UNION BANK OF INDIA (ANDHRA BANK) vs MUKESH KUMAR GUPTA AND ORS on 24 September 2025

**FINAL ORDER**

1. 1. This Original Application, filed on 12.01.2021 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, has been instituted by the Applicant Bank seeking recovery of Rs. 1,42,75,79,088.46 (Rupees One Hundred Forty-Two Crore Seventy-Five Lakh Seventy-Nine Thousand Eighty-Eight and Paise Forty-Six only), together with future interest at 16% per annum (14% contractual + 2% penal) on the Cash Credit Account, 14.05% / 14.10% per annum plus 2% penal on the devolved LCs, and 14.05% / 14.10% per annum plus 2% penal on the Invoked Buyers Credit Account, from 01.10.2020 until actual payment and/or realization of the entire debt, along with costs of the present application. The Applicant Bank is a nationalized bank with its Head Office at 239, Vidhan Bhavan Marg, Nariman Point, Mumbai-400021, and branches across India including SARM Branch, M-93, Connaught Circus, New Delhi-110001. The present application has been signed and verified by Mr. Deepak Singh, Chief Manager, duly authorized under Power of Attorney dated 13.11.2018 (Annexure A/1) to file the application, sign Vakalatnamas, affidavits, and take all necessary steps for conduct of litigation. It is further stated that OA No. 430 of 2020 titled *Andhra Bank vs. Mukesh Kumar Gupta & Others*, filed on 06.01.2020 by the erstwhile Andhra Bank, is already pending adjudication before this Tribunal; that Andhra Bank has since been amalgamated with Union Bank of India, thereby merging their liabilities into one against the Defendants; and that while an amendment application to include the claim of Union Bank of India was initially contemplated, a conscious decision was taken to file a separate OA with a request that both liabilities be clubbed by this Tribunal, as the entire liability is now recoverable by Union Bank of India.

1. 2. It is pertinent here that this OA bearing no. 450/2021 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 03.11.2022 and was numbered at TA-235/2022.

2. 3. The brief facts of the case are that the Defendant No. 6, *M/s Shilpi Cable Technologies Ltd.*, is a limited company incorporated under the Companies Act, 1956 and engaged in the business of manufacturing RF cables, being the principal borrower which availed credit facilities from the Applicant Bank and other consortium members; Defendant No. 7, *Shilpi Cables (P) Ltd.*, extended its corporate guarantee to secure the liabilities of Defendant No. 6, however both Defendants No. 6 and 7 are presently under liquidation proceedings before the Ld. NCLT under the Insolvency and Bankruptcy Code, where a Liquidator has already been appointed, and therefore no relief has been sought against them in the present TA. Defendants No. 1, 2 and 3 are the Directors of Defendant No. 6, who also acted as mortgagors and personal guarantors, while Defendants No. 4 and 5 are corporate guarantors as well as pledgors/mortgagors. Defendants No. 8 to 22 are the member banks of the consortium which had advanced loans to Defendant No. 6 company and are impleaded only as proforma defendants, against whom no relief is claimed, except that any excess realization from Defendants No. 1 to 4 and 7 may be allowed to be appropriated towards the dues of the Applicant Bank. It is further submitted that Defendant No. 6, through its Directors i.e. Defendants No. 1, 2 and 3, had approached a consortium of banks comprising IDBI Bank Ltd., State Bank of India, Punjab National Bank, Oriental Bank of Commerce, UCO Bank, Bank of Baroda, Union Bank of India (Applicant herein), and erstwhile Andhra Bank (now merged with Union Bank of India), collectively known as the "IDBI Consortium," for sanction of credit facilities in the year 2012, pursuant to which the consortium sanctioned a total limit of Rs. 350 crores (fund-based loan of Rs. 95 crores and non-fund-based facilities of Rs. 255 crores). Out of this, the share of the Applicant Bank was Rs. 41 crores, consisting of a fund-based Cash Credit limit of Rs. 9 crores and non-fund-based facilities of Rs. 32 crores, sanctioned for the working capital requirements of Defendant No. 6.

1. 4. So far as Defendant No. 1 is concerned, he has expired and his legal representatives have remained ex parte since 21.10.2024. Defendants No. 4 and 5 were also proceeded ex parte vide order dated 14.05.2025, as despite due service of summons they failed to appear or file any response before this Tribunal. Consequently, proceedings against them have continued ex parte. Defendants No. 2, 3, 6, and 7 are presently before the Ld. NCLT, while Defendants No. 8 to 22 have been impleaded only as proforma defendants.

2. 5. It is further stated that the Defendant No. 6, through its Directors, namely Defendants No. 1, 2 and 3, had approached the consortium of banks comprising IDBI Bank Ltd. (Lead Bank), State Bank of India, Punjab National Bank, Oriental Bank of Commerce, UCO Bank, Bank of Baroda, Union Bank of India (Applicant herein), and erstwhile Andhra Bank (now merged with Union Bank of India) (hereinafter referred to as the "IDBI Consortium") in the year 2012 for sanction of credit facilities. The said consortium, after due consideration, sanctioned in favour of Defendant No. 6 fund-based limits of Rs.95.00 Crores and non-fund-based limits of Rs.255.00 Crores, aggregating to Rs.350.00 Crores, out of which the share of the Applicant Bank was Rs.41.00 Crores (comprising Fund-Based Loan of Rs.9.00 Crores and Non-Fund-Based Loan of Rs.32.00 Crores) for meeting the working capital requirements of the Company. The said facilities were secured by collateral securities, inter alia, industrial property situated at E-138, RIICO Industrial Area, Phase-I, Bhiwandi, District Alwar, Rajasthan owned by M/s Shilpi Cables Pvt. Ltd.; property at D-II-12, New Friends Colony, New Delhi owned by Mr. Vishal Goel; property at MCD No. 269, Khasra No. 358, Aali Industrial Complex, Mathura Road, Delhi admeasuring 300 sq. yards owned by Mr. Mukesh Gupta; property at MCD No. 268, Khasra No. 358, Aali Industrial Complex, Mathura Road, Delhi admeasuring 324 sq. yards owned by Mr. Vishal Goel; property at MCD No. 21, part of Khasra No. 358, Aali Industrial Complex, Mathura Road, Delhi admeasuring 167 sq. yards owned by Mr. Mukesh Gupta; first pari-passu charge on the fixed assets of the Company (other than vehicles and machinery under exclusive charge against loans); and equitable mortgage of leasehold land admeasuring 37,652 sq. mtrs. situated at Plot No. SP-1037, Chopanki, District Alwar, Rajasthan owned by the Company.

6. Further, the due repayment of the said credit facilities was guaranteed by personal guarantors namely, Mr. Mukesh Kumar Gupta, Mr. Manish Goel and Mr. Vishal Goel, as well as by corporate guarantors, namely M/s Shilpi Communications Pvt.

Ltd., M/s Shilpi Cables Pvt. Ltd. and M/s MVM Impex Pvt. Ltd. Accordingly, on 21.09.2012, the request of Defendant No. 6 for working capital limits aggregating Rs.350.00 Crores was formally accepted by the consortium, pursuant whereto the joint documents vide Reference No. IDBI/ND/CBG-1/719/12-13 dated 21.09.2012 were executed, securing the limits sanctioned by all member banks including the Applicant herein, the originals of which are presently in the custody of the Lead Bank i.e. IDBI Bank Ltd. and copies thereof have been filed, Annexure-A/3 (colly) at Pages 16-336 of OA No. 430/2020 filed by erstwhile Andhra Bank (now Union Bank of India), which are also relied upon in the present proceedings and shall be exhibited at the time of leading evidence.

1. 7. It is further stated that the requisite permission to mortgage was duly granted by the Income Tax Department vide Communication No. ACIT/CC1/2012-13/681 dated 13.09.2012, Annexure-A/40 at Pages 337-338 of OA No. 430/2020 and is also being relied upon in the present OA, which shall similarly be exhibited at the appropriate stage of evidence.

2. 8. That on 31.01.2014, the request of Defendant No. 6 for enhancement of Working Capital Limits from Rs.350.00 Crores to Rs.475.00 Crores was duly considered and accepted by the Consortium of Banks, whereby the Fund Based Limits were enhanced to Rs.125.00 Crores and the Non-Fund Based Limits to Rs.350.00 Crores, aggregating to Rs.475.00 Crores.

3. 9. The revised share of the consortium banks was as under:

- iii. Erstwhile Andhra Bank (now Union Bank of India) – Fund Based Rs.15.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.45.00 Crores;

- iv. Union Bank of India (Applicant herein) – Fund Based Rs.9.00 Crores and Non-Fund Based Rs.32.00 Crores, totaling Rs.41.00 Crores; Bank of Baroda – Fund Based Rs.6.50 Crores and Non-Fund Based Rs.34.00 Crores, totaling Rs.40.50 Crores;

- v. Oriental Bank of Commerce – Fund Based Rs.9.00 Crores and Non-Fund Based Rs.24.00 Crores, totaling Rs.33.00 Crores;

- vi. Canara Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.20.00 Crores, totaling Rs.30.00 Crores;

- vii. Axis Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.15.00 Crores, totaling Rs.25.00 Crores; and

- viii. Indian Overseas Bank – Fund Based Rs.5.50 Crores and Non-Fund Based Rs.15.00 Crores, totaling Rs.20.50 Crores.

Thus, the aggregate Fund Based Limit stood at Rs.125.00 Crores and the Non-Fund Based Limit at Rs.350.00 Crores, aggregating Rs.475.00 Crores, while the share of the Applicant/Union Bank of India remained the same at Rs.41.00 Crores.

- 10. That the joint documents for the aforesaid enhanced limits were executed collectively by Defendant No. 6 with all the consortium banks, and the said documents also secure the limits sanctioned by the Applicant Bank. The originals of these documents are presently in the custody of the Lead Bank i.e. IDBI Bank Ltd., while certified copies thereof are annexed, Annexure-A/6 (colly) at pages 339–756 of OA No. 430/2020 filed by erstwhile Andhra Bank (now Union Bank of India), which are also relied upon in the present OA, and the same shall be exhibited at the stage of leading evidence by obtaining the originals from the Lead Bank.

11. For the purpose of service to the Defendants, it is further stated that the annexures filed in OA No. 430/2020 titled Andhra Bank vs. Mukesh Kumar Gupta & Others may be deemed as served herein, since the relied upon documents are identical. Thereafter, in the proposal for renewal of Working Capital Limits, Defendant No. 6 requested enhancement in Cash Credit (Hypotheccation) Limits, Inland/Import LC Limits and LOC for Buyer's Credit, and accordingly, the Consortium accepted the request for enhancement of the Working Capital Limits from Rs.475.00 Crores to Rs.674.00 Crores, whereby the Fund Based Limits were enhanced to Rs.173.00 Crores and the Non-Fund Based Limits to Rs.501.00 Crores, aggregating to Rs.674.00 Crores. The revised share of the consortium banks was as follows:

3. iii. Oriental Bank of Commerce – Fund Based Rs.9.00 Crores and Non-Fund Based Rs.24.00 Crores, totaling Rs.33.00 Crores;

4. iv. Bank of Baroda – Fund Based Rs.6.50 Crores; Union Bank of India (Applicant herein) – Fund Based Rs.12.00 Crores and Non-Fund Based Rs.48.00 Crores, totaling Rs.60.00 Crores; 

- v. Erstwhile Andhra Bank (now Union Bank of India) – Fund Based Rs.20.00 Crores, Non-Fund Based Rs.45.00 Crores, totaling Rs.65.00 Crores;

- vi. Canara Bank – Fund Based Rs.14.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.44.00 Crores;

- vii. Axis Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.25.00 Crores;

- viii. Indian Overseas Bank – Fund Based Rs.5.50 Crores and Non-Fund Based Rs.15.00 Crores, totaling Rs.20.50 Crores;

- ix. Bank of India – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.40.00 Crores, totaling Rs.50.00 Crores;

- x. Vijaya Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.40.00 Crores.

Accordingly, with the sanction of the aforesaid enhanced limits, the share of the Applicant/Union Bank of India was increased from Rs.41.00 Crores to Rs.60.00 Crores, comprising Cash Credit (Hypothecation) enhanced from Rs.9.00 Crores to Rs.12.00 Crores and Non-Fund Based Limits enhanced from Rs.32.00 Crores to Rs.48.00 Crores. Total facility to Rs. 60.00 Crores.

- 12. That the joint documents for the aforesaid enhanced limits were executed collectively by Defendant No. 6 and the Consortium of Banks, and these documents also secure the limits sanctioned by the Applicant Bank. The originals of these documents are presently in the custody of the Lead Bank i.e., IDBI Bank Ltd., and certified copies thereof are annexed collectively as Annexure-A/8 (colly) at pages 809–1171 of OA No. 430/2020 filed by erstwhile Andhra Bank (now Union Bank of India), which are also relied upon in the present OA, and the same shall be exhibited at the stage of leading evidence by obtaining the originals from the Lead Bank.

13. Thereafter, the Consortium further accepted the request of Defendant No. 6 for enhancement of Working Capital Limits to Fund Based Rs.175.00 Crores and Non-Fund Based Rs.518.50 Crores, aggregating Rs.693.50 Crores, and the joint documents for securing the said limits were executed. The present share of the consortium banks was as follows:

3. iii. Oriental Bank of Commerce – Fund Based Rs.9.00 Crores and Non-Fund Based Rs.24.00 Crores, totaling Rs.33.00 Crores;

4. iv. Bank of Baroda – Fund Based Rs.6.50 Crores and Non-Fund Based Rs.34.00 Crores, totaling Rs.40.50 Crores;

5. v. Union Bank of India (Applicant herein) – Fund Based Rs.12.00 Crores and Non-Fund Based Rs.48.00 Crores, totaling Rs.60.00 Crores;

6. vi. Erstwhile Andhra Bank (now Union Bank of India) – Fund Based Rs.20.00 Crores and Non-Fund Based Rs.45.00 Crores, totaling Rs.65.00 Crores;

7. vii. Canara Bank – Fund Based Rs.14.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.44.00 Crores;

8. viii. Axis Bank – Fund Based Rs.7.50 Crores and Non-Fund Based Rs.17.50 Crores, totaling Rs.25.00 Crores;

9. ix. Indian Overseas Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.40.50 Crores;

10. x. Bank of India – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.40.00 Crores, totaling Rs.50.00 Crores; 

xi. Vijaya Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.40.00 Crores, thereby aggregating Fund Based Rs.175.00 Crores and Non-Fund Based Rs.518.50 Crores, totaling Rs.693.50 Crores.

14. That the joint documents for the aforesaid enhanced limits were executed collectively by Defendant No. 6 and the Consortium of Banks, and these documents also secure the limits sanctioned by the Applicant Bank. The originals of these documents are presently in the custody of the Lead Bank i.e., IDBI Bank Ltd., and certified copies thereof are annexed collectively as Annexure-A/9 (colly) at pages 1172–1540 of OA No. 430/2020 filed by erstwhile Andhra Bank (now Union Bank of India), which are also relied upon in the present OA, and the same shall be exhibited at the stage of leading evidence by obtaining the originals from the Lead Bank.

15. Thereafter, the Consortium further accepted the request of Defendant No. 6 for enhancement of Working Capital Limits from Rs.693.50 Crores to Rs.867.50 Crores, whereby the Fund Based Limits were enhanced to Rs.224.00 Crores and the Non-Fund Based Limits to Rs.643.50 Crores, aggregating Rs.867.50 Crores. The present share of the consortium banks was as follows:

3. iii. Erstwhile Andhra Bank (now Union Bank of India) – Fund Based Rs.20.00 Crores, Non-Fund Based Rs.45.00 Crores, totaling Rs.65.00 Crores;

- iv. Union Bank of India (Applicant herein) – Fund Based Rs.12.00 Crores and Non-Fund Based Rs.48.00 Crores, totaling Rs.60.00 Crores;

- v. Bank of Baroda – Fund Based Rs.6.50 Crores, Non-Fund Based Rs.34.00 Crores, totaling Rs.40.50 Crores;

- vi. Oriental Bank of Commerce – Fund Based Rs.9.00 Crores and Non-Fund Based Rs.24.00 Crores, totaling Rs.33.00 Crores;

- vii. Canara Bank – Fund Based Rs.14.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.44.00 Crores;

- viii. Axis Bank – Fund Based Rs.7.50 Crores and Non-Fund Based Rs.17.50 Crores, totaling Rs.25.00 Crores;

- ix. Indian Overseas Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.40.00 Crores;

- x. Bank of India – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.40.00 Crores, totaling Rs.50.00 Crores;

- xi. Vijaya Bank – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.40.00 Crores;

- xii. State Bank of Hyderabad (now SBI) – Fund Based Rs.20.00 Crores and Non-Fund Based Rs.30.00 Crores, totaling Rs.50.00 Crores;

- xiii. State Bank of Bikaner & Jaipur (now SBI) – Fund Based Rs.10.00 Crores and Non-Fund Based Rs.40.00 Crores, totaling Rs.50.00 Crores;

- xiv. Bank of Maharashtra – Fund Based Rs.15.00 Crores and Non-Fund Based Rs.35.00 Crores, totaling Rs.50.00 Crores.

Although the limits were enhanced to Rs.867.50 Crores, they were not released, and the share of the Applicant Bank remained unchanged at Rs.60.00 Crores, with the borrower company being advised to comply with all sanction terms.

1. 16. That the joint documents for the aforesaid enhanced limits were executed collectively by Defendant No. 6 and the Consortium of Banks, and these documents also secure the limits sanctioned by the Applicant Bank. The originals of these documents are presently in the custody of the Lead Bank, i.e., IDBI Bank Ltd., and certified copies thereof are annexed collectively as Annexure-A/12 (colly) at pages 1541–1956 of OA No. 430/2020 filed by erstwhile Andhra Bank (now Union Bank of India), which are also relied upon in the present OA, and the same shall be exhibited at the stage of leading evidence by obtaining the originals from the Lead Bank.

2. 17. Thereafter, vide Joint Documents dated 07.03.2017, the Working Capital Limits were renewed and enhanced to Rs.1,225.00 Crores, with the revised share of the Consortium Banks as follows:

1. i. IDBI Bank Ltd. (Lead Bank) – Fund Based Rs.65.00 Crores, Non-Fund Based Rs.175.00 Crores, totaling Rs.240.00 Crores;

2. ii. Punjab National Bank – Fund Based Rs.20.00 Crores, Non-Fund Based Rs.100.00 Crores, totaling Rs.120.00 Crores;

3. iii. Erstwhile Andhra Bank (now Union Bank of India) – Fund Based Rs.20.00 Crores, Non-Fund Based Rs.45.00 Crores, totaling Rs.65.00 Crores;

4. iv. Union Bank of India (Applicant herein) – Fund Based Rs.12.00 Crores, Non-Fund Based Rs.48.00 Crores, totaling Rs.60.00 Crores;

5. v. Bank of Baroda – Fund Based Rs.6.50 Crores, Non-Fund Based Rs.34.00 Crores, totaling Rs.40.50 Crores;

6. vi. Oriental Bank of Commerce – Fund Based Rs.9.00 Crores, Non-Fund Based Rs.24.00 Crores, totaling Rs.33.00 Crores;

- vii. Canara Bank – Fund Based Rs.18.00 Crores, Non-Fund Based Rs.43.50 Crores, totaling Rs.61.50 Crores;

- viii. Axis Bank – Fund Based Rs.7.50 Crores, Non-Fund Based Rs.17.50 Crores, totaling Rs.25.00 Crores;

- ix. Bank of India – Fund Based Rs.20.00 Crores, Non-Fund Based Rs.60.00 Crores, totaling Rs.80.00 Crores;

- x. Vijaya Bank – Fund Based Rs.13.00 Crores, Non-Fund Based Rs.44.00 Crores, totaling Rs.57.00 Crores;

- xi. State Bank of Hyderabad (now SBI) – Fund Based Rs.20.00 Crores, Non-Fund Based Rs.30.00 Crores, totaling Rs.50.00 Crores;

- xii. State Bank of Bikaner & Jaipur (now SBI) – Fund Based Rs.10.00 Crores, Non-Fund Based Rs.40.00 Crores, totaling Rs.50.00 Crores;

- xiii. Bank of Maharashtra – Fund Based Rs.15.00 Crores, Non-Fund Based Rs.35.00 Crores, totaling Rs.50.00 Crores;

- xiv. Indian Bank – Fund Based Rs.5.00 Crores, Non-Fund Based Rs.33.00 Crores, totaling Rs.38.00 Crores; and

- xv. Syndicate Bank – Fund Based Rs.5.00 Crores, Non-Fund Based Rs.20.00 Crores, totaling Rs.25.00 Crores, with untied gap facilities of Fund Based Rs.799.00 Crores and Non-Fund Based Rs.150.00 Crores, aggregating to total Working Capital Limits of Rs.1,225.00 Crores. The share of the Applicant Bank has remained unchanged at Rs.60.00 Crores in the present Consortium, Annexure-A/2.

18. That the joint documents for the enhanced limits dated 07.03.2017 are enclosed collectively, and these documents also secure the limits sanctioned by the Applicant Bank. The originals of these documents are presently in the custody of the Lead Bank, i.e., IDBI Bank Ltd., and certified copies thereof are annexed collectively as Annexure-A/13 (colly) at pages 1957–


2408 of OA No. 430/2020 filed by erstwhile Andhra Bank (now Union Bank of India), which are also relied upon in the present OA, and the same shall be exhibited at the stage of leading evidence by obtaining the originals from the Lead Bank.

1. 19. Despite the sanction, the Defendants failed to adhere to their obligations to repay the loan amount, neglected to repay the devolved Letters of Credit (LCs), and mis-utilized the invoked Buyers Credit. As a result of these defaults, the account was declared a Non-Performing Asset (NPA) on 31.07.2017 in accordance with the norms of the Reserve Bank of India. The Applicant Bank had issued repeated demands for repayment of the loan amounts to the borrowers and guarantors, including notices, which remained unheeded. A copy of the Notice dated 12.01.2018 issued by the Applicant Bank to the guarantors demanding repayment of the loan amount is, Annexure-A/3, and a copy of the Notice dated 08.01.2019 issued under Section 13(2) of the SARFAESI Act is, Annexure-A/4.

2. 20. Further, the liabilities of the Defendants, as per the Statement of Account duly attested under the Bankers' Book Evidence Act, reflect separate accounts for the Open Cash Credit account, the devolved LC account, and the invoked Buyers Credit account, with the total of all these accounts constituting the total outstanding liabilities of the borrowers. Further, the rate of interest chargeable on the various accounts is as specified, and a copy of the Statement of Accounts, certified under the Bankers' Books Evidence Act, Annexure A/5.

<table border="1"> <thead> <tr> <th>Account Type</th> <th>Account Number</th> <th>Running Ledger (Rs.)</th> <th>After NPA Interest up to 30.09.2020 (Rs.)</th> <th>Total (Rs.)</th> </tr> </thead> <tbody> <tr> <td>OCC</td> <td>497805010033036</td> <td>11,82,84,331.23</td> <td>17,27,25,315.23</td> <td>29,10,09,646.46</td> </tr> <tr> <td>Devolved LC</td> <td>497807030000153</td> <td>57,80,895.00</td> <td>93,94,380.00</td> <td>1,51,75,275.00</td> </tr> </tbody> </table>

<table border="1"> <tr> <td></td> <td>497807030000154</td> <td>1,59,94,644.00</td> <td>2,47,39,730.00</td> <td>4,07,34,374.00</td> </tr> <tr> <td></td> <td>497807030000155</td> <td>2,58,65,535.00</td> <td>3,96,09,552.00</td> <td>6,54,75,087.00</td> </tr> <tr> <td></td> <td>497807030000156</td> <td>7,99,85,080.00</td> <td>12,24,86,454.00</td> <td>20,24,71,534.00</td> </tr> <tr> <td></td> <td>497807030000157</td> <td>97,13,664.00</td> <td>1,42,75,840.00</td> <td>2,39,89,504.00</td> </tr> <tr> <td></td> <td>497807030000158</td> <td>3,34,95,512.00</td> <td>5,12,93,860.00</td> <td>8,47,89,372.00</td> </tr> <tr> <td></td> <td>497807030000159</td> <td>2,91,65,401.00</td> <td>4,51,12,835.00</td> <td>7,42,78,236.00</td> </tr> <tr> <td></td> <td>497807030000160</td> <td>2,93,25,386.00</td> <td>4,35,50,915.00</td> <td>7,28,76,301.00</td> </tr> <tr> <td></td> <td>497807030000161</td> <td>4,29,95,525.00</td> <td>6,37,58,210.00</td> <td>10,67,53,735.00</td> </tr> <tr> <td></td> <td>497807030000162</td> <td>1,85,53,855.00</td> <td>2,72,68,179.00</td> <td>4,58,22,034.00</td> </tr> <tr> <td></td> <td>497807030000163</td> <td>1,46,27,451.00</td> <td>2,15,89,602.00</td> <td>3,62,17,053.00</td> </tr> <tr> <td></td> <td>497807030000164</td> <td>98,65,869.00</td> <td>1,45,53,436.00</td> <td>2,44,19,305.00</td> </tr> <tr> <td></td> <td>497807030000165</td> <td>1,91,94,464.00</td> <td>2,82,09,900.00</td> <td>4,74,04,364.00</td> </tr> <tr> <td></td> <td>497807030000166</td> <td>59,96,063.00</td> <td>88,41,761.00</td> <td>1,48,37,824.00</td> </tr> <tr> <td></td> <td>497807030000167</td> <td>3,06,69,585.00</td> <td>4,51,34,891.00</td> <td>7,58,04,476.00</td> </tr> <tr> <td></td> <td>497807030000169</td> <td>99,98,385.00</td> <td>1,46,53,020.00</td> <td>2,46,51,405.00</td> </tr> <tr> <td></td> <td>497807030000170</td> <td>1,99,97,794.00</td> <td>2,94,29,771.00</td> <td>4,94,27,565.00</td> </tr> <tr> <td></td> <td>497807030000171</td> <td>3,43,27,212.00</td> <td>5,03,07,660.00</td> <td>8,46,34,872.00</td> </tr> <tr> <td></td> <td>497807030000172</td> <td>1,90,04,945.00</td> <td>2,78,02,181.00</td> <td>4,68,07,126.00</td> </tr> <tr> <td></td> <td><b>Total</b></td> <td><b>57,28,41,596.23</b></td> <td><b>85,47,37,492.23</b></td> <td><b>1,42,75,79,088.46</b></td> </tr> </table>

21. That the Applicant Bank repeatedly requested and called upon Defendants No. 1 to 4 and 7 to clear the overdue amounts in their loan accounts and adhere to the original repayment schedules. For this purpose, the Applicant Bank held several meetings with the Directors and Executives of Defendant No. 1 and also approached Defendants No. 1, 2, and 3, who had executed personal guarantees, to regularize the accounts. Despite these efforts, all the defendants have deliberately neglected to clear the overdue amounts and comply with the original repayment schedules, demonstrating a clear lack of intention or willingness to fulfill their lawful obligations.

1. 22. In an effort to regularize the account of Defendant No. 6, the Applicant Bank conducted multiple meetings with its Directors and Officials; however, the account remains in the NPA category, resulting in substantial recoverable amounts. Defendants No. 1 to 5 had executed personal and corporate guarantees in favor of the Applicant Bank, which was approached to ensure compliance with their obligations as guarantors. The transactions entered into between the Applicant Bank and the defendants constitute commercial transactions, entitling the Bank to pendentelite and future interest at the contractual rate.

2. 23. As per the loan documents, the defendants had agreed to pay interest, as detailed in the Statement of Account, calculated on a daily balance with monthly rests and subject to change in accordance with RBI/Bank Guidelines; in the event of default, the defendants agreed that the Bank could charge an additional 2% per annum on the overdue amounts from the date of default until full payment or realization.

3. 24. The Applicant Bank stated that the interest and compound interest have been charged at the agreed rate, capitalized periodically in accordance with permissible norms, without compounding penal interest, and strictly in accordance with the loan agreements and RBI directives.

4. 25. The cause of action for instituting the present suit arose when the defendants, after making assurances and representations, failed to fulfill their obligations towards the Applicant Bank, further accruing as they continued to ignore reminders and communications, and continues to subsist as the defendants remain liable and are evading their responsibilities.

5. 26. To substantiate its case, the Applicant Bank has filed the affidavit of Mr. Deepak Singh, Chief Manager and Authorised Officer of Union Bank of India (erstwhile "Andhra Bank"), SAM Branch, M-93, Connaught Circus, New Delhi-110001, do hereby solemnly affirm and declare that he is well conversant with the facts and circumstances of the above-noted case and is competent to swear this Affidavit. He stated that the Applicant Bank is a nationalized bank having its Head Office at 239, Vidhan Bhavan Marg, Fort, Mumbai-400021, with branches across India, including the SAM Branch, M-93, Connaught Circus, New Delhi-110001. The present affidavit has been signed and verified by him in his capacity as Chief Manager of the SAM Branch and, as such, he is competent to file this affidavit, sign Vakalatnamas, swear affidavits, and undertake all acts necessary for the proper conduct of the present litigation.

1. i. Power of Attorney dated 13.11.2018 issued by the Applicant Bank, Ex. AW1/1;

2. ii. Letter dated 06.03.2017 regarding renewal/enhancement of Working Capital Limits, Ex. AW1/2;

3. iii. Notice dated 12.01.2018 issued to the guarantors demanding repayment, Ex. AW1/3;

4. iv. Notice dated 08.01.2019 under Section 13(2) of SARFAESI Act, Ex. AW1/4;

5. v. Statement of Accounts certified under the Bankers' Books Evidence Act, Ex. AW1/5 (colly), showing separate liabilities of Open Cash Credit, Devolved LC, and Invoked Buyers Credit accounts, along with applicable interest;

27. 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.

1. 14. In this TA, the Applicant Bank has prayed for issuance of a recovery certificate against Defendants No. 1 to 5, who stood as guarantors/mortgagors. It is noted that Defendant No. 1 expired on 07.04.2021, and his legal representatives have been impleaded as Defendants No. 1(a to d). The said LRs were proceeded ex parte vide order dated 21.10.2024, while Defendants No. 4 and 5 were also proceeded ex parte by order dated 14.05.2025. Defendant No. 6, being the principal borrower, and Defendant No. 7, being the corporate guarantor, are already under liquidation proceedings before the Ld. NCLT, where a Liquidator has been appointed, and no relief is sought against them in this OA/TA. Defendants No. 2, 3, 6 and 7 are thus before the Ld. NCLT, and Defendants No. 8 to 22 are only proforma parties in the proceedings.

2. 15. Consequently, TA No. 235/2022 stands allowed in favour of Applicant Bank and against Defendants no. 4 & 5, who are liable to pay the dues of the Applicant Bank along with costs and pendentelite & future interest@ 15% per annum, as claimed in the OA/TA, from the date of filing of present OA/TA, till the date of payment in full.

ORDER

TA No. 235/2022 stands allowed and the Defendants No. 4 & 5 are directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 1,42,75,79,088.46 (Rupees One Hundred Forty-Two Crore Seventy-Five Lakh Seventy-Nine Thousand Eighty-Eight and Paise Forty-Six 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. @ 15% 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. 4 & 5.

So far as, Defendant No. 2, 3, 6 & 7 are concerned, since Defendant No. 2, 3, 6 & 7 are before Ld. NCLT, hence, no order qua Defendant No. 2, 3, 6 & 7 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. 2, 3, 6 & 7 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, Debts Recovery Tribunal-III, Delhi.

- (ii). Parties are directed to appear before the Recovery Officer-II, DRT-III, Delhi on 17.11.2025.

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


TA-235/2022

File be closed and consigned to records.

(Pronounced in open court)

Dated: 24.09.2025


24.09.2025

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

K. Singh

This image is a scan of a blank page. The paper has a light beige or cream-colored tint. There are a few very small, faint dark spots scattered across the surface, which appear to be scanning artifacts or minor imperfections in the paper. No text, lines, or other markings are present.