PUNJAB NATIONAL BANK vs SVOGL OIL GAS AND ENERGY LIMITED on 20 November 2025

FINAL ORDER

1. 1. This Original Application has been filed on 30.11.2018 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, seeking recovery of a sum of Rs. 319,74,06,703.59/- (Rupees Three Hundred Nineteen Crores Seventy-Four Lakhs Six Thousand Seven Hundred Three and Fifty-Nine Paise only) as on 31.10.2018, together with pendent lite and future interest with monthly rests and costs, jointly and severally from Defendants No. 1 to 5. The Applicant further prays that the outstanding dues under the Cash Credit Facility and the Term Loan Facility be adjudged recoverable along with interest @ 14.25% per annum, with monthly rests, from the date of filing of this Original Application until full and final realization, and that the Defendants be held jointly and severally liable for the said amounts until actual recovery. The Applicant is a Bank constituted under the provisions of the *Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970*, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075, and one of its branches at Mid Corporate Branch, H-1/A-11, Sector-63, Noida, Uttar Pradesh-201301. Mr. Harshit Vijay, Senior Manager of the Applicant Bank, is the Principal Officer, Constituted Attorney and Authorized Officer, duly empowered under a Power of Attorney dated 14.05.2018 to sign and verify pleadings, institute the present Application, file counter-claims/cross suits, swear affidavits, execute documents, engage counsel, and perform all acts incidental or necessary for the proper conduct of these proceedings.

2. 2. It is pertinent here that this OA bearing no. 154/2019 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 on 14.10.2022 and was numbered at TA-38/2022.

1. 3. The brief facts of the case are that the Defendant No. 1, originally incorporated on 05.12.1989 as Shiv-Vani Drilling Limited and subsequently converted into a public company on 12.01.1990, is an India-based onshore oil and gas integrated service provider operating in the upstream segment of the industry, and has undergone multiple changes of name, lastly to SVOGL Oil Gas and Energy Ltd. on 17.08.2015; it also merged SUVL Projects Ltd. with itself pursuant to the order dated 28.03.2006 passed by the Hon'ble High Court of Delhi. The company is presently under liquidation and is represented through the Official Liquidator appointed by the Hon'ble Delhi High Court, with its registered office at 5th Floor, Tower-1, NBCC Plaza, Saket, New Delhi-110008. Defendants No. 2 and 3 are directors of Defendant No. 1 and have executed personal guarantees securing the credit facilities sanctioned to the said company. Defendants No. 4 and 5 are companies within the meaning of the Companies Act and have stood as corporate guarantors for the financial facilities availed by Defendant No. 1 from time to time. Defendants No. 6 to 8 are the other consortium members, with Defendant No. 6 acting as the lead bank for the working capital limits sanctioned to Defendant No. 1. Defendants No. 9 to 26 are other secured creditors who extended various financial facilities in the nature of term loans, leases, IDCs, corporate loans, debentures, etc., and no relief is sought by the Applicant Bank against Defendants No. 6 to 26. It is noteworthy that several of these creditors, including Exim Bank (Defendant No. 21), State Bank of India (Defendant No. 6), L&T Infrastructure Finance Co. Ltd. (Defendant No. 26), United Bank of India (Defendant No. 24) / IndusInd Bank Ltd.

(Defendant No. 15), Indian Overseas Bank (Defendant No. 22), Central Bank of India (Defendant No. 16) and UCO Bank (Defendant No. 23), have already filed their respective Original Applications before various Debts Recovery Tribunals against Defendants No. 1 to 5, which are presently pending adjudication.

1. 4. So far as, Defendants No. 1, 6 to 14, and 17 to 26 were proceeded ex parte on 07.02.2020, while Defendants No. 2 to 5 and Defendants No. 15 and 16 were proceeded ex parte on 04.04.2025. Despite due service of summons, none of these Defendants appeared or filed their response before this Tribunal, and therefore, the proceedings against them were initiated and have continued ex parte.

2. 14. It is pertinent that in this case, an Official Liquidator has already been appointed by the Hon'ble High Court of Delhi for Defendant No. 1. In addition, Defendants 2, 3 and 5 are presently before the Ld. NCLT, Delhi.

3. 5. It is further stated that the Defendant No. 1, through its directors, Defendants No. 2 and 3, approached the Applicant Bank in May 2006 for availing various credit facilities, pursuant to which the Applicant, in the normal course of banking business, sanctioned the requested facilities vide sanction letter dated 26.05.2006, namely: Term Loan of Rs. 30,00,00,000/-, Foreign Letter of Credit of Rs. 55,00,00,000/-, Short Term Loan of Rs. 25,00,00,000/-, and Bank Guarantee of Rs. 50,00,00,000/-. Defendant No. 1, acting through Defendants No. 2 and 3, duly accepted the terms and conditions governing the said facilities and, by a Board Resolution dated 25.05.2006, authorized the availment of these facilities and the execution of requisite loaning and security documents.

6. In consideration of the sanction of the aforesaid credit facilities, and to secure repayment of the outstanding dues, various loaning and security documents were executed in favour of the Applicant Bank on 26.05.2006, including the Deed of Hypothecation of Assets to secure the Term Loan; Deeds of Hypothecation of movable assets forming part of fixed/block assets creating a pari passu first charge on present and future assets, excluding those already specifically charged to any FI/NBFC, towards the Foreign Letter of Credit and Short Term Loan; as well as the Deed of Corporate Guarantee executed by SVUL Projects Ltd. dated 26.05.2006, the Deed of Personal Guarantee executed by Defendant No. 3 dated 26.05.2006, and the Deed of Personal Guarantee executed by Defendant No. 2 dated 06.06.2006. These credit facilities were subsequently enhanced and varied from time to time, details whereof are set out in the succeeding paragraphs.

7. That Defendants No. 2 and 3 stood as personal guarantors and, in order to secure the liability undertaken by Defendant No. 1 in respect of the sanctioned credit facilities, executed Agreements of Guarantee on 06.06.2006 and 26.05.2006 respectively, their liability being joint, several, and co-extensive with that of Defendant No. 1. SVUL Projects Ltd. (which was later amalgamated with Defendant No. 1) also executed Agreements of Guarantee dated 06.06.2006 and 26.05.2006 through its authorized signatory, duly empowered by a Board Resolution dated 25.05.2006. In relation to the security documents executed/created by Defendant No. 1, the particulars of charge were duly filed with the Registrar of Companies and Certificates of Registration of Charge were obtained for the following: (a) Hypothecation Deed for the Term Loan of Rs. 30.00 crore; (b) Hypothecation Deed for the Term Loan of Rs. 25.00 crore; (c) Document No. PNB-222 for Rs. 55.00 crore;

- (d) Counter Indemnity for Bank Guarantee of Rs. 50.00 crore;

- (e) Acceptance of terms and conditions of sanction; and (f) Hypothecation of fixed/block assets on a first pari passu charge, comprising the company's block assets situated at various sites, excluding assets already specifically charged to any FI/NBFC, created on 26.05.2006, with particulars of charge filed and the Certificate of Registration issued on the same date. Further, on 06.06.2006, a document was executed confirming the balance and security in respect of the facilities availed from the Applicant Bank by the Defendants.

1. 8. In November 2006, Defendant No. 1 once again approached the Applicant Bank, through its authorised directors, seeking sanction of additional credit facilities amounting to Rs. 215 crores and requested that a consortium be formed for this purpose. Pursuant thereto, Defendant No. 1 passed a Board Resolution on 25.11.2006, Annexure-A11, authorizing Defendants No. 2 and 3 to convey acceptance of the terms and conditions of the sanction, execute consortium documents, execute guarantees, and create charge in favour of Defendant No. 6 (State Bank of India) and the Applicant Bank, in accordance with the credit structure comprising Fund-Based Limits, One-Time Fund-Based CC Limits, One-Time Non-Fund-Based BG Limits, and Non-Fund-Based LC/FLC/BG Limits aggregating to Rs. 215 crores.

2. 9. Thereafter, the Applicant Bank and Defendant No. 6 agreed to form a consortium and, on 27.11.2006, executed the Inter-Se Agreement, Working Capital Consortium Agreement, and Joint Deed of Hypothecation, wherein Defendant No. 6 was designated as the Lead Bank. Under the consortium arrangement, the sanctioned Fund-Based and Non-Fund-Based limits were allocated between the banks as follows: State Bank of India-Rs. 21.00 crores (Fund-Based), Rs. 22.50 crores (One- Time Fund-Based CC), and Rs. 53.00 crores (Non-Fund-Based), totalling Rs. 96.50 crores; and Punjab National Bank-Rs. 9.00 crores (Fund-Based), Rs. 22.50 crores (One-Time Fund-Based CC), Rs. 50.00 crores (One-Time Non-Fund-Based BG), and Rs. 12.00 crores (Non-Fund-Based), totalling Rs. 93.50 crores, aggregating to a total consortium limit of Rs. 190.00 crores.

1. 10. In terms of the above-said Board Resolution, it was resolved that the limits sanctioned by State Bank of India shall be secured by a first pari passu charge on the entire current assets of Defendant No. 1 Company, both present and future, along with an escrow mechanism for the company's receivables (except for the CBM Project) in favour of State Bank of India; a second pari passu charge on the entire fixed assets of Defendant No. 1 and a first charge on unencumbered machinery; and a pledge of 5% shares held by the promoters and their family members, totaling 7,78,400 shares, to secure the working capital limits, including one-time limits, supported by the personal guarantees of promoter-directors Sh. Padam Singhee (Defendant No. 2) and Sh. Prem Singhee (Defendant No. 3).

2. 11. It was further resolved that the limits sanctioned by the Applicant Bank shall be secured by a first pari passu charge on the entire current assets of the company, both present and future, and a first pari passu charge on the block assets of the company as collateral; a pledge of 8,25,000 equity shares of the company to secure the working capital limits; and the development of an appropriate mechanism for sharing of the company's receivables, except the CBM Project receivables already earmarked in favour of State Bank of India (Defendant No. 6), along with personal guarantees of promoter-directors Sh. Padam Singhee (Defendant No. 2) and Sh. Prem Singhee (Defendant No. 3).

1. 12. Pursuant to the aforesaid resolution, Defendant No. 1, through its authorized representatives duly empowered vide Board Resolution dated 25.11.2006, executed various loaning and security documents in respect of the sanctioned facilities. In connection with the consortium loan facility of Rs. 190 crores carrying interest as per the terms of sanction, the defendant executed the Inter Se Agreement dated 27.11.2006 (Annexure A12) and the Working Capital Consortium Agreement dated 27.11.2006 (Annexure A13).

2. 13. Further, the defendant executed the Joint Deed of Hypothecation in favour of the Applicant Bank and State Bank of India (consortium banks) dated 27.11.2006 (Annexure A14), along with a Letter of Authority in favour of the lead bank, State Bank of India, dated 27.11.2006 (Annexure A15). The defendant also executed a Letter of Undertaking for creating a first/second charge on the fixed assets (Annexure A16), and two consent letters for disclosure by the banks in favour of State Bank of India, the lead bank of the consortium, executed by Defendant No. 1 (as borrower) and Defendant Nos. 2 and 3 (as guarantors) dated 27.11.2006 (Annexure A17 Colly).

3. 14. Defendants No. 2 and 3 stood as guarantors and executed Agreements of Guarantee, all dated 27.11.2006, thereby jointly, severally, and co-extensively guaranteeing the liabilities of Defendant No. 1 under the credit facilities, and the said guarantees are continuing in nature and serve as collateral security for the sanctioned limits.

4. 15. Thereafter, Defendant No. 1 further approached the Applicant Bank for Cash Credit and Overdraft facilities, pursuant to which the Applicant Bank, after due consideration, sanctioned additional facilities vide sanction letter dated 18.11.2006, comprising FBWC of Rs. 9.00 crores and NFB limits of Rs. 37.00 crores. To secure the enhanced limits, the defendants executed various security documents on 08.12.2006, including a Deed of Hypothecation of Book Debts (Annexure A18); a Supplementary Agreement for availing additional Cash Credit of Rs. 9.00 crores, Bank Guarantee of Rs. 35.00 crores, and ILC/FLC of Rs. 2.00 crores (AnnexureA19); a Deed of Hypothecation of Goods and Book Debts to the tune of Rs. 22,50,00,000/- (Annexure A20); a Deed of Hypothecation of Goods and Book Debts for Rs. 9,00,00,000/- (AnnexureA21); a Deed of Hypothecation of Current Assets for Cash Credit of Rs. 9,00,00,000/-, Bank Guarantee of Rs. 35,00,00,000/-, and ILC/FLC of Rs. 2,00,00,000/- (Annexure A21); a Deed of Hypothecation of movable assets dated 08.12.2006 creating a second charge on the entire fixed assets of the company (Annexure A22); a General Counter Indemnity dated 08.12.2006 (Annexure A23); and a Demand Promissory Note dated 08.12.2006 for Rs. 9,00,00,000/- executed in favour of the Applicant Bank (Annexure A24).

16. Further, a letter dated 08.12.2006 accepting the execution of the loan facilities and the terms of the sanction letter was executed and signed by the defendants in favour of the applicant, (AnnexureA25). Defendants No. 2 and 3 also stood as guarantors and executed Agreements of Guarantee, all dated 08.12.2006, whereby they jointly, severally and co-extensively guaranteed the liabilities of Defendant No. 1, and such guarantees, being continuing in nature, collaterally secure the aforesaid credit facilities.

17. Thereafter, on 31.03.2007, three balance confirmation letters relating to loan account numbers 1820008700000154, 1820008700000206, 1820001C00000104 and 1820001C00000195 were executed by Defendant No. 1 as borrower and by Defendants No. 2 and 3 in their capacity as guarantors, (Annexure A26) (Colly).

1. 18. Subsequently, an Inter-Se Agreement for sharing of securities among the lender banks, including the applicant, was executed on 26.10.2007, Annexure-A27. Further, at the request of Defendant No. 1, the applicant bank favourably considered its requirement for short-term financial accommodation and sanctioned a Short Term Loan of Rs. 35,00,00,000/- (Rupees Thirty-Five Crores only) vide sanction letter dated 03.03.2008, Annexure-A28.

2. 19. Pursuant to the sanction of the short-term loan, Defendant No. 1, through its authorized representatives, executed the requisite loaning and security documents, including the Hypothecation Deed dated 26.03.2008, whereby an exclusive charge over 2D seismic equipment and shot-hole rigs was created in favour of the applicant, and the Deed of Hypothecation of Assets to secure the term loan, Annexure-A29 and Annexure-A30.

3. 20. Further, Defendants No. 2 and 3 executed Agreements of Guarantee dated 26.03.2008, undertaking personal liability as guarantors and agreeing that their guarantees shall be continuing, co-existing and co-extensive with that of Defendant No. 1. In addition, Defendants No. 4 and 5 executed Corporate Guarantees dated 26.03.2008 and 30.06.2008, thereby guaranteeing the liabilities of Defendant No. 1. The guarantees furnished by Defendants 2 to 5 are continuing in nature and collaterally secure the aforesaid credit facilities, and their liability is joint, several and co-extensive with that of Defendant No. 1.

4. 21. Pursuant to a further request made by Defendant No. 1 for enhancement of the existing credit facilities and for certain additional accommodations, the Applicant Bank sanctioned the revised facilities vide sanction letter dated 09.05.2008, Annexure A-31. Under Facility No. 1, the Cash Credit (Book Debts) limit was enhanced to Rs. 22.50 crores from the earlier limit of Rs. 9.00 crores, with a margin of 40%, tenor up to 90 days, and interest @ 12.50% p.a. (BPLR-linked) on monthly rests, secured by a first pari passu charge on all current assets of the company, present and future. Under Facility No. 2, the Bank Guarantee limit was enhanced to Rs. 75.00 crores from Rs. 35.00 crores with a margin of 5% in the form of FDRs (and 100% margin for disputed liabilities), for performance under contract. Under Facility No. 3, the ILC/FLC (DP/DA up to 90 days) limit was enhanced to Rs. 5.00 crores from Rs. 2.00 crores, with a margin of 10% in the form of FDRs, for purchase/import of stores, spares and consumables, secured against DA/DP documents along with approved MTR/RR/B/L, with commission applicable as per extant guidelines or as approved in the sanction. Subsequently, on 21.05.2008, Defendant No. 1 passed a Board Resolution, Annexure A-32, authorizing Defendants No. 2 and 3 to convey acceptance of the sanction terms, execute consortium documents, execute guarantees, and create the necessary charges in favour of the Applicant Bank.

1. 22. To secure the aforesaid enhanced facilities and additional cash credit accommodations sanctioned to Defendant No. 1, the said defendant, through its authorized signatories- Defendants No. 2 and 3, as empowered under the Board Resolution dated 21.05.2008 executed various loaning and security documents in favour of the Applicant Bank. These included the Supplementary Agreement dated 21.05.2008, Annexure A-33; the Deed of Hypothecation of Goods and Book Debts to secure the Cash Credit Facility dated 21.05.2008, Annexure A-34 & A-35); the Deed of Hypothecation of movable assets forming part of fixed/block assets dated 21.05.2008 Annexure A-36; the Deed of Hypothecation on DA basis dated 21.05.2008 Annexure A-37; the Deed of Hypothecation of current assets dated 21.05.2008 Annexure A-38; the General Counter Indemnity dated 21.05.2008 Annexure A-39; and the Letter of Undertaking dated 21.05.2008 Annexure A-40.

23. Further, Defendants No. 2 and 3 executed Agreements of Guarantee, all dated 21.05.2008, whereby they unequivocally agreed to guarantee the liabilities undertaken by Defendant No. 1. The said guarantees, being continuing in nature, collaterally secure the credit facilities sanctioned to Defendant No. 1, and the liability of Defendants No. 2 and 3 under these guarantees is joint, several, and co-extensive with that of Defendant No. 1.

24. In March 2009, upon the further request of Defendant No. 1, the Applicant Bank sanctioned additional credit facilities, namely Cash Credit (Book Debts) of Rs. 50,00,00,000/-, Bank Guarantee of Rs. 123,00,00,000/-, Bank Guarantee (Specific) of Rs. 47,00,00,000/-, and ILC/FLC of Rs. 5,00,00,000/-. Pursuant thereto, Defendant No. 1 passed a Board Resolution dated 15.04.2009 authorizing Defendants No. 2 and 3 to accept the terms and conditions of the sanction and to execute all requisite loaning and security documents for availing the aforesaid facilities.

25. In furtherance of this authorization, Defendants No. 2 and 3, acting on behalf of Defendant No. 1, executed various loaning and security documents including the Hypothecation Deed of movable assets dated 22.04.2009 creating a second charge on the entire fixed assets of the company, the Deed of Hypothecation of Goods and Book Debts dated 22.04.2009, the Deed of Hypothecation of Current Assets dated 22.04.2009, the Deed of Hypothecation on DA basis, Agreement of Hypothecation of Book Debts, Supplementary Agreement for End Use Verification, General Counter Indemnity dated 22.04.2009, and the Balance Security Confirmation Letter. Further, Defendants No. 2 and 3 also executed Agreements of Guarantee dated 22.04.2009, undertaking personal liability for the obligations of Defendant No. 1; such guarantees are continuing in nature and collaterally secure the credit facilities, and the liability of Defendants No. 2 and 3 remains joint, several, and co-extensive with that of Defendant No. 1.

1. 26. That in addition to the earlier facilities, the Applicant Bank, on the request of Defendant No. 1 through its directors, sanctioned an additional Short-Term Loan Facility of Rs. 30,00,00,000/- for a period of three months on 29.09.2009, in respect of which Defendant No. 1 executed the Short-Term Loan Agreement dated 29.09.2009, Annexure A50.

2. 27. To secure the said facility, Defendants No. 2 and 3 executed Agreements of Guarantee, all dated 29.09.2009, thereby unconditionally guaranteeing the liability of Defendant No. 1; the said guarantees are continuing in nature and render Defendants 2 and 3 jointly, severally, and co-extensively liable with Defendant No. 1, copies of which are annexed as Annexure A51 and A52.

3. 28. Further, on the continued request of Defendant No. 1 through its directors, the Applicant Bank sanctioned another additional Short-Term Loan Facility of Rs. 50,00,00,000/- on 24.12.2009, supported by the request letter and sanction letter dated 24.12.2009, Annexure A53 (Colly), and in respect thereof Defendant No. 1 executed the Agreement dated 24.12.2009 exhibited as Annexure A54. Defendants 2 and 3 again executed joint Agreements of Guarantee dated 24.12.2009, which are continuing in nature and collaterally secure the aforesaid credit facilities, making their liability joint, several, and co-extensive with that of Defendant No. 1, copies Annexure A55.

4. 29. That in August 2010, Defendant No. 1 once again approached the Applicant Bank seeking sanction of credit facilities amounting to Rs. 857 crores and requested formation of a consortium, pursuant to which a consortium of three banks-State Bank of India, ICICI Bank and the Applicant Bank-was constituted, with State Bank of India acting as the lead bank. An Inter-Se Agreement and a Supplemental Working Capital Consortium Agreement were executed among the lending banks on 23.12.2010, under which the sharing of limits was fixed as Rs. 315 crores for State Bank of India, Rs. 285 crores for ICICI Bank, and Rs. 257 crores for Punjab National Bank, as against the detailed fund-based and non-fund-based facilities sought by Defendant No. 1.

1. 30. Thereafter, on 03.12.2010, a Board Resolution was passed authorizing Defendants 2 and 3 to accept sanction terms, execute consortium documents, and furnish guarantees, with the details of renewed, fresh and enhanced facilities reflected in the credit structure of the consortium banks, Annexure A-56. In respect of these facilities, Defendant No. 1 executed various documents, including the Inter-Se Agreement dated 23.12.2010 (Annexure A57), Letter of Authority dated 23.12.2010 (Annexure A58), Supplemental Working Capital Consortium Agreement dated 23.12.2010 (Annexure A59), Letter of Undertaking for creation of second charge dated 23.12.2010 (Annexure A60), Deed of Hypothecation on goods and book debts dated 23.12.2010 (Annexure A61), Deed of Hypothecation of movable assets forming part of fixed/block assets dated 23.12.2010 (Annexure A62), Agreement-cum-Indemnity for opening Letters of Credit up to Rs. 220.50 crores dated 23.12.2010 (Annexure A63), Supplemental Deed of Guarantee enhancing the overall consortium limit from Rs. 645 crores to Rs. 711.50 crores dated 23.12.2010 (Annexure A64), and Omnibus Counter Guarantee dated 23.12.2010 (Annexure A65). To secure the liabilities arising under these facilities, Defendants 2 and 3 executed Agreements of Guarantee dated 23.12.2010 holding themselves jointly, severally and co-extensively liable with Defendant No. 1, Annexure A-66.

1. 31. Furthermore, Defendants No. 8, 9 and 10 stood as guarantors for the liabilities of Defendant No. 1 and executed Corporate Guarantees dated 23.12.2010, making their liability joint, several and co-extensive with Defendant No. 1, Annexure A-67 to A-69.

2. 32. That again, during the months of March–April 2013, Defendant No. 1 approached the Applicant Bank seeking sanction of additional credit facilities and further requested the Applicant Bank to form a consortium by introducing Defendant No. 14. Acting upon the said request, the Applicant Bank agreed to form a consortium comprising Defendant Nos. 6 to 8 along with the Applicant Bank, wherein Defendant No. 6 was designated as the Lead Bank. Accordingly, the lender banks, i.e., Defendant Nos. 6 to 8, executed an Inter Se Agreement dated 03.04.2013, pursuant to which the credit facilities were sanctioned and granted, the details of which are provided herein below.

<table border="1"> <thead> <tr> <th>Banks</th> <th>Fund Based Working Capital</th> <th>Non-Fund Based Working Capital</th> <th>Total</th> </tr> </thead> <tbody> <tr> <td>State Bank of India</td> <td>93.00</td> <td>222.00</td> <td>315.00</td> </tr> <tr> <td>Punjab National Bank</td> <td>82.00</td> <td>174.50</td> <td>256.50</td> </tr> <tr> <td>ICICI Bank</td> <td>75.00</td> <td>90.00</td> <td>165.00</td> </tr> <tr> <td>Bank of Maharashtra</td> <td>50.00</td> <td>00.00</td> <td>50.00</td> </tr> <tr> <td>Total</td> <td>300.00</td> <td>486.50</td> <td>786.50</td> </tr> </tbody> </table>

A Board Resolution was passed authorizing Defendants No. 2 and 3 to convey acceptance of the terms and conditions of the sanction letter and to execute all consortium-related documents, guarantees, and other requisite papers.

1. 33. In order to secure the aforesaid credit facilities, the consortium banks and the defendants executed various security and transactional documents, including the Inter Se Agreement dated 03.04.2013 (Annexure A-70), the Working Capital Consortium Agreement dated 03.04.2013 (Annexure A-71), the Joint Deed of Hypothecation dated 03.04.2013 executed by the defendants in favour of the Lead Bank (Annexure A-72), and the Letter of Authority dated 03.04.2013 executed by the defendants in favour of SBI (Annexure A-73), all in accordance with the limits, interest rates, and terms stipulated in the sanction letter.

2. 34. Subsequently, upon discovering an error in the computation of the total amount of credit facilities extended by the consortium, the parties executed an Amendatory Agreement dated 12.04.2013 and another modifying agreement to revise the total sanctioned amount from Rs. 786.50 Crores to Rs. 787 Crores, Annexure A-74 and Annexure A-75 respectively.

3. 35. Further, Defendants No. 2 and 3 executed Agreements of Guarantee, all dated 03.04.2013, thereby guaranteeing the liabilities of Defendant No. 1; such guarantees are continuing in nature and collaterally secure the above credit facilities, with the liability of Defendants No. 2 and 3 being joint, several, and co-extensive with that of Defendant No. 1, Annexure A-76, Annexure A-77, and Annexure A-78 respectively.

4. 36. The defendants duly availed, enjoyed, and utilized the credit facilities sanctioned by the Applicant but failed to maintain the requisite financial discipline and repeatedly violated the terms and conditions governing the said facilities, resulting in the loan accounts becoming irregular.

5. 37. Due to persistent financial defaults and continuous contraventions of the agreed terms, the Applicant, on 30.06.2016, declared the credit facilities as Non-Performing Assets in strict compliance with the applicable prudential norms and income recognition guidelines. Prior to such NPA classification, Defendant No. 1 had approached the Applicant Bank and the consortium members seeking financial restructuring, and upon such request, the Applicant and other consortium banks agreed to restructure and reschedule the credit facilities granted to Defendant No. 1.

1. 38. In furtherance of this, a Board Resolution dated 30.12.2013 was passed by the defendants approving the restructuring and rescheduling of the existing debts by modifying, amending, and enhancing the sanctioned facilities, a copy of which is annexed as Annexure A-79. Thereafter, a Master Restructuring Agreement dated 31.12.2013 was executed between the defendants, the Applicant Bank, and other consortium members, a copy of which is annexed as Annexure A-80.

2. 39. In order to secure the outstanding amounts under the restructured credit facilities, Defendant No. 1, through Defendants No. 2 and 3 duly authorized by the Board Resolution dated 30.12.2013, executed various security and restructuring documents as detailed in Schedule III-D of the Master Restructuring Agreement dated 31.12.2013. These include the Master Restructuring Agreement dated 31.12.2013, the Deed of Hypothecation dated 31.12.2013 executed by the defendants in favour of the Applicant Bank hypothecating both current and fixed assets (Annexure A-81), and the Deed of Undertaking dated 31.12.2013 executed by the defendants in favour of the Applicant (Annexure A-82).

3. 40. Further, Defendants No. 2 and 3 stood as guarantors and executed Agreements of Guarantee dated 31.12.2013, reaffirming their obligation to guarantee the liabilities of

Defendant No. 1; such guarantees, being continuing in nature under the earlier agreements dated 03.04.2013, collaterally secure the restructured facilities, and their liability remains joint, several, and co-extensive with that of Defendant No. 1, (Annexure A-83).

1. 41. Additionally, another Master Restructuring Agreement dated 14.03.2014 was executed between Contesting Defendant No. 1, the Applicant Bank, and Defendants No. 6 to 26, with ICICI Bank Ltd. acting as the Monitoring Institution, a copy of which is annexed as (Annexure A-84).

2. 42. In order to secure the aforesaid credit facilities, various security and transactional documents were executed between the parties. As per Schedule III-D of the Master Restructuring Agreement dated 14.03.2014, a Security Trustee Deed dated 20.03.2014 was executed in favour of the CDR lenders (Annexure-A85), followed by a Trust and Retention Account Agreement dated 24.03.2014 executed by the defendants (Annexure-A86), an Unattested Deed of Hypothecation dated 21.03.2014 executed by Defendant No. 1 in favour of IL & Trust Company Ltd. (Annexure-A87), and a Letter of Authority (Annexure-A88). Defendants No. 2 and 3 further executed Agreements of Guarantee dated 18.03.2014 guaranteeing the liabilities of Defendant No. 1, which are continuing in nature and render their liability joint, several and co-extensive with that of Defendant No. 1, (Annexure-A89 and Annexure-A90). Likewise, Defendants No. 4 and 5 executed Corporate Guarantees dated 28.03.2014, which are also continuing guarantees securing the aforesaid credit facilities, and their liabilities remain joint, several and co-extensive, (Annexure-A91 to Annexure-A92).

1. 43. Subsequently, an Amendment and Supplementary Master Restructuring Agreement dated 21.08.2014 was executed between Defendant No. 1, the Applicant and Defendants No. 12 to 26 (Annexure-A93), followed by a Second Supplemental Working Capital Consortium Agreement dated 15.09.2014 executed between Defendant No. 1, the Applicant and Defendants No. 6 to 26 (Annexure-A94). Defendant No. 1, through its authorized signatories, also executed Balance and Security Confirmation Letters dated 30.01.2015, 23.02.2015, 19.06.2015 and 26.04.2016 acknowledging outstanding liabilities and confirming the charge over immovable properties and hypothecation of fixed assets in favour of the Applicant Bank (Annexure-A95 Colly).

2. 44. Thereafter, owing to Defendant No. 1's failure to comply with the commitments under the CDR package, the Applicant decided to exit from the CDR mechanism vide letter dated 22.06.2016 (Annexure-A96), resulting in the account being classified as NPA on 30.06.2016 with effect from 26.12.2013. Consequently, the Applicant recalled the credit facilities and issued a notice under Section 13(2) of the SARFAESI Act, 2002 on 23.12.2016 (Annexure-A97).

3. 45. It is further submitted that a winding-up petition was filed by Citicorp International Limited before the Hon'ble High Court of Delhi against Defendant No. 1 and an Official Liquidator has been appointed who is presently in charge of Defendant No. 1 in the interim.

4. 46. In respect of the security documents executed and created by Defendant No. 1, the particulars of charge and modification of charge were duly filed with the Registrar of Companies, and corresponding Certificates of Registration of Charge were obtained. The company executed a Deed of Hypothecation dated 28.03.2014 in favour of IL&FS Trust Company Ltd., acting as Security Trustee for the benefit of CDR lenders, thereby creating a charge over its movable fixed assets, plant and machinery located across various sites, the assets financed under the ECB facility, and its loans, advances, investments, and any other unencumbered assets, as defined in Part A of Schedule XI of the Master Restructuring Agreement.

1. 47. The particulars of charge were filed on 07.05.2014 and the Certificate of Registration of Charge was also issued on the same date, Annexure-A984. The transactions entered into between the applicant and the defendants are purely commercial in nature, entitling the applicant to pendent lite and future interest at the contracted rate with monthly rests in accordance with the sanction terms. The applicant has charged interest and compound interest strictly in consonance with RBI directives, without violating any regulatory guidelines.

2. 48. The Applicant maintains proper Books of Accounts for the loans extended to Defendants No. 1 to 11, and certified statements of account under the Bankers' Books Evidence Act are filed as Annexure-A, along with certificates of unapplied/recorded interest and the NPA Charge Report/Memorandum as Annexure-B. As per the certified accounts, an amount of Rs. 2,21,15,44,204.83/- was due as on the NPA date 23.12.2013, and a further sum of Rs. 98,58,62,498.76/- accrued as interest, including penal interest, up to 31.10.2018, in accordance with the judgment of the Hon'ble Supreme Court in Central Bank of India v. Ravindra, making a total sum of Rs. 3,19,74,06,703.59/- recoverable as on 31.10.2018.

3. 49. The cause of action continues to accrue in favour of the Applicant until the joint, several and co-extensive liabilities of the defendants are fully discharged. The documents filed with this application form part of the pleadings for interpretation of the transaction and terms, and the Applicant seeks leave to file further documents as required. The secured assets under Schedule-A include: for Cash Credit, a first pari passu charge on all current assets and a second pari passu charge on fixed assets (excluding assets with residual value), along with pledge of promoters' shares; and for Term Loans, a first pari passu charge on fixed assets including CWIP (excluding exclusively charged assets and the Saket corporate office) and a second pari passu charge on current assets for restructured facilities, along with pledge of promoters' shares. The Applicant reserves its right to amend or modify the averments as permissible in law.

1. 50. To substantiate its case, the Applicant Bank has filed the affidavit of Mr. Harshit Vijay, son of Shri Vijay Kumar Srivastava, presently working as Senior Manager with Punjab National Bank, Mid Corporate Branch, H IA/11, Sector-63, Noida, Uttar Pradesh-201301 (presently at Delhi), do hereby solemnly affirm and declare that he is the Officer/Duly Constituted Attorney of the Applicant Bank in the above-noted case and am fully conversant with the facts thereof, derived from the records maintained by the Applicant Bank/Branch, and am competent to depose the present evidence by way of affidavit; that as Senior Manager, Principal Officer, Constituted Attorney and Authorized Officer of the Applicant Bank, he is duly empowered to sign and verify pleadings, depose evidence by way of affidavit, institute plaints, original applications, counter-claims, cross-suits and interlocutory applications, defend any suit or proceedings of any nature whatsoever, swear affidavits, execute documents, engage counsel, and to do all acts incidental, necessary or consequential thereto, and the Power of Attorney dated 14.05.2018 issued by the Applicant Bank.

1. i. Power of Attorney dated 14.05.2018 (Ex. AW-1/1);

2. ii. Certificate of Incorporation pursuant to change of name (Ex. AW-1/2);

3. iii. Deed of Hypothecation of Assets to secure Term Loan dated 26.05.2006 (Ex. AW-1/3);

4. iv. Deed of Hypothecation of movable assets creating pari-passu first charge dated 26.05.2006 (Ex. AW-1/4);

5. v. Deed of Hypothecation for Short Term Loan dated 26.05.2006 (Ex. AW-1/5);

6. vi. Deed of Hypothecation of movable assets dated 26.05.2006 (Ex. AW-1/6);

7. vii. Corporate Guarantee executed by SVUL Projects Ltd. dated 26.05.2006 (Ex. AW-1/7);

8. viii. Personal Guarantee executed by Defendant No. 2 dated 06.06.2006 (Ex. AW-1/8);

9. ix. Personal Guarantee executed by Defendant No. 3 dated 26.05.2006 (Ex. AW-1/9);

10. x. Balance and Security Confirmation dated 06.06.2006 (Ex. AW-1/10);

11. xi. Board Resolution dated 25.11.2006 (Ex. AW-1/11);

12. xii. Inter-Se Agreement dated 27.11.2006 (Ex. AW-1/12);

13. xiii. Working Capital Consortium Agreement dated 27.11.2006 (Ex. AW-1/13);

14. xiv. Joint Deed of Hypothecation dated 27.11.2006 (Ex. AW-1/14);

15. xv. Letter of Authority dated 27.11.2006 (Ex. AW-1/15);

16. xvi. Letter of Undertaking dated 27.11.2006 (Ex. AW-1/16);

17. xvii. Two Consent Letters dated 27.11.2006 (Ex. AW-1/17 colly.);

- xviii. Deed of Hypothecation of Book Debts dated 08.12.2006 (Ex. AW-1/18);

- xix. Supplementary Agreement dated 08.12.2006 (Ex. AW-1/19);

- xx. Deeds of Hypothecation dated 08.12.2006 (Ex. AW-1/20, AW-1/21, AW-1/21A, AW-1/21B);

- xxi. Hypothecation of movable assets creating second charge dated 08.12.2006 (Ex. AW-1/22);

- xxii. General Counter Indemnity dated 08.12.2006 (Ex. AW-1/23);

- xxiii. Demand Promissory Note dated 08.12.2006 (Ex. AW-1/24).

- xxiv. The letter accepting execution of loan facilities dated 08.12.2006 (Ex. AW-1/25);

- xxv. Agreements of Guarantee executed by Defendants No. 2 and 3 dated 08.12.2006; three Balance Confirmation Letters dated 31.03.2007 in various loan accounts (Ex. AW-1/26 Colly);

- xxvi. Inter-se Agreement dated 26.10.2007 (Ex. AW-1/27);

- xxvii. Sanction Letter dated 26.03.2008 for short-term loan of Rs. 35 crores (Ex. AW-1/28);

- xxviii. Hypothecation Deeds dated 26.03.2008 (Ex. AW-1/29 & AW-1/30);

- xxix. Guarantees executed by Defendants 2, 3, 4, and 5 on 26.03.2008 & 30.06.2008; Sanction Letter dated 19.05.2008 (Ex. AW-1/31);

- xxx. Board Resolution dated 21.05.2008 (Ex. AW-1/32);

- xxxi. Supplementary Agreement dated 21.05.2008 (Ex. AW-1/33);

- xxxii. Deeds of Hypothecation dated 21.05.2008 (Ex. AW-1/35 to AW-1/38);

- xxxiii. General Counter Indemnity dated 21.05.2008 (Ex. AW-1/39);

- xxxiv. Letter of Undertaking dated 21.05.2008 (Ex. AW-1/40);

- xxxv. Board Resolution dated 15.04.2009 (Ex. AW-1/41);

- xxxvi. Various Hypothecation Deeds dated 22.04.2009 (Ex. AW-1/42 to AW-1/46);

- xxxvii. Supplementary Agreement dated 22.04.2009 (Ex. AW-1/47);

- xxxviii. General Counter Indemnity dated 22.04.2009 (Ex. AW-1/48);

- xxxix. Balance Security Confirmation Letter dated 22.04.2009 (Ex. AW-1/49); Agreement for Short-Term Loan dated 29.09.2009 (Ex. AW-1/50);

- xl. Guarantees dated 29.09.2009 (Ex. AW-1/51 & AW-1/52);

- xli. Request Letter and Sanction Letter dated 24.12.2009 (Ex. AW-1/53 Colly);

- xlii. Joint Agreement of Guarantee dated 24.12.2009 (Ex. AW-1/55);

- xliii. Board Resolution dated 03.12.2010 (Ex. AW-1/56);

- xliv. Inter-se Agreement dated 23.12.2010 (Ex. AW-1/57);

- xlv. Letter of Authority dated 23.12.2010 (Ex. AW-1/58);

- xlvi. Supplemental Working Capital Consortium Agreement dated 23.12.2010 (Ex. AW-1/59);

- xlvii. Letter of Undertaking dated 23.12.2010 (Ex. AW-1/60);

- xlviii. Deeds of Hypothecation dated 23.12.2010 (Ex. AW-1/61 & AW-1/62);

- xlix. Agreement-cum-Indemnity dated 23.12.2010 (Ex. AW-1/63);

- l. Supplemental Deed of Guarantee dated 23.12.2010 (Ex. AW-1/64);

- li. Omnibus Counter Guarantee dated 23.12.2010 (Ex. AW-1/65)

- lii. Agreement of Guarantee dated 23.12.2010 executed by Defendants 2 and 3 (Ex. AW-1/66);

- liii. Corporate Guarantees dated 23.12.2010 executed by Defendants 8, 9 and 10 (Ex. AW-1/67 to AW-1/69);

- liv. Inter-Se Agreement dated 03.04.2013 (Ex. AW-1/70);

- lv. Working Capital Consortium Agreement dated 03.04.2013 (Ex. AW-1/71);

- lvi. Joint Deed of Hypothecation dated 03.04.2013 (Ex. AW-1/72);

- lvii. Letter of Authority dated 03.04.2013 (Ex. AW-1/73);

- lviii. Amendatory Agreement and modifying agreement both dated 12.04.2013 (Ex. AW-1/74 and AW-1/75);

- lix. Agreements of Guarantee dated 03.04.2013 executed by Defendants 1, 2 and 3 (Ex. AW-1/76 to AW-1/78);

- lx. Board Resolution dated 30.12.2013 (Ex. AW-1/79);

- lxi. Master Restructuring Agreement dated 31.12.2013 (Ex. AW-1/80), followed by the Deed of Hypothecation (Ex. AW-1/81) and Deed of Undertaking (Ex. AW-1/82) both dated 31.12.2013;

- lxii. Agreements of Guarantee dated 03.04.2013 executed by Defendants 2 and 3 (Ex. AW-1/83);

- lxiii. Master Restructuring Agreement dated 14.03.2014 (Ex. AW-1/84);

- lxiv. Security Trustee Deed dated 20.03.2014 (Ex. AW-1/85);

- lxv. Trust and Retention Account Agreement dated 24.03.2014 (Ex. AW-1/86);

- lxvi. Unattested Deed of Hypothecation dated 21.03.2014 (Ex. AW-1/87);

- lxvii. Letter of Authority (Ex. AW-1/88);

- lxxiii. Agreements of Guarantee dated 18.03.2014 executed by Defendants 2 and 3 (Ex. AW-1/89 and AW-1/90);

- lxxix. Corporate Guarantees dated 28.03.2014 executed by Defendants 4 and 5 (Ex. AW-1/91 and AW-1/92);

- lxx. Amendment and Supplementary Master Restructuring Agreement dated 21.08.2014 (Ex. AW-1/93);

- lxxi. Second Supplemental Working Capital Consortium Agreement dated 15.09.2014 (Ex. AW-1/94);

- lxxii. Balance and Security Confirmation Letters dated 30.01.2015, 23.02.2015, 19.06.2015 and 26.04.2016 (Ex. AW-1/95 Colly);

- lxxiii. The applicant's letter dated 22.06.2016 (Ex. AW-1/96);

- lxxiv. Notice under Section 13(2) of the SARFAESI Act dated 23.12.2016 (Ex. AW-1/97);

- lxxv. ROC-recorded Deed of Hypothecation dated 28.03.2014 along with the Search Report (Ex. AW-1/98);

- lxxvi. Certified Statement of Account (Ex. AW-1/99);

- lxxvii. Certificates of Unapplied Interest/NPA Memorandum (Ex. AW-1/100).

15. It is also on record that the connected Transfer Application No. 287/2022 (Indian Overseas Bank v. SVOGL Oil Gas & Energy Limited) was pending before this Tribunal and now stands disposed of by a Final Order dated 30.06.2025. In that order, the Applicant Bank (IOB) placed on record the orders of the Ld. NCLT, Delhi concerning Defendants 2, 4 and 5, namely M/s TRS Technology Pvt. Ltd., Mr. Prem Singhee and Mr. Padam Singhee. Those orders show that CIRP was initiated against Defendant 2, while personal insolvency proceedings were commenced against Defendants 4 and 5. These parties correspond to Defendant 5, Defendant 2 and Defendant 3 in the present OA. It is therefore evident that CIRP and personal insolvency proceedings are pending against them before the NCLT, Delhi.

1. 16. In this case, an Official Liquidator has already been appointed by the Hon'ble High Court of Delhi for Defendant No. 1. In addition, Defendants 2, 3 and 5 are presently before the Ld. NCLT, Delhi.

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

3. 18. In this TA, the Applicant Bank has sought issuance of a Recovery Certificate against Defendants No. 1 to 5. Defendant 1 is the principal borrower to whom the financial facilities were sanctioned and is currently under insolvency proceedings. Defendants No. 2, 3 and 5 are also before the Ld. NCLT in ongoing CIRP or personal insolvency proceedings. Defendants No. 4 and 5 have acted as corporate guarantors for the facilities availed by Defendant No. 1 and are subject to insolvency proceedings under the IBC. Defendants No. 6 to 8 are consortium lenders, with Defendant No. 6 functioning as the lead bank for the working capital limits. Defendants No. 9 to 26 are other secured creditors who extended various loans and financial facilities, and no relief has been claimed against them in the present TA.

1. 19. Consequently, TA No. 38/2022 stands allowed in favour of Applicant Bank and against Defendants No. 4, who is liable to pay the dues of the Applicant Bank along with costs and pendentelite & future interest@ 13% 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. 38/2022 stands allowed and the Defendants No. 4 is directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 319,74,06,703.59/- (Rupees Three Hundred Nineteen Crores Seventy-Four Lakhs Six Thousand Seven Hundred Three and Fifty-Nine Paise only)less the amount received from the sale/ release of mortgaged properties along with cost and pendentelite and future interest, as claimed in TA i.e. @ 13% per annum rests from the date of filing of this TA till the date of realization failing which, the aforesaid amount shall be recovered from the sale of hypothecated/charged stocks/tangible movables and available mortgaged properties.

Further, in case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the Defendants No. 4.

So far as, Defendants No. 1 to 3 & 5 are concerned, since Defendants No. 1 to 3 & 5 is before Ld. NCLT, hence, no order qua Defendants No. 1 to 3 & 5 can be passed against said Defendants at this stage.

However, it is directed that Applicant Bank shall be at liberty to revive the OA qua Defendants No. 1 to 3 & 5 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 15.01.2026.

- (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: 20.11.2025

K. Singh

20.11.2025 (SHIV KUMAR - I) PRESIDING OFFICER, DRT-III, DELHI