SREI Equipment Finance Limited vs FORTIS HEALTHCARE HOLDINGS PVT LTD AND ANR on 17 December 2025

**FINAL ORDER**

1. 1. This Original Application was filed on 18.09.2019 under Section 19 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 by the Applicant, SREI Infrastructure Finance Limited, a Public Financial Institution incorporated under the Companies Act, 1956, bearing Corporate Identity Number L29219WB1985PLC055352, having its registered office at "Vishwakarma", 86-C, Topsia Road (South), Kolkata – 700046, its corporate office at 6A, Kiran Shankar Roy Road, Kolkata – 700002 and a branch office at D-2, 5th Floor, Southern Park, Saket Place, Saket, New Delhi – 110017, and duly notified as a Financial Institution by the Ministry of Corporate Affairs (Annexure A/1), in its capacity as a debenture holder having subscribed to 950 debentures of face value Rs. 10,00,000/- each aggregating to Rs. 95.00 Crores out of the total 1500 debentures aggregating to Rs. 150.00 Crores issued by Defendant No. 1 pursuant to the Debenture Trust Deed dated 16.08.2017, seeking issuance of a Recovery Certificate in its favour and against Defendant No. 1 for a sum of Rs. 121,05,32,086/- (Rupees One Hundred Twenty One Crore Five Lakh Thirty Two Thousand Eighty Six Only) outstanding as on 20.06.2019 together with further interest at the rate of 7% per annum with monthly rests from 21.06.2019 and other charges at the contractual rates on a compound interest basis till full payment and/or realization, and the said Application has been duly signed, verified and instituted on behalf of the Applicant by Mr. Supriyo Gole, Authorized Signatory, duly authorized under a Power of Attorney dated 17.05.2019.

2. 2. It is pertinent here that this OA bearing no. 159/2020 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 17.10.2022 and was numbered at TA-69/2022.

1. 3. The brief facts of the case are that Defendant No. 1, M/s Fortis Healthcare Holdings Private Limited, is the issuer of the debentures and is engaged in the business of medical infrastructure, owning and managing multi-specialty and super-specialty hospitals across India through its subsidiaries, and is also engaged in investing and lending as a Non-Banking Financial Company registered under Section 45-IA of the Reserve Bank of India Act, 1934, with its registered office at G-16, Marina Arcade, Connaught Circus, New Delhi – 110001 (Annexure A/3), and pursuant to a Board Resolution dated 30.03.2017 resolved to raise funds by issuance of non-convertible debentures aggregating to Rs. 150.00 Crores on a private placement basis within its overall borrowing limits of Rs. 5,000 Crores and to create security by way of mortgage and/or hypothecation of its assets in favour of the Debenture Trustee; Defendant No. 2, IDBI Trustee Services Limited, is a SEBI-registered Debenture Trustee under the SEBI (Debenture Trustee) Regulations, 1993, appointed under the Debenture Trust Deed dated 16.08.2017 to act for the benefit of all debenture holders including the Applicant, and has been impleaded as a pro-forma defendant since all transaction and security documents, including the Debenture Trust Deed and Deed of Hypothecation dated 16.08.2017, are executed in its favour and held by it in original, though no reliefs are sought against it in the present proceedings.

2. 4. So far as, the Defendant No. 1 has remained ex parte since 26.05.2025, 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.

1. 5. It is further stated that in or around 30.03.2017, Defendant No. 1 decided to raise additional finance by way of issuance of non-convertible debentures aggregating to Rs. 150.00 Crores for its general corporate purposes, and in furtherance thereof, the Board of Directors of Defendant No. 1, by a resolution dated 30.03.2017, approved the issuance of such debentures on a private placement basis within its overall borrowing limits of Rs. 5,000 Crores, the creation of security by way of mortgage and/or hypothecation of its movable and immovable assets in favour of the Debenture Trustee, authorized the Debenture Trustee to exercise all powers under the Debenture Trust Deed, Deed of Hypothecation and other security documents on behalf of the debenture holders, and empowered its directors, company secretary and designated authorized signatories to determine, negotiate, finalize and execute all terms, documents and agreements relating to the non-convertible debentures, whether issued in one or more tranches, which approvals were further ratified and confirmed by the shareholders of Defendant No. 1 by a special resolution dated 28.06.2017 passed under Sections 42 and 71(5) of the Companies Act, 2013, authorizing the issuance of the debentures, creation of security in favour of the Debenture Trustee and execution of all related documents (Annexure A/5).

2. 6. It is stated that pursuant to the Board Resolution dated 30.03.2017 and the Shareholders' Resolution dated 28.06.2017, Defendant No. 1 executed and issued various documents for the issuance of 1500 listed, rated, secured, redeemable, non-convertible debentures aggregating to Rs. 150.00 Crores, including the Information Memorandum dated 16.08.2017 filed 

with the Registrar of Companies detailing the objectives, risks and terms of the issue (Annexure A/6), a Board Resolution dated 16.08.2017 (Annexure A/6), approving the allotment of the said debentures, issuance of allotment letters, listing with BSE Limited and credit of debentures in dematerialized form, the Consent Letter dated 16.08.2017 issued by Defendant No. 2 agreeing to act as Debenture Trustee (Annexure A/8), and the Debenture Trust Deed dated 16.08.2017 executed between Defendant No. 1 and Defendant No. 2, which, inter alia, provided that the debentures were issued for general business purposes eligible for bank finance, carried interest at 7% per annum payable quarterly with stipulated default interest, were redeemable on 14.08.2018 with a redemption premium, and were secured by a first ranking pari passu charge on the loan receivables of Defendant No. 1 along with maintenance of stipulated asset cover and creation of a debt service account, further providing that upon occurrence of any event of default, including failure to pay principal or interest on due dates, the debenture holders were entitled to declare the entire outstanding debentures along with accrued interest and premium to be immediately due and payable (Annexure A/9).

1. 7. It is further stated that for the purpose of securing the aforesaid debentures, Defendant No. 1 executed a Deed of Hypothecation dated 16.08.2017 at New Delhi in favour of Defendant No. 2, thereby creating a first pari passu charge by way of hypothecation over its loan receivables outstanding from time to time as continuing security for due repayment of the debentures in accordance with the Debenture Trust Deed dated 16.08.2017, under which Defendant No. 1, inter alia, undertook to maintain an asset cover of 1.25 times of the aggregate nominal value of the debentures together with interest and redemption premium at all times till redemption, not to create any further charge, 

mortgage, lien or encumbrance over the secured property except in favour of the Debenture Trustee, and to deal with the secured property only in the ordinary course of business so long as no event of default occurred, with the charge becoming enforceable upon the occurrence of an event of default entitling the Debenture Trustee, on instructions of debenture holders holding the requisite majority, to enforce the security, the said Deed being governed by the laws of India with courts at New Delhi having jurisdiction, and copies of the Deed of Hypothecation and the related charge registration form dated 16.08.2017 being annexed as (Annexure A/10 and Annexure A/11) respectively.

1. 8. That, it purchased 950 listed, secured, redeemable, non-convertible debentures out of 1500 issued by Defendant No. 1 on 10.10.2017 from M/s Vistar Financiers Pvt. Ltd. ("Subscribed Debentures"), as evidenced by the Deal Slip dated 10.10.2017 (Annexure A/12), the Demat Account Statement of the Applicant reflecting credit of the Subscribed Debentures (Annexure A/13), and the bank statement evidencing payment to M/s Vistar Financiers Pvt. Ltd. (Annexure A/14). Pursuant to the Debenture Trust Deed dated 16.08.2017 and other transaction documents, Defendant No. 1 initially paid interest due on the Subscribed Debentures, totaling INR 3,33,41,096/- towards the first and second due dates of 15.11.2017 and 15.02.2018, but thereafter defaulted in payment, having made no interest payments post 15.02.2018. Following repeated follow-ups by the Applicant, Defendant No. 1 failed and neglected to pay the outstanding interest and other charges, compelling the Applicant to issue a default notice bearing Ref. No. Srei/2017-18/Fortis/001 dated 25.06.2018, demanding payment of Rs. 1,65,50,920/- due and payable as on 25.06.2018, and clearly stating that in the event of non-payment within five 

days, the entire amount would be recalled and the security interest enforced (Annexure A/15, Colly).

1. 9. It is stated that despite receipt of the Default Notice bearing Ref. No. Srei/2017-18/Fortis/001 dated 25.06.2018, Defendant No. 1 failed and neglected to make payment of interest accrued up to 11.07.2018 amounting to Rs. 2,72,45,986/- (Rupees Two Crores Seventy Two Lacs Forty Five Thousand Nine Hundred and Eighty Six Only), and continued in default until 25.07.2018 in respect of Rs. 103,73,69,274/- (Rupees One Hundred Three Crores Seventy Three Lacs Sixty Nine Thousand Two Hundred and Seventy Four Only) towards accrued interest, charges, and redemption premium, which continues to accrue to date. Consequently, the Applicant issued a further Default Notice bearing Ref. No. Srei/PF/2017-18/Fortis/002 dated 12.07.2018, recalling the entire amount payable under the Debenture Trust Deed dated 16.08.2017, demanding payment of Rs. 103,73,69,274/- as on 11.07.2018, with interest, overdue and other charges at the contractual rate, and stipulating that failure to make payment within five days would entitle the Applicant to exercise all rights under the Debenture Trust Deed and other related financing documents (Annexure A/16, Colly).

2. 10. As a result, the Applicant is entitled to recover a total sum of Rs. 121,05,32,086/- (Rupees One Hundred Twenty One Crores Five Lakh Thirty Two Thousand Eighty Six Only) as on 20.06.2019 from Defendant No. 1, along with interest, penal interest, and other applicable charges until full realization. The said outstanding amounts are secured by a first-ranking pari-passu charge over the loan receivables of Defendant No. 1 with an asset cover of 1.25 times, a requirement to maintain minimum receivables of Rs. 213.75 crores during the tenure of the debentures as reduced by interest paid on due dates, and the creation of a Debt Service Reserve Account with sufficient funds to cover redemption of the debentures at least three days prior to payment.

1. 11. It is stated that since Defendant No. 1 has failed and neglected to repay the outstanding amount as demanded, the present Original Application is being filed under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, seeking recovery of the debt along with pendentite-lite and future interest at the contractual rate, as well as costs, charges, and other applicable dues. The total outstanding amount of Defendant No. 1 payable to the Applicant as on 20.06.2019 is Rs.121,05,32,086/- (Rupees One Hundred Twenty One Crores Five Lakh Thirty Two Thousand Eighty Six Only), in addition to interest, default interest, costs, and charges thereon until actual payment, as evidenced from the Statement of Account of Defendant No. 1 and particulars of claim amounts, duly supported by a certificate under Section 65B of the Evidence Act (Annexure A/17, Colly).

2. 12. That, the interest has been charged and capitalized in accordance with the Debenture Trust Deed and in line with Reserve Bank of India directives. The transactions between Defendant No. 1 and Defendant No. 2, acting as Debenture Trustee for the benefit of the debenture holders including the Applicant, are commercial in nature, entitling the Applicant to pendentite-lite and future interest at the contracted rates, including penal interest. The Applicant craves leave of this Hon'ble Tribunal to add, amend, alter, modify, or delete any averments or submissions as necessary.

3. 13. Given that the available security is difficult to liquidate and may be insufficient to satisfy the Applicant's claim, it is submitted that it is just and necessary for the Applicant to be granted all appropriate reliefs, including injunctions and attachment of all 

investments and properties, movable and immovable, of Defendant No. 1.

1. 14. That, it has a strong prima facie case and is likely to succeed in the present matter, with the balance of convenience lying entirely in its favour against Defendant No. 1. The Applicant apprehends that Defendant No. 1, with the sole intention of defeating the purpose of this Original Application, may dispose of, transfer, or create third-party interests over its assets, both movable and immovable, thereby jeopardizing the Applicant's legitimate claims and causing irreparable loss and injury.

2. 15. It is further stated that Defendant No. 1, despite having the capacity to repay the redemption premium along with interest, has willfully defaulted in fulfilling its obligations towards the debenture holders, including the Applicant, demonstrating mala fide intentions. Considering the substantial outstanding dues and the remote prospects of recovery, the Applicant apprehends that Defendant No. 1 may create encumbrances over its assets to defeat the recovery process.

3. 16. Accordingly, the Applicant seeks an interim ex-parte injunction restraining Defendant No. 1, its employees, agents, successors, and assigns, from disposing, alienating, transferring, dealing with, or creating any charge or encumbrance over its movable and immovable properties, including shares (both Demat and physical), mutual fund units, investments, fixed deposits, vehicles, bank locker deposit receipts, securities, government securities, life insurance policies, debentures, bonds, or any other assets, without prior permission of this Hon'ble Tribunal. The Applicant further submits that the present Application is bona fide and made in the interest of justice.

4. 17. To substantiate its case, the Applicant Bank has filed an affidavit of Mr. Supriyo Gole, son of Shri R.N. Gole, Vice President of the Applicant Bank/FI, having its registered office at "Vishwakarma", 86 C, Topsia Road (South), Kolkata – 700046, corporate office at 6A, Kiran Shankar Roy Road, Kolkata – 700002, and branch office at D-2, 5th Floor, Southern Park, Saket Place, Saket, New Delhi – 110017, who is duly authorized by a Power of Attorney dated 17.05.2019 (annexed as EX.AW1/1), and affirms that he has perused all relevant records, is fully conversant with the facts of the case, and is competent to depose to the matters stated therein; the Applicant, being duly notified as a Financial Institution by the Ministry of Corporate Affairs (copy annexed as EX.AW1/2), has instituted this Application through him as its authorized signatory to file, verify, and perform all acts, deeds, and formalities necessary in respect thereof.

1. i. MCA Master Data evidencing the registered office of Defendant No.1 i.e., M/s Fortis Healthcare Holdings Private Limited, downloaded from the Ministry of Corporate Affairs website – EX.AW1/3 & EX.AW1/4.

2. ii. Board Resolution of Defendant No.1 dated 30.03.2017 passed by its Board of Directors approving issuance of debentures and creation of security – EX.AW1/5.

3. iii. Shareholders Resolution of Defendant No.1 dated 28.06.2017 under Sections 42 and 71(5) of the Companies Act, 2013 for issuance of debentures and creation of mortgage/hypothecation – EX.AW1/6.

4. iv. Information Memorandum dated 16.08.2017 filed before the Registrar of Companies (Delhi & Haryana), Ministry of Corporate Affairs, containing the terms and conditions of issuance of 1500 listed, secured, redeemable non-convertible debentures – EX.AW1/7.

5. v. Board Resolution of Defendant No.1 dated 16.08.2017 approving allotment of debentures and listing – EX.AW1/8.


- vi. Consent Letter dated 16.08.2017 (Ref. No. ITSL/OPR/CL/17-18/DEB/451) issued by Defendant No.2 consenting to act as Debenture Trustee – EX.AW1/9.

- vii. Debenture Trust Deed dated 16.08.2017 executed between Defendant No.1 and Defendant No.2 for issuance of 1500 debentures and creation of security – EX.AW1/10.

- viii. Deed of Hypothecation dated 16.08.2017 executed by Defendant No.1 in favor of Defendant No.2 for creating a first pari-passu charge over loan receivables of Defendant No.1 – EX.AW1/11.

- ix. CHG Form dated 16.08.2017 in respect of the security created by Defendant No.1 – EX.AW1/12.

- x. Purchase Deal Slip dated 10.10.2017 evidencing the Applicant's purchase of 950 listed debentures from M/s Vistar Financiers Pvt. Ltd – EX.AW1/13.

- xi. Demat Account Statement of the Applicant showing credit of the subscribed debentures – EX.AW1/14.

- xii. Bank Statement evidencing payment to M/s Vistar Financiers Pvt. Ltd towards purchase of subscribed debentures – EX.AW1/15.

- xiii. Default Notice bearing Ref. No. Srei/2017-18/Fortis/001 dated 25.06.2018 issued by the Applicant to Defendant No.1 – EX.AW1/16 (Colly).

- xiv. Default Notice bearing Ref. No. Srei/PF/2017-18/Fortis/002 dated 12.07.2018 issued by the Applicant to Defendant No.1 – EX.AW1/17 (Colly).

- xv. Statement of Account and Particulars of Claim of Defendant No.1 as on 20.06.2019, supported by certificate under Section 65B of the Evidence Act – EX.AW1/18 (Colly).

xvi. Original Application as filed by the Applicant Bank before this Tribunal – EX.AW1/19.

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

15. In this TA, the Applicant Bank/FI has prayed for the issuance of a Recovery Certificate against Defendant No. 1. In the present matter, Defendant No. 2 has been impleaded as a pro-forma defendant, as all transaction and security documents, including the Debenture Trust Deed and the Deed of Hypothecation dated 16.08.2017, have been executed in its favor and are held by it in original, notwithstanding that no reliefs are sought against it in this Application.

16. Consequently, TA No. 69/2022 is hereby allowed in favour of Applicant Bank/FI and against Defendants No. 1, who is liable to pay the dues of the Applicant Bank/FI along with costs and pendentelite & future interest @ 07% 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. 69/2022 stands allowed in favour of the Applicant Bank/FI and against the Defendant No. 1, who is liable to pay the outstanding dues of the Applicant Bank/FI. The Defendant No. 1


is directed to pay to the Applicant Bank, within 30 days, a sum of Rs. 121,05,32,086/- (Rupees One Hundred Twenty One Crore Five Lakh Thirty Two Thousand Eighty Six Only) along with cost and pendentelite and future interest, as claimed in TA i.e. @ 07% per annum rests from the date of filing of this TA till the date of realization, in case of default, the aforesaid amount shall be recovered by sale of the hypothecated/charged stocks, tangible movables, and the available mortgaged properties.

It is also directed that the Applicant Bank/FI shall adjust the amount(s), if any, received from the defendants during the pendency of this case.

Further, in case of shortfall, the same shall be recovered from the sale of movable and immovable assets of the Defendants No. 1.

- (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 10.02.2026.

- (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: 17.12.2025

K. Singh

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

17.12.2025

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