PUNJAB NATIONAL BANK vs Kohinoor Foods Ltd on 28 October 2025

FINAL ORDER

1. 1. This Original Application is filed on 11.05.2022 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, by the Applicant Banks collectively referred to as the "Applicants" for recovery of a sum of Rs. 926,13,87,123.42 (Rupees Nine Hundred Twenty-Six Crores Thirteen Lakhs Eighty-Seven Thousand One Hundred Twenty-Three and Paise Forty-Two Only) along with pendente lite and future interest and costs. **The Applicant No. 1**, Punjab National Bank (also the successor of Oriental Bank of Commerce), is a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head/Corporate Office at Plot No. 04, Sector-10, Dwarka, New Delhi-110075, and among others, a branch at Sastra Division, 2nd Floor, Rajindra Bhawan, Rajindra Place, New Delhi-110008. Mr. Varanasi Vamsee Mohan, Assistant General Manager, Zonal Sastra, Bhikaji Cama Place, New Delhi, is the duly authorized officer and constituted attorney of the Applicant No. 1 vide Power of Attorney dated 04.09.2003, competent to file, sign, and verify the present application. **The Applicant No. 2**, Indian Bank (erstwhile Allahabad Bank), is a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at 31, Rajaji Salai, Chennai-600001, Tamil Nadu, the erstwhile Allahabad Bank having merged and amalgamated with Applicant No. 2 pursuant to the order of the Central Government of India vide Gazette Notification G.S.R. 156(E) dated 04.03.2020. Mr. Vikram Singh, Chief Manager, Stressed Asset Management Branch, Parliament Street, New Delhi, is the duly authorized officer and constituted attorney of Applicant No. 2, empowered to sign and verify the present application. **The Applicant No. 3**, Bank of India, is a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Star House, C-5, "G" Block, Bandra Kurla Complex, Bandra (East), Mumbai-400051, and a branch at New Delhi Large Corporate Branch, 10th Floor, Chanderlok Building, 36, Janpath, New Delhi-110001. Mr. Alok Shankar, Assistant General Manager, is the duly authorized officer and constituted attorney of the Applicant No. 3 vide Power of Attorney dated 01.09.2018, competent to file and verify the present application. **The Applicant No. 4**, IDBI Bank Limited, is a company incorporated under the Companies Act, 1956 and a banking company within the meaning of Section 5(c) of the Banking Regulation Act, 1949, having its Registered Office at IDBI Tower, WTC Complex, Cuffe Parade, Colaba, Mumbai-400005, and among others, a branch at Videocon Tower, Jhandewalan Extension, New Delhi-110055. The present application is filed by Ms. Kaveri Krishnamurthy, Deputy General Manager, duly empowered under the revised Delegation of Powers effective from March 2020, to institute, sign, and verify the application and perform all necessary acts on behalf of Applicant No. 4. **The Applicant No. 5**, State Bank of India, is a body corporate constituted under the State Bank of India Act, 1955, having its Corporate Office at State Bank Bhavan, Madame Cama Road, Mumbai-400021, and a branch at Stressed Asset Management-I Branch, Jawahar Vyapar Bhawan, Tolstoy Marg, New Delhi-110001. Mr. S. V. Saravanan, Assistant General Manager, is the duly authorized officer and constituted attorney of Applicant No. 5 in terms of General Regulations No. 76 and 77 of the State Bank of India General Regulations, 1955, 

framed under Section 50(3) of the State Bank of India Act, 1955, read with Gazette Notifications dated 02.05.1987, competent to file, sign, and verify the present application.

1. 2. It is pertinent here that this OA bearing no. 300/2022 was originally filed before Ld. DRT-I, 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 14.10.2022 and was numbered at TA-30/2022.

2. 3. The brief facts of the case are that the Defendant No. 1, *Kohinoor Foods Limited* (formerly known as *Satnam Overseas Limited*), is a company engaged in the business of processing and trading of rice and related products, having its registered office at 10th Floor, Pinnacle Business Tower, Shooting Range Road, Surajkund, District Faridabad-121001, Haryana, and another office at Between KM Stone 50 & 51, G.T. Road, Murthal, Sonepat-131027, Haryana. The Defendant No. 1 had been availing various working capital facilities from the Applicant Banks and other consortium members for the purpose of promoting and expanding its business operations. Initially, the Defendant No. 1 (then Satnam Overseas Limited) availed working capital facilities aggregating to Rs. 126.50 Crores from the Applicant No. 1 (then Oriental Bank of Commerce) at its Corporate Branch, N-4, Greater Kailash Part-I, New Delhi, and from ANZ Grindlays Bank Limited, under a consortium arrangement comprising a Fund-Based Limit of Rs. 114.50 Crores and a Non-Fund-Based Limit of Rs. 12.00 Crores. In consideration thereof, the Defendant No. 1 executed various loan and security documents in favour of the said Lenders to secure the said credit facilities. The Defendant No. 2, *ICICI Bank Limited*, is a body corporate incorporated under the Companies Act, 1956, and a banking company within the meaning of the Banking Regulation Act, 1949, having its Registered Office at ICICI Bank Tower, Near Chakli Circle, Old Padra Road, Vadodara-390007, Gujarat, and, among others, a branch at 10th Floor, Videocon Tower, Jhandewalan, New Delhi-110055. The Defendant No. 2 was one of the consortium lenders to Defendant No. 1; however, during the pendency of the present Transfer Application, the Defendant No. 2 assigned its debt to *Prudent ARC Limited* vide Assignment Agreement dated 10.05.2024, and accordingly, *Prudent ARC Limited* was permitted by the Tribunal to be substituted in place of Applicant No. 2 vide order dated 31.07.2025. The Defendant No. 3, *SBICAP Trustee Company Limited*, is a company incorporated under the Companies Act, 1956, having its Registered Office at 202, Maker Tower "E", Cuffe Parade, Mumbai-400005, Maharashtra, and is acting as the Security Trustee for and on behalf of the consortium lenders, including the Applicant Banks and the Proforma Defendant No. 2, for holding the securities created by Defendant No. 1 towards securing the credit facilities extended to it.

1. 4. So far as, the Defendant No. 1 right to file written statement is closed vide order dated 16.01.2024.

2. 5. That the Defendant No. 1, Kohinoor Foods Limited (formerly known as Satnam Overseas Limited), is engaged in the business of processing and trading of rice and related products. The Applicants and Defendant No. 2 are the Lenders who had sanctioned various credit facilities to Defendant No. 1 for promotion and expansion of its business under consortium/individual document basis, while Defendant No. 3, SBICAP Trustee Company Limited, is acting as the Security Trustee for and on behalf of the Applicants and Proforma Defendant No. 2, holding the securities created by Defendant No. 1 towards securing the said facilities. The Defendant No. 1 (then known as Satnam Overseas Limited) had availed working capital 

facilities aggregating to Rs. 126.50 Crores from Applicant No. 1 (then Oriental Bank of Commerce) at its Corporate Branch, N-4, Greater Kailash Part-I, New Delhi, and from ANZ Grindlays Bank Limited under consortium arrangement, comprising of Fund-Based Limit of Rs. 114.50 Crores and Non-Fund-Based Limit of Rs. 12 Crores. In order to secure the said working capital facilities, Defendant No. 1 executed a Working Capital Consortium Agreement dated 24.03.1998, a Joint Deed of Hypothecation dated 24.03.1998 with respect to its entire current assets, and a Deed of Declaration (Negative Lien) dated 09.03.1998 with respect to property situated at Flat No. 201, Vipps Centre, 2, Community Complex, Masjid Moth, Greater Kailash Part-I, New Delhi. Since the said limits were availed under a consortium arrangement, an Inter-Se Agreement dated 24.03.1998 was executed between the Applicant No. 1 (erstwhile Oriental Bank of Commerce) and ANZ Grindlays Bank Limited, and a Letter of Authority was issued by ANZ Grindlays Bank Limited in favour of the Applicant No. 1, being the leader of the consortium, Annexures A1-2 to A1-6.

1. 6. It is further stated that the Defendant No. 1 had also availed Ad-hoc Limits from Applicant No. 1 at its Greater Kailash Branch, New Delhi, against extension of mortgages over the properties already offered for working capital limits. The Applicant Bank's Civil Lines Branch, Amritsar, where the said properties were mortgaged, duly confirmed the extension of charge for the said facilities; however, the said properties were subsequently released as no dues remained outstanding. The Defendant No. 1 (then Satnam Overseas Limited) executed a Letter of Revival dated 19.11.1999 and a Deed of Declaration (Negative Lien) of the same date in favour of Applicant No. 1. Further, Shri Gurnam Arora, Shri Satnam Arora, and Shri Jugal Kishore Arora executed Agreements of Guarantee dated 19.11.1999 to secure the said limits, which were later released.

1. 7. Thereafter, pursuant to Defendant No. 1's proposal, the consortium limits were enhanced to Rs. 140 Crores, Applicant No. 1's share being Rs. 119 Crores and ANZ Grindlays Bank Limited's share being Rs. 21 Crores and the promoters, namely Mrs. Meena Rani, Mr. Jugal Kishore Arora, Mr. Gurnam Arora, and Mr. Satnam Arora, created mortgages of their properties vide Letter of Deposit dated 20.01.1999, which were later released by the Applicant Bank.

2. 8. That in order to secure the enhanced working capital limit of Rs. 119 Crores, the Defendant No. 1 executed a Hypothecation of Assets Agreement for Cash Credit/Overdraft/Demand Loan Facility and an Agreement of Hypothecation of Book Debts, both dated 23.12.1999, in favour of Applicant No. 1. Subsequently, ANZ Grindlays Bank Limited opted out of the consortium and was replaced by Canara Bank, having its branch at Ansal Tower, 38, Nehru Place, New Delhi. The Defendant No. 1, vide Resolution dated 15.06.2000, authorized the execution of necessary documents to secure the working capital limit of Rs. 140 Crores jointly sanctioned by Applicant No. 1 and Canara Bank. Accordingly, Defendant No. 1 executed a Working Capital Consortium Agreement and a Joint Deed of Hypothecation, both dated 21.06.2000, hypothecating its entire current assets in favour of the said Lenders. An Inter-Se Agreement and a Letter of Authority, both dated 21.06.2000, were also executed between Applicant No. 1 and Canara Bank, designating Applicant No. 1 as the leader of the consortium. Further, Defendant No. 1 created a Negative Lien over Flat No. 201, Vipps Centre, 2, Community Centre, Greater Kailash Part-II, New Delhi, and also created mortgage by constructive delivery over its properties situated in Punjab in favour of Applicant No. 1 at its Civil Lines Branch, 

Amritsar, vide Letters of Continuity dated 16.03.2001, which properties were subsequently released.

1. 9. It is stated that the Defendant No. 1 (then known as Satnam Overseas Limited) approached the Applicant No. 1 seeking enhancement of its existing working capital limits from Rs. 119 Crores to Rs. 154 Crores, which was duly sanctioned by the Applicant No. 1. In terms of the Resolution dated 15.03.2001 passed by the Defendant No. 1, it executed a Supplementary Agreement and a Deed of Declaration (Negative Lien), both dated 15.03.2001, to secure the said enhanced limits. Additionally, Shri Jugal Kishore Arora, Shri Satnam Arora, and Shri Gurnam Arora executed separate Agreements of Guarantee dated 15.03.2001, which were subsequently released. Thereafter, the Applicant No. 1 reduced the said limit to Rs. 113.25 Crores; however, upon the further request of the Defendant No. 1, the limit was enhanced to Rs. 120.10 Crores, and accordingly, a Supplemental Agreement dated 06.05.2002 was executed along with fresh Guarantees of even date by the aforesaid guarantors, which were later released.

2. 10. Subsequently, upon the request of the Defendant No. 1, the Applicant No. 1 also sanctioned a Bank Guarantee limit of Rs. 8.75 Crores, for which the Defendant No. 1 passed a Resolution dated 30.07.2002 and executed a Counter Guarantee Agreement dated 05.08.2002 at the Applicant's Greater Kailash Branch, New Delhi, Annexures A1-14 to A1-16 (Colly).

3. 11. It is stated that the Applicant No. 1 had initially reduced the existing working capital limit of Defendant No. 1 from Rs. 154 Crores to Rs. 113.25 Crores. Subsequently, upon the request of Defendant No. 1, the said reduced limit was enhanced to Rs. 120.10 Crores, and in this regard, Defendant No. 1 executed a Supplemental Agreement to secure Credit/Loan Facilities and a Counter Guarantee Agreement, both dated 26.09.2002, Annexure A1-17 Colly. Thereafter, upon further request, the Applicant No. 1 enhanced the said limit from Rs. 113.25 Crores to Rs. 125.87 Crores (enhancement of Rs. 12.62 Crores), and accordingly, Defendant No. 1 executed Supplemental Agreement, Counter Guarantee Agreement, Agreement of Hypothecation of Assets, and General Undertaking, all dated 01.11.2002, filed as Annexure A1-18 Colly.

1. 12. In consideration of the enhanced limits, Shri Satnam Arora, Shri Jugal Kishore Arora, Shri Gurnam Arora, Smt. Meena Arora, and Smt. Rani Arora executed separate Agreements of Guarantee dated 01.11.2002, which were subsequently released. Further, vide letter dated 02.11.2002, Defendant No. 1 requested and was sanctioned an FCNR Loan of Rs. 2.97 Crores, pursuant to which an Agreement of Term Loan dated 02.11.2002 was executed, filed as Annexure A1-19 Colly.

2. 13. Thereafter, the Applicant No. 1 again enhanced the working capital limit from Rs. 125.87 Crores to Rs. 134.87 Crores (enhanced portion Rs. 9 Crores), for which Defendant No. 1 submitted Resolutions dated 25.11.2002 and executed a Supplemental Agreement to secure Credit/Loan Facilities dated 25.11.2002, Annexure A1-20 Colly. In consideration of the said enhancement, the above-named guarantors again executed separate Agreements of Guarantee dated 25.11.2002, which were also released subsequently.

3. 14. It is stated that the Defendant No. 1 again approached and requested the Applicant No. 1 along with Canara Bank, UTI Bank Limited, Andhra Bank, Indian Overseas Bank, Corporation Bank, and State Bank of Patiala for enhancement, renewal, review, and sanction of working capital limits. Upon such request, the said lenders sanctioned an aggregate working capital limit of Rs. 293.74 Crores, comprising a Fund-Based Limit of 

Rs. 254.00 Crores and a Non-Fund-Based Limit of Rs. 49.75 Crores.

1. 15. The Defendant No. 1, pursuant to its Resolution dated 09.01.2004, executed the Working Capital Consortium Agreement and Joint Deed of Hypothecation, both dated 19.01.2004, in favour of the said lenders to secure the sanctioned limits. In consideration thereof, Shri Satnam Arora, Shri Gurnam Arora, Shri Jugal Kishore Arora, Smt. Meena Arora, and Smt. Rani Arora executed Personal Guarantees dated 19.01.2004 in favour of the working capital lenders, which were later released. Further, an Inter-Se Agreement dated 19.01.2004 was executed among the lenders for security sharing arrangements, and Canara Bank, Indian Overseas Bank, and Andhra Bank also executed Letters of Authority in favour of the Applicant No. 1, Annexures A-21 to A-24 Colly.

2. 16. It is stated that the Defendant No. 1 (then Borrower) again approached the Applicant No. 1 for sanction and enhancement of its existing working capital limits, and upon such request, the Applicant No. 1 sanctioned an enhanced limit of Rs. 74.39 Crores. The Defendant No. 1 accordingly passed Resolutions dated 12.08.2005 offering securities for securing the said facilities and, in terms thereof, executed the Common Agreement and Undertaking both dated 29.08.2005 in favour of the Applicant No. 1. The true copies of the said Resolutions and documents are filed as Annexure A1-25 Colly. In consideration of the said sanction, Shri Satnam Arora, Shri Gurnam Arora, Shri Jugal Kishore Arora, Smt. Meena Rani Arora, Smt. Rani Arora, and M/s Sachdeva Brothers Pvt. Ltd. executed Personal Guarantees and Balance & Security Confirmation Letters dated 08.09.2005 in favour of the Applicant No. 1; the said guarantees were later released. Subsequently, the Defendant No. 1 again approached the working capital lenders for further renewal/enhancement, and the consortium comprising the Applicant No. 1 (then at Nehru Place, New Delhi), Punjab National Bank (earlier at DCM Building, Connaught Place, New Delhi), Standard Chartered Bank, Corporation Bank, HSBC, and HDFC sanctioned the working capital limits up to Rs. 295.20 Crores. These limits were secured by hypothecation of current assets, personal guarantees of the aforementioned guarantors, and equitable mortgages of properties situated at 50-51 Milestone, District Sonepat (Murthal), Haryana, and other properties at Amritsar belonging to the said guarantors—all of which were subsequently released. The Defendant No. 1 also passed Resolutions dated 28.04.2006 and 24.08.2006 under Section 21 of the Companies Act for execution of security documents and creation of securities, Annexure A1-26 Colly.

1. 17. That in consideration of the sanction and continuation of the said working capital limits and in pursuance of the resolutions passed, Defendant No. 1 executed the Working Capital Consortium Agreement dated 27.05.2006, Joint Deed of Hypothecation dated 27.05.2006, and Undertaking dated 25.09.2006 in favour of the consortium lenders.

2. 18. In furtherance thereof, S/Shri Satnam Arora, Gurnam Arora, and Jugal Kishore Arora jointly, and Smt. Meena Rani Arora and Smt. Rani Arora separately, executed Personal Guarantees dated 27.05.2006 in favour of the lenders, undertaking joint, several, and co-extensive liability for the facilities availed by Defendant No. 1, which guarantees were later released. An Inter-Se Agreement dated 27.05.2006 was also entered into among the lenders for security-sharing arrangements, under which the Applicant No. 1 was authorized to act as the lead bank on behalf of the consortium.

3. 19. In order to secure the said facilities, Defendant No. 1 extended equitable mortgage over its factory land and building measuring 

158 Kanal 2 Marla (81920 sq. yds.) situated at Murthal, District Sonepat, Haryana, through Letter of Continuity dated 27.05.2006, while M/s Sachdeva Brothers Pvt. Ltd., pursuant to its Resolution dated 28.04.2006, extended mortgage over its properties measuring 27 Kanal 10 Marla and 14 Kanal 9 Marla (total 20975 sq. yds.) vide Letter of Continuity dated 27.05.2006. Additionally, Defendant No. 1 and other individuals, namely S/Shri Satnam Arora, Gurnam Arora, Jugal Kishore Arora, Smt. Rani Arora, and Smt. Meena Arora, also extended mortgages over their respective properties, which were subsequently released. The charge in respect of the said facilities was duly filed before the Registrar of Companies on 26.07.2006. Annexures A1-27 to A1-33.

20. That in consideration of the Facility granted to Defendant No. 1, M/s Sachdeva Brothers Pvt. Ltd. executed a Corporate Guarantee dated 02.09.2006 in favour of the Lenders to secure the liability of Defendant No. 1 Company in respect of the said Facilities, thereby agreeing that the guarantee shall be continuing in nature and that the guarantors shall be jointly, severally, and co-extensively liable to pay the dues of the Applicant Bank arising out of the Facilities availed by Defendant No. 1 Company. However, the said guarantee was subsequently released.

21. Thereafter, upon change of its name to M/s Kohinoor Foods Limited, Defendant No. 1 further approached the Applicant Bank at its Hemkund Tower, Nehru Place, New Delhi branch for sanction of a Corporate Loan and enhancement of its existing working capital limits. In pursuance of the said request, the Applicant Bank sanctioned a Corporate Loan of Rs. 7.50 Crores (out of a total loan of Rs. 30 Crores) and enhanced the working capital limit vide sanction letter dated 25.10.2007. To secure the said Term Loan, Defendant No. 1 executed an Agreement of Term Loan dated 29.10.2007 in favour of the Applicant Bank, Annexure A1-34 Colly. That in order to secure the aforesaid working capital limits, Defendant No. 1 executed the following documents in favour of the Applicant Bank:

- (i) Agreement of Hypothecation of Assets dated 29.10.2007; (ii) Counter Guarantee Agreement dated 29.10.2007;

- (iii) Common Agreement dated 29.10.2007;

- (iv) General Undertaking dated 27.10.2007, Annexures A1-35 to A1-38.

1. 22. That M/s Sachdeva Brothers Pvt. Ltd., vide Resolution dated 27.10.2007, resolved to extend the mortgage of its property situated at Murthal and to furnish its Corporate Guarantee in favour of the Applicant Bank, a true copy of which is filed with the List of Documents as Annexure A1-39. In order to secure the said limits, Shri Satnam Arora, Shri Gurnam Arora, Shri Jugal Kishore Arora, Mrs. Meena Arora and Mrs. Rani Arora executed their Personal Guarantees, and M/s Sachdeva Brothers Pvt. Ltd. executed its Corporate Guarantee dated 29.10.2007 in favour of the Applicant Bank; however, all the said guarantees were subsequently released.

2. 23. Further, the Defendant No. 1 extended the mortgage in respect of its property at Murthal vide Letter of Continuity dated 29.10.2007, and M/s Sachdeva Brothers Pvt. Ltd. also extended the mortgage of its property at Murthal, Haryana vide Letter of Continuity of even date, true copies whereof are filed with the List of Documents as Annexure A1-40 Colly. The charge in respect of the said facilities was duly registered with the Registrar of Companies on 26.11.2007, as evidenced by the documents filed as Annexure A1-41 Colly.

3. 24. It is further stated that in terms of the earlier proposal of Defendant No. 1 for sanction of a Corporate Loan of Rs. 30 Crores from the consortium, out of which the Applicant Bank had already released its share, Defendant No. 1 requested the 

Applicant Bank to release the remaining amount of Rs. 22.50 Crores, and accordingly, in pursuance to the said request, the Applicant Bank, vide its sanction letter dated 24.12.2007, permitted Defendant No. 1 to avail the balance facility of Rs. 22.50 Crores pending sanction and disbursement by other lenders.

1. 25. That the Defendant No. 1, vide Resolution dated 26.12.2007, duly authorized the execution of necessary documents and creation of securities in favour of the Applicant Bank. In consideration of the sanction of the Corporate Loan of Rs. 22.50 Crores and in pursuance of the said resolution, the Defendant No. 1 executed in favour of the Applicant Bank the following documents:

1. 1. (i) Supplemental Agreement dated 27.12.2007 to secure the total Credit/Loan Facilities of Rs. 177.60 Crores, comprising the existing limit of Rs. 155.10 Crores and the fresh Corporate Loan of Rs. 22.50 Crores;

1. 1. (ii) Agreement of Term Loan dated 27.12.2007;

1. 1. (iii) Common Agreement dated 27.12.2007. The true copies of the said sanction letter, resolution, and the aforesaid documents are filed with the List of Documents as Annexure A1-42 to A1-46.

1. 26. That in order to secure the sanctioned facilities, S/Shri Satnam Arora, Gurnam Arora, Jugal Kishore Arora, Mrs. Meena Arora, Mrs. Rani Arora, and M/s Sachdeva Brothers Pvt. Ltd. executed Agreements of Guarantee, all dated 27.12.2007, in favour of the Applicant Bank; however, all the said guarantees were subsequently released. Further, the Defendant No. 1 and M/s Sachdeva Brothers Pvt. Ltd. extended the mortgage in respect of their respective properties situated at Murthal vide Letters of Continuity dated 27.12.2007 in favour of the Applicant Bank, Annexure A1-47 Colly.

27. The charge in respect of the said facilities was duly registered before the Registrar of Companies on 29.01.2008, Annexure A1-48. It is further stated that Defendant No. 1 also approached Applicant No. 4 for sanction of Working Capital Limits, and the said Applicant, vide its sanction letter bearing Ref. No. IDBI/KGM/LCG/169/08-09 dated 01.10.2008, issued from its office at Indian Red Cross Society Building, 1, Red Cross Road, New Delhi-110001, sanctioned Working Capital Limits of Rs. 64 Crores (Rupees Sixty-Four Crores only), comprising Fund-Based Limits of Rs. 49 Crores, Non-Fund-Based Limits of Rs. 5 Crores, and LER Limit of Rs. 10 Crores, duly secured by hypothecation of current assets on a pari passu basis as primary security and first charge on fixed assets (excluding assets charged to term lenders) as collateral security, Annexure A4-2.

28. Subsequently, Defendant No. 1 again approached the consortium of lenders comprising Applicants No. 1, 2, 5, Defendant No. 2, Standard Chartered Bank, HSBC, HDFC Bank, Corporation Bank, and IndusInd Bank for enhancement, sanction, and renewal of existing working capital limits, and accordingly, the said lenders enhanced, sanctioned, and renewed the limits up to Rs. 399.51 Crores, comprising Fund-Based Limits of Rs. 331.10 Crores, Non-Fund-Based Limits of Rs. 37.50 Crores, and Term Loan/Corporate Loan of Rs. 30.91 Crores. In this regard, Defendant No. 1 furnished its Resolution dated 30.10.2008 authorizing execution of the requisite security and finance documents and creation of securities to secure the said enhanced/renewed working capital limits. That in consideration of the enhancement, renewal, and sanction of the working capital limits by the aforesaid lenders, and in pursuance of the Resolution submitted by Defendant No. 1, the Defendant No. 1 executed the following security and finance documents in favour of the said lenders:


- (i) Working Capital Consortium Agreement dated 03.11.2008;

- (ii) Joint Deed of Hypothecation dated 03.11.2008, Annexure A1-49 to A1-51.

29. That an Interse Agreement dated 03.11.2008 was also executed among the lenders for the purpose of sharing the securities. In addition, the member banks executed a Letter of Authority of even date, i.e., 03.11.2008, in favour of the Applicant No. 1, being the Lead Bank of the consortium. The true copies of the said Interse Agreement and Letter of Authority are filed with the List of Documents as Annexure A1-52 and A1-53, respectively.

30. It is stated that M/s Sachdeva Brothers Pvt. Ltd. executed a Corporate Guarantee dated 04.11.2008 in favour of the lenders, which was subsequently released. Further, the Defendant No. 1 and M/s Sachdeva Brothers Pvt. Ltd. extended the mortgage in respect of their respective properties situated at Murthal vide Letters of Continuity dated 03.11.2008, Annexure A1-54 and A1-55.

31. In addition, Defendant No. 1, Shri Satnam Arora, Shri Gurnam Arora, Shri Jugal Kishore Arora, Smt. Meena Arora, and Smt. Rani Arora also extended mortgages over their respective properties situated in Punjab to secure the facilities sanctioned by the lenders; however, the mortgage charges over the said properties were subsequently released. Thereafter, Defendant No. 1 approached Applicant No. 1 for enhancement of the credit facilities, and accordingly, the Applicant No. 1 enhanced the same from Rs. 170.66 Crores to Rs. 177.60 Crores.

32. In this regard, Defendant No. 1 submitted resolutions dated 30.10.2008 authorizing execution of the relevant documents and confirming the balances in its loan accounts. Pursuant thereto, Defendant No. 1 executed a Supplemental Agreement, Common Agreement, Undertaking, Balance Confirmation Letter, and Letter of Continuity, all dated 04.11.2008. Similarly, M/s Sachdeva Brothers Pvt. Ltd. also submitted a resolution dated 30.11.2008 for extension of its mortgage and, in pursuance thereof, executed a Letter of Continuity dated 04.11.2008 in favour of Applicant No. 1, Annexure A1-56 Colly.

1. 33. Subsequently, Defendant No. 1 again approached the existing lenders, including Applicant No. 5, for sanction, enhancement, and renewal of the working capital limits, and the said lenders accordingly sanctioned/enhanced the aggregate credit facilities to Rs. 637.05 Crores, comprising Fund-Based Limits of Rs. 546.30 Crores, Non-Fund-Based Limits of Rs. 51.50 Crores, and Term Loan of Rs. 39.25 Crores. In this connection, Defendant No. 1 submitted its Resolution dated 29.06.2009 for acceptance of the terms of sanction, execution of finance and security documents, and creation of security in favour of the lenders, while M/s Sachdeva Brothers Pvt. Ltd. also furnished its Resolution of even date for creation of mortgage of its property at Murthal and execution of its Corporate Guarantee, Annexure A1-57 Colly.

2. 34. That in consideration of the enhancement, renewal, and sanction of the working capital limits by the said lenders, the Defendant No. 1 executed the following documents in their favour:

1. (i) Working Capital Consortium Agreement dated 29.06.2009;

2. (ii) Joint Deed of Hypothecation dated 29.06.2009;

3. (iii) Deed of Declaration for Negative Lien dated 13.07.2009, Annexure A1-58 to A1-60.

3. 35. That in consideration of the sanction of the aforesaid working capital facilities, an Interse Agreement dated 29.06.2009 was entered into among Applicants No. 1, 2, 3, 5, and 6, Defendant No. 2, and IndusInd Bank, HDFC Bank, and Standard Chartered Bank for the purpose of security sharing among the lenders. Additionally, the consortium members executed a Letter of Authority of even date, i.e., 29.06.2009, in favour of Applicant 

No. 1, being the Lead Bank of the consortium, Annexure A1-61 and A1-62.

36. Further, the Defendant No. 1 and M/s Sachdeva Brothers Pvt. Ltd. extended the mortgage in respect of their respective properties situated at Murthal, Haryana, vide Letters of Continuity dated 29.06.2009, Annexure A1-63 and A1-64. In addition, M/s Sachdeva Brothers Pvt. Ltd. executed a Corporate Guarantee dated 13.07.2009 in favour of the lenders, which was subsequently released, and Defendant No. 1 along with Shri Satnam Arora, Shri Gurnam Arora, Shri Jugal Kishore Arora, Smt. Meena Arora, and Smt. Rani Arora also extended mortgages over their respective properties situated at Amritsar, Punjab, which were later released as well.

37. Thereafter, Defendant No. 1 approached Applicant No. 1 for sanction of an Additional Post Shipment Credit Limit of Rs. 15 Crores, which was duly sanctioned, and in pursuance thereof, Defendant No. 1 passed Resolutions dated 08.07.2009 for confirming the balance in its loan accounts and for execution of the requisite loan documents to secure the said limit. Pursuant to the said resolutions, Defendant No. 1 executed a Balance and Security Confirmation Letter acknowledging its liability as on 30.06.2009, along with a Common Agreement dated 24.07.2009, Agreement of Hypothecation of Assets dated 24.07.2009, and Agreement for Deferred Payment of Guarantee/Co-Acceptance of Bill dated 20.08.2009, Annexure A1-65 Colly. The charge in respect of the said facility was duly registered with the Registrar of Companies on 23.09.2009, Annexure A1-66.

38. It is further pertinent to mention that Applicant No. 3, then having its branch office at New Delhi Overseas Branch, Vijaya Building, 17, Barakhamba Road, New Delhi, upon the request of Defendant No. 1, vide its sanction letter bearing No. NOD/ADV/SK/25/144 dated 14.12.2009, sanctioned working capital limits of Rs. 68 Crores, comprising Fund-Based Limits of Rs. 56.50 Crores and Non-Fund-Based Limits of Rs. 11.50 Crores. The said sanction was duly acknowledged by Defendant No. 1 vide its letter dated 16.12.2009, wherein it also sought certain modifications, which were accordingly incorporated by Applicant No. 3 vide its revised sanction letter bearing No. NDO/ADV/SK/144A dated 14.01.2010, Annexure A3-2 Colly.

39. That the Defendant No. 1 further approached Applicant No. 4 for sanction of a Term Loan, and upon such request, Applicant Bank No. 4, vide its sanction letter bearing Ref. No. IDBI/ND/LCG/535/09-10 dated 13.03.2010, sanctioned a Rupee Term Loan of Rs. 31.55 Crores (Rupees Thirty-One Crores and Fifty-Five Lakhs only), along with a Capex LC of Rs. 31.55 Crores as a sub-limit of the said Term Loan. In pursuance thereof, Defendant No. 1 submitted an application for sanction of the said credit facilities and executed a Loan Agreement dated 22.03.2010 in favour of Applicant Bank No. 4; however, the said Term Loan was subsequently repaid by Defendant No. 1, as stated hereinafter.

40. Thereafter, Defendant No. 1 approached Applicant No. 3 for renewal of existing working capital facilities and sanction of a fresh Term Loan, and Applicant No. 3, vide its sanction letter bearing No. NDO/ADV/HSC/26 dated 19.08.2010, renewed the working capital limit of Rs. 68 Crores and sanctioned a fresh Term Loan of Rs. 40 Crores, Annexure A3-3.

41. It is pertinent to mention that the branch of Applicant No. 3, earlier known as the New Delhi Overseas Branch located at Vijaya Building, 17, Barakhamba Road, New Delhi, was subsequently renamed as the New Delhi Large Corporate Branch and shifted to PTI Building, 4, Sansad Marg, New Delhi. Upon realignment of the consortium wherein HDFC Bank and IndusInd Bank opted out, and Applicants No. 2 and 3 were inducted the Defendant No. 1 further approached the Applicants and Defendant No. 2 for enhancement, sanction, and renewal of the existing credit facilities. Pursuant to such request, the respective Applicants and Defendant No. 2 sanctioned/enhanced/renewed the credit limits, which were duly secured by:

(i) a first pari passu charge by way of hypothecation of current assets, including stocks of raw materials, stock-in-process, stores, spares, receivables, semi-finished and finished goods, goods in transit, consumables, and book debts arising out of genuine trade transactions as primary security;

(ii) a first pari passu charge by way of hypothecation of entire plant, machinery, and other fixed assets (both present and future), excluding those charged to other banks;

(iii) a first pari passu equitable mortgage over factory land measuring 1,02,895 sq. yds. with buildings constructed thereon, situated at Stone 50 & 51, GT Road, Murthal, Haryana comprising (a) 81,920 sq. yds. standing in the name of the Borrower under 26 title deeds, and (b) 20,975 sq. yds. standing in the name of M/s Sachdeva Brothers Pvt. Ltd. under 4 title deeds;

(iv) a negative lien on property situated at 201, VIPPS Centre, Masjid Moth, Greater Kailash-II, New Delhi-110048, admeasuring 3,547 sq. ft. and belonging to Defendant No. 1;

(v) personal and corporate guarantees of M/s Sachdeva Brothers Pvt. Ltd., Shri Satnam Arora, Shri Jugal Kishore Arora, Shri Gurnam Arora, Smt. Meena Arora, and Smt. Rani Arora. (i) Sanction Letter dated **20.01.2012** issued by Applicant No. 1 (erstwhile Oriental Bank of Commerce), filed with the List of Documents Annexure A1-67;

(ii) Sanction Letter dated 19.07.2011 issued by Applicant No. 1

(Punjab National Bank before merger), Annexure A1-68;

(iii) Sanction Letter dated 22.06.2011 issued by Applicant No. 2, Annexure A2-2;

(iv) Sanction Letter dated 12.07.2011 issued by Applicant No. 3, Annexure A3-4;

(v) Sanction Letters dated 16.05.2011 and 17.02.2011 issued by Applicant No. 4, Annexure A4-3 Colly;

(vi) Sanction Letter dated 23.05.2011 issued by Applicant No. 5, Annexure A5-2.

42. It is submitted that the sanction letter of Defendant No. 2 is not filed herein, as Defendant No. 2 has instituted a separate Original Application bearing OA No. 267/2020 against Defendant No. 1 for recovery of its dues, which is pending adjudication before this Hon'ble Tribunal, next listed for hearing on 05.05.2022. Accordingly, the sharing pattern of the consortium members was maintained in proportion as detailed hereinafter.

Working Capital Limits (Rs. In Crores)

<thead> <tr> <th>Name of Lenders</th> <th>Fund Based</th> <th>Non Fund Based</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Applicant No. 1 (erstwhile OBC)</td> <td>216.00*</td> <td>52.60</td> <td>268.50</td> </tr> <tr> <td>Applicant No. 1 (PNB before merger)</td> <td>56.50</td> <td>11.00**</td> <td>67.50</td> </tr> <tr> <td>Applicant No. 2</td> <td>120.00***</td> <td>37.50</td> <td>157.50</td> </tr> <tr> <td>Applicant No. 3</td> <td>61.80</td> <td>12.50</td> <td>74.30</td> </tr> <tr> <td>Applicant No. 4</td>

<td>15.00</td> <td>77.00</td> </tr> <tr> <td>Applicant No. 5</td> <td>55.00</td> <td>12.50</td> <td>67.50</td> </tr> <tr> <td>Defendant No. 2</td> <td>36.00</td> <td>9.00</td> <td></td> </tr> <tr> <td>Total</td> <td>607.30</td> <td>150.00</td> <td>757.30</td> </tr> </tbody> </table>

\*That the following Banks have sanctioned Gold Card Facilities over and above their respective shares of the MPBF of Rs. 618 Crores, namely, Applicant No. 1 amounting to Rs. 29.20 Crores and Applicant No. 2 amounting to Rs. 16.00 Crores.

\*\*However, though the Non-Fund Based (NFB) facilities were sanctioned for Rs. 16.00 Crores, the availment/allotment thereof was restricted to Rs. 11.00 Crores only.

\*\*\*Further, though the total sanction was Rs. 154.50 Crores, the availment/allotment was limited to the earlier sanctioned amount of Rs. 120.00 Crores.

1. 43. That the Defendant No. 1, in consideration of the enhancement of working capital limits by Applicant No. 1 (erstwhile OBC), stated its Resolution dated 20.01.2012 authorizing execution of necessary security and finance documents. In pursuance thereof, the Defendant No. 1 executed the Supplemental Agreement to Secure Credit/Loan Facilities and Common Agreement, both dated 21.01.2012. Simultaneously, M/s Sachdeva Brothers Pvt. Ltd. furnished its Resolution dated 20.01.2012 for extension of charge over its property situated at Murthal, Haryana, and accordingly, both the Borrower and M/s Sachdeva Brothers Pvt. Ltd. extended the mortgage charges over their respective Murthal properties through Letters of Continuity, both dated 21.01.2012. Annexure A1-69 (Colly). M/s Sachdeva Brothers Pvt. Ltd. also executed its Corporate Guarantee to secure the said limits, which was subsequently released.

2. 44. It is further stated that Applicant No. 1 (e-OBC) sanctioned a fresh Term Loan of Rs.11 Crores to Defendant No. 1 for acquisition of an office space admeasuring 11,298.66 sq. ft. situated on the 10th Floor, Plot Nos. 103, 104 & 105, "Pinnacle", Shooting Range Road, Surajkund, Faridabad, which was secured by an exclusive first charge over the said unit. The Defendant No. 1 executed Agreement of Term Loan for Immovable Property, Agreement of Term Loan, and Common Agreement, all dated 10.02.2012, along with I-TR-22 dated 02.01.2012. The true copies of these documents are filed as Annexure A1-70.

45. That the Defendant No. 1 thereafter approached Applicant No. 2 (Allahabad Bank) for review, renewal, and enhancement of its working capital and sanction of WCCL limits, pursuant to which the Applicant, vide its sanction letter Ref. No. ALB/ND/IB/ADV/SL/004 dated 04.04.2012, enhanced the working capital limit to Rs. 192 Crores and sanctioned an additional Temporary PC/PCFC/PSC limit of Rs. 20 Crores, as per Annexure A2-22.

46. The account of Defendant No. 1 was subsequently transferred from Hemkund Tower, Nehru Place, New Delhi, to the Large Corporate Branch, Harsha Bhawan, Connaught Place, New Delhi. The Defendant No. 1 submitted Resolution dated 10.11.2012 for execution of joint documents to secure consolidated limits of Rs. 757.30 Crores, filed as Annexure A1-71. In pursuance of the said Resolution, Defendant No. 1 executed the following documents in favour of the Lenders (Applicants and Defendant No. 2):

- (i) Working Capital Consortium Agreement dated 28.12.2012;

- (ii) Joint Deed of Hypothecation dated 28.12.2012;

- (iii) Deed of Declaration (Negative Lien) dated 28.12.2012, Annexures A1-72 to A1-74.

47. An Interse Agreement dated 28.12.2012 was also executed between the Applicants and Defendant No. 2 for security-sharing purposes, Annexure A1-75. Defendant No. 1 extended the mortgage of its Murthal property vide Letter of Continuity dated 28.12.2012, Annexure A1-76, and M/s Sachdeva Brothers Pvt. Ltd. likewise furnished its Resolution dated 10.11.2012 for creation of charge and furnishing of Corporate Guarantee, executing Letter of Continuity dated 28.12.2012, Annexure A1-77 (Colly).

48. Further, Defendant No. 1, Shri Gurman Arora, Mrs. Rani Arora, Shri Satnam Arora, Shri Gurnam Arora, Shri Jugal Kishore A solid green square is positioned at the bottom right of the page, below the page number 24.

Arora, and Smt. Meena Arora submitted their respective letters dated 13.04.2012 seeking release of their mortgaged Punjab properties in pursuance of Meeting MCR No. C-17 dated 26.10.2009. Consequently, Applicant No. 1, vide its letter dated 16.07.2013, released the charge over the said properties and returned the original title deeds to the respective owners, Annexure A1-78 (Colly).

49. That the Defendant No. 1 once again approached the Applicants and Defendant No. 2 for enhancement, sanction, and renewal of the existing working capital limits, and pursuant to such requests, the respective Applicants and Defendant No. 2 sanctioned, enhanced, and renewed the said credit facilities through their respective sanction letters. The said working capital limits were duly secured by:

(i) a first pari-passu charge by way of hypothecation of current assets, namely, stock of raw materials, stock-in-process, stores and spares, receivables, semi-finished and finished goods, goods in transit, consumables, and book debts arising out of genuine trade transactions, serving as the primary security;

(ii) a first pari-passu charge by way of hypothecation over the entire plant and machinery and other fixed assets, both present and future, excluding those already charged to other banks for loans granted by them;

(iii) a first pari-passu charge by way of equitable mortgage over factory land measuring 102,895 sq. yds., with building constructed thereon, situated at Stone Nos. 50 and 51 on G.T. Road, Murthal, Haryana comprising (a) land measuring 81,920 sq. yds. covered under 26 title deeds standing in the name of the Borrower, and (b) land measuring 20,975 sq. yds. covered under 4 title deeds standing in the name of M/s Sachdeva Brothers Pvt. Ltd.;

(iv) a negative lien on the property situated at 201, VIPPS Centre, Masjid Moth, Greater Kailash-II, New Delhi-110048, having a covered area of 3,547 sq. ft., belonging to Defendant No. 1;

(v) a second pari-passu charge over the office unit admeasuring 15,942 sq. ft., situated on the 10th Floor, Plot Nos. 103, 104 & 105, Shooting Range Road, "Pinnacle", Surajkund, Faridabad, subject to the first charge of Applicant No. 1 for its term loan of Rs.11 Crores; and (vi) corporate guarantees furnished by M/s Sachdeva Brothers Pvt. Ltd. The true copies of the respective sanction letters are filed as follows:

1. i. sanction letter dated 01.01.2013 of Applicant No. 1 (erstwhile OBC) Annexure A1-79;

2. ii. sanction letter dated 29.08.2013 of Applicant No. 1 (PNB before merger) Annexure A1-80;

3. iii. sanction letters dated 28.05.2013 and 19.12.2013 of Applicant No. 2 Annexure A2-4 (Colly);

4. iv. sanction letter dated 02.07.2013 of Applicant No. 3 Annexure A3-5;

5. v. sanction letter dated 11.07.2013 of Applicant No. 4 Annexure A4-4;

6. vi. sanction letter dated 04.03.2013 of Applicant No. 5 Annexure A5-3.

50. The sharing pattern between the Applicants and Defendant No. 2 was determined as follows.

Working Capital Limits (Rs. In Crores)

<thead> <tr> <th>Name of Lenders</th> <th>Fund Based</th> <th>Non Fund Based</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>Applicant No. 1 (erstwhile OBC)</td> <td>213.50*</td> <td>70.00</td> <td>283.50</td> </tr> <tr> <td>Applicant No. 1 (PNB before merger)</td> <td>56.50**</td> <td>15.00</td> <td>71.50</td> </tr> <tr> <td>Applicant No. 2</td> <td>152.50***</td> <td>50.00</td> <td>202.50</td> </tr> </tbody> </table>

<table border="1"> <tr> <td>Applicant No.<br/>3</td> <td>61.00</td> <td>20.00</td> <td>81.00</td> </tr> <tr> <td>Applicant No.<br/>4</td>

<td>15.00</td> <td>77.00</td> </tr> <tr> <td>Applicant No.<br/>5</td> <td>55.00</td> <td>12.90@</td> <td>67.90</td> </tr> <tr> <td>Defendant No.<br/>2</td> <td>36.00</td> <td>9.00</td> <td></td> </tr> <tr> <td>Total</td> <td>662.50</td> <td>191.00</td> <td>854.40</td> </tr> </table>

\*The following Banks had sanctioned Gold Card Facilities over and above their respective shares in the MPBF: Applicant No. 1 Rs.29.20 Crores and Applicant No. 2 Rs.16.00 Crores.

\*\*Though the total sanction was for Rs.152.50 Crores, the actual availment/allotment was restricted to Rs.120.00 Crores only. Out of the sanctioned limits of Rs.56.50 Crores under Fund Based and Rs.15.00 Crores under Non-Fund Based Limits, the availment/allotment was confined to Rs.36.50 Crores.

\*\*\*The Non-Fund Based Limits of SBI included an SLC limit of Rs.7.50 Crores and a Forward Exposure Limit of Rs.0.40 Crores. Further, the following member Banks of the consortium had allowed exposure in respect of the Foreign Exchange Forward Contract Limit over and above the NFBWC limit as indicated below: Oriental Bank of Commerce Rs.200 Crores.

51. That the Defendant No. 1, vide its Resolution dated 14.08.2013, resolved to execute joint documents and create securities to secure the sanctioned limits of Rs.854.40 Crores extended by the Lenders. Annexure A1-81. In consideration of the sanctioning, enhancement, and renewal of the working capital limits and in pursuance to the said Resolution, the Defendant No. 1 executed the following documents in favour of the Lenders comprising the Applicants and Defendant No. 2 herein, namely:

- (i) Working Capital Consortium Agreement dated 16.08.2013,

- (ii) Joint Deed of Hypothecation dated 16.08.2013,

- (iii) Deed of Declaration (Negative Lien) dated 16.08.2013, and

(iv) Confirmation of Interse Arrangement dated 16.08.2013, Annexures A1-82 to A1-85.

52. An Interse Agreement dated 16.08.2013 was also executed between the Applicants and Defendant No. 2 for security sharing purposes, and a Letter of Authority of the same date was executed by the member banks of the consortium in favour of Applicant No. 1, being the Lead Bank, Annexure A1-86 Colly. M/s Sachdeva Brothers Pvt. Ltd. also furnished its Resolution dated 14.08.2013 for providing a corporate guarantee and, in pursuance thereto, executed a Personal Guarantee dated 16.08.2013, which was subsequently released by the Lenders. The charge in respect of the said working capital facilities was duly registered before the Registrar of Companies on 14.08.2013, and the certificate of registration of modification of charge is filed as Annexure A1-87.

53. Thereafter, the Defendant No. 1 again approached Applicant No. 1 for renewal and enhancement of the existing working capital limits, and pursuant to its Resolution dated 28.10.2013, executed various documents including the Supplemental Agreement to Secure Credit/Loan Facilities, Counter Guarantee Agreement, Common Agreement, Agreement of Hypothecation of Assets, Undertaking, and Deed of Negative Lien, all dated 29.10.2013, Annexure A1-88 Colly.

54. Subsequently, upon request of the Defendant No. 1, the Applicant No. 1 further enhanced the Packing Credit Limit up to Rs.17 Crores, and the Defendant No. 1 executed the Supplemental Agreement to Secure Credit/Loan Facilities, Agreement of Hypothecation of Assets, and Deed of Declaration (Negative Lien), all dated 18.12.2013, and also extended the mortgage in respect of its Murthal property vide Letter of Continuity dated 18.12.2013. Likewise, M/s Sachdeva Brothers Pvt. Ltd. furnished its Resolution dated 09.12.2013 for execution 

of corporate guarantee and extension of mortgage of its Murthal property vide Letter of Continuity dated 18.12.2013.

55. It is further stated that upon the request of Defendant No. 1, Applicant No. 3 also sanctioned, enhanced, and reviewed the working capital limits up to Rs.112.50 Crores vide its Sanction Letter bearing Ref. No. NDLCB/RV/2013-14/192 dated 19.03.2014, Annexure A3-6.

56. That as stated hereinabove, the Defendant No. 1 had been availing Working Capital Facilities aggregating to Rs.854.40 Crores, comprising Fund Based Facilities of Rs. 662.50 Crores and Non-Fund Based Facilities of Rs.191.90 Crores. Thereafter, the Defendant No. 1 requested the OBC Consortium, comprising the Applicants and Defendant No. 2, for enhancement, renewal, and sanction of the said Working Capital Facilities. In pursuance of the said request and upon due appraisal by the consortium led by Applicant No. 1, the Lenders agreed to enhance, renew, and sanction the Working Capital Facilities.

57. Consequently, the Defendant No. 1 was sanctioned and allowed Working Capital Facilities aggregating to Rs.967.30 Crores (Rupees Nine Hundred Sixty-Seven Crores and Thirty Lakhs only), comprising Fund Based Facilities of Rs.774.40 Crores (Rupees Seven Hundred Seventy-Four Crores and Forty Lakhs only), Non-Fund Based Facilities of Rs.182.50 Crores (Rupees One Hundred Eighty-Two Crores and Fifty Lakhs only), and Credit Equivalent to Foreign Currency Limit of Rs.10.40 Crores (Rupees Ten Crores and Forty Lakhs only), in the proportion and manner as detailed hereinbelow.

<thead> <tr> <th>Sr. No.</th> <th>Name of the Bank</th> <th>Details of Sanction Letters</th> <th>Fund Based Limits (Rs. In crores)</th> <th>Non Fund Based Limits</th> <th>Credit Equivalent to Limits</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Oriental Bank of Commerce</td> <td>Sanction Letter dated 18.10.2013</td> <td>279.40*</td> <td>70.00</td> <td></td> <td>359.40</td> </tr> </tbody> </table>

<table border="1"> <tr> <td>2</td> <td>Allahabad Bank</td> <td>Sanction Letter No. IBND/KFL/203 dated 28.05.2013 / 19.12.2013</td> <td>173.00*</td> <td>50.00</td> <td></td> <td></td> </tr> <tr> <td>3</td> <td>Bank of India</td> <td>Sanction Letter No. NDLCB/AR/2013-14/RV/2013-14/192 dated 19.03.2014</td> <td>77.50</td> <td>20.00</td> <td></td> <td>97.50</td> </tr> <tr> <td>4</td> <td>IDBI Bank</td> <td>Sanction Letter No. 349/IDBI/CBG/KFL dated 11.07.2013</td>

<td>15.00</td> <td></td> <td>77.00</td> </tr> <tr> <td>5</td> <td>ICICI Bank</td> <td>Sanction Letter No. 34/W/36DEI-/67089 dated 07.03.2014</td> <td>71.00</td> <td>NIL</td> <td></td> <td>11.00</td> </tr> <tr> <td>6</td> <td>State Bank of India</td> <td>Sanction Letter dated 07.11.2013</td> <td>55.00</td> <td>12.50#</td> <td></td> <td>67.90</td> </tr> <tr> <td>7</td> <td>Punjab National Bank</td> <td>Sanction Letter No. PNB/LOANS/KFL/2013 dated 29.06.2013</td>

<td>15.00</td> <td></td> <td>71.50</td> </tr> <tr> <td>Total</td> <td></td> <td></td> <td>774.40</td> <td>182.50</td> <td>10.40</td> <td>967.30</td> </tr> </table>

\*In respect of the following Banks, the fund-based limits mentioned in the table above include additional Gold Card facilities sanctioned over and above their respective shares in the MPBF, as detailed below:

- • Oriental Bank of Commerce – Rs.34.90 Crores

- • Allahabad Bank – Rs.20.50 Crores

\*\*Further, the following member Banks of the Consortium have sanctioned exposure towards Foreign Exchange Forward Contracts, over and above their Non-Fund Based Working Capital (NFBWC) limits. The credit equivalent to such forward contract limits is indicated below:

- • Oriental Bank of Commerce – Rs.10.00 Crores

- • State Bank of India – Rs.0.40 Crores #Additionally, State Bank of India has allowed a Standby Line of Credit (SLC) facility of Rs.7.50 Crores, which has been carved out of the total Non-Fund Based limit of Rs.12.50 Crores.

58. The said Working Capital Facilities were duly secured by a comprehensive security package created by the Defendant No. 1

and its group concern, M/s Sachdeva Brothers Pvt. Ltd., in favour of the consortium of lenders led by the Applicant Bank. The securities comprised

- (i) first pari-passu charge on current assets including stock of raw materials, stock-in-process, stores, spares, consumables (excluding those relating to plant and machinery), goods in transit, semi-finished and finished goods, and book debts arising from genuine trade transactions;

- (ii) (ii) first pari-passu charge on movable fixed assets (present and future) excluding assets specifically charged to other banks; and

- (iii) (iii) second pari-passu charge over movable fixed assets of the company already charged to other lenders on first pari-passu basis. In addition, an equitable mortgage was created as first pari-passu charge over factory land measuring 1,02,895 sq. yds. with buildings thereon, situated at 50-51 Milestone, G.T. Road, Murthal, Haryana comprising (a) 81,920 sq. yds. covered by 26 title deeds in the name of the Borrower, and (b) 20,975 sq. yds. covered by 4 title deeds in the name of M/s Sachdeva Brothers Pvt. Ltd. A second pari-passu equitable mortgage was also created over office premises situated on the 10th Floor of Plots No. 103, 104 & 105, admeasuring 15,942 sq. ft., "The Pinnacle," Shooting Range Road, Faridabad, Haryana. The said facilities were further secured by corporate guarantee of M/s Sachdeva Brothers Pvt. Ltd. The Defendant No. 1 and M/s Sachdeva Brothers Pvt. Ltd. passed Board Resolutions dated 29.05.2014 and 15.07.2014 respectively, authorizing execution of all finance and security documents, Annexure A1-90 Colly. Pursuant thereto, the Defendant No. 1 executed a Working Capital Consortium Agreement, Joint Deed of Hypothecation, and Undertaking, all dated 31.07.2014 (Annexures A1-91 to A1-93). An Inter-se Agreement of the same date was executed among the consortium members and Defendant No. 2, supported by Letters of Authority/Power of Attorney and confirmation by Defendant No. 1 (Annexures A1-94 to A1-96). The mortgages were supported by Letters of Continuity dated 09.09.2014 (Annexures A1-97 to A1-99). The corporate guarantee dated 31.07.2014 was subsequently released. Charges in respect of all hypothecation, mortgages, and guarantees were duly registered with the Registrar of Companies vide filings dated 31.07.2014 and 09.09.2014 (Annexure A1-100 Colly).

1. 59. Thereafter, upon the borrower's request, the consortium led by the Applicant Bank renewed and enhanced the Working Capital Facilities aggregating to Rs. 957.20 crores, comprising fund-based limits of Rs. 798.80 crores, non-fund-based limits of Rs. 148 crores, and credit equivalent to foreign currency forward contract limits of Rs. 10.40 crores, on the detailed terms and conditions contained in respective sanction letters and financing documents.

2. 60. The Applicant No. 4, vide sanction letter No. 1352/IDBI/CBG/KFL dated 24.02.2015, sanctioned Working Capital limits of Rs. 77 crores in favour of the Defendant No. 1. Similar sanctions were issued by other consortium lenders. Upon collective appraisal and approval of the proposals, the Lenders sanctioned, renewed, and enhanced the Working Capital limits of the Defendant No. 1 as per their respective sanction letters, reflecting the consolidated exposure and revised limits approved under the consortium arrangement.

<thead> <tr> <th>Sr. No.</th> <th>Name of the Bank</th> <th>Details of Sanction Letters</th> <th>Fund Based Limits</th> <th>Non Fund Based Limits</th> <th>Credit Equivalent To F.C. Limits</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Applicant No. 1 (e-OBC)</td> <td>Sanction Letter No. CN/0007/Loans/2014-15 dated 18.08.2014</td> <td>299.80*</td> <td>53.00</td> <td></td> <td>362.80*</td> </tr> <tr> <td>2</td> <td>Applicant No. 11 (PNB before Merger)</td> <td>Sanction Letter No. PNB/LOANS/KFL/2014 dated 21.05.2015</td>

<td>15.00</td> <td></td> <td>71.50</td> </tr> <tr> <td>3</td> <td>Applicant No. 2</td> <td>Sanction Letter No. 1B/ND/ADV/SL/KFL/2015-16/489 dated 28.08.2015</td> <td>173.00*</td> <td>37.50</td> <td></td> <td>210.50**</td> </tr> <tr> <td>4</td> <td>Applicant No. 3</td> <td>Sanction Letter No. NDLCB/MA/2015-16/87 dated 21.04.2015</td> <td>77.50</td> <td>15.00</td> <td></td> <td>92.50**</td> </tr> <tr> <td>5</td> <td>Applicant No. 4</td> <td>Sanction Letter No. 1352/IDBI/CBG/KFL dated 55.0024.02.2015</td>

<td>15.00</td> <td></td> <td>77.00***</td> </tr> <tr> <td>6</td> <td>Applicant No. 5</td> <td>Sanction Letter No. SBI/OBND/RM-11/2014-15/405 dated 23.02.2015</td> <td>55.00</td> <td>12.50#</td> <td></td> <td>67.90****</td> </tr> <tr> <td>7</td> <td>Defendant No. 2</td> <td>Sanction Letter No. 45/W/36 DEI-/76953 dated 02.12.2014</td> <td>75.00</td> <td>24.00</td> <td></td> <td>75.00</td> </tr> <tr> <td>Total</td> <td></td> <td></td> <td>798.80</td> <td>148.00</td> <td>10.40</td> <td>957.20</td> </tr> </tbody> </table>

All the abbreviation details are given in the para No. 5.115 of TA.

61. The above-mentioned Working Capital Facilities were duly secured by the existing securities already created by the Defendant No. 1 and its group concern, M/s Sachdeva Brothers Pvt. Ltd., in favour of the consortium of lenders led by the Applicant No. 1. The true copies of duly accepted sanction letters of the Applicants No. 1 to 5, dated 18.08.2014 (PNB – erstwhile e-OBC), 21.05.2015 (PNB before merger), 28.08.2015, 21.04.2015, 24.02.2015, and 23.02.2015, are filed with the List of Documents as Annexure A1-101 (Applicant No. 1 – e-OBC), Annexure A1-102 (Applicant No. 1 – PNB before merger), Annexure A2-5 (Applicant No. 2), Annexure A3-7 (Applicant No. 3), Annexure A4-5 (Applicant No. 4), and Annexure A5-4 (Applicant No. 5). For the purpose of holding the securities on behalf of all lenders, the Defendant No. 3 was appointed as Security Trustee by the consortium, and the borrower, to act for and on behalf of the Applicants and Defendant No. 2. Pursuant thereto, the Defendant No. 1 passed a Board Resolution dated 12.08.2015 authorizing execution of all finance and security documents, a true copy of which is filed as Annexure A1-103.

1. 62. In consideration of the Working Capital Facilities sanctioned, the Defendant No. 1 executed in favour of the consortium a Working Capital Consortium Agreement dated 14.09.2015, a Joint Deed of Hypothecation dated 14.09.2015, and a Security Trustee Agreement dated 14.09.2015 (Annexures A1-104 to A1-106). M/s Sachdeva Brothers Pvt. Ltd. also executed a Corporate Guarantee and an Undertaking dated 14.09.2015 in favour of the Security Trustee acting for and on behalf of the consortium to secure the facilities aggregating to Rs.957.50 crores; however, the said guarantee was subsequently released upon transfer of the mortgaged property to Defendant No. 1. An Inter-se Agreement dated 14.09.2015 was executed among the Applicants and Defendant No. 2, recording pari-passu sharing of securities and authorizing the Lead Bank to act on their behalf through Letters of Authority/Power of Attorney of even date (Annexures A1-107 and A1-108). The charge in respect of the said facilities was registered with the Registrar of Companies in Form CHG-1 dated 14.09.2015, and a Certificate of Registration for modification of charge dated 14.07.2016 was issued (Annexure A1-109 Colly).

2. 63. Subsequently, fresh mortgages were created in favour of the Security Trustee in respect of the factory land at 50-51 Milestone, Murthal, Sonepat (81,920 sq. yds.), the office premises at "The Pinnacle," Faridabad (15,942 sq. ft.), and the 

industrial land measuring 20,975 sq. yds. purchased from M/s Sachdeva Brothers Pvt. Ltd., supported by Letters of Continuity, Declarations-cum-Undertakings, and Memoranda of Entry all dated 06-07.06.2016 (Annexures A1-110 to A1-112 Colly). The Security Trustee vide Letter Ref. No. 82/STCL/LEGAL/MK/2016-17 dated 24.06.2016 confirmed custody of all title deeds (Annexure A1-113).

64. The Applicant No. 4 also sanctioned a separate Bill Discounting Facility of Rs.30 crores vide sanction letter dated 24.02.2015 (Annexure A4-6E), and subsequently reset the interest on its Term Loan of Rs.31.55 crores vide letter dated 24.03.2015, which was later repaid in full, followed by issuance of a No-Due Certificate on 17.03.2017 (Annexure A4-7).

65. The Applicant No. 1 further sanctioned a fresh Term Loan of Rs.5 crores vide sanction letter dated 20.05.2017 (Annexure A1-114), while Applicant No. 2 renewed its facilities vide sanction letter dated 08.06.2017 acknowledged on 13.06.2017 (Annexure A2-6 Colly). The Defendant No. 1 subsequently shifted its registered office from Delhi to Haryana, duly recorded by the ROC on 16.08.2017 (Annexure A1-115). Despite repeated advisories and reminders, the borrower failed to regularize its accounts. A Revival Letter dated 28.09.2017 was executed by Defendant No. 1 in terms of Board Resolution dated 10.08.2017, acknowledging its liability under the Consortium Agreement (Annexure A1-116 Colly).

66. Thereafter, vide its letter dated 10.04.2018, Defendant No. 1 admitted that its account remained irregular and assured corrective steps (Annexure A1-117). Subsequently, Resolution dated 30.05.2018 was passed by Defendant No. 1 authorizing execution of supplementary documents to modify the security clause concerning receivables (Annexure A1-118).

67. In pursuance of the Resolution dated 30.05.2018, the Defendant No. 1 executed supplementary documents, namely the Supplementary Working Capital Consortium Agreement, Supplementary Security Trustee Agreement, and Supplementary Inter-se Agreement, thereby reaffirming and modifying the existing financing and security arrangements. However, after availing the said facilities, the Defendant No. 1 failed to adhere to the agreed terms and conditions and committed repeated breaches of the loan and security covenants.

68. Consequently, the respective lenders classified the accounts of the Defendant No. 1 as Non-Performing Assets (NPAs) in accordance with the RBI guidelines on 26.06.2018 by Applicant No. 1 (erstwhile OBC), on 05.06.2018 by Applicant No. 1 (PNB before merger), on 01.01.2018 by Applicant No. 2, on 30.06.2018 by Applicant No. 3, on 20.05.2018 by Applicant No. 4, and on 29.06.2018 by Applicant No. 5.

69. Thereafter, each lender initiated recovery proceedings under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002. Applicant No. 2 (erstwhile Allahabad Bank) issued a demand notice dated 02.07.2018 under Section 13(2) of the SARFAESI Act calling upon the Defendant No. 1 to pay Rs.152,07,45,467.79 (Annexure A2-7 Colly). Applicant No. 1 (erstwhile OBC) issued a notice dated 04.07.2018 under Section 13(2) demanding payment of Rs.261,78,23,321/-, which was frivolously replied to by the Defendant No. 1 on 04.09.2018 and duly rebutted by the Bank through its counsel on 18.09.2018 (Annexure A1-119 Colly). Similarly, Applicant No. 1 (PNB before merger) issued a notice dated 16.07.2018 demanding Rs.47,00,21,635.10 (Annexure A1-120 Colly). Applicant No. 4 (IDBI Bank) issued its recall notice dated 21.07.2018 calling upon the Defendant No. 1 to pay Rs.50,41,02,358.70 (Annexure A4-8 Colly), while Applicant No.


5 issued a notice dated 25.07.2018 under Section 13(2) demanding Rs.30,69,39,710.29 (Annexure A5-5 Colly). Applicant No. 3 also issued its notice dated 26.07.2018 under Section 13(2) demanding Rs.75,57,13,664/- (Annexure A3-8 Colly).

70. Despite due service of all the aforesaid notices, the Defendant No. 1 failed to regularize the loan accounts or make any payment toward the outstanding dues. Consequently, Applicant No. 4 further issued a consolidated notice dated 29.08.2018 under Section 13(2) of the SARFAESI Act in respect of the mortgaged Murthal and Faridabad properties, calling upon the Defendant No. 1 and its directors to pay Rs.50,64,83,690.70 as on 29.08.2018 within 60 days, failing which the Applicant Bank reserved its right to take further measures under Section 13(4) of the Act.

71. It is pertinent that Shri Satnam Arora, Promoter-Director of the Defendant No. 1 Company, furnished an affidavit affirming that the Defendant No. 1 was routing its entire business transactions exclusively through the consortium member banks and had closed all other accounts maintained with non-consortium banks, Annexure A1-121. Subsequently, the Defendant No. 1 executed a Revival Letter dated 03.05.2019 in favour of the Applicant No. 1, being the Lead Bank of the consortium, in terms of the Board Resolution dated 10.08.2017, thereby confirming execution of the Working Capital Consortium Agreement dated 14.09.2015 and acknowledging its continuing liability towards the working capital facilities. The said Revival Letter, executed by the authorized signatory of Defendant No. 1, Annexure A1-122. Since all fixed assets of Defendant No. 1 were already hypothecated with the consortium, and the company had acquired an additional industrial property situated at Village Hasamabad, Tehsil Sonepat, Haryana, admeasuring approximately 7,046.72

sq. yds., it was decided by the consortium that Defendant No. 1 shall create a mortgage over the said property. The said land and factory building comprised (i) land measuring 7 Kanal 15 Marla under Sale Deed No. 1979 dated 28.05.2005, and (ii) land measuring 4 Kanal 11 Marla under Sale Deed No. 1980 dated 28.05.2005, both earlier owned by M/s Bush Foods Overseas Ltd. and mortgaged with Bank of India, which, upon default, sold the same to Defendant No. 1 through a Sale Certificate dated 15.02.2016. Accordingly, in compliance with the consortium's decision, Defendant No. 1 created mortgage over the said property on 14.06.2019 by depositing the title deeds with the Security Trustee and submitting Resolution dated 29.05.2019, LTR-21 dated 15.06.2019, Sale Certificate, Indemnity Bond, and Affidavit-cum-Undertaking dated 14.06.2019 (Annexures A1-123 to A1-127).

72. It is further relevant that with effect from 1 April 2020, Oriental Bank of Commerce merged with Punjab National Bank under Gazette Notification G.S.R. 153(E) dated 04.03.2020, whereby all rights, assets, and liabilities of erstwhile OBC vested in Punjab National Bank. Accordingly, the accounts of Defendant No. 1, declared NPA with both OBC and PNB before merger, stood transferred to the Sastra Division of Punjab National Bank, which now represents the Applicant No. 1 in this OA. Likewise, Allahabad Bank merged with Indian Bank with effect from 1 April 2020 under Gazette Notification G.S.R. 156(E) dated 04.03.2020, and all its rights and liabilities were vested in Indian Bank. Pursuant to this merger, Applicant No. 2 (Indian Bank) issued a fresh demand notice dated 08.06.2020 under Section 13(2) of the SARFAESI Act, calling upon Defendant No. 1 to pay Rs.181,29,84,204/- within 60 days, failing which statutory measures under Section 13(4) would be initiated (Annexure A2-8 Colly). Similarly, after the merger of Oriental Bank of A solid green square is positioned at the bottom right of the page, below the page number.

Commerce with Punjab National Bank, Applicant No. 1 issued a consolidated notice dated 17.09.2020 under Section 13(2) of the SARFAESI Act, demanding payment of the total outstanding dues pertaining to both erstwhile OBC and PNB accounts within the prescribed period, failing which it reserved the right to proceed under Section 13(4) of the Act. The true copies of the said notice and postal receipts are filed as Annexure A1-128 Colly.

1. 73. As already stated hereinabove, the Defendant No. 1, being the absolute owner of the properties referred to above, created and/or extended mortgages over the said properties as security for the credit facilities availed from the Applicants and Defendant No. 2. The details of the said mortgages are in para No. 5.157 of OA.

2. 74. After availing the said credit facilities, the account of Defendant No. 1 was transferred from the Red Cross Society Building Branch of Applicant No. 4 to its Videocon Tower, Jhandewalan Extension, New Delhi Branch. However, despite repeated opportunities and reminders, Defendant No. 1 failed to maintain financial discipline and the account became irregular due to persistent defaults in payment of monthly interest and other dues in the Cash Credit account. The Defendant No. 1 continued to utilize and operate the enhanced credit limits sanctioned from time to time but did not adhere to the terms and conditions of the loan and security documents.

3. 75. Consequently, the outstanding liabilities in the loan accounts kept accumulating despite several written and oral requests from the consortium lenders for regularization. The Applicants held multiple meetings and issued several letters urging Defendant No. 1 to clear the arrears, but no effective steps were taken by the company to adjust or regularize its Cash Credit account. In view of these persistent defaults, the accounts were classified as Non-Performing Assets (NPAs), and the Applicants became entitled to recover additional interest at 2% per annum over and above the applicable contractual rate, in accordance with the latest sanction terms. Since the transactions between the Applicants and Defendant No. 1 are commercial in nature, the Applicants are entitled to pendent lite and future interest at the agreed contractual rates with monthly rests, along with penal interest at 2% per annum for non-compliance. All interest and compound interest have been charged and capitalized strictly in accordance with the directives of the Reserve Bank of India. It is clarified that no relief is claimed against Defendant Nos. 2 and 3, as Defendant No. 2 is a consortium member bank holding pari passu charge over the secured assets, and Defendant No. 3 is the Security Trustee appointed to hold the securities on behalf of the lenders.

76. The cause of action first arose in favour of the Applicants and against Defendant No. 1 (then Satnam Overseas Ltd.) when it availed working capital facilities of Rs.126.20 crores from Applicant No. 1 (then Oriental Bank of Commerce) and ANZ Grindlays Bank Limited under a consortium arrangement on 24.03.1998. It continued to arise through a series of renewals, enhancements, and execution of various loan, security, and mortgage documents from time to time including creation and extension of equitable mortgages over its factory and office properties at Murthal, Sonepat, and Faridabad; execution of multiple Working Capital Consortium Agreements; and acknowledgment of liabilities through Revival Letters dated 19.11.1999, 28.09.2017, and 03.05.2019. The cause of action further arose upon execution of supplementary and modification documents on 30.05.2018, classification of the account as NPA with various consortium banks between May and June 2018, and issuance of demand and recall notices by the Applicants and Defendant No. 2 under Section 13(2) of the SARFAESI Act 

between July and August 2018. It was further extended when the Defendant No. 1 created an additional mortgage over its newly acquired factory land and building admeasuring 7,046.72 sq. yds. at Village Hasamabad, Sonepat, Haryana, vide LTR-21 dated 15.06.2019, and again upon the issuance of SARFAESI notices dated 08.06.2020 by Applicant No. 2 and 17.09.2020 by Applicant No. 1 (post-merger of Allahabad Bank with Indian Bank and OBC with Punjab National Bank). Since the outstanding dues remain unpaid, the cause of action continues to subsist, and the present Original Application is within limitation.

1. 77. The Applicants have maintained their books of accounts in the regular and ordinary course of banking business, and as per the said duly maintained records, the following amounts are due and payable by the Defendant No. 1 to the respective Applicants. The particulars of such accounts are reflected in paragraph 5.168 of this Original Application.

2. 78. Accordingly, the present Application is being filed for recovery of a total sum of Rs.926,13,87,123.42 (Rupees Nine Hundred Twenty-Six Crores Thirteen Lakhs Eighty-Seven Thousand One Hundred Twenty-Three and Paise Forty-Two only) due and outstanding as on 31.03.2022 against the Defendant No. 1, who is jointly and severally liable to pay the said amount to the Applicants, Annexure A1-129 Colly, Annexure A2-12 Colly, Annexure A3-9 Colly, Annexure A4-10 Colly, and Annexure A5-6 Colly. The said Statements are duly certified in accordance with the provisions of the Bankers' Books Evidence Act, 1891, and the Certificates under Section 2A of the said Act, Annexure A1-130, Annexure A2-10, Annexure A3-10, Annexure A4-11, and Annexure A5-7.

3. 79. The Defendant No. 1 is further liable to pay interest at the agreed contractual and penal rates, namely:

- (i) Applicant No. 1 at rates ranging between 11.50% p.a. to 14.50% p.a. with additional penal interest of 2% p.a. with monthly rests against the respective Cash Credit and other working capital accounts;

- (ii) Applicant No. 2 at 11.20% p.a. and 12.20% p.a. with additional penal interest of 2% p.a.;

- (iii) Applicant No. 3 at 6% over 1-year MCLR of 8.30% plus BSS of 0.30%, i.e., effective rate of 14.60% p.a. for its working capital accounts and as per bank's extant guidelines for EPC/PCFC account;

- (iv) (iv) Applicant No. 4 at 10.50% p.a. and 12.65% p.a. with penal interest of 2% p.a.; and

- (v) Applicant No. 5 at 14.10% p.a. and 8.75% p.a. with penal interest of 2% p.a. on the respective accounts.

The Applicants, therefore, seek recovery of Rs. 926,13,87,123.42 as on 31.03.2022, together with pendent lite and future interest at the agreed contractual rates from 01.04.2022 until actual payment and realization, along with costs of this Original Application.

80. It is relevant to mention that in March 2022, pursuant to a proposal submitted by Defendant No. 1, a sum of Rs. 37.91 crores was deposited in the Escrow Account towards settlement; however, the Defendant failed to honour the settlement terms. The said amount has since been distributed among the consortium lenders in proportion to their respective shares and appropriated towards the dues of Defendant No. 1.

81. To substantiate its case, the Applicant Bank No. 1 has filed the affidavit of Mr. Varanasi Vamsee Mohan, S/o Shri Varanasi Sivaramaiah, Assistant General Manager, Punjab National Bank, Zonal SASTRA, 7, Bhikaji Cama Place, New Delhi-110008. Being well conversant with the facts and circumstances of the 

case, he is duly competent to depose on behalf of the Bank. In his affidavit, he has affirmed that the present Original Application has been instituted, signed, and verified by him in his capacity as the authorized representative and duly constituted attorney of the Applicant Bank, empowered to sign pleadings, affidavits, applications, replies, and to undertake all acts and proceedings in connection with this matter. The Power of Attorney executed in his favour dated 04.09.2003 has been placed on record and is exhibited as Ex. AW-1/1.

1. i. Power of Attorney dated 04.09.2003 executed in favour of the authorized officer of the Applicant Bank (Ex. AW-1/1);

2. ii. Working Capital documents executed by Defendant No. 1, Satnam Overseas Ltd., on 23.04.1998 (Ex. AW-1/2 to AW-1/4);

3. iii. Inter-Se Agreement between Oriental Bank of Commerce and ANZ Grindlays Bank and the Letter of Authority both dated 24.03.1998 (Ex. AW-1/5 & AW-1/6);

4. iv. Letter of Revival and Deed of Declaration (Negative Lien) both dated 19.11.1999 (Ex. AW-1/7 & AW-1/8);

5. v. Loan and Security documents executed on 23.12.1999 for enhanced limits of Rs.119 crores (Ex. AW-1/9 (i) & (ii));

6. vi. Board Resolution dated 15.06.2000 passed by Defendant No. 1 authorizing execution of security documents (Ex. AW-1/10);

7. vii. Loan and Security documents executed with OBC and Canara Bank on 21.06.2000 (Ex. AW-1/11 & AW-1/12);

8. viii. Inter-Se Agreement and Letter of Authority executed on the same date between OBC and Canara Bank (Ex. AW-1/13(i) & (ii));

9. ix. Loan and Security documents for enhanced limit of Rs.154 crores executed on 15.03.2001 (Ex. AW-1/14(i) & (ii));

- x. Supplemental Agreement to Secure Credit/Loan Facilities dated 06.05.2002 (Ex. AW-1/15);

- xi. Resolution and Counter Guarantee Agreement executed on 30.07.2002 and 05.08.2002 respectively, for Bank Guarantee limit of Rs.8.75 crores (Ex. AW-1/16(i) & (ii));

- xii. Loan and Security documents dated 26.09.2002 (Ex. AW-1/17(i) & (ii));

- xiii. Loan and Security documents for enhanced limit of Rs.125.87 crores dated 01.11.2002 (Ex. AW-1/18(i)-(iv));

- xiv. Agreement of Term Loan (FCNR Rs.2.97 crores) dated 02.11.2002 (Ex. AW-1/19(i) & (ii));

- xv. Resolution and Loan documents dated 25.11.2002 for enhanced limit of Rs.134.87 crores (Ex. AW-1/20(i) & (ii));

- xvi. Loan and Security documents for consortium limit of Rs.293.74 crores executed on 19.01.2004 (Ex. AW-1/21 to AW-1/23);

- xvii. Inter-Se Agreement and Letters of Authority between consortium banks dated 19.01.2004 (Ex. AW-1/24(i) & (ii));

- xviii. Common Agreement and Undertaking dated 29.08.2005 (Ex. AW-1/25(i) & (ii));

- xix. Resolutions under Section 21 of the Companies Act dated 28.04.2006 and 24.08.2006 (Ex. AW-1/26(i) & (ii));

- xx. Working Capital Consortium Agreement, Joint Deed of Hypothecation and Undertaking dated 25.09.2006 (Ex. AW-1/27 to AW-1/29);

- xxi. Inter-Se Agreement dated 27.05.2006 between consortium banks (Ex. AW-1/30(i) & (ii));

- xxii. Letter of Continuity relating to factory land at Murthal dated 27.05.2006 (Ex. AW-1/31);

- xxiii. Letter of Continuity executed by Sachdeva Brothers Pvt. Ltd. dated 27.05.2006 (Ex. AW-1/32(i) & (ii));

- xxiv. ROC Charge documents dated 26.07.2006 (Ex. AW-1/33);

- xxv. Agreement of Term Loan dated 29.10.2007 (Ex. AW-1/34(i) & (ii));

- xxvi. Working Capital documents executed by Defendant No. 1, Kohinoor Foods Ltd., dated 29.10.2007 (Ex. AW-1/35 to AW-1/38);

- xxvii. Board Resolution of Sachdeva Brothers Pvt. Ltd. dated 27.10.2007 (Ex. AW-1/39);

- xxviii. Letter of Continuity in respect of mortgaged property at Murthal dated 29.10.2007 (Ex. AW-1/40(i) & (ii));

- xxix. ROC charge documents dated 26.11.2007 (Ex. AW-1/41);

- xxx. Sanction Letter for Corporate Loan of ₹22.50 crores dated 24.12.2007 (Ex. AW-1/42);

- xxxi. Supplemental Loan and Security documents dated 27.12.2007 (Ex. AW-1/43 to AW-1/46);

- xxxii. Letter of Continuity executed by Defendant and Sachdeva Brothers Pvt. Ltd. dated 27.12.2007 (Ex. AW-1/47(i) & (ii));

- xxxiii. ROC Charge documents dated 29.01.2008 (Ex. AW-1/48);

- xxxiv. Resolution dated 30.10.2008 for renewal of working capital limit of Rs.399.51 crores (Ex. AW-1/49);

- xxxv. Security and Finance documents executed on 03.11.2008 (Ex. AW-1/50);

- xxxvi. Inter-Se Agreement executed between consortium banks on 03.11.2008 (Ex. AW-1/51);

- xxxvii. Hypothecation Deed and charge filing confirmation dated 03.11.2008 (Ex. AW-1/52);

- xxxviii. Mortgage creation letter and related property documents dated 03.11.2008 (Ex. AW-1/53);

- xxxix. Corporate Guarantee executed by Sachdeva Brothers Pvt. Ltd. dated 28.09.2006 (Ex. AW-1/54);

- xl. ROC acknowledgment of final charge filing in 2008 (Ex. AW-1/55)

- xli. Letter of Continuity dated 04.11.2008 (Ex. AW-1/56 Colly);

- xl.ii. Resolution and Finance Documents dated 29.06.2009 executed by Defendant No. 1 and M/s Sachdeva Brothers Pvt. Ltd. creating pari-passu charge over the current and fixed assets (Ex. AW-1/57 to AW-1/60);

- xl.iii. Inter-se Agreement and Letters of Authority dated 29.06.2009 (Ex. AW-1/61 & AW-1/62);

- xl.iv. Letters of Continuity extending mortgage and Corporate Guarantee dated 13.07.2009 (Ex. AW-1/63 to AW-1/65);

- xl.v. ROC charge documents dated 23.09.2009 (Ex. AW-1/66);

- xlvi. Sanction Letters and Loan Documents dated 20.01.2012 and 21.01.2012 executed pursuant to the resolutions passed by Defendant No. 1 (Ex. AW-1/67 to AW-1/69);

- xlvii. Term Loan Agreement and Common Agreement dated 02.01.2012 and 10.02.2012 (Ex. AW-1/70);

- xlviii. Resolution dated 10.11.2012 and subsequent Finance and Security Documents executed on 28.12.2012, including the Inter-se Agreement and Letters of Continuity (Ex. AW-1/71 to AW-1/77);

- xlix. Sanction Letters dated 01.01.2013 and 29.08.2013 enhancing the limits to Rs.854.40 crores, along with corresponding Resolutions and Security Documents dated 14.08.2013 and 16.08.2013 (Ex. AW-1/79 to AW-1/85);

- 1. Inter-se Agreement dated 16.08.2013 and ROC charge confirmation dated 14.08.2013 (Ex. AW-1/86 & AW-1/87);

- li. Supplemental, Hypothecation, and Negative Lien Agreements dated 29.10.2013 and 18.12.2013 (Ex. AW-1/88 & AW-1/89);

- lii. Resolution of Defendant No. 1 and M/s Sachdeva Brothers Pvt. Ltd. for creation of securities dated 29.05.2014 and 15.07.2014 (Ex. AW-1/90),

- liii. Loan and Security Documents executed by Defendant No. 1 for Working Capital Facilities dated 31.07.2014 (Ex. AW-1/91 to AW-1/93),

- liv. Inter-se Agreement and Letters of Authority among the Applicants and Defendant No. 2 confirming sharing of securities dated 31.07.2014 (Ex. AW-1/94 to AW-1/96).

- lv. Letter of Continuity in respect of Murthal Property dated 09.09.2014 (Ex. AW-1/97),

- lvi. Letter of Continuity in respect of Faridabad Property dated 09.09.2014/19.09.2014 (Ex. AW-1/98),

- lvii. Letter of Continuity in respect of Sachdeva Brothers Property dated 31.07.2014 (Ex. AW-1/99),

- lviii. Corporate Guarantee executed by M/s Sachdeva Brothers Pvt. Ltd. dated 31.07.2014 (Ex. AW-1/100(i)),

- lix. Registration of Charges with ROC dated 31.07.2014 and 09.09.2014 (Ex. AW-1/100(ii-iv)),

- lx. Sanction Letter issued by Applicant No. 1 (e-OBC) dated 18.08.2014 (Ex. AW-1/101),

- lxi. Sanction Letter issued by Applicant No. 2 (PNB) dated 21.05.2015 (Ex. AW-1/102),

- lxii. Resolution passed by Defendant No. 1 dated 12.08.2015 (Ex. AW-1/103),

- lxiii. Loan and Security Documents executed on 14.09.2015 (Ex. AW-1/104 to AW-1/106),

- lxiv. Corporate Guarantee executed by M/s Sachdeva Brothers Pvt. Ltd. dated 14.09.2015 (Ex. AW-1/107),

- lxv. Inter-se Agreement along with Letters of Authority dated 14.09.2015 (Ex. AW-1/108).

- lxvi. ROC in Form No. CHG-1 dated 14.09.2015 and Certificate of Registration for Modification of Charge dated 14.07.2016 (Ex. AW-1/109(i) & (ii));

- lxvii. Mortgage of land measuring 81,920 sq. yds. situated at 50-51 Milestone, Murthal, Sonepat, Haryana on the basis of documents dated 06.06.2016 and 07.06.2016 (Ex. AW-1/110(i) to (iii));

- lxviii. Mortgage of premises situated at 10th Floor, Plot Nos. 103, 104 & 105, measuring 15,942 sq. ft., "The Pinnacle", Faridabad, Haryana, on the basis of documents dated 06.06.2016 and 07.06.2016 (Ex. AW-1/111(i) to (iii));

- lxx. Sale Deed executed by M/s Sachdeva Brothers Pvt. Ltd. in favour of Defendant No. 1 dated 12.04.2016 (Ex. AW-1/112(i) to (iii));

- lxx. Letter issued by Security Trustee vide Ref. No. 82/STCL/LEGAL/MK/2016-17 dated 24.06.2016 confirming custody of title deeds (Ex. AW-1/113);

- lxxi. Sanction Letter issued by Applicant No. 1 (e-OBC) dated 20.05.2017 (Ex. AW-1/114);

- lxxii. Certificate of Registration for change of registered office dated 16.08.2017 (Ex. AW-1/115);

- lxxiii. Revival Letter executed by Defendant No. 1 dated 28.09.2017 (Ex. AW-1/116(i));

- lxxiv. Letter issued by Defendant No. 1 dated 10.04.2018 (Ex. AW-1/117);

- lxxv. Resolution dated 30.05.2018 submitted by Defendant No. 1 for execution of supplementary documents (Ex. AW-1/118); 

- lxxvi. Notice under Section 13(2) of SARFAESI Act dated 04.07.2018, Reply dated 04.09.2018, and Response dated 18.09.2018 (Ex. AW-1/119(i) to (iv));

- lxxvii. Notice under Section 13(2) of SARFAESI Act dated 16.07.2018 issued by Applicant No. 1 (PNB before merger) (Ex. AW-1/120);

- lxxviii. Affidavit of Shri Satnam Arora, Promoter-Director of Defendant No. 1 (Ex. AW-1/121);

- lxxix. Revival Letter executed by Defendant No. 1 dated 03.05.2019 (Ex. AW-1/122);

- lxxx. Mortgage documents executed on 14.06.2019 (Ex. AW-1/123 to AW-1/127);

- lxxxi. Notice under Section 13(2) of SARFAESI Act dated 17.09.2020 issued by Punjab National Bank (Ex. AW-1/128(i));

- lxxxii. Certified Statement of Accounts and Memorandum of Interest (Ex. AW-1/129 Colly);

- lxxxiii. Certificate under Section 2-A of the Bankers' Books Evidence Act (Ex. AW-1/130).

82. To substantiate its case, Applicant Bank No. 2 has filed the affidavit of Mr. Vikram Singh, Chief Manager, Indian Bank, Stressed Assets Management Branch, Parliament Street, New Delhi. Being fully conversant with the facts of the case, he is competent to depose on behalf of the Bank. He has affirmed that the Original Application has been instituted, signed, and verified by him as the authorized representative of Applicant No. 2, empowered under the Letter of Authority dated 20.04.2022, (Ex. AW-2/1).

- i. Letter of Authority/Authorization dated 20.04.2022, filed at Serial No. 129 (Ex. AW-2/1)

- ii. Sanction Letter dated 22.06.2011, filed at Serial No. 130 (Ex. AW-2/2);

- iii. Sanction Letter bearing Ref. No. ALB/ND/IB/ADV/SL/004 dated 04.04.2012, filed at Serial No. 131 (Ex. AW-2/3);

- iv. Sanction Letters dated 28.05.2013 and 19.12.2013, filed at Serial No. 132 as (Ex. AW-2/4) (i) and (ii);

- v. Sanction Letter No. IB/ND/ADV/SL/KFL/2015-16/489 dated 28.08.2015, filed at Serial No. 133 (Ex. AW-2/5);

- vi. Sanction Letter bearing Ref. No. IB/ND/ADV/2017-19 dated 08.06.2017 along with Acknowledgement dated 13.06.2017, filed at Serial No. 134 (Ex. AW-2/6) (i) and (ii);

- vii. Notice dated 02.07.2018 issued under *Section 13(2) of the SARFAESI Act* along with six postal receipts, filed at Serial No. 135 (Ex. AW-2/7) and AW-2/7(i) to (vi);

- viii. Notice dated 08.06.2020 issued under *Section 13(2) of the SARFAESI Act* along with five postal receipts and five tracking receipts, filed at Serial No. 136 (Ex. AW-2/8), AW-2/8(i) to (x);

- ix. Certified Statement of Accounts and Memorandum of Interest, filed at Serial No. 161 (Ex. AW-2/9) (i) and (ii);

- x. Certificate under Section 2A of the Bankers' Books Evidence Act, filed at Serial No. 162 (Ex. AW-2/10).

83. To substantiate its case, Applicant Bank No. 3 has filed the affidavit of Mr. Alok Shankar, S/o Shri Binod Shankar Prasad, Assistant General Manager, Bank of India, New Delhi Large Corporate Branch, 10th Floor, Chandrlok Building, 36, Janpath, New Delhi – 110001. Being fully conversant with the facts of the case, he is competent to depose on behalf of the Bank. He has affirmed that the Original Application has been instituted, signed, and verified by him as the authorised representative of Applicant No. 3, Bank of India, in terms of the Power of Attorney dated 01.09.2018 executed in his favour, by virtue of which he is duly


empowered to sign pleadings and depose on behalf of the Bank. (Ex. AW-3/1). He has further stated that the affidavit of evidence filed by AW-1 on behalf of Applicant No. 1 (Punjab National Bank) may be read as part and parcel of his affidavit to avoid repetition, and that the Applicant No. 3 Bank was, at the relevant time, having its branch office at New Delhi Overseas Branch, Vijaya Building, 17, Barakhamba Road, New Delhi.

1. i. Sanction Letter bearing No. NOD/ADV/SK/25/144 dated 14.12.2009 along with the Defendant's acknowledgment letter dated 16.12.2009 and amended Sanction Letter No. NDO/ADV/SK/144A dated 14.01.2010, filed at Serial No. 138 (Ex. AW-3/2) (i to iii);

2. ii. Sanction Letter No. NDO/ADV/HSC/26 dated 19.08.2010 renewing working capital limits and sanctioning term loan, filed at Serial No. 139 (Ex. AW-3/3);

3. iii. Sanction Letter dated 12.07.2011 for working capital limits of Rs.74.30 Crores, filed at Serial No. 140 (Ex. AW-3/4);

4. iv. Sanction Letter dated 02.07.2013 for Rs.81 Crores, filed at Serial No. 141 (Ex. AW-3/5);

5. v. Sanction Letter bearing Ref. No. NDLCB/RV/2013-14/192 dated 19.03.2014 sanctioning limits up to Rs.112.50 Crores, filed at Serial No. 142 (Ex. AW-3/6);

6. vi. Sanction Letter bearing Ref. No. NDLCB/MA/2015-16/87 dated 21.04.2015 sanctioning limits up to Rs.92.50 Crores, filed at Serial No. 143 (Ex. AW-3/7);

7. vii. Notice under Section 13(2) of the SARFAESI Act bearing Ref. No. NDLCB/2018-19/199 dated 26.07.2018, along with five original postal receipts and tracking receipts, filed at Serial No. 144 (Ex. AW-3/8, AW-3/8(i) to (v) and AW-3/8(vi) to (x));

8. viii. Certified Statements of Accounts and Memorandum of Interest filed at Serial No. 163 (Ex. AW-3/9(i) and (ii))

ix. Certificate under Section 2-A of the Bankers' Books Evidence Act filed at Serial No. 164 (Ex. AW-3/10).

84. To substantiate its case, Applicant Bank No. 4 has filed the affidavit of Mrs. Rima Bansal, W/o Mr. Naresh Kumar, Assistant General Manager, IDBI Bank Limited, 1st Floor, Videocon Tower, E-1, Jhandewalan Extension, New Delhi- 110055. Being fully conversant with the facts of the case, she is competent to depose on behalf of the Bank. She has affirmed that the Original Application has been instituted, signed, and verified by her as the authorised representative of Applicant No. 4- IDBI Bank Limited, in terms of the Delegation of Power effective from March 2020 executed in her favour, by virtue of which she is duly empowered to sign pleadings and depose on behalf of the Bank (Ex. AW-4/1). She has further stated that the affidavit of evidence filed by AW-1 on behalf of Applicant No. 1 (Punjab National Bank) may be read as part and parcel of her affidavit to avoid repetition.

1. i. Sanction Letter dated 01.10.2008 (Ex. AW-4/2)

2. ii. Sanction Letter dated 13.03.2010 – (Part of Loan Agreement)

3. iii. Loan Agreement dated 22.03.2010 – (Related to Ex. AW-4/2)

4. iv. Sanction Letters dated 16.05.2011 and 17.02.2011 (Ex. AW-4/3)

5. v. Sanction Letter dated 11.07.2013 (Ex. AW-4/4)

6. vi. Sanction Letter dated 24.02.2015 (No. 1352/IDBI/CBG/KFL) (Ex. AW-4/5)

7. vii. Sanction Letter dated 24.02.2015 (No. IDBI/ND/BG/1353/14-15) (Ex. AW-4/6)

8. viii. No Due Certificate dated 17.03.2017 (Ex. AW-4/7)

9. ix. Recall Notice dated 21.07.2018 (Ex. AW-4/8) and (Ex. AW-4/8) (i) to (v)

A solid green square is positioned at the bottom right of the page, below the page number 52.

- x. SARFAESI Notice dated 29.08.2018 (Ex. AW-4/9) and (Ex. AW-4/9) (i) to (v)

- xi. Statement of Account & Memorandum of Interest (Ex. AW-4/10) (i) & (ii)

- xii. Certificate under Section 2A of Bankers' Books Evidence Act (Ex. AW-4/11)

85. To substantiate its case, Applicant Bank No. 5 has filed the affidavit of Mr. S. V. Saravanan, S/o Shri S. P. Viswanathan, Assistant General Manager, Stressed Assets Management Branch-I, State Bank of India, New Delhi, being conversant with the facts of the case and duly authorised under General Regulations 76 and 77 of the State Bank of India General Regulations, 1955, as published in the Gazette of India dated 02.05.1987 (Ex. AW-5/1). He has further stated that the affidavit of evidence filed by AW-1 on behalf of Applicant No. 1 (Punjab National Bank) may be read as part of this affidavit to avoid repetition.

- i. Sanction Letter dated 16.05.2011 and 23.05.2011(Ex. AW-5/2);

- ii. Sanction Letter dated 04.03.2013(Ex. AW-5/3);

- iii. Sanction Letter No. SBI/OBND/RM-11/2014-15/405 dated 23.02.2015(Ex. AW-5/4);

- iv. Recall Notice dated 25.07.2018(Ex. AW-5/5);

- v. Postal Receipts (Ex. AW-5/5) (i) & (ii);

- vi. Acknowledgment (Ex. AW-5/5) (iii);

- vii. Statements of Accounts and Memorandum of Interest (Ex. AW-5/6);

- viii. Certificate under Section 2-A of the Bankers' Books Evidence Act (Ex. AW-5/7).

86. The witnesses of Applicant Banks have fully corroborated the averments made in the TA. Even otherwise the whole case of the Applicant Banks is based on the documents and the witnesses have duly proved all these documents. The evidence filed by the Applicant Banks gone unrebuted and there is no question of disbelieving the evidence lead by the Applicant Banks and Applicant Banks have proved their case beyond reasonable doubts. Accordingly, the banks are 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 Banks have proved their claim beyond any doubt.

87. In this TA, Applicant Banks have prayed to issue recovery certificate against Defendant No. 1, being the principal borrower in the present matter, is engaged in the business of processing and trading of rice and had availed various financial facilities from the consortium of Applicant Banks for its business operations. The Applicants along with Defendant No. 2 are consortium lenders who sanctioned and renewed the said credit facilities from time to time, while Defendant No. 3 is the Security Trustee holding securities created by Defendant No. 1 on behalf of the consortium lenders.

88. Consequently, TA No. 30/2022 stands allowed in favour of Applicant Banks and against Defendants no. 1, who is liable to pay the dues of the Applicant Banks along with costs and pendentelite & future interest@ 11% 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. 30/2022 stands allowed and the Defendants No. 1 is directed to pay to the Applicant Banks, within 30 days, a sum of Rs. 926,13,87,123.42 (Rupees Nine Hundred Twenty-Six Crores Thirteen Lakhs Eighty-Seven Thousand One Hundred Twenty-Three and Paise Forty-Two Only) less the amount received from the sale/ release of mortgaged propertiesalong with cost and 

pendentelite and future interest, as claimed in TA i.e. @ 11% 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. 1.

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 22.12.2025.

- (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: 28.10.2025

K. Singh

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

.2025

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