (OSR)

- x. Disbursement Requests with enclosures dated 15.01.2009, 09.02.2009, 10.02.2009, 02.03.2009 and 20.03.2009 as Exhibits AW-1/J to AW-1/N (OSR)

- xi. Inter-se lender communications exchanged in 2010 with various banks/financial institutions as Exhibits AW-1/O to AW-1/V (OSR)

- xii. Request for further facilities dated 22.12.2011 as Exhibit AW-1/W (OSR)

- xiii. Sanction Letter No. NDLCB/2012-13/SG/499 dated 14.06.2012 as Exhibit AW-1/X (OSR)

- xiv. Board Resolution of Defendant No. 1 dated 15.06.2012 as Exhibit AW-1/Y (OSR)

- xv. AGM Resolution dated 30.09.2010 as Exhibit AW-1/Z (OSR)

- xvi. Credit Facility Agreement dated 19.06.2012 as Exhibit AW-1/AA (OSR)

- xvii. Supplemental Deed of Hypothecation dated 19.06.2012 as Exhibit AW-1/BB (OSR)

- xviii. Letters of Undertaking dated 19.06.2012 as Exhibits AW-1/CC to AW-1/EE (OSR)

- xix. Joint and Several Guarantee executed by Defendants 2 and 3 dated 19.06.2012 as Exhibit AW-1/GG (OSR)

- xx. Acknowledgment of Balance dated 13.08.2013 as Exhibit AW-1/HH (OSR)

- xxi. Flash Report submitted to CDR Cell dated 27.06.2013 as Exhibit AW-1/JJ (OSR)

- xxii. Board Resolution for restructuring dated 30.12.2013 as Exhibit AW-1/KK (OSR)

- xxiii. Master Restructuring Agreement dated 30.12.2013 as Exhibit AW-1/LI (OSR)

- xxiv. Supplemental Deed of Hypothecation dated 30.12.2013 as Exhibit AW-1/MM (OSR)

- xxv. Deeds of Undertaking and Guarantee executed by Defendants 2 and 3 dated 30.12.2013 as Exhibit AW-1/NN (OSR)

- xxvi. CDR EG Letter of Approval dated 28.02.2014 marked as Exhibit AW-1/OO (OSR)

- xxvii. Master Restructuring Agreement dated 18.03.2014 as Exhibit AW-1/PP (OSR)

- xxviii. Guarantees dated 18.03.2014 as Exhibits AW-1/QQ & AW-1/RR (OSR)

- xxix. Security Trustee Agreement dated 20.03.2014 as Exhibit AW-1/SS (OSR)

- xxx. Deed of Hypothecation dated 28.03.2014 as Exhibit AW-1/TT (OSR)

- xxxi. Trust and Retention Account Agreement dated 28.03.2014 as Exhibit AW-1/UU (OSR)

- xxxii. Power of Attorney dated 28.03.2014 as Exhibit AW-1/VV (OSR)

- xxxiii. Corporate Guarantees executed by Defendants 4 and 5 dated 28.03.2014 as Exhibits AW-1/WW & AW-1/XX (OSR)

- xxxiv. Confirmation Letter issued by IL&FS Trust Company Ltd dated 08.05.2014 as Exhibit AW-1/YY (OSR).

- xxxv. Certificate of Registration of charge dated 27.05.2014 as Exhibit AW-1/ZZ (OSR)

- xxxvi. Request letter dated 21.01.2015 as Exhibit AW-1/AAA (OSR)

- xxxvii. Approval letter dated 04.03.2015 as Exhibit AW-1/BBB (OSR)

- xxxviii. Letter dated 28.03.2015 with Board Resolution dated 28.03.2015 as Exhibit AW-1/CCC (OSR)

- xxxix. Letter dated 31.03.2015 as Exhibit AW-1/DDD (OSR)

- xl. Request letter dated 06.06.2015 as Exhibit AW-1/EEE (OSR)

- xli. Letter dated 21.10.2015 as Exhibit AW-1/FFF (OSR)

- xlii. Letter dated 03.11.2015 as Exhibit AW-1/GGG (OSR)

- xliii. Letter dated 08.11.2016 as Exhibit AW-1/HHH (OSR)

- xliv. Statutory Demand Notice dated 30.04.2016 as Exhibit AW-1/III (OSR)

- xlv. Profile of Defendant No. 2 dated 15.06.2012 as Exhibit AW-1/JJJ (OSR)

- xlvi. Profile of Defendant No. 3 dated 15.06.2012 as Exhibit AW-1/KKK (OSR)

- xlvii. Fresh particulars of Defendant No. 2 dated 21.08.2014 as Exhibit AW-1/LLL (OSR)

- xlviii. Fresh particulars of Defendant No. 3 dated 21.08.2014 as Exhibit AW-1/MMM (OSR)

- xlix. Legal Notice of Demand dated 23.06.2016 as Exhibit AW-1/NNN (OSR)

- i. Annual Report dated 14.08.2015 as Exhibit AW-1/OOO (OSR)

- ii. Chart of movement of Base Rate (BR) as Exhibit AW-1/PPP (OSR)

- lii. Statements of loan accounts till 07.02.2017 as Exhibit AW-1/QQQ (OSR)

38. The witness of Applicant Bank has fully corroborated the averments made in the TA. Even otherwise the whole case of the Applicant Bank is based on the documents and the witness has duly proved all these documents. The evidence filed by the Applicant Bank gone unrebuted and there is no question of disbelieving the evidence lead by the Applicant Bank and Applicant 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 TA as the Applicant Bank has proved its claim beyond any doubt.

14. In this TA, Applicant Bank has prayed to issue recovery certificate against Defendants No. 1 to 5. Defendant No. 1, M/S SVOGL Oil Gas and Energy Ltd., is the principal borrower to whom financial facilities were sanctioned and is presently under liquidation before Ld. NCLT through the liquidator, Ms. S. Meenakshi, Ministry of Corporate Affairs, attached to the High Court of Delhi. The Defendants No. 1 to 30 comprise Defendant No. 1 as the principal borrower; Defendants No. 2 and 3 as personal guarantors; Defendants No. 4 and 5 as corporate guarantors; Defendant No. 6 as the Security Trustee; Defendant No. 7 as the Monitoring Institution under the CDR framework; Defendant No. 8 as the Account Bank; Defendant No. 9 as the CDR Cell; and Defendants No. 10 to 30 as Banks and Financial Institutions holding pari-passu charge on the securities of Defendant No. 1. Defendants no. 1 to 3 are before Ld. NCLT. Defendants no. 4 to 6 are ex-parte vide order dated 07.01.2025.

1. 15. Consequently, TA No. 207/2022 stands allowed in favour of Applicant Bank and against Defendants No. 4 to 6, who are liable to pay the dues of the Applicant Bank along with costs and pendentelite & future interest @ 14% per annum, as claimed in the TA, from the date of filing of present TA, till the date of payment in full.

ORDER

TA No. 207/2022 stands allowed and the Defendants No. 4 to 6 are directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 150,08,55,560.36 (Rupees One Hundred Fifty Crore Eight Lakh Fifty-Five Thousand Five Hundred Sixty and Thirty-Six Paisa Only) less the amount received from the sale/ release of mortgaged properties along with cost and pendentelite and future interest, as claimed in TA i.e. @ 14% per annum rests from the date of filing of this TA 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. 4 to 6.

So far as, Defendants No. 1 to 3, Defendant No. 1 is presently under official liquidation and Defendants No. 2 and 3 are involved in ongoing proceedings before the Ld.

NCLT; accordingly, no orders can be passed against Defendants No. 1 to 3 at this stage.

However, it is directed that Applicant Bank shall be at liberty to revive the OA/TA qua Defendants No. 1 to 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-I, Debts Recovery Tribunal-III, Delhi.

- (ii). Parties are directed to appear before the Recovery Officer-I, DRT-III, Delhi on 12.11.2025.

- (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: 18.09.2025

K. Singh

18.09.2025 (SHIV KUMAR - I) PRESIDING OFFICER, DRT-III, DELHI