INDIAN RENEWABLE ENERGY DEVELOPMENT AGENCY LIMITED vs SIVA RENEWABLE POWER AND ENERGY LIMITED on 7 November 2025

**FINAL ORDER**

1. 1. This Original Application is filed on 31.12.2021 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, by the Applicant, *Indian Renewable Energy Development Agency Limited (IREDA)*, a wholly owned Government Company and a Financial Institution within the meaning of Section 2(72) of the Companies Act, 2013, and a *Public Financial Institution* under Section 2(h) of the Recovery of Debts and Bankruptcy Act, 1993, as amended. The Applicant has its Registered Office at *Core-4A, East Court, 1st Floor, India Habitat Centre, Lodhi Road, New Delhi-110003* and Corporate Office at *August Kranti Bhavan, 3rd Floor, Bhikaji Cama Place, New Delhi-110066*. The application has been signed and instituted by Mr. Kumar Suraj, *Manager (Law)*, duly authorized under Circular No. Sectt./DOP/87-MS/IREDA dated 21.05.2004, issued pursuant to the Board Resolution dated 18.05.2004. The Applicant, being a Government-owned financial institution engaged in promoting, financing, and developing renewable energy projects, is duly competent and authorized to institute the present recovery proceedings before this Tribunal and prays that Defendants No. 1 to 3 be ordered to pay jointly and severally to the Applicant a sum of Rs. 1,29,68,99,922/- (Rupees One Hundred Twenty-Nine Crores Sixty-Eight Lakhs Ninety-Nine Thousand Nine Hundred Twenty-Two only) along with pendent lite and future interest at the contractual rates from the date of filing of the application till the date of decree and further interest at the same rate from the date of decree till realization, and that a Recovery Certificate be issued accordingly.

1. 2. It is pertinent here that this OA bearing no. 04/2022 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-I, Delhi to this Tribunal in 20.10.2022 and was numbered at TA-146/2022.

2. 3. The brief facts of the case are that the Defendant No. 1, *M/s Siva Renewables Private Limited* (formerly known as Siva Renewable Power and Energy Limited), a company incorporated under the Companies Act, 1956, having its registered office at Sterling Tower, 327, Anna Salai, Teynampet, Chennai-600006, Tamil Nadu, approached the Applicant, *Indian Renewable Energy Development Agency Limited (IREDA)*, for financial assistance of Rs. 10,000 Lacs (Rupees One Hundred Crores only) for setting up a 25 MW Windfarm Project at Vaspet, Jath, District Sangli, Maharashtra (Project No. 1987), which was sanctioned vide sanction letters dated 05.12.2011 and 04.07.2012, followed by execution of a Loan Agreement dated 23.10.2012 carrying interest at 12.50% per annum with an additional 0.5% per annum till commissioning and liquidated damages @2.50% per annum on default. The said loan was secured by an exclusive first charge by way of hypothecation over all movable assets and mortgage by deposit of title deeds of the immovable properties, duly registered with the Registrar of Companies, along with execution of various security and ancillary documents including Deed of Hypothecation, Deed of Assignment, Deed of Indemnity, Undertakings, General Declaration, and Trust and Retention Account Agreement. The Defendants No. 2 and 3 stood as Corporate Guarantors and executed Deeds of Guarantee dated 23.10.2012, jointly and severally guaranteeing repayment of the loan along with interest and other charges. The Defendant No. 2, *M/s Siva Industries and Holdings Limited* (successor of *Siva Ventures Limited* pursuant to order dated 22.08.2013 of the Hon'ble High Court of Madras), is presently under liquidation proceedings before the Ld. NCLT, Chennai Bench, vide order dated 12.08.2021, and is represented through its Liquidator.

1. 4. So far as, despite due service of summons, Defendants No. 1 to 3 failed to appear or file their written statements within the stipulated period. The application filed by Defendant No. 3 seeking condonation of delay and for taking the written statement on record was dismissed vide order dated 17.12.2024. Accordingly, Written Statement is not on record on behalf of the Defendants.

2. 5. It is pertinent that Defendant No. 2, *M/s Siva Industries and Holdings Limited*, is under liquidation before the Ld. NCLT, Chennai Bench, vide order dated 12.08.2021, under the Insolvency and Bankruptcy Code, 2016, and is represented through the Liquidator. The Applicant has lodged its claim before the Liquidator; hence, no relief is sought against Defendant No. 2 herein, and any amount realized in the insolvency proceedings shall be duly adjusted in the present recovery proceedings.

3. 6. It is stated that the Defendant No. 1, *M/s Siva Renewables Private Limited*, a company incorporated under the Companies Act, 1956, having its registered office at Sterling Tower, 327, Anna Salai, Teynampet, Chennai-600006, Tamil Nadu, approached the Applicant, *Indian Renewable Energy Development Agency Limited (IREDA)*, for financial assistance of Rs. 10,000 Lacs (Rupees One Hundred Crores only) for setting up a 25 MW Windfarm Project at Vaspet, Jath, District Sangli, Maharashtra (Project No. 1987). At the request of Defendant No. 1, the Applicant sanctioned the said financial assistance vide sanction letters dated 05.12.2011 and 04.07.2012, pursuant to Board Resolution of Defendant No. 1 dated 15.07.2011.

1. 7. Thereafter, a Loan Agreement dated 23.10.2012 was executed between the Applicant and Defendant No. 1 for the said amount, carrying interest at 12.50% per annum with an additional 0.5% per annum till commissioning and liquidated damages @2.50% per annum on default. The Board of Defendant No. 1, in its meeting held on 19.10.2012, approved the borrowing and authorized the execution of relevant documents and creation of securities.

2. 8. Accordingly, Defendant No. 1 executed various documents, including a *General Declaration and Undertaking* dated 23.10.2012 declaring that no prior charge or hypothecation was created over the project assets, and an *Undertaking for Non-Disposal/Pledge of Shares* dated 23.10.2012, restraining transfer or encumbrance of its shareholding during the subsistence of the loan. Defendants No. 2 and 3 stood as *Corporate Guarantors* and executed unconditional and irrevocable Deeds of Guarantee dated 23.10.2012, guaranteeing repayment of the said financial assistance and due performance of the Loan Agreement.

3. 9. That the Defendant No. 1, in consideration of the loan facility of Rs. 10,000 Lacs (Indian Rupees One Hundred Crores only) sanctioned by the Applicant (IREDA) for setting up a 25 MW Windfarm Project at Vaspet, Jath, District Sangli, Maharashtra (Project No. 1987), executed various security documents and undertakings in favour of the Applicant to secure due repayment of the loan and other monies payable.

1. 10. The Defendant No. 1 executed an Undertaking dated 23.10.2012 to meet any shortfall in the project, followed by a Deed of Hypothecation of even date creating an exclusive first charge over all its movable properties pertaining to the project, which charge was duly registered and subsequently modified with the Registrar of Companies.

2. 11. Further, Defendant No. 2 executed a Deed of Guarantee dated 23.10.2012, which was unconditional, irrevocable, and continuing in nature, guaranteeing repayment of the said loan; the said guarantor, Siva Ventures Limited, was later amalgamated with Siva Industries and Holdings Ltd. as per order dated 22.08.2013 passed by the Hon'ble High Court of Madras. In continuation, Defendant No. 1 executed an Assignment Deed, Deed of Indemnity, Consent Agreement with M/s Winwind Power Energy Pvt. Ltd., Agreement for Pledge of Shares, Undertaking and Deed of Assignment, and other related security documents including deposit of title deeds by way of mortgage evidenced by Memorandum of Entry dated 27.12.2012, along with supporting undertakings and declarations.

3. 12. Additionally, Defendant No. 1 entered into a Trust and Retention Account Agreement dated 27.12.2012 with the Applicant (IREDA) and Axis Bank Limited for maintaining a designated account titled "Siva Renewable Power and Energy Limited A/c IREDA", wherein all receivables from sale of power and other revenues were to be deposited, which account stood exclusively charged in favour of the Applicant.

4. 13. That the Defendant No. 1, in furtherance of securing the credit facility of Rs. 10,000 Lacs (Indian Rupees One Hundred Crores only) sanctioned by the Applicant (IREDA), again created mortgage on 22.12.2015 by deposit of title deeds pertaining to its immovable properties with the Assistant General Manager (Law) of the Applicant, duly evidenced by Memorandum of Entry dated 23.12.2015, thereby creating security by way of mortgage in favour of the Applicant. In continuation thereof, Defendant No. 1 furnished documents establishing satisfaction of the charge earlier created in favour of Tata Capital Ltd., as evidenced by the Memorandum of Satisfaction issued by the Registrar of Companies along with Form 17. Defendant No. 1 further executed a Deed of Indemnity, Undertaking, and Declaration and Undertaking, all dated 22.12.2015, acknowledging the said mortgage and confirming that the mortgaged properties were free from any encumbrances.

14. In addition, Defendant No. 3 executed an unconditional and irrevocable Deed of Guarantee dated 22.12.2015 at New Delhi, guaranteeing repayment of the said loan along with all interest and other monies due to the Applicant, supported by a Board Resolution passed on 19.12.2015. Defendant No. 3 also executed an Undertaking dated 22.12.2015 restraining itself from transferring, pledging, or otherwise encumbering its shareholding in the Defendant No. 1 company. The Defendant No. 1, on the same date, executed another Undertaking to meet any shortfall in resources for completion of the project. As per Schedule V of the Loan Agreement, the loan was repayable in quarterly instalments commencing from 31.03.2014 and concluding on 31.12.2023, at the rate of interest stipulated under Schedule IV read with Article 2 thereof.

15. However, the Defendants failed to adhere to the agreed repayment terms and financial discipline, thereby defaulting in repayment obligations, and as per the Loan Agreement, also became liable to reimburse the Applicant (IREDA) for all expenses incurred in connection with recovery proceedings, litigation, or any action arising out of the said loan transaction.

1. 16. That as per the terms and conditions of the Loan Agreement, the Defendant No. 1 was under a contractual obligation to repay the loan strictly in accordance with the Loan Repayment Programme and to pay interest and all other dues on the respective due dates, irrespective of the success or failure of the project or the purpose for which the loan was granted by the Applicant (IREDA). The Applicant also reserved the right to recover from the Defendants all legal charges, inspection costs, and other expenses incurred in connection with site visits, inspection of works, and verification of accounts.

2. 17. The Defendant No. 1 had further undertaken to utilize the loan amount exclusively for the approved project and for eligible project expenditures, and not to divert any portion of the funds or make any investments in any other concern without prior written approval of the Applicant. The Defendant No. 1 also agreed to repay the loan and to pay interest, further interest, liquidated damages, premia on prepayment or redemption, and all other charges as stipulated under the Loan Agreement, while strictly complying with all its terms and conditions.

3. 18. It was further declared and confirmed by the Defendant No. 1 that full and accurate particulars of its assets and project goods would be furnished to the Applicant as required, and that all requisite statements, reports, returns, and documents would be duly executed to give effect to the terms of the agreement. The Defendant No. 1 also confirmed that the security created in favour of the Applicant would constitute a continuing security for repayment of all dues, including interest, further interest, liquidated damages, and other monies payable under the Loan Agreement. The Loan Agreement, as amended from time to time, also specifically provides that in the event of default in repayment as per the agreed schedule, the Defendant No. 1 along with other Defendants shall be liable to pay liquidated damages at the rate prescribed therein, without prejudice to the Applicant's right to recall the entire loan forthwith.

1. 19. That the Defendant No. 1 failed to observe and perform the covenants, terms, and conditions of the Loan Agreement, as amended from time to time, and committed persistent defaults in repayment of the loan and other dues to the Applicant (IREDA). Owing to the continued non-payment and failure to regularize the account, the Applicant was constrained to classify the loan account of Defendant No. 1 as a Non-Performing Asset (NPA) on 29.09.2016.

2. 20. Consequently, in view of the said defaults, the Applicant issued a Demand Notice dated 15.05.2018 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), calling upon the Defendants to discharge their liabilities in full within the statutory period. As the Defendants failed to comply with the said notice, the Applicant thereafter took symbolic possession of the secured assets on 28.08.2018 under Section 13(4) of the SARFAESI Act, after issuance of possession notice dated 03.08.2018. Further, the Applicant, in continuation of recovery actions, issued a notice dated 17.03.2020 to the guarantors invoking their respective guarantees and calling upon them to pay the entire outstanding dues to the Applicant.

3. 21. That the total outstanding amount as on 31.12.2021 in respect of the said project from the Defendants stands at Rs.129,68,99,922/- (Rupees One Hundred Twenty-Nine Crores Sixty-Eight Lakhs Ninety-Nine Thousand Nine Hundred Twenty-Two only), the break-up of which is as under:

- i. Principal Loan Outstanding: Rs. 59,50,00,000/-

- ii. Interest Overdue: Rs. 62,24,18,220/-

- iii. Liquidated Damages: Rs. 5,93,99,843/-

- iv. Incidental Charges: Rs. 2,00,81,859/-

22. That in view of the continuous defaults committed by the Defendants, the Applicant is constrained to file the present Original Application praying that Defendants No. 1 to 3 be held jointly and severally liable to pay to the Applicant (IREDA) a sum of INR 1,29,68,99,922/- (Rupees One Hundred Twenty-Nine Crore Sixty-Eight Lakh Ninety-Nine Thousand Nine Hundred and Twenty-Two Only) along with further interest from 31.12.2021 till its realization.

23. The Applicant further stated that the aforesaid financial facilities were availed by the Defendants for commercial purposes and, therefore, they are liable to pay pendent-lite and future interest at the contractual rate. The Applicant has filed the present Original Application without prejudice to its rights to pursue any other legal remedies available to it under law, including but not limited to initiating proceedings for winding up, taking action under the SARFAESI Act, 2002, filing criminal complaints under Section 138 of the Negotiable Instruments Act, 1881, or availing any other remedy as may be permissible.

24. To substantiate its case, The Applicant Bank has filed the affidavit of Mr. Kumar Suraj, S/o Late Shri Bijay Kumar Choubey, presently working as Manager (Law) with the Indian Renewable Energy Development Agency Limited (IREDA), having its Registered Office at India Habitat Centre Complex, Core-4A, East Court, 1st Floor, Lodhi Road, New Delhi-110003, and Corporate Office at 3rd Floor, August Kranti Bhawan, Bhikaji Cama Place, New Delhi-110066. In the said affidavit, the deponent has solemnly affirmed that he is the Authorized Representative of the Applicant Company and is competent to swear the affidavit, being fully conversant with the facts of the case derived from the official records of the Applicant. It is further stated that the Applicant, IREDA, is a wholly owned Government Company and a Public Financial Institution within the meaning of Section 2(h) of the Recovery of Debts and Bankruptcy Act, 1993, as amended. The deponent has also affirmed that the present application has been signed, verified, and filed by him being duly authorized in terms of Circular No. Sectt./DOP/87MS/IREDA dated 21.05.2004, issued pursuant to the Board Resolution dated 18.05.2004.

1. i. Circular No. Sectt./DOP/87MS/IREDA dated 21.05.2004 – Exhibit AW-1/1

2. ii. Order of Ld. NCLT, Chennai dated 12.08.2021 – Exhibit AW-1/2

3. iii. Sanction Letters No. 221/2617/WE/2011/IREDA dated 05.12.2011 and 04.07.2012 – Exhibit AW-1/3 (Colly)

4. iv. Extracts of Minutes of Board Meeting of Defendant No. 1 dated 15.07.2011 – Exhibit AW-1/4

5. v. Loan Agreement dated 23.10.2012 – Exhibit AW-1/5

6. vi. Extracts of Minutes of Board Meeting of Defendant No. 1 dated 19.10.2012 – Exhibit AW-1/6

7. vii. General Declaration and Undertaking dated 23.10.2012 – Exhibit AW-1/7

8. viii. Undertaking for Non-disposal/Pledge of Shares dated 23.10.2012 – Exhibit AW-1/8

9. ix. Undertaking for Meeting Shortfall in the Project dated 23.10.2012 – Exhibit AW-1/9

10. x. Deed of Hypothecation dated 23.10.2012 – Exhibit AW-1/10

- xi. Forms No. 8 and CHG-I (Registration and Modification of Charge) dated 29.11.2012 and 22.12.2015 – Exhibit AW-1/11 (Colly)

- xii. Deed of Guarantee dated 23.10.2012 – Exhibit AW-1/12 (Colly)

- xiii. Extracts of Minutes of Board Meeting of Defendant No. 2 dated 19.12.2012 – Exhibit AW-1/13

- xiv. Assignment Deed dated 23.10.2012 – Exhibit AW-1/14

- xv. Deed of Indemnity dated 23.10.2012 – Exhibit AW-1/15

- xvi. Consent Agreement dated 26.12.2012 – Exhibit AW-1/16 (Colly)

- xvii. Confirmation dated 27.12.2012 – Exhibit AW-1/17

- xviii. Agreement for Pledge of Shares dated 27.12.2012 – Exhibit AW-1/18

- xix. Undertaking dated 28.12.2012 – Exhibit AW-1/19

- xx. Unconditional Deed of Assignment dated 26.12.2012 – Exhibit AW-1/20

- xxi. Memorandum of Entry dated 27.12.2012 – Exhibit AW-1/21

- xxii. Deed of Indemnity dated 26.12.2012 – Exhibit AW-1/22

- xxiii. Undertaking dated 26.12.2012 – Exhibit AW-1/23

- xxiv. Declaration and Undertaking dated 26.12.2012 – Exhibit AW-1/24

- xxv. Trust and Retention Account Agreement dated 27.12.2012 – Exhibit AW-1/25

- xxvi. Memorandum of Entry dated 23.12.2015 – Exhibit AW-1/26

- xxvii. Memorandum of Satisfaction of ROC with Form 17 – Exhibit AW-1/27 (Colly)

- xxviii. Deed of Indemnity dated 22.12.2015 – Exhibit AW-1/28

- xxix. Undertaking dated 22.12.2015 – Exhibit AW-1/29


- xxx. Declaration and Undertaking dated 22.12.2015 – Exhibit AW-1/30

- xxxi. Deed of Guarantee dated 22.12.2015 – Exhibit AW-1/31

- xxxii. Extracts of Minutes of Board Resolution of Defendant No. 3 dated 19.12.2015 – Exhibit AW-1/32

- xxxiii. Undertaking for Non-disposal / Pledge of Shares dated 22.12.2015 – Exhibit AW-1/33

- xxxiv. Undertaking for Meeting Shortfall in the Project dated 22.12.2015 – Exhibit AW-1/34

- xxxv. Demand Notice under Section 13(2) of SARFAESI Act dated 15.05.2018 – Exhibit AW-1/35

- xxxvi. Notice under Section 13(4) of SARFAESI Act dated 03.08.2018 – Exhibit AW-1/36

- xxxvii. Notice to Guarantors Invoking Guarantees dated 17.03.2020 – Exhibit AW-1/37

- xxxviii. Certified Statement of Account along with Certificate under Bankers' Books Evidence Act, 1891 – Exhibit AW-1/38

14. The witness of Applicant FI/Bank has fully corroborated the averments made in the TA. Even otherwise the whole case of the Applicant FI/Bank is based on the documents and the witness has duly proved all these documents. The evidence filed by the Applicant FI/Bank gone unrebutted and there is no question of disbelieving the evidence lead by the Applicant FI/Bank and Applicant FI/Bank has proved its case beyond reasonable doubts. Accordingly, the FI/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 FI/Bank has proved its claim beyond any doubt.

15. In this TA, The Applicant Financial Institution/Bank has prayed for issuance of a Recovery Certificate against Defendants No. 1 and 3. In the present matter, Defendant No. 2 is the Corporate Guarantor. Defendant No. 2, M/s Siva Industries and Holdings Limited (successor of Siva Ventures Limited pursuant to the order dated 22.08.2013 passed by the Hon'ble High Court of Madras), is presently undergoing liquidation proceedings before the Ld. NCLT, Chennai Bench, vide order dated 12.08.2021, and is represented through its Liquidator. The said Defendant No. 2 is the Corporate Guarantor in the present TA, whereas Defendant No. 1 is the Principal Borrower and Defendant No. 3 has stood as Guarantor/Mortgagor for the said credit facilities.

1. 16. Consequently, TA No. 146/2022 stands allowed in favour of Applicant FI/Bank and against Defendants no. 1 & 3, who are liable to pay the dues of the Applicant FI/Bank along with costs and pendentelite & future interest @ 11% per annum, as claimed in the OA/TA, from the date of filing of present OA/TA, till the date of payment in full.

ORDER

TA No. 146/2022 stands allowed and the Defendants No. 1 & 3 are directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 1,29,68,99,922/- (Rupees One Hundred Twenty-Nine Crores Sixty-Eight Lakhs Ninety-Nine Thousand Nine Hundred Twenty-Two only) less the amount received from the sale/ release of mortgaged properties along with cost and pendentelite and future interest, as claimed in OA/TA i.e. @ 11% per annum rests from the date of filing of this OA/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 & 3.

So far as, Defendant No. 2 is concerned, since Defendant No. 2 is before Ld. NCLT, hence, no order qua Defendant No. 2 can be passed against said Defendant at this stage.

However, it is directed that Applicant Bank shall be at liberty to revive the OA/TA qua Defendant No. 2 in case NCLT are quashed / withdrawn in future, in accordance with law.

It is further directed that in case Applicant FI/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 29.12.2025.

- (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: 07.11.2025

K. Singh

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

07.11.2025

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