STATE BANK OF INDIA vs M/S SHILPI CABLES PVT LTD on 31 October 2025

**FINAL ORDER**

1. 1. This Original Application has been filed on 05.03.2019 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, by the Applicant Bank for recovery of a sum of Rs. 231,76,63,128/- (Rupees Two Hundred Thirty-One Crores Seventy-Six Lakhs Sixty-Three Thousand One Hundred Twenty-Eight Only) as on 31.01.2019, inclusive of interest up to that date, along with further interest at the respective contractual rates as per the sheet attached, above the Base Rate per annum with monthly rests, from 01.02.2019 till realization in full, together with costs, charges, and other expenses. The Applicant Bank, a body corporate constituted under the State Bank of India Act, 1955, having its Head Office at State Bank Bhavan, Madame Cama Road, Nariman Point, Mumbai-400021, and one of its Branch Offices at SAMB-II Branch, 2nd & 3rd Floor, 18/4, Arya Samaj Road, Karol Bagh, New Delhi-110005, has instituted the present proceedings through Mr. Sunil Gupta, Assistant General Manager, who is presently posted at the Industrial Finance Branch, New Delhi, and is duly conversant with the facts and circumstances of the case. He is competent and authorized to sign, verify, and present the application and related pleadings on behalf of the Applicant Bank in terms of the State Bank of India General Regulations, 1955, and under Regulations 76 and 77 framed by the Reserve Bank of India pursuant to sub-section (3) of Section 50 of the State Bank of India Act, 1955, with prior sanction of the Central Government, as notified in the Gazette of India dated 26.09.1959, 28.08.1972, and 02.05.1987. Annexure A-I.

1. 2. It is pertinent here that this OA bearing no. 431/2019 was originally filed before Ld. DRT-II, Delhi, however, in pursuance to Gazette Notification No. 4718(E) dated 04.10.2022 issued by Government of India, Department of Financial Services, Ministry of Finance, this case file was transferred by Ld. DRT-II, Delhi to this Tribunal in 11.11.2022 and was numbered at TA-290/2022.

2. 3. The brief facts of the case are that Defendants No. 1 to 3 are Corporate Guarantors and Defendants No. 4 to 6 are Personal Guarantors for the credit facilities granted to the Principal Borrower, M/s Shilpi Cables Technologies Ltd., which is presently undergoing CIRP under the IBC, 2016. The Applicant Bank has therefore filed the present proceedings under Section 19 of the RDB Act, 1993 read with Part III of the IBC, 2016, in view of the IBC Amendment Notification dated 06.06.2018 and the judgment of the Hon'ble Supreme Court in *State Bank of India v. V. Ramakrishnan &Anr.* (Civil Appeal No. 3595/2018). Defendants No. 1 to 6, being guarantors and mortgagors, are necessary and proper parties to the case. Defendants No. 7 to 19 are consortium member banks impleaded as proforma defendants against whom no relief is sought, while Defendant No. 20, the Principal Borrower, is under moratorium and hence no relief is claimed against it. The facilities were secured through corporate and personal guarantees, supported by Board Resolutions dated 01.08.2014 and 02.12.2015, and by first pari passu equitable mortgages over immovable properties detailed in Annexures A/2 to A/8 (Colly).

1. 4. So far as, all the Defendants No. 1 to 6 have remained ex parte since 11.12.2019, Despite due service of summons, the said Defendants failed to appear or file their response before this Tribunal, and accordingly, proceedings against them were initiated and continued ex parte.

2. 5. It is pertinent that Defendant No. 4 has expired, and the legal representatives of the said defendant have already been brought on record in accordance with law. Further, Defendants No. 5 and 6 were earlier undergoing personal insolvency proceedings before the Ld. NCLT, Delhi, which were admitted on 24.05.2017 under the provisions of the Insolvency and Bankruptcy Code, 2016. However, since the moratorium period in respect of the said proceedings has now come to an end, Defendants No. 5 and 6 are presently contesting the matter before this Tribunal as ex-parte defendants.

3. 6. It is further stated that the Principal Borrower, M/s Shilpi Cables Technologies Ltd., had been availing various credit facilities from the Applicant Bank, its then Associate Banks, and other consortium banks, which were renewed and enhanced from time to time at the request of the Borrower. The Applicant Bank, then known as eSBBJ, vide sanction letter No. BKR/C&I/AMT-1/SCTL/5518 dated 02.11.2015 (Annexure A/2), sanctioned a Working Capital Facility of Rs. 50.00 Crores to the Principal Borrower, while the then eSBH sanctioned facilities vide sanction letter No. F/Adv/AMT-II/1037 dated 23.10.2015 (Annexure A/3). As per the terms, the facilities were secured by a first pari passu hypothecation charge over the Borrower's current and fixed assets (both movable and immovable) along with first pari passu equitable mortgages over several properties, namely:

1. i. House No. 269, Khasra No. 358, measuring 300 sq. yds., Village Aali, Mehrauli, New Delhi, in the name of Shri Mukesh Kumar Gupta;

2. ii. House No. 134 (Old No. 21), Khasra No. 358, measuring 167 sq. yds., Village Aali, Mehrauli, New Delhi, in the name of Shri Mukesh Kumar Gupta;

3. iii. Property No. D-1112, measuring 382.50 sq. yds., New Friends Colony, New Delhi, in the name of Shri Vishal Goel;

4. iv. Property bearing MCD No. 268, Khasra No. 358, measuring 324 sq. yds., Village Aali, Kalkaji, New Delhi, in the name of Shri Vishal Goel; and

5. v. Plot No. E-138, RIICO Industrial Area, Bhiwadi, Rajasthan, measuring 4000 sq. meters, in the name of M/s Shilpi Cables Pvt. Ltd.

The said facilities were further secured by corporate guarantees of Defendants No. 1, 2, and 3, and personal guarantees of Defendants No. 4, 5, and 6. In acceptance of the sanction terms, the Principal Borrower and the guarantors passed necessary Board Resolutions authorizing execution of loan and security documents namely, the Borrower vide resolutions dated 11.09.2014 and 02.12.2015 (Annexure A/4 Colly), Defendant No. 1 vide resolutions dated 01.08.2014 and 02.12.2015 (Annexure A/5 Colly), Defendant No. 2 vide resolutions dated 01.08.2014 and 02.12.2015 (Annexure A/6 Colly), and Defendant No. 3 vide resolutions dated 01.08.2014 and 02.12.2015 (Annexure A/7 Colly).

1. 7. After the Board Resolutions were duly passed by Defendants No. 1, 2, and 3 and the terms and conditions of the sanction letters were accepted by the Principal Borrower and Defendants No. 1 to 6, a consortium of banks was constituted under the leadership of Defendant No. 7, with the then eSBBJ and eSBH as member banks. Upon constitution of the consortium on 04.12.2015, various loan and security documents were executed among the consortium banks, the Principal Borrower, and Defendants No. 1 to 6 for a total sanctioned limit of Rs. 867.50 Crores. These documents included the Working Capital Consortium Agreement, Inter-se Agreements among the banks, Agreement for Pledge of Shares, Deed of Guarantee executed by Shri Mukesh Kumar Gupta, Shri Manish Goel, and Shri Vishal Goel, and several Undertakings to Create Mortgage executed by the guarantors and directors of the Borrower entities. Additional documents such as Undertakings, Declarations and Assurances, Joint Omnibus Counter Guarantee Agreement, Joint Deed of Hypothecation, Corporate Guarantees executed by directors of M/s Shilpi Cables Pvt. Ltd., M/s MVM Impex Pvt. Ltd., and M/s Shilpi Communications Pvt. Ltd., Consent Letters for Disclosure, and Letters of Authority to the Lead Bank (IDBI Bank Ltd.) were also executed, all dated 04.12.2015.

1. 8. Furthermore, IDBI Bank issued a confirmation letter to Punjab National Bank, Patparganj Branch, Delhi, confirming extension of mortgage over the properties of Shri Mukesh Kumar Gupta and Shri Vishal Goel, supported by the corresponding Memorandum of Entry. Annexure A/8 (Colly).

2. 9. It is stated that on 04.12.2015, Defendants No. 3 and 4 appeared before Punjab National Bank, Defendant No. 10, and created equitable mortgages over the properties detailed in para No. 5(f) of TA. The particulars of the title deeds and the corresponding mortgages are provided in Annexure A/9 (Colly).

3. 10. It is stated that the Principal Borrower had also created an equitable mortgage over its land and building in favor of IDBI Bank Limited, the Lead Bank of the consortium. However, since the Principal Borrower is presently undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency and Bankruptcy Code, 2016, and a moratorium is in effect, the said mortgage created by the Principal Borrower in favor of the consortium has not been included in the present Original Application. The Applicant Bank, however, reserves its right to include the said mortgage in these proceedings in the event the Principal Borrower exits the CIRP without a resolution plan. It is further stated that Defendant No. 1 has created an equitable mortgage over the property detailed in para No. 5(h) of TA, in favor of the consortium with IDBI Bank Limited as the Lead Bank. The particulars of the title deeds and the corresponding mortgages are provided in Annexure A/10 (Colly).

4. 11. Subsequently, the Principal Borrower, through Defendants No. 4 to 6, again approached the consortium banks seeking enhancement of the existing Working Capital Facility from Rs. 867.50 Crores to Rs. 975.00 Crores. In support of this request, the Borrower offered primary security by way of first pari passu charge through hypothecation and/or pledge of its entire current assets, including stocks of raw materials, semi-finished and finished goods, consumable stores and spares (not related to plant and machinery), bills receivable, book debts, and all other movable assets, both present and future, excluding such movables as may be permitted by the banks from time to time.

The collateral security offered included:

1. a. first pari passu charge on the fixed assets, both movable and immovable, of the company, present and future;

2. b. extension of equitable mortgage over the property at Bhiwadi, Rajasthan, being Plot No. E-138, RIICO Industrial Area, admeasuring 4000 sq. meters in the name of M/s Shilpi Cables Pvt. Ltd.;

3. c. pledge of 3.35 crore shares of M/s Shilpi Cables Technologies Ltd. on a first pari passu basis with other consortium banks;

4. d. extension of equitable mortgage over property bearing House No. 269, Khasra No. 358, Village Aali, New Delhi-110044, measuring approximately 300 sq. yards, in the name of Shri Mukesh Kumar Gupta;

5. e. extension of equitable mortgage over freehold built-up property No. D-1112, measuring 382.50 sq. yards, New Friends Colony, New Delhi, in the name of Shri Vishal Goel; and

6. f. extension of equitable mortgage over property bearing MCD No. 268, Khasra No. 358, measuring 324 sq. yards within Abadi Lal Dora of Village Aali, Kalkaji, New Delhi, in the name of Shri Vishal Goel.

In addition, the Principal Borrower furnished corporate guarantees of Defendants No. 1 to 3 and personal guarantees of Defendants No. 4 to 6. Based on these representations, the Applicant Bank sanctioned an additional credit facility of Rs. 50.00 Crores vide sanction letter No. RM(ME)/2015-16/173 dated 23.12.2015 (Annexure A/11), while the then eSBH sanctioned Rs. 50.00 Crores vide sanction letter No. F/Adv./AMT-II/SCTL/1037 dated 23.10.2015, and the then eSBBJ sanctioned Rs. 50.00 Crores vide sanction letter No. BKR/C&I/AMT-1/SCTL/5518 dated 02.11.2015 (Annexure A/12).

1. 12. To accept the terms and conditions of the enhanced sanction letters, the Principal Borrower, M/s Shilpi Cables Technologies Ltd., passed Board Resolutions dated 11.09.2014 under Sections 180(1)(a) and 180(1)(c) of the Companies Act, 2013, and further resolutions dated 03.02.2016 authorizing execution of loan and security documents and creation of equitable mortgages in favor of the consortium banks. Annexure A/13 (Colly).

2. 13. Similarly, Defendant No. 1 passed Board Resolutions dated 26.10.2015 and 03.02.2016 (Annexure A/14 Colly), Defendant No. 2 passed Board Resolutions dated 01.08.2014 and 03.02.2016 (Annexure A/15 Colly), and Defendant No. 3 passed Board Resolutions dated 01.08.2014 and 03.02.2016 (Annexure A/16 Colly) authorizing execution of guarantee documents and creation of mortgages in favor of the consortium. Pursuant to the passing of these resolutions and the acceptance of the sanction terms, a consortium of banks was reconstituted under the leadership of Defendant No. 7, with eSBBJ and eSBH as member banks. Upon constitution of the consortium on 03.02.2016, several loan and security documents were executed among the consortium banks, the Principal Borrower, and Defendants No. 1 to 6 for the enhanced total limit of Rs. 975.00 Crores. These included the Working Capital Consortium Agreement, Inter-se Agreements, Agreement for Pledge of Shares, Deed of Guarantee, various Undertakings to Create Mortgage, Joint Omnibus Counter Guarantee Agreement, Joint Deed of Hypothecation, Corporate Guarantees executed by the directors of M/s Shilpi Cables Pvt. Ltd., M/s MVM Impex Pvt. Ltd., and M/s Shilpi Communications Pvt. Ltd., along with Consent Letters for Disclosure and Letters of Authority issued to the Lead Bank, IDBI Bank Ltd. IDBI Bank also confirmed the extension of mortgage over the properties of Shri Mukesh Kumar Gupta and Shri Vishal Goel through a letter dated 03.02.2016 addressed to Punjab National Bank, Patparganj Branch, Delhi, supported by the corresponding Memorandum of Entry. Annexure A/17 (Colly).

1. 14. It is stated that on 03.02.2016, Defendants No. 3 and 4 personally appeared before Punjab National Bank, Defendant No. 10, and created equitable mortgages over the properties detailed in para No.5(k) of TA. The particulars of the title deeds and the corresponding mortgage transactions are provided in Annexure A/18 (Colly).

2. 15. It is stated that the Principal Borrower had also created an equitable mortgage over its land and building in favor of IDBI Bank Limited, the Lead Bank of the consortium. However, since the Principal Borrower is presently undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency and Bankruptcy Code, 2016, and the moratorium under Section 14 of the Code is in effect, the said mortgage created by the Principal Borrower in favor of the consortium has not been included in the present Original Application. The Applicant Bank, however, reserves its right to include the said mortgage in the event the Principal Borrower exits CIRP without resolution.

1. 16. It is further submitted that Defendant No. 1 created an equitable mortgage in favor of the consortium with IDBI Bank Limited, the Lead Bank, over its immovable property measuring 4000 sq. meters bearing Plot No. E-138, RIICO Industrial Area, Bhiwadi, Rajasthan, in the name of M/s Shilpi Cables Pvt. Ltd. The said mortgage was supported by title documents, namely:

1. i. Original Sale Deed No. 2007000475 dated 19.01.2007,

2. ii. Agreement to Sell dated 17.05.1994,

3. iii. Original Lease Agreement dated 08.07.1981, and

4. iv. Original Provisional Entitlement Certificate dated 25.11.2006, along with requisite permissions to mortgage from the Rajasthan State Industrial & Municipal Development Corporation Limited and the Income Tax Department. The equitable mortgage was created and confirmed on 03.02.2016 securing an amount of Rs. 975.00 Crores. Annexure A/19 (Colly).

1. 17. It is further stated that Defendant No. 20, the Principal Borrower, through Defendants No. 1 to 6, approached the then eSBH for sanction of a Term Loan of Rs. 25.00 Crores, which was sanctioned vide sanction letter No. F/Adv./AMT-II/SCTL dated 26.05.2016 (Annexure A/20). To accept the terms and conditions of the said sanction, the Corporate Guarantor Defendants and the Principal Borrower passed their respective Board Resolutions dated 30.05.2016, Annexure A/21 (Colly). Pursuant to the acceptance of the terms and conditions, Defendants No. 1 to 6 and Defendant No. 20 executed various loan and security documents on 14.06.2016, including

- i. Form C-1 – Agreement of Loan for Overall Limit,

- ii. Form C-2 – Agreement of Hypothecation of Goods and Assets,

- iii. Form C-5 – Letter regarding Grant of Individual Limit,

- iv. Form C-4 – Deeds of Guarantee executed individually by Defendant Nos. 1 to 6, all securing the Term Loan of Rs. 25.00 Crores. Annexure A/22 (Colly).

18. Thereafter, Defendant Banks, i.e., Defendants No. 7 to 19, issued their respective no-objection and charge ceding letters dated 13.10.2016, 25.01.2017, 14.03.2017, 25.04.2017, 02.05.2017, 03.05.2017, 14.05.2017, 23.05.2017, 06.06.2017, and 17.06.2017, thereby ceding their charge and mortgage in favor of the then eSBH for the aforesaid Term Loan of Rs. 25.00 Crores. Annexure A/23 (Colly).

19. That, in November 2016, the Principal Borrower, through Defendants No. 4 to 6, once again approached the consortium banks seeking enhancement of the existing Working Capital Facility from Rs. 975.00 Crores to Rs. 1,225.00 Crores. In support of this request, the Borrower offered *primary security* by way of first pari passu charge through hypothecation and/or pledge of its entire current assets, including stocks of raw materials, semi-finished and finished goods, consumable stores and spares (not relating to plant and machinery), bills receivable, book debts, and all other movable assets, both present and future, excluding such movables as may be permitted by the banks from time to time. The *collateral security* offered included:

- i. first pari passu charge on the fixed assets, both movable and immovable, of the company, present and future;

- ii. extension of equitable mortgage over property at Bhiwadi, Rajasthan, being Plot No. E-138, RIICO

Industrial Area, admeasuring 4000 sq. meters in the name of M/s Shilpi Cables Pvt. Ltd.;

- iii. pledge of 3.35 crore shares of M/s Shilpi Cables Technologies Ltd. on a first pari passu basis with other consortium banks;

- iv. extension of equitable mortgage over property bearing House No. 269, Khasra No. 358, Village Aali, New Delhi-110044, measuring approximately 300 sq. yards, in the name of Shri Mukesh Kumar Gupta;

- v. extension of equitable mortgage over property bearing Old House No. 21, New House No. 134, Khasra No. 358, measuring 167 sq. yards, Village Aali, Mehrauli, New Delhi, in the name of Shri Mukesh Kumar Gupta;

- vi. extension of equitable mortgage over property bearing No. D-1112, measuring 382.50 sq. yards, New Friends Colony, New Delhi, in the name of Shri Vishal Goel; and

- vii. extension of equitable mortgage over property bearing MCD No. 268, Khasra No. 358, measuring 324 sq. yards within Abadi Lal Dora of Village Aali, Kalkaji, New Delhi, in the name of Shri Vishal Goel.

In addition, the Principal Borrower furnished *corporate guarantees* of Defendants No. 1 to 3 and *personal guarantees* of Defendants No. 4 to 6. Based on these representations, the Applicant Bank sanctioned a Working Capital Facility of Rs. 80.00 Crores vide sanction letter dated 08.12.2016 (Annexure A/24), while the then eSBH sanctioned Rs. 50.00 Crores vide sanction letter No. F/Adv./AMT-II/SCTL dated 01.12.2016, and the then eSBBJ sanctioned Rs. 50.00 Crores vide sanction letter No. BKR/C&I/AMT-1/SCTL dated 13.12.2016 (Annexure A/25).

1. 20. To accept the terms and conditions of the said sanction letters, the Principal Borrower passed Board Resolutions dated 29.10.2015 under Sections 180(1)(a) and 180(1)(c) of the Companies Act, 2013, and further resolutions dated 06.03.2017 authorizing execution of loan documents and creation of equitable mortgages in favor of the consortium banks (Annexure A/26 Colly). Similarly, Defendant No. 1, Defendant No. 2, and Defendant No. 3 each passed their respective Board Resolutions dated 06.03.2017 authorizing execution of guarantee and mortgage documents in favor of the banks, Annexure A/27, A/28, and A/29 respectively.

2. 21. After the Board Resolutions were duly passed by Defendants No. 1, 2, and 3 and the terms and conditions of the sanction letters were accepted by the Principal Borrower and Defendants No. 1 to 6, a consortium of banks was constituted under the leadership of Defendant No. 7, with the then eSBBJ and eSBH as member banks. Upon constitution of the consortium on 07.03.2017, several loan and security documents were executed among the consortium banks, the Principal Borrower, and Defendants No. 1 to 6, for the enhanced total limit of Rs. 1,225.00 Crores. These documents included the Working Capital Consortium Agreement, Inter-se Agreements among the banks, Agreement for Pledge of Shares, Deed of Guarantee executed by Shri Mukesh Kumar Gupta, Shri Manish Goel, and Shri Vishal Goel, various Undertakings to Create Mortgage executed by the directors and guarantors, Confirmation of Inter-se Agreement, multiple Undertakings, Declarations and Assurances executed by Shri Manish Goel, Joint Omnibus Counter Guarantee Agreement, Joint Deed of Hypothecation, and Corporate Guarantees executed by Shri Gaurav Singhal (Director of M/s Shilpi Cables Pvt. Ltd.), Shri Vishal Goel (Director of M/s MVM Impex Pvt. Ltd.), and Shri Gaurav Singhal (Director of M/s Shilpi Communications Pvt. Ltd.). The documentation also included Undertakings for Guarantee, Consent Letters for Disclosure by the Borrower, and a Letter of Authority from the consortium member banks to the Lead Bank, IDBI Bank Ltd. Furthermore, IDBI Bank issued a letter dated 07.03.2017 to Punjab National Bank, Patparganj Branch, Delhi, confirming the extension of mortgage over the properties of Shri Mukesh Kumar Gupta and Shri Vishal Goel, accompanied by the corresponding Memorandum of Entry. Copies of all the aforementioned documents dated 07.03.2017, Annexure A/30 (Colly).

1. 22. It is stated that on 07.03.2017, Defendants No. 3 and 4 appeared before Punjab National Bank, Defendant No. 10, and created equitable mortgages over the properties detailed in para No. 5(t) of TA. The particulars of the title deeds and corresponding mortgage transactions are provided in, Annexure A/ 31 (Colly)

2. 23. It is stated that the Principal Borrower had also created an equitable mortgage over its land and building in favor of IDBI Bank Limited, the Lead Bank of the consortium. However, since the Principal Borrower is presently undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency and Bankruptcy Code, 2016, and the moratorium under Section 14 of the Code is in operation, the said mortgage created by the Principal Borrower in favor of the consortium has not been included in the present Original Application. The Applicant Bank, however, reserves its right to include the said mortgage in these proceedings in the event the Principal Borrower exits CIRP without resolution.

3. 24. It is further stated that Defendant No. 1 created an equitable mortgage in favor of the consortium, led by IDBI Bank Limited, over its immovable property being Plot No. E-138, RIICO Industrial Area, Bhiwadi, Rajasthan, admeasuring 4000 sq.

meters, in the name of M/s Shilpi Cables Pvt. Ltd. The title documents in respect of the said property include:

1. i. Original Sale Deed No. 2007000475 dated 19.01.2007,

2. ii. Agreement to Sell dated 17.05.1994,

3. iii. Original Lease Agreement dated 08.07.1981, and

4. iv. Original Provisional Entitlement Certificate dated 25.11.2006, along with requisite permissions to mortgage granted by the Rajasthan State Industrial & Municipal Development Corporation Limited and the Income Tax Department in favor of IDBI Bank Limited.

The equitable mortgage was created and confirmed on 07.03.2017 for securing an amount of Rs. 1,225.00 Crores. Annexure A/32 (Colly).

1. 25. It is further stated that the loan account of the Principal Borrower turned irregular, and despite repeated requests and reminders, the default remained uncured. Consequently, the account was classified as Non-Performing Asset (NPA) on 04.06.2017, and the Corporate Insolvency Resolution Process (CIRP) was initiated against the Principal Borrower under Company Petition No. 64(PB)/2017 before the Ld. NCLT, Delhi, which was admitted on 24.05.2017, thereby triggering the moratorium under Section 14 of the IBC, 2016. During the subsistence of the moratorium, the Applicant Bank, vide notices dated 29.01.2018 and 05.09.2018, invoked the personal guarantee of Defendant No. 1, demanding repayment of the outstanding dues owed by the Principal Borrower. However, Defendant No. 1 failed to discharge the said liability. Annexure A/33 (Colly).

2. 26. It is stated that during the continuance of the Loan Facility and execution of loan and security documents dated 07.03.2017, the Company Petition under the Insolvency and Bankruptcy Code, 2016 was admitted and moratorium commenced, due to which the Applicant Bank could not invoke the Guarantee in respect of the facilities that were subsequently invoked against Defendants No. 1 to 6 vide Notice dated 05.09.2018. Further, notice under Section 13(2) of the SARFAESI Act was issued on 28.11.2018.

1. 27. Despite service of the said notices, Defendant No. 1 failed to make payment, compelling the Applicant Bank to invoke the jurisdiction of this Tribunal under the provisions of the Recovery of Debts and Bankruptcy Act, 1993 read with Part III of the IBC, 2016 for initiation of recovery proceedings against the Defendants.

2. 28. In view of the law laid down by the Hon'ble Supreme Court in Civil Appeal No. 3595 of 2018 vide judgment dated 14.07.2018, the Defendants have rendered themselves liable for recovery of the dues, and accordingly, the Applicant Bank is entitled to recover a sum of Rs. 231,76,63,128/- (Rupees Two Hundred Thirty-One Crores Seventy-Six Lakhs Sixty-Three Thousand One Hundred Twenty-Eight Only) as on 31.01.2019 along with further contractual interest with monthly rests and costs from Defendants No. 1 to 6, jointly and severally, till full realization. The above credit facilities availed by the Principal Borrower constitute a legally enforceable debt within the meaning of Section 2(g) of the Act of 1993, and the Defendants being Corporate and Personal Guarantors are coextensively liable to repay the entire dues.

3. 29. The cause of action first arose when the loans were sanctioned and granted by the Applicant Bank and its Associate Banks along with Defendants No. 7 to 19 forming a consortium under the leadership of IDBI Bank Limited, the Defendant No. 7 herein, pursuant to the loan and security documents executed from time to time, including those dated 04.12.2015, 03.02.2016, 14.06.2016, 08.12.2016, 13.12.2016, and 07.03.2017, and continued when the Company Petition No. 64 (PB) of 2017 was admitted on 24.05.2017 before the Ld. NCLT, Delhi. As enforcement of guarantees during moratorium was statutorily enabled only by the amendment to IBC dated 06.06.2018, the Applicant Bank is entitled to exclusion of the moratorium period for computation of limitation, making the present Original Application within time.

1. 30. The cause of action further arose upon issuance of the Legal Notice dated 05.09.2018 invoking the guarantees and continues till the full recovery of dues from Defendants No. 1 to 6. Since the entire transaction and cause of action arose within the territorial jurisdiction of this Tribunal, and the outstanding debt of Rs. 231,76,63,128/- along with interest falls within the definition of "debt" under Section 2(g) of the Act of 1993, this Hon'ble Tribunal is competent to entertain and adjudicate the present Original Application.

2. 31. To substantiate its case, The Applicant Bank has filed the affidavit of Mr. Sunil Gupta, Assistant General Manager, State Bank of India, presently posted at SAMB-II Branch, New Delhi, who, being well conversant with the facts of the case, is competent to depose on its behalf. He has affirmed that the present Original Application has been duly instituted, signed, and verified by him in his capacity as the duly constituted attorney and Authorized Officer of the Applicant Bank, empowered under the Gazette Notification issued by the Bank to act in such matters. He has further stated that the Applicant Bank, being the then eSBBJ, vide its Sanction Letter No. BKR/C&I/AMT-1/SCTL/5518 dated 02.11.2015 (Exhibit AW/1).

1. i Sanction Letter No. BKR/C&I/AMT-1/SCTL/5518 dated 02.11.2015 – Exhibit AW/1;

- ii Sanction Letter No. F/Adv/AMT-II/1037 dated 23.10.2015 – Exhibit AW/2;

- iii Board Resolutions dated 11.09.2014 and 02.12.2015 – Exhibit AW/3;

- iv Board Resolution dated 01.08.2014 – Exhibit AW/4;

- v Board Resolution dated 02.12.2015 – Exhibit AW/5;

- vi Board Resolution dated 01.08.2014 – Exhibit AW/6;

- vii Board Resolution dated 02.12.2015 – Exhibit AW/7;

- viii Board Resolution dated 01.08.2014 – Exhibit AW/8;

- ix Board Resolution dated 02.12.2015 – Exhibit AW/9;

- x Working Capital Consortium Agreement dated 04.12.2015 – Exhibit AW/10;

- xi Inter-se Agreement dated 04.12.2015 – Exhibit AW/11;

- xii Agreement for Pledge of Shares dated 04.12.2015 – Exhibit AW/12;

- xiii Deed of Guarantee dated 04.12.2015 – Exhibit AW/13;

- xiv Undertaking to Create Mortgage dated 04.12.2015 – Exhibits AW/14 to AW/17;

- xv Confirmation of Inter-se Agreement dated 04.12.2015 – Exhibit AW/18;

- xvi Undertaking, Declaration and Assurance dated 04.12.2015 – Exhibits AW/19 to AW/20;

- xvii Undertaking for Guarantee dated 04.12.2015 – Exhibits AW/21 and AW/23;

- xviii Joint Omnibus Counter Guarantee Agreement dated 04.12.2015 – Exhibit AW/22;

- xix Joint Deed of Hypothecation dated 04.12.2015 – Exhibit AW/24;

- xx Corporate Guarantees dated 04.12.2015 – Exhibits AW/25 to AW/27;

- xxi Undertaking for Guarantee dated 04.12.2015 by Shri Mukesh Kumar Gupta - Exhibit AW/28

- xxii Consent Letter for Disclosure dated 04.12.2015 – Exhibit AW/29;

- xxiii Letter of Authority dated 04.12.2015 – Exhibit AW/30; Letter dated 04.12.2015 with Memorandum of Entry – Exhibit AW/31;

- xxiv Title Deeds and Memorandum of Entry – Exhibits AW/32 to AW/37;

- xxv Sanction Letter No. F/Adv./AMT-1/SCTL/1037 dated 23.10.2015 and Sanction Letter No. BKR/C&I/AMT-1/SCTL/5518 dated 02.11.2015 – Exhibits AW/38 and AW/39;

- xxvi Board Resolutions dated 11.09.2014, 26.10.2015, 01.08.2014, and 03.02.2016 – Exhibits AW/40 to AW/47;

- xxvii Working Capital Consortium Agreement dated 03.02.2016 – Exhibit AW/48;

- xxviii Inter-se Agreement dated 03.02.2016 – Exhibit AW/49;

- xxix Agreement for Pledge of Shares dated 03.02.2016 – Exhibit AW/50;

- xxx Deed of Guarantee dated 03.02.2016 – Exhibit AW/51;

- xxxi Undertakings to Create Mortgage dated 03.02.2016 – Exhibits AW/52 to AW/55;

- xxxii Confirmation of Inter-se Agreement dated 03.02.2016 – Exhibit AW/56;

- xxxiii Undertakings, Declarations and Assurances dated 03.02.2016 – Exhibits AW/57 to AW/58;

- xxxiv Undertaking for Guarantee dated 03.02.2016 – Exhibits AW/59, AW/61, AW/66;

- xxxv Joint Omnibus Counter Guarantee Agreement dated 03.02.2016 – Exhibit AW/60;

- xxxvi Joint Deed of Hypothecation dated 03.02.2016 – Exhibit AW/62;

- xxxvii Corporate Guarantees dated 03.02.2016 – Exhibits AW/63 to AW/65;

- xxxviii Consent Letter for Disclosure dated 03.02.2016 – Exhibit AW/67;

- xxxix Letter of Authority dated 03.02.2016 – Exhibit AW/68;

- xl Letter dated 03.02.2016 with Memorandum of Entry – Exhibit AW/69;

- xli Memorandum of Entry and Confirmation of Mortgage – Exhibits AW/70 to AW/73;

- xlii Sanction Letter No. F/Adv./AMT-II/SCTL dated 26.05.2016 – Exhibit AW/74;

- xliii Board Resolutions dated 30.05.2016 – Exhibit AW/75;

- xliv Agreement of Loan for Overall Limit dated 14.06.2016 – Exhibit AW/76;

- xlv Agreement of Hypothecation of Goods and Assets dated 14.06.2016 – Exhibit AW/77;

- xlvi Letter regarding Grant of Individual Limit dated 14.06.2016 – Exhibit AW/78;

- xlvii Deeds of Guarantee dated 14.06.2016 – Exhibits AW/79 to AW/82;

- xlviii Defendants No. 1 to 19 ceded their charge and mortgage in favour of eSBH for the Term Loan of Rs. 25.00 Crores, as evidenced by Letter dated 13.10.2016, 25.01.2017, 14.03.2017, 25.04.2017, 02.05.2017, 03.05.2017, 14.05.2017, 23.05.2017, 06.06.2017 and 17.06.2017 – Exhibits AW/83 to AW/92

- xlix Sanction Letter dated 08.12.2016 – Exhibit AW/93;

- l Sanction Letter No. F/Adv./AMT-II/SCTL dated 01.12.2016;

- li Sanction Letter No. BKR/C&I/AMT-I/SCTL dated 13.12.2016 – Exhibit AW/94;

- lii Board Resolution dated 29.10.2015 – Exhibit AW/95;

- liiii Board Resolution dated 06.03.2017 – Exhibits AW/96, AW/97, AW/98, and AW/99;

- liv Working Capital Consortium Agreement dated 07.03.2017 – Exhibit AW/100;

- lv Inter-se Agreement dated 07.03.2017 – Exhibit AW/101;

- lvi Agreement for Pledge of Shares dated 07.03.2017 – Exhibit AW/102;

- lvii Deed of Guarantee dated 07.03.2017 – Exhibit AW/103;

- lviii Undertakings to Create Mortgage dated 07.03.2017 – Exhibits AW/104, AW/105, AW/106;

- lix Undertakings dated 07.03.2017 – Exhibit AW/107;

- lx Confirmations of Inter-se Agreement dated 07.03.2017 – Exhibit AW/108;

- lxi Undertakings, Declarations and Assurances dated 07.03.2017 – Exhibits AW/109 and AW/110;

- lxii Undertaking for Guarantee dated 07.03.2017 – Exhibits AW/111, AW/113, and AW/118;

- lxiii Joint Omnibus Counter Guarantee Agreement dated 07.03.2017 – Exhibit AW/112;

- lxiv Joint Deed of Hypothecation dated 07.03.2017 – Exhibit AW/114;

- lxv Corporate Guarantees dated 07.03.2017 – Exhibits AW/115, AW/116, and AW/117;

- lxvi Consent Letter for Disclosure by Banks dated 07.03.2017 – Exhibit AW/119;

- lxvii Letter of Authority dated 07.03.2017 – Exhibit AW/120;

- lxviii Letter dated 07.03.2017 confirming extension of mortgage – Exhibit AW/121;

- lxix Title Deeds – Exhibit AW/122; Memorandum of Entry – Exhibit AW/123;

- lxx Confirmation of Mortgage – Exhibit AW/124; Memorandum of Entry – Exhibit AW/125;

- lxxi Confirmation of Mortgage – Exhibit AW/126; and Notices dated 29.01.2018 and 05.09.2018 – Exhibit AW/127.

32. The witness of Applicant Bank has fully corroborated the averments made in the TA. Even otherwise the whole case of the Applicant Bank is based on the documents and the witness has duly proved all these documents. The evidence filed by the Applicant Bank gone unrebutted and there is no question of disbelieving the evidence lead by the Applicant Bank and Applicant Bank has proved its case beyond reasonable doubts. Accordingly, the bank is entitled to recover the entire amount along with pendentelite interest and future costs as agreed between the parties. I hereby allow this TA as the Applicant Bank has proved its claim beyond any doubt.

14. In this TA, the Applicant Bank has prayed for issuance of a Recovery Certificate against Defendants No. 1 to 6. In the present case, Defendants No. 1 to 3 are Corporate Guarantors, while Defendants No. 4 to 6 are Personal Guarantors for the credit facilities extended to the Principal Borrower, M/s Shilpi Cables Technologies Ltd., which is presently undergoing Corporate Insolvency Resolution Process (CIRP) under the provisions of the Insolvency and Bankruptcy Code, 2016. Since the insolvency proceedings are pending before the Ld. NCLT, no relief has been sought against the said Principal Borrower in this Transfer Application. Defendants No. 1 to 6 have executed guarantee and mortgage documents securing the said credit facilities.

1. 15. Consequently, TA No. 290/2022 stands allowed in favour of Applicant Bank and against Defendants no. 1 to 6, who are liable to pay the dues of the Applicant Bank 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. 290/2022 stands allowed and the Defendants No. 1 to 6 are directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 231,76,63,128/- (Rupees Two Hundred Thirty-One Crores Seventy-Six Lakhs Sixty-Three Thousand One Hundred Twenty-Eight 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 to 6.

So far as, Defendant No. 20 is concerned, since Defendant No. 20 is before Ld. NCLT, hence, no order qua Defendant No. 20 can be passed against said Defendant at this stage.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendant No. 20 in case NCLT are quashed / withdrawn in future, in accordance with law.

It is further directed that in case Applicant Bank receive any amount from the proceedings pending before Ld. NCLT, they shall give due adjustment of the same in the recovery proceedings.

It is also directed that the applicant shall adjust the amount(s), if any, received during the pendency of this case.

- (i). The recovery certificate be issued forthwith and be sent to the Recovery Office-I, Debts Recovery Tribunal-III, Delhi.

- (ii). Parties are directed to appear before the Recovery Officer-I, DRT-III, Delhi on 18.12.2025.

- (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: 31.10.2025

K. Singh

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