INDIAN OVERSEAS BANK vs VIR ALLOYS AND STEEL COMPANY PVT LTD on 18 May 2026

J U D G M E N T

This is an application under Section 19(1) of the Recovery of the Debts due to Banks and Financial Institutions Act, 1993 renamed as Recovery of the Debt and Bankruptcy Act, 1993 (for short, ‘the

Act’) to recover aggregate sum of ₹108,98,51,619.34/- (Rupees One Hundred Eight Crores Ninety-Eight Lakhs Fifty-One Thousand Six Hundred Nineteen and paisa Thirty-Four Only) wherein a sum of ₹83,46,25,291.27/- (Rupees Eighty-Three Crores Forty-Six Lakhs Twenty-Five Thousand Two Hundred Ninety-One and paisa Twenty-Seven Only) under Cash Credit Facility with future interest @ 17% per annum with monthly rest, a sum of ₹25,47,62,042/- (Rupees Twenty-Five Crores Forty-Seven Lakhs Sixty-Two Thousand Forty-Two Only) under WCTL Facility with future interest @ 15.25% per annum with monthly rest and a sum of ₹4,64,286.07/- (Rupees Four Lakhs Sixty-Four Thousand Two Hundred Eighty-Six and paisa Seven Only) under Cash Credit Sub-limit A/c. No.720 with future interest @ 17% per annum with monthly rest thereon from the date of presentation of the Transferred Original Application i.e. 04.06.2015 till payment/realization and to enforce the hypothecated and mortgaged securities.

The details of the claim amount are as under: - Sr No Nature of Facili ty O/s. i nclu siv e of Unapplied i nterest

Cash Credit Facil ity ₹83, 46, 25, 291.27/ -

WCTL Faci lity ₹25, 47, 62, 042/-

Cash Cr edit Sub-limit A/c. No.720 ₹4,64, 286. 07/ -

Total A m ou nt ₹108,98 ,51,619.34/-

It is undisputed fact in the matter that the Defendant nos.1 to 4 were duly served with the summons vide order-sheet dated 24.07.2024. Despite service, the defendants did not enter their appearance and therefore, they were set ex-parte on 15.05.2025.

Defendant no.1 through its Directors i.e. Defendant nos.2 and 3 are the principal borrowers who approached the Applicant Bank sought financial assistance by way of Cash Credit Facility, WTCL Facility and Cash Credit Sub-limit A/c. No.720 Facility wherein Defendant nos.2 to 4 acting as guarantors of the said loan. Pursuant to the loan application made by defendants, the Applicant sanctioned various the loans which are given in the table below.

The details of the Sanctioned amounts are as under: - S r

N o Da te o f S a n c ti on Na tu re o f F a c i li ti e s A m ou n t ( I n ₹ ) RO I P ri m a ry S e c u ri ty S e c on d a ry S e c u ri ty

2 4 . 0 3 . 19 8 7 Ca s h Cr e d i t (h y p o th e c a tio n ) 3 5 , 0 0 , 00 0 / - 1 7 . 5% p e r a n n u m F ir s t Ch a r g e o n th e c u r r e n t a s s e ts o f th e c o mp a n y . R e s id u a r y v a lu e o f th e c u r r e n t a s s e ts . P e r s o n a l G u a r a n te e : - (a ) S h r i. D h a r a m V ir A g g a r wa l; (b ) M r s . S h a n ta D h a r a m A g g a r wa l.

I n la n d Us a n c e Bi l ls D is c o u n tin g u p to 6 0 d a y s Us a n c e te r ms w ith a s u b - li mi t o f ₹ 1 0 la c s f o r c h e q u e p u r c h a s e r e p r e s e n t i n g tr a d e tr a n s a c ti o n . 3 5 , 0 0 , 00 0 / - - A c c e p te d h u n d ie s a n d c h a rg e o n in v e n to r ie s .

L e t te r o f Cr e d i t (I n la n d ) o n D P te r ms a n d o n D A b a s is u p to 9 0 d ay s te r ms f o r p r o c u r e me n t o f r a w ma te r ia ls f r o m lo c a l s u p p lie r s . 3 5 , 0 0 , 00 0 / - - L e t te r o f Cr e d it o n D P b a s is : D o c u me n ts o f T it le to g o o d s . L e t te r o f Cr e d it o n D A b a s is : A c c e p te d h u n d ie s a n d c h a rg e o n in v e n to r ie s .

L e t te r o f G u a r a n te e f a v o u r in g S a le s ta x a n d o th e r G o v e r n me n t d e p a r tme n ts . 1 0 , 0 0 , 00 0 / - -

C o u n te r in d e mn i ty o f th e c o mp a n y .

S e c o n d Ch a r g e o n Cu r r e n t a s s e ts .

T ota l A m ou n t - 1 ,1 5 ,0 0 ,0 0 0 / - - - -

1 3 . 0 2 . 19 9 0 Ca s h Cr e d i t (h y p o th e c a tio n w ith s u b li m it a t A h me d n a g a r a n d P u n e Ca n to n me 2 5 , 0 0 , 00 0 / - 1 7 . 5% p e r a n n u m 1 )Ca s h Cr e d i t/ H y p o th e c a tio n : F ir s t c h a r g e o n c u r r e n t a s s e ts o f th e c o mp a n y .

2 ) I n la n d Us a n c e Bi l ls D is c o u n tin g / Ch e q R e s id u a r y v a lu e o f th e c u r r e n t a s s e ts . P e r s o n a l G u a r a n te e : - (a ) S h r i. D h a r a m V ir A g g a r wa l; (b ) M r s .

n t b r a n c h ) u e p u r c h a s e : A c c e p te d h u n d ie s a n d c h a rg e o n in v e n to r ie s .

3 ) L e tt e r o f c r e d it o n D D b a s is : D o c u me n ts o f ti t le to g o o d s . L e t te r o f c r e d it o n D A b a s is : A c c e p te d h u n d ie s a n d c h a r g e s o n in v e n to r ie s .

L e tt e r o f G u a r a n te e s :

C o u n te r in d e mn i ty o f th e c o mp a n y s e c o n d c h a r g e o n c u r r e n t a s s e ts . S h a n ta D h a r a m A g g a r wa l. - -

Us a n c e Bi l ls D is c o u n tin g u p to 6 0 d a y s Us a n c e te r ms w ith a s u b - li mi t o f ₹ 2 0 la c s f o r c h e q u e p u r c h a s e r e p r e s e n t i n g g e n u in e tr a d e tr a n s a c ti o n . 2 5 , 0 0 , 00 0 / - 1 5 . 5 0% , 1 7 . 5 0% o v e r .

L e t te r o f Cr e d i t (I n la n d ) o n D P te r ms a n d o n D A b a s is u p to 9 0 d ay s te r ms f o r p r o c u r e me n t o f r a w ma te r ia ls f r o m lo c a l s u p p lie r s . 3 5 0 , 00 , 0 0 0 / - Us a n c e c h a r g e 0 . 4 0% f o r f i r s t 0 . 2 0% p . m. o f mo n th s c o m mi t me n t c h a r g e s 0 . 2 0% f o r e v e r y min imu m ₹ 1 0 0 / - .

-

L e t te r o f G u a r a n te e f a v o u r in g S a le s ta x a n d o th e r G o v e r n me n t d e p a r tme n ts . 2 0 , 0 0 , 00 0 / - 0 . 2 5% p e r q u a r te r . -

T ota l A m ou n t - 4 2 0 ,0 0 ,0 0 0 / - - - -

2 8 . 0 4 . 19 9 3 Ca s h c r e d it (h y p o th e c a tio n ) 2 5 , 0 0 , 00 0 / - 2 0 . 7 5% F ir s t Ch a r g e o n r a w ma te r ia ls wo r k in p r o c e s s , f in is h e d g o o d s . R e s id u a r y v a lu e o f th e c u r r e n t a s s e ts . P e r s o n a l G u a r a n te e : -

S h r i. D h a r a m V ir A g g a r wa l;

M r s . S h a n ta D h a r a m A g g a r wa l.

I n la n d Us a n c e Bi l ls d is c o u n t in g u p to 6 0 d a y s u s a n c e te r ms . 2 5 , 0 0 , 00 0 / - - A c c e p te d h u n d ie s a n d c h a rg e o n I n v e n to r ie s . - -

L e t te r o f Cr e d i t (I n la n d / F o r e g in ) o n D O te r ms a n d o n D A b a s is u p to 1 8 0 d a y s te r ms f o r p r o c u r e me n t o f r a w ma te r ia ls wi th s u b li m it o f ₹ 1 7 5 la k h s f o r o p e n in g L Cs f o r o p e n in g L Cs u p to 3 6 0 da y s D A te r ms . 3 5 0 , 00 , 0 0 0 / - - D P T e r ms : D o c u me n ts o f ti t le to g o o d s . D A T e r ms : A c c e p te d h u n d ie s a n d c h a rg e o n I n v e n to r ie s .

L e t te r o f G u a r a n te e f a v o u r in g S a le s T a x / c u s to ms , o th e r G o v t d e p a r tme n ts a n d r e p u te d c o mp a n ie s to wa r d s p e r f o r ma n c e . 4 0 , 0 0 , 00 0 / - -

C o u n te r I n d e mn ity o f th e c o mp a n y . (2 ) S e c o n d c h a r g e o n c u r r e n t a s s e ts .

0 2 . 1 1 . 19 9 6 Ca s h Cr e d i t (H y p o th e c a tio n ) A h me d n a g a r 2 . 5 la o s P u n e Ca n t. 1 . 5 la o s 6 5 , 0 0 , 00 0 / - 1 9 . 5% + T a x F ir s t c h a r g e o n Cu r r e n t a s s e ts o f th e c o mp a n y . R e s id u a r y v a lu e o f th e c u r r e n t a s s e ts . P e r s o n a l G u a r a n te e : -

S h r i. D h a r a m V ir A g g a r wa l;

Ca s h Cr e d i t a g a in s t Bo o k d e b ts o u ts ta n d in g n o t b e y o n d 6 0 d a y s . 5 0 , 0 0 , 00 0 / - 2 0 . 5% + T a x Ch a r g e o n b o o k d e b ts .

M r s . S h a n ta D h a r a m A g g a r wa l. - -

I n la n d Us a n c e Bi l ls D is c o u n tin g o n 6 0 d a y s D A te r ms w ith a s u b li mi t o f ₹ 2 0 la k h s f o r c h e q u e p u r c h a s e . 5 0 , 0 0 , 00 0 / - 2 0 . 5% + T a x A c c e p te d h u n d ie s a n d c h a rg e o n c u r r e n t a s s e ts .

L e t te r o f Cr e d i t/ I n la n d & F o r e ig n 2 1 0 , 00 , 0 0 0 / - - L C o n D P b a s is – D o c u me n ts o f ti t le to g o o d s . L C o n D A b a s is - A c c e p te d H u n d ie s a n d c h a rg e o n in v e n to r ie s .

L e t te r o f G u a r a n te e f a v o u r in g S a le s T a x / c u s to ms , o th e r G o v t d e p a r tme n ts a n d r e p u te d c o mp a n ie s to wa r d s p e r f o r ma n c e . 5 0 , 0 0 , 00 0 / - - Co u n te r in d e mn i ty o f th e c o mp a n y a nd c h a r g e o n c u r r e n t a s s e ts .

T ota l A m ou n t - 4 2 5 ,0 0 ,0 0 0 / - - - -

0 7 . 0 9 . 19 9 8 Ca s h Cr e d i t a g a in s t h y p o th e c a t io n o f I n v e n to r ie s s u b je c t to h e a l th y mo v e me n t o f s to c k . 1 4 5 , 00 , 0 0 0 / - 1 7 . 3 4% . F ir s t c h a r g e o n c u r r e n t a s s e t s o f th e c o mp a n y . R e s id u a r y v a lu e o f th e c u r r e n t a s s e ts . P e r s o n a l G u a r a n te e : -

S h r i. D h a r a m V ir A g g a r wa l; M r s . S h a n ta D h a r a m A g g a r wa l. - -

Ca s h Cr e d i t a g a in s t Bo o k d e b ts d u e f r o m r e p u te d c o n c e r n s a n d o u ts ta n d in g n o t mo r e th a n 6 0 d a y s 1 2 0 , 00 , 0 0 0 / - 1 8 . 3 6% . F ir s t c h a r g e o n c u r r e n t b o o k d e b ts o f th e c o mp a n y .

L e t te r o f 3 2 0 , 00 , 0 0 0 - D o c u me n ts o f

Cr e d i t (I / F ) o n D P te r ms . / - ti t le o f g o o d s .

S u b lim i t u n d e r a b o v e , L e t te r o f Cr e d i t (I n la n d / F o r e ig n o n D A te r ms u p to 1 8 0 d a y s te n o r ) 2 0 0 , 00 , 0 0 0 / - - A c c e p te d h u n d ie s a n d f ir s t c h a r g e o n I n v e n to r ie s . - -

L e t te r o f G u a r a n te e 3 0 , 0 0 , 00 0 / - - Co u n te r g u a r a n te e o f th e c o mp a n y .

T ota l A m ou n t - 6 1 5 ,0 0 ,0 0 0 / - - - -

2 8 . 0 1 . 20 0 0 Ca s h Cr e d i t a g a in s t h y p o th e c a t io n o f I n v e n to r ie s / A s s ig n m e n t o f Bo o k - d e b ts (d u e f r o m r e p o r te d c o n c e r n s a n d n o t mo r e th a n 6 0 d ay s . 4 0 0 , 00 , 0 0 0 / - P L R + 4% + 1% + T a x

i. e . 1 7 . 5 5 + I n te r e s t ta x ) F ir s t c h a r g e o n c u r r e n t a s s e t s o f th e c o mp a n y . T h e e n tir e l im i t s h o u ld b e c o l la te r a lly s e c u r e d b y s e c o n d c ha r g e o n f ix e d a s s e ts o f th e c o mp a n y . T h e e n tir e l im i ts s h o u ld b e g u a r a n te e d b y S h r i D . V . A g g a r wa l a n d S mt. S h a n ta V A g g a r wa l in th e ir p e r s o n a l c a p a c ity .

L e t te r o f Cr e d i t (I n la n d / F o r e ig n ) o n D A te r ms u p to 1 8 0 d a y s te n o r . 7 5 0 , 00 , 0 0 0 / - I n la n d L C- A s p e r c ir c u mc i s io n f o r c e . F o r e n s ic L C- A s p e r F ED A I R u le s . A c c e p te d b i lls o f e x c h a n g e a nd f ir s t c h a r g e o n in v e n to r ie s .

L e t te r o f G u a r a n te e 3 0 , 0 0 , 00 0 / - A s p e r c ir c u mc i s io n f o r c e . Co u n te r g u a r a n te e o f th e c o mp a n y .

T ota l A m ou n t - 1 1 ,8 0 ,0 0 ,0 0 0 / - - - -

3 0 . 1 2 . 20 0 3 Ca s h Cr e d i t a g a in s t H y p o th e c a tio n o f S to c k s a n d r e c e iv a b l e s u n d e r 6 0 d a y s . 9 0 0 , 00 , 0 0 0 / - S to c k - P L R + 2% Bo o k - d e b ts - 1 3 . 5% F ir s t c h a r g e o n a ll c u r r e n ts o f th e c o mp a n y . S e c o n d c h a r g e o n f ix e d a s s e ts o f th e c o mp a n y (W D V ) o f ₹ 5 6 6 .2 9 la k h s a s o n 3 1 . 0 3 . 20 0 1 ; Cr e a t io n o f I I Ch a r g e in f ix e d a s s e ts s h o u ld b e c o mp le te d in 1 0 d a y s . G u a r a n te e d b y : -

i. M r D h a r a m V ir A g a r wa l.

ii. M r s S h a n ta D A g a r wa l.

L e t te r o f Cr e d i t (I n la n d & F o r e ig n ) 2 5 0 , 00 , 0 0 0 / - A s p e r c ir c u la r in f o r c e . D o c u me n ts o f T it le to g o o d s / A c c e p te d d o c u me n ts / H u n d i e s c h a r g e o n I n v e n to r y .

L e t te r o f G u a r a n te e 3 0 , 0 0 , 00 0 / - A s p e r c ir c u la r in f o r c e . Co u n te r G u a r a n te e o f th e c o mp a n y .

T ota l A m ou n t - 1 1 ,8 0 ,0 0 ,0 0 0 / - - - -

2 8 . 0 2 . 20 0 5 Ca s h Cr e d i t a g a in s t H y p o th e c a tio n o f S to c k a n d r e c e iv a b l e s (d u e f r o m r e p u te d c o n c e r n s n o t m o r e th a n 6 0 d a y s )

1 0 , 0 0 , 00 , 0 0 0 / - BP L R + 2% H y p o th e c a tio n o f S to c k s & B o o k D e b ts

: P r e s e n t ly th e e n tir e c r e d i t f a c il i tie s a r e c o l la te r a lly s e c u r e d b y wa y o f s e c o n d c h a r g e o n f ix e d a s s e ts o f th e c o mp a n y (W D V o f ₹ 4 7 1 .1 5 la c s a s o n 3 1 . 0 3 . 20 0 4 ) F ir s t c h a r g e b e in g in f a v o u r o f A h me d n a g a r M e r c h a n t Co - O p Ba n k L td . , B lo c k a s s e ts we r e v a lu e d b y a pp r o v e d e n g in e e r o n 1 0 . 0 1 . 20 0 5 , wh o h a s c e r ti f ie d th a t f o r c e d s a le v a lu e o f th e la n d / b u ild in g / P la n t & ma c h in e r y a s ₹ 5 7 7 . 5 9 la c s a g a in s t W D V o f ₹ 4 7 1 .1 5 la c s . T h e b a la n c e o u ts ta n d in g o f R s . 1 6 . 0 0 la c s to A h me d n a g a r Co - o p Ba n k s h o u ld b e s e t tle d a n d f ir s t c h a r g e s h o u ld b e c r e a te d in f a v o u r o f th e Ba n k b e f o r e a v a ilin g th e e n h a n c e me n t, P e r s o n a l G u a r a n te e : T h e L im i t to b e g u a r a n te e d b y M r . D h a r a m V ir A g g a r wa l a n d M r s . S h a n th a A g g a r wa l D ir e c to r s o f th e f ir m in th e ir p e r s o n a l c a p a c ity .

L e t te r o f Cr e d i t o n D P / o n 1 8 0 d a y s D A T e r ms f o r 6 , 0 0 , 0 0 ,0 0 0 / - - F ir s t c h a r g e o n a ll c u r r e n t a s s e ts . o f th e c o mp a n y . D o c u me n ts to T it le to

I mp o r t/ p u r c h a s e o f r a w ma te r ia ls . g o o d s / A c c e p te d D o c u me n ts . H y p o th e c a tio n o f S to c k .

L e t te r o f G u a r a n te e F a v o u r in g Cu s to m s , Ex c is e / Co mme r c ia l ta x e s . M S E B d e p a r tme n ts . 3 0 , 0 0 , 00 0 / - - Co u n te r G u a r a n te e o f th e Co mp a n y

-

T ota l A m ou n t - 1 6 ,3 0 ,0 0 ,0 0 0 / - - - -

1 5 . 0 1 . 20 0 9 O p e n CC a g a in s t h y p o th e c a t io n o f s to c k a n d r e c e iv a b l e s (d u e f r o m r e p u te d c o n c e r n s n o t m o r e th a n 6 0 d a y s ) 1 8 , 0 0 , 00 , 0 0 0 / - BP L R + % e q u iv a le n t to 1 3 . 7 5% mo n th ly r e s ts . H y p o th e c a tio n o f f u l ly p a id S to c k s a n d b o o k d e b ts a n d R e c e iv a b le s .

I n la n d / F o r e ig n L e t te r o f Cr e d it F o r p u r c h a s e o f R a w M a te r ia l o n D . P / f o r p u r c h a s e / I mp o r t o f 1 8 0 D a y s D A T e r ms 8 , 0 0 , 0 0 ,0 0 0 / - - F ir s t c h a r g e o n a ll th e Cu r r e n t. A s s e ts o f th e c o mp a n y D P - D o c u me n t o f ti t le . D A - A c c e p t e d H u n d ie s .

R e v o lv in g L e t te r o f Cr e d i t f a v o u r in g M S E B r e p r e s e n t i n g mo n th s P o we r Co s t. 2 , 2 5 , 0 0 ,0 0 0 / - - -

L e t te r o f G u a r a n te e f a v o u r in g Cu s to m s , Ex c is e / Co mme r c ia l T a x e s D e p a r tme n t

1 , 0 0 , 0 0 ,0 0 0 / - - Co u n te r g u a r a n te e o f th e c o mp a n y . F ir s t c h a r g e o n a ll th e C u r r e n t A s s e ts o f th e c o mp a n y .

1 s t c h a r g e o n e n ti r e F ix e d A s s e ts o f th e c o mp a n y b o th e x is tin g & f u tu r e . T h e e n tir e c r e d i t f a c il i tie s s h a ll b e c o l la te r a lly s e c u r e d b y wa y o f e x c l u s i v e f ir s t c h a r g e o n f ix e d a s s e ts o f th e c o mp a n y W D V o f ₹ 3 . 9 0 c r o r e s a s o n 3 1 . 0 3 . 07 . V a lu a tio n a s p e r a pp r o v e d v a lu e r Bh in d e

A s s o c ia te s ₹ 9 . 6 3 c r o r e s [ f a ir ma r k e t v a lu e ] a n d ₹ 5 . 7 8 c r o r e s [f o r c e d s a le v a lu e ] v id e r e p o r t d a te d 1 0 . 0 1 . 20 0 5 . Co mp a n y t o o b ta in & p r o v id e f r e s h V a lu a tio n o n th e F ix e d a s s e ts o f th e c o mp a n y . P e r s o n a l G u a r a n te e s o f M r S h a r a m V ir A g g a r wa l a n d M r s S h a n ta A g ga r wa l.

T ota l A m ou n t - 2 9 ,2 5 ,0 0 ,0 0 0 / - - - -

1 4 . 1 0 . 20 0 9 CC a g a in s t h y p o th e c a t io n o f s to c k a n d r e c e iv a b l e s (d u e f r o m r e p u te d c o n c e r n s n o t m o r e th a n 6 0 d a y s ) 2 2 , 0 0 , 00 , 0 0 0 / - BP L R + 1 . 7 5% e q u iv a le n t to 1 3 . 7 5% . H y p o th e c a tio n o f f u l ly p a id S to c k s a n d b o o k d eb ts . F ir s t c h a r g e o n a ll th e C u r r e n t . T h e e n tir e c r e d i t f a c il i tie s s h o u ld b e c o l la te r a lly s e c u r e d b y wa y o f e x c l u s i v e f ir s t c h a r g e o n f ix e d a s s e ts o f th e c o mp a n y W D V o f ₹ 4 , 4 4 c r o r e s a s o n 3 1 . 0 3 . 08 . V a lu a tio n a s p e r a pp r o v e d v a lu e r R a n e En g in e e r s a n d S u r v e y o r s is ₹ 1 3 . 0 9 c r o r e s ( f a ir ma r k e t v a lu e ) a n d ₹ 1 2 . 5 4 c r o r e s (f o r c e d s a le v a lu e ) v id e r e p o r t d a te d 1 0 . 1 1 . 08 .

G u a r a n te e :

T h e e n tir e l im i ts s h o u ld b e g u a r a n te e d b y M r D h a r a m V ir A g g a r wa l a n d M r s S h a n ta A g ga r wa l, D ir e c to r s in th e ir p e r s o n a l c a p a c ity .

L e t te r o f Cr e d i t o n D P / o n 1 8 0 d a y s D A T e r ms f o r I mp o r t/ p u r c h a s e o f r a w ma te r ia ls a n d c o n s u ma b l e s . 1 1 , 0 0 , 00 , 0 0 0 / - - D P - d o c u me n t o f ti t le to g o o d s D A - A c c e p t e d H u n d ie s Ex te n s io n o f f i r s t c h a r g e o n a ll th e c u r r e n t a s s e t s o f th e c o mp a n y .

R e v o lv in g L e t te r o f Cr e d i t f a v o u r in g M S E B r e p r e s e n t i n g mo n th s p o we r c o s t 3 , 0 0 , 0 0 ,0 0 0 / - - Co u n te r g u a r a n te e o f th e c o mp a n y Ex te n s io n o f f i r s t c h a r g e o n th e c u r r e n t A s s e ts .

L e t te r o f g u a r a n te e f a v o u r in g c u s to ms , e x c is e / c o mme r c ia l ta x e s d e p a r tme n t 1 , 0 0 , 0 0 ,0 0 0 / - - Co u n te r g u a r a n te e o f th e c o mp a n y Ex te n s io n o f f i r s t c h a r g e o n th e c u r r e n t A s s e ts .

F o r wa r d S a le s Co n tr a c t f o r h e d g in g 1 1 , 0 0 , 00 , 0 0 0 / - -

- th e f o r e ig n e x c h a n g e r is k .

T ota l A m ou n t - 4 8 ,0 0 ,0 0 ,0 0 0 / - - - -

2 7 . 1 1 . 20 1 0 Ca s h Cr e d i t o n o f S to c k c o n c e r n s a n d r e c e iv a b l e s d u e mo r e th a n 6 0 d a y s . 2 6 , 5 0 , 00 , 0 0 0 / - BR + 4 . 2 5% e q u iv a le n t T O 1 2 . 7 5% H y p o th e c a tio n o f f u l ly p a id S to c k s a n d b o o k d eb ts . F ir s t c h a r g e o n a ll th e C u r r e n t . T h e e n tir e c r e d i t f a c u lt ie s s h o u ld b e c o l la te r a lly s e c u r e d b y wa y o f e x c l u s i v e f ir s t c h a r g e o n f ix e d a s s e ts o f th e c o mp a n y W D V o f ₹ 4 . 4 7 c r o r e s a s o n 3 1 . 0 3 . 09 V a lu a tio n o f p e r a p p r o v e d v a lu e r R a n e En g in e e r s a n d S u r v e y o r s d a te d 0 7 . 0 5 . 20 1 0 P la n t a n d M a ch in e r y o f ₹ 1 0 . 01 Cr o r e s a n d L a n d an d b u ild in g ₹ 5 0 c r o r e s (M a r k e t V a lu e ), ₹ 1 4 . 3 0 c r o r e s (f o r c e d s a le v a lu e ) G u a r a n te e : T h e e n tr e l im i ts s h o u ld b e g u a r a n te e d b y M r D h a r a m V ir A g g a r wa l wo r th ₹ 1 . 2 2 Cr o r e s a s o n 3 1 . 3 . 2 01 0 an d M r s S h a n ta A g ga r wa l. D ir e c to r s wo r th ₹ 1 . 6 2 Cr o r e s a s o n 3 1 . 0 3 . 20 1 0 in th e ir p e r s o n a l c a p a c ity .

L e t te r o f Cr e d i t o n D P / o n 1 8 0 d a y s D A T e r ms f o r I mp o r t/ p u r c h a s e o f r a w ma te r ia ls a n d c o n s u ma b l e s . 1 6 , 0 0 , 00 , 0 0 0 / - - D P - d o c u me n t o f ti t le to g o o d s D A - A c c e p t e d H u n d ie s Ex te n s io n o f f i r s t c h a r g e o n a ll th e c u r r e n t a s s e t s o f th e c o mp a n y .

R e v o lv in g L e t te r o f Cr e d i t f a v o u r in g M S E B r e p r e s e n t i n g mo n th s p o we r c o s t 4 , 0 0 , 0 0 ,0 0 0 / - - Ex te n s io n o f f i r s t c h a r g e o n c u r r e n t a s s e ts .

L e t te r o f g u a r a n te e f a v o u r in g c u s to ms , e x c is e / c o mme r c ia l ta x e s d e p a r tme n t 1 , 2 5 , 0 0 ,0 0 0 / - - Co u n te r g u a r a n te e o f th e c o mp a n y Ex te n s io n o f f i r s t c h a r g e o n th e c u r r e n t A s s e ts .

F o r wa r d S a le s Co n tr a c t f o r h e d g in g th e f o r e ig n e x c h a n g e r is k . 1 6 , 0 0 , 00 , 0 0 0 / - - -

T ota l A m ou n t - 6 3 ,7 5 ,0 0 ,0 0 0 / - - - -

0 3 . 0 1 . 20 1 2 Ca s h Cr e d i t o n o f S to c k c o n c e r n s a n d r e c e iv a b l e s d u e mo r e th a n 6 0 d a y s . 3 8 , 0 0 , 00 , 0 0 0 / - BR + 4 . 2 5 % Ex te n s io n o f f i r s t c h a r g e o n c u r r e n t a s s e ts . Ex c lu s iv e f ir s t c h a r g e o n f ix e d a s s e ts o f th e c o mp a n y . V a lu a tio n a s p e r a pp r o v e d v a lu e r R a n e En g in e e r s a n d S u r v e y o r s d a te d 0 7 . 0 5 . 20 1 0 f o r P la n t a n d

L e t te r o f 2 9 , 5 0 , 00 , 0 0 1 0% a s D P - d o c u me n t o f

Cr e d i t o n D P / o n 1 8 0 d a y s D A T e r ms f o r I mp o r t/ p u r c h a s e o f r a w ma te r ia ls a n d c o n s u ma b l e s . 0 / - R D P ti t le to g o o d s D A - A c c e p t e d H u n d ie s Ex te n s io n o f f i r s t c h a r g e o n a ll th e c u r r e n t a s s e t s o f th e c o mp a n y . M a c h in e r y o f ₹ 1 0. 0 1 c ro re s a n d l a n d a n d b u i ld in g n d b u i ld in g

5. 06 c ro r e s ( MV ) , ₹ 4.3 0 c ro r e s (F o rc e d s a l e va lu e ) . G u a ra n t e e : M r D h a ra m V i r A gg a rw a l w o rt h ₹ 1.1 6 c ro re s a s o n 31 .0 3. 2 01 1 a n d M rs S h a n t a A g ga rw a l w o rt h ₹ 1.5 2 c ro re s a s o n 31 .0 3. 2 01 1 . P e rs o n a l gu a r a n t e e o f Mr Ma n u v i r A gg a rw a l t o b e o b t a in e d n o t la t e r t h a n 31 . 12 .2 0 12 .

R e v o lv in g L e t te r o f Cr e d i t f a v o u r in g M S E B r e p r e s e n t i n g mo n th s p o we r c o s t 4 , 0 0 , 0 0 ,0 0 0 / - 1 0% a s R D P Ex te n s io n o f f i r s t c h a r g e o n c u r r e n t a s s e ts .

L e t te r o f g u a r a n te e f a v o u r in g c u s to ms , e x c is e / c o mme r c ia l ta x e s d e p a r tme n t 1 , 2 5 , 0 0 ,0 0 0 / - 1 0% a s R D P Co u n te r g u a r a n te e o f th e c o mp a n y . Ex te n s io n o f f i r s t c h a r g e o n c u r r e n t a s s e ts .

F o r wa r d S a le s Co n tr a c t f o r h e d g in g th e f o r e ig n e x c h a n g e r is k . 2 9 , 5 0 , 00 , 0 0 0 / - - Un d e r ta k in g le t te r f r o m th e c o mp a n y to ma k e g o o d lo s s if a n y .

T ota l A m ou n t - 1 0 2 ,2 5 ,0 0 , 0 0 0 / - - - -

2 8 . 0 3 . 20 1 3 CC a g a in s t h y p o th e c a t io n o f s to c k a n d r e c e iv a b l e s d u e n n o n mo r e th a n 9 0 d ay s 3 8 , 0 0 , 00 , 0 0 0 / - BR + 4 . 7 5 % e q u iv a le n t to 1 5% p . a . wi th mo n th ly r e s ts S to c k s a n d b o o k d e b ts . P la n t a n d M a c h in e r y a n d F a c to r y a n d la n d G u a r a n te e b y : -

M r D . V A g g a r wa l;

M r S h a n ta A g g a r wa l;

M r M a n u v ir A g g a r wa l.

W CT L c a r v e d o u t f r o m C C f o r L C d e v o lv e me n t 2 0 , 0 0 , 00 , 0 0 0 / - BR + 5% e q u iv a le n t to 1 5 . 2 5% p , a , mo n th ly r e s ts . 1 . 3 3 time s o f b o o k d e b ts .

L e t te r o f Cr e d i t (I n la n d / F o r e ig n ) o n D P / 1 8 0 d a y s D A te r ms f r o p u r c h a s e o f R a w ma te r ia ls 1 9 , 0 0 , 00 , 0 0 0 / - - D o c u me n t o f T i tle to g o o d s / A c c e p te d H u n d ie s / c h a r g e o n th e me r c h a n d is e .

a n d c o n s u ma b l e s .

R e v o lv in g L e t te r o f Cr e d i t f a v o u r in g M S CB r e p r e s e n t i n g mo n th s p o we r c o s t 4 , 0 0 , 0 0 ,0 0 0 / - - Ex te n s io n o f f i r s t c h a r g e o n c u r r e n t a s s e ts .

L e t te r o f G u a r a n te e f a v o u r in g Cu s to m s Ex c is e / Co mme r c ia l ta x e s d e p a r tme n t. 1 , 2 5 , 0 0 ,0 0 0 / - - Co u n te r g u a r a n te e o f th e c o mp a n y

F o r wa r d S a le s c o n tr a c t f o r h e d g in g f o r e ig n e x c h a n g e r is k o n imp o r t u n d e r L C 1 9 , 0 0 , 00 , 0 0 0 / - - Un d e r ta k in g le t te r f r o m th e Co mp a n y to ma k e g o o d lo s s if a n y .

T ota l A m ou n t - 1 0 1 ,2 5 ,0 0 , 0 0 0 / - - - -

3 0 . 0 9 . 20 1 3 A d h o c CC li m it f o r 9 0 d ay s 3 8 0 , 00 , 0 0 , 0 0 0 / - BR + 5 . 7 5% = 1 6% on mo n th ly r e s ts . H y p o th e c a tio n o f S to c k s a n d b o o k - d e b ts . Ex is tin g Co l la t e r a l s e c u r i t ie s a n d p e r s o n a l g u a r a n te e s to c o v e r th e A d h o c li m it.

T ota l A m ou n t - 3 8 0 ,0 0 ,0 0 , 0 0 0 / - - - -

On the dates given below, defendants signed and executed the loan and security documents as set out in paragraph nos. 5.5 to 5.44 of the Transferred Original Application. Defendants hypothecated moveable assets, plant and machineries, equipments, electrical fittings, electrical induction furnaces, capacitor, mound of different sizes, molding boxes, and patterns, cranes, bailing press, LT transformer cap 500KV and 315 KVA, H.T. transformer, cap 2200 KVA,

H.T. capacitor panel, electrical furnace coil, spare transformer 33 KV and other equipments and machineries and consumable stores and spares, packing materials, stocks-in-process and finished and semi-finished goods, both present and future, brought into in the course of transit to any godown or other places of storage at the premises of Defendant No.1 together with all present and future book-debts, outstanding moneys, claims, receivables and various tangible moveable assets, etc. and mortgaged All that piece and parcel of Factory land and buildings admeasuring about 17085 sq. mtrs. Situate at Plot No. A-2/1, MIDC Area, Ahmednagar-414 111 to secure the loan.

The details of the documents executed by the Defendants are as under: - (a) Accepted Sanction Letter dated 24.03.1987; (b) Accepted Sanction Letter dated 13.02.1990;

(c) Letter of Continuity dated 28.04.1993;

(d) Accepted Sanction Letter dated 02.11.1996; (e) Accepted Sanction Letter dated 07.09.1998; (f) Accepted Sanction Letter dated 28.01.2000; (g) Accepted Sanction Letter dated 30.12.2003; (h) Accepted Sanction Letter dated 28.02.2005;

(i) Accepted Sanction Letter dated 15.01.2008; (j) Accepted Sanction Letter dated 14.10.2009; (k) Resolution dated 27.02.2005;

(l) Deed of Narration dated 16.09.2005;

(m) Confirmation Letter dated 17.09.2005; (n) Supplemental Narration dated 30.06.2006; (o) Confirmation Letter dated 01.07.2006;

(p) Confirmation Letter dated 02.02.2008;

(q) Letter dated 16.05.2008;

(r) Letter dated 21.11.2009;

(s) Accepted Sanction Letter dated 27.11.2010; (t) Demand Promissory Note dated 09.12.2010; (u) Letter of Continuing Security dated 09.12.2010;

(v) Letter of Hypothecation (in case of open advances) dated 09.12.2010; (w) Supplemental Deed of Hypothecation/Pledge dated 09.12.2010;

(x) Hypothecation of Book debts dated 09.12.2010;

(y) Demand Promissory note dated 09.12.2010; (z) Letter of Continuing security dated 09.12.2010;

(aa) Demand Promissory Note dated 09.12.2010; (bb) Letter of Continuing security dated 09.12.2010;

(cc) Demand Promissory Note dated 09.12.2010; (dd) General Counter Guarantee dated 09.12.2010; (ee) Letter of Hypothecation dated 09.12.2010; (ff) Guarantee dated 09.12.2010;

(gg) Supplemental Narration dated 09.12.2010; (hh) Confirmation letter dated 10.12.2010;

(ii) True Resolutions copy of Board dated 29.11.2010;

(jj) Sanction letter dated 29.02.2012;

(kk) Demand Promissory dated 29.02.2012;

(ll) Original Letter of Continuing dated 29.02.2012;

(mm) Original Letter Hypothecation (in case of Open of Advances) dated 29.02.2012; (nn) Original Supplemental Deed of Hypothecation/Pledge dated 29.02.2012; (oo) Hypothecation of Book - debts dated 29.02.2012; (pp) Demand promissory note dated 29.02.2012; (qq) Letter of continuing security dated 29.02.2012; (rr) Hypothecation Letter dated 29.02.2012; (ss) Supplemental Original Narration dated 29.02.2012; (tt) Original confirmation letter dated 01.03.2012; (uu) Tripartite Agreement dated 07.08.2012;

(vv) Original Guarantee signed by Defendant No.2 and 3 dated 29.02.2012;

(ww) Original Guarantee signed by Defendant No.4 dated 05.03.2013;

(xx) Resolutions copy of Board dated 04.01.2012;

(yy) Sanction letter dated 28.03.2013’

(zz) Demand Promissory dated 30.03.2013; (aaa) Term loan agreement dated 30.03.2013; (bbb) Letter of installment date 30.03.2013;

(ccc) Hypothecation of Book-debts dated 30.03.2013; ddd) Letter of Hypothecation dated 30.03.2013; (eee) Guarantee signed by Defendant No.2.3 and 4 dated 30.03.2013; (fff) Supplemental Narration dated 30.03.2013; (ggg) Confirmation Letter dated 02.04.2013; (hhh) Power of attorney dated 30.03.2013;

(iii) Consent letter dated 06.08.2014; (jjj) True copy of Board Resolutions dated 30.03.2013; (kkk) Office copy of sanction letter dated 30.09.2013;

(lll) Demand Promissory Note dated 30.09.2013; (mmm) Letter of Continuing Security dated 30.09.2013; (nnn) Letter of Hypothecation (in case of Open Advances) dated 30.09.2013; (ooo) Hypothecation of Book - debts dated 30.09.2013; (ppp) Letter of Hypothecation dated 30.09.2013; (qqq) Narration dated 11.12.2013; (rrr) Confirmation letter dated 12.12.2013; (sss) Guarantee signed by defendant no.s 2,3 and

4 dated 26.10.2013; (ttt) True copy of Board Resolution dated 30.09.2013.

After availing the loan, defendants did not adhere to the financial discipline and committed default in payment of instalments and repayment of the loan and accordingly the accounts of the borrowers were declared as Non-Performing Assets (N.P.A.) on 27.03.2014 as per RBI Guidelines. Therefore, on 09.05.2015, the applicant, through its advocate, called upon defendants to liquidate the outstanding in the sum of ₹1,02,34,11,940/- (Rupees One Crore Two Lakhs Thirty-Four Thousand Eleven Thousand Nine Hundred Foty Only) together with interest within 7 days from receipt of the notice. Despite notice, defendant nos.1 to 4 failed and neglected to pay.

As on 04.06.2015, there was owing, due and payable by defendants to the applicant the aggregate sum of recover aggregate sum of ₹108,98,51,619.34/- (Rupees One Hundred Eight Crores Ninety-Eight Lakhs Fifty-One Thousand Six Hundred Nineteen and paisa Thirty-Four Only) wherein a sum of ₹83,46,25,291.27/- (Rupees Eighty-Three Crores Forty-Six Lakhs Twenty-Five Thousand Two Hundred Ninety-One and paisa Twenty-Seven Only) under Cash Credit Facility with future interest @ 17% per annum with monthly rest, a sum of ₹25,47,62,042/- (Rupees Twenty-Five Crores Forty-Seven Lakhs Sixty-Two Thousand Forty-Two Only) under WCTL Facility with future interest @ 15.25% per annum with monthly rest and a sum of ₹4,64,286.07/- (Rupees Four Lakhs Sixty-Four Thousand Two Hundred Eighty-Six and paisa Seven Only) under Cash Credit Sub-limit A/c. No.720 with future interest @ 17% per annum with monthly rest thereon. The applicant has maintained the loan ledger extract and the entries posted therein are made in the usual and ordinary course of the banking business.

Since, defendants failed and neglected to make the payment, the applicant was left with no other alternate but to file the Transferred Original Application which was presented on 04.06.2015.

The applicant has filed affidavit (exhibit-22) in lieu of examination in chief of Mr Vipin Mishra, Manager and list of documents (exhibit-23) thereby adducing in evidence the documents at AW-1 to AW-94, which are admitted in evidence, read, recorded and exhibited.

During pendency of above Original Application the Applicant has auctioned hypothecated securities for ₹1,17,57,000/- (Rupees One Crore Seventeen Lakhs Fifty-Seven Thousand Only) as per sale certificate dated 14.03.2019. The Applicant has auctioned and sold immovable mortgaged property ₹4,79,45,000/- (Rupees Four Crores Seventy-Nine Lakhs Forty-Five Thousand Only) under the provisions of SARFAESI Act,2002 as per letter of confirmation of sale dated 23.01.2020. The Applicant has thus realised ₹5,97,02,000/- (Rupees Five Crores Ninety-Seven Lakhs Two Thousand Only) and the credit of the said amount be provided to the Defendants.

Accordingly, in the Transferred Original Application was filed for the recovery of recover aggregate sum of ₹108,98,51,619.34/- (Rupees One Hundred Eight Crores Ninety-Eight Lakhs Fifty-One Thousand Six Hundred Nineteen and paisa Thirty-Four Only) wherein a sum of ₹83,46,25,291.27/- (Rupees Eighty-Three Crores Forty-Six Lakhs Twenty-Five Thousand Two Hundred Ninety-One and paisa Twenty-Seven Only) under Cash Credit Facility with future interest @ 17% per annum with monthly rest, a sum of ₹25,47,62,042/- (Rupees Twenty-Five Crores Forty-Seven Lakhs Sixty-Two Thousand Forty-Two Only) under WCTL Facility with future interest @ 15.25% per annum with monthly rest and a sum of ₹4,64,286.07/- (Rupees Four Lakhs Sixty-Four Thousand Two Hundred Eighty-Six and paisa Seven Only) under Cash Credit Sub-limit A/c. No.720 with future interest @ 17% per annum with monthly rest thereon from the date of presentation of the Transferred Original Application i.e. 04.06.2015 till payment/realisation.

The Tribunal has scrutinised and examined the allegations contained in the Transferred Original Application and analysed the evidence adduced by the applicant which has gone unchallenged, uncontroverted and unrebutted.

Upon careful scrutiny and the examination of the Transferred Original Application, analysing the evidence and giving due weightage to the documentary evidence adduced by the applicant, the Tribunal views that there is no reason to disbelieve the claim made by the applicant bank.

In view of the observations made hereinabove, Transferred Original Application filed by the applicant deserves to be allowed.

Hence, the following order:

ORDER

(A) The Transferred Original Application No.209 of 2023 in Transferred Original Application No.51 of 2022 in Transferred Original Application No.1221 of 2016 in Original Application No.338 of 2015 is allowed with costs. (B) Defendant no.1 through its directors and guarantors i.e. Defendant nos.2 to 4 are ordered and directed to pay to the applicant, either jointly or severally, the aggregate sum of ₹108,98,51,619.34/- (Rupees One Hundred Eight Crores Ninety-Eight Lakhs Fifty-One Thousand Six Hundred Nineteen and paisa Thirty-Four Only) wherein a sum of ₹83,46,25,291.27/- (Rupees Eighty-Three Crores Forty-Six Lakhs Twenty-Five Thousand Two Hundred Ninety-One and paisa Twenty-Seven Only) under Cash Credit Facility with future simple interest @ 12% per annum, a sum of ₹25,47,62,042/- (Rupees Twenty-Five Crores Forty-Seven Lakhs Sixty-Two Thousand Forty-Two Only) under WCTL Facility with future simple interest @ 12% per annum and a sum of ₹4,64,286.07/- (Rupees Four Lakhs Sixty-Four Thousand Two Hundred Eighty-Six and paisa Seven Only) under Cash Credit Sub-limit A/c. No.720 with future simple interest @ 12% per annum thereon from the date of presentation of the Transferred Original Application i.e. 04.06.2015 till payment/realization after adjusting the recoveries made by the Applicant under SARFAESI Act, 2002 or any other amount paid by the borrowers after filing of this T.O.A. No.209 of 2023. (C) The aforesaid adjudicated amount is secured by the valid and subsisting hypothecated properties, that is, moveable assets, plant and machineries, equipments, electrical fittings, electrical induction furnaces, capacitor, mound of different sizes, molding boxes, and patterns, cranes, bailing press, LT transformer cap 500KV and 315 KVA, H.T. transformer, cap 2200 KVA, H.T. capacitor panel, electrical furnace coil, spare transformer 33 KV and other equipments and machineries and consumable stores and spares, packing materials, stocks-in-process and finished and semi-finished goods, both present and future, brought into in the course of transit to any godown or other places of storage at the premises of Defendant No.1 together with all present and future book- debts, outstanding moneys, claims, receivables and various tangible moveable assets, etc. (D) The aforesaid adjudicated amount is secured by the valid and subsisting immovable mortgaged properties, that is, All that piece and parcel of Factory land and buildings admeasuring about 17085 sq. mtrs. Situate at Plot No. A-2/1, MIDC Area, Ahmednagar-414 111. (E) Defendant no.1 through its directors and guarantors i.e. Defendant nos.2 to 4 are entitled to redeem the immovable mortgaged and hypothecated properties as per law failing which the applicant has right to proceed to sell the immovable mortgaged and hypothecated properties and recover dues as per law.

(F) Issue Recovery Certificate. (G) The learned Registrar is directed to send a copy of the judgment and recovery certificate to (i) the applicant, (ii) defendant and (iii) the Recovery Officer by post and email.

(Harish Kumar Kaushik) Presiding Officer, DRT-2, Mumbai