UNION BANK OF INDIA vs SHAIK ABDUL AZIZ on 27 February 2025

: - FINAL ORDER - :

1.0 This is an OA filed by the Applicant Bank under Section 19 of the RDB Act, 1993 is for a total recovery of a sum of Rs.306,72,57,632.95p along with future interest and rests as mentioned below against the Defendants 1 to 5 jointly and severally with costs. The claims are segregated in the prayers, with different rates of interest as follows:-

i) Directing the defendants 1 to 5 to jointly and severally to pay to the applicant Bank a sum of Rs.13,66,06,080.27 (Rupees Thirteen crore Sixty Six Lakh Six Thousand Eighty and paise Twenty Seven only) together with interest at the rate of 14.10% per annum with monthly rests in the Term Loan availed by the defendants from the date of this application (01.12.2018) till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred/to be incurred by the Applicant Bank from the date of filing till the date of realisation in full.

ii) Directing the defendants to jointly and severally to pay to the applicant Bank a sum of Rs.97,89,65,234.02 (Rupees Ninety seven crore Eighty nine lacs sixty five thousand two hundred thirty four and paise two only) One hundred and fifty one crore Forty Three lakh Fourteen thousand Four hundred and thirteen and paise seventy Five only) together with interest at the rate of 10.35% per annum with monthly rests in the FDBP/ FUDBP (A/c

No.506809030000272) availed by the defendants from (01.12.2018) the date of this application till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred / to be incurred by the Applicant Bank from the date of filing till the date of realisation in full.

iii) Directing the defendants to jointly and severally to pay to the applicant Bank a sum of Rs.53,53,49,179.73 (Rupees Fifty three crore Fifty three lakh Fourty nine thousand one hundred and seventy nine and paise seventy three only) together with interest at the rate of 9.8% per annum with monthly rests in the FDBP / FUDBP (A/c No.530709030000040) availed by the defendants from (01.12.2018) the date of this application till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred / to be incurred by the Applicant Bank from the date of filing till the date of realisation in full.

iv) Directing the defendants to jointly and severally to pay to the applicant Bank a sum of Rs.84,12,83,470.50 (Rupees Eighty Four crore Twelve Lakh Eighty Three Thousand Four Hundred and Seventy and paise Fifty only) together with interest at the rate of 10.10% per annum with monthly rests in the Packing Credit Loan availed by the defendants from the date of this application (01.12.2018) till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred / to be incurred by the Applicant Bank from the date of filing till the date of realisation in full.

v) Directing the defendants to jointly and severally to pay to the applicant Bank a sum of Rs.45,46,48,016.35 (Rupees Forty Five crore Forty Six Lakh Forty Eight Thousand and Sixteen and Paise Thirty Five only) together with interest at the rate of 15.30% per annum with monthly rests in the Standby Letter of Credit (SBLC – Invoked) availed by the defendants from the date of this application (01.12.2018) till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred / to be incurred by the Applicant Bank from the date of filing till the date of realisation in full.

vi) Directing the defendants to jointly and severally to pay to the applicant Bank a sum of Rs.12,01,00,998.00 (Rupees Twelve crore One Lakh Nine Hundred and Ninety Eight only) together with interest at the rate of 17.25% per annum with monthly rests in the Letter of Credit (LC-Devolvement) availed by the defendants from the date of this application (01.12.2018) till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred / to be incurred by the Applicant Bank from the date of filing till the date of realisation in full.

vii) Directing the defendants to jointly and severally to pay to the applicant Bank a sum of Rs.3,04,654.08 (Rupees Three Lakh Four Thousand Six Hundred and fifty four and paise eight only) together with interest at the rate of 18.25% per annum with monthly rests in the Current account (Overdraft) availed by the defendants from the date of this application (01.12.2018) till the date of final payment in full, on or before a date to be specified, together with costs, expenses and all other charges incurred / to be incurred by the Applicant Bank from the date of filing till the date of viii) In case of non payment, the Tribunal to order the sale of the schedule mentioned properties and to adjust the sale proceeds thereof towards the amount due and if the sale proceeds are found insufficient after defraying the expenses of such sale for the payment of all such amounts, the defendant shall be personally liable to the amount of such deficiency with interest and costs mentioned above until realisation.

1.1 Initially this OA was filed before DRT-II, Chennai bearing OA No.505/2019. D1 to D5 have appeared through the counsel before DRT-II, Chennai and Defendant No.6 entered through another counsel and the matter was kept for filing written statement. They did not file the written statement before DRT-II, Chennai.

1.2 However, this matter is transferred to this Tribunal consequent to the notification dated 04.10.2022. Thereafter this Tribunal directed the publication of summons. The publications were ordered against Defendants 1, 4 & 5 by the Ld. Predecessor vide order dated 22.03.2022. The same was carried out and since none appeared they were placed exparte on 07.02.2023.

1.3 It is seen from the record that the Applicant Bank had filed one IA No.531/2019 under Section 19(25) of RDB Act, seeking a restraint order against ICICI Bank Ltd., in releasing the title deeds of the Schedule mentioned properties. The Schedule to the IA relates to three properties belonging to the Defendant No.1 all situate in Harnadhapuram Main Road, Nellore District. The said IA is pending, being disposed of with this order.

1.4 However, after transfer of the case to this Tribunal, the publication was effected and reported and the Defendants 1 to 5 were placed exparte on 07.02.2023.

FACTS OF THE CASE:-

2.0 The applicant submits that the Principal Borrower viz., M/s. Star Agro Marine Exports Pvt Ltd., is a private limited company incorporated under the provisions of the Companies Act, 1956. The defendants 1 and 3 are its Directors and all the defendants herein are guarantors for the repayment of the credit facilities availed by the said Principal Borrower. The fourth defendant is a partnership firm which had extended its guarantee. The second and the fifth defendants are partners of the 4th defendant firm, the second defendant executed guarantee deeds in his personal capacity besides as a partner of the 4th defendant. The 5th defendant is liable as partner of the 4th defendant firm. 2.1 This Original Application is filed for recovery of the dues by enforcing the guarantee executed by the defendants herein. The applicant has filed an application before the National Company Law Tribunal Chennai as CP No.668/2017 against the Principal borrower (Star Agro Marine Exports Pvt Ltd.,) under the Insolvency and Bankruptcy Code 2016. 2.2 The applicant submits that the Principal Borrower is carrying on the business of processing and canning of fish and similar foods. The principal borrower was enjoying credit facilities with the Overseas and Industrial Finance branches of the applicant from 2001 onwards which was renewed / enhanced from time to time. 2.3 The applicant submits that the principal borrower once again approached the applicant and submitted a proposal seeking for renewal of existing limits and sanction of ad hoc limits. Considering the same, the applicant’s Overseas Branch vide its sanction advice in reference No. OSB:1622 dated 15.10.2012 renewed the credit facilities to the tune of Rs.142.52 crores and had also sanctioned ad hoc facilities to the tune of Rs.5.00 crores, total aggregating to Rs.147.52 crores, subject to the terms and conditions contained therein. The principal borrower and the defendants herein accepted the terms and conditions and executed necessary loan and mortgage documents including the guarantee deeds. The defendants executed guarantee deeds for the due repayment of the above loan amount. 2.4

renewal of existing limits and sanction of ad hoc limits. Considering the same, the applicant’s Overseas Branch vide it sanction advice in reference No.OSB:2226/2013 dated 22.10.2013 renewed / modified the credit facilities and had also sanctioned

fresh Term Loan of Rs.10.00 crores, FDBP/FUDBP (under LC) limit of Rs.25.00 crores and fresh SBLC limit of USD 7.35Mn (INR 46.00 crores @ then prevailing exchange rate), total aggregating to Rs.268.45 crores subject to the terms and conditions contained therein. The principal borrower and the defendants herein accepted those terms and conditions and executed necessary loan and mortgage documents including guarantee deeds. The principal borrower had also passed a resolution in its board meeting held on 23.10.2013 authorizing the 1st defendant to sign the loan and mortgage documents and to affix common seal in the presence of the 3rd defendant. 2.5

sanction of ad hoc limits. Considering the same, the applicant’s Overseas Branch vide its sanction advice in reference No.OSB:/2013 dated 28.03.2014 sanctioned ad hoc FDBP limit to the tune of Rs.25 Crores subject to the terms and conditions contained therein. The principal borrower and the defendants herein accepted those terms and conditions and executed necessary loan and mortgage documents. 2.6

renewal of existing limits. Considering the same, the applicant’s Overseas Branch vide its sanction advice in reference No.OSB:ADV:191/March15 dated 26.03.2015 renewed / modified the credit facilities to the tune of Rs.264.69 Crores subject to the terms and conditions contained therein. The principal borrower and the defendants herein accepted those terms and conditions and executed necessary loan and mortgage documents on 13.04.2015 as follows:- a. Term Loan Agreement for Rs.7.81 Crores

b. General Term Loan Agreement for Rs.7.81 Crores

c. Demand Promissory Note for Rs.7.81 Crores d. Letter of Continuity

e. Term Loan Agreement for 4.90 Crores

f. General Term Loan Agreement for Rs.4.90 Crores g. Demand Promissory Note for Rs.4.90 Crores h. Letter of Continuity

i. Term Loan Agreement for Rs.98 Lakhs

j. General Term Loan Agreement for Rs.98 lakhs k. Demand Promissory Note for Rs.98 lakhs

i. Letter of Continuity

m. Draft letter along with demand promissory note for pre-shipment advance.

n. Demand Promissory Note for Rs.187 Crores o. Letter of continuity

p. Demand Promissory Note for Rs.50 Crores

q. Letter for continuity

r. Packing Credit Agreement for Rs.50 Crores.

s. Agreement on the rate of interest

t. Letter of extension of validity of mortgage in favour of the applicant.

u. Letter of Hypothecation of bills

v. Composite Hypothecation Deed

w. Supplementary Deed to Hypothecation Deed

x. Letter of undertaking from the Principal Borrower not to alienate the hypothecated goods. 2.7 The Principal borrower in order to secure the credit facilities as mentioned above, has extended the mortgage on the following properties by executing Letter of Extension of Validity of mortgage on 13.04.2015 and also hypothecated plant and machineries, Inventory and receivables by executing Composite Hypothecation Deed dated 13.04.2015.

a. Land and Industrial Building at Sy. No.760/1, 761, Jagdevipet, Mypadu Road, Devispeta Village, Leburu II Panchayat, Indukurpet Mandal, SPSR Nellore District AP with an area admeasuring Acres 4.96 cents i.e. 24006.40 Sq. Yards on which Industrial Building with a plinth area of 30047 SFT & Cold storage with plinth area of 4424 SFT & other buildings with a plinth area of 9395.90 SFT with other machinery items.

b. Vacant Land admeasuring 968 Sq. Yards (Ac 0.20 cents) of Agricultural Dry Land situated at Leburu Bit-11 village, S.No.761, Patta No.216, Indukurpet Village Sub-Registration Indukurpet Mandal, Nellore District Andhra Pradesh.

2.8 The applicant submits that the charge in respect of the above credit facilities availed by the principal borrower has been created with the Registrar of Companies concerned by filing Form 8. In addition to the above, the defendants herein executed independent and separate deeds of guarantee on 13.04.2015 guaranteeing the due repayment of the credit facilities availed by the principal borrower.

2.9 Further Defendant No.1 extended the validity of mortgage on the property owned by him, by executing letter of extension dated 13.04.2014.

2.10 Besides the properties mentioned in the first defendant had also on 17.10.2016 executed a memorandum confirming the deposit of title deeds of the below mentioned property covering the entire sum hitherto lent by the applicant and registered the same in the office of Joint Sub-Registrar, Indukurpet, Nellore.

2.11 Land and Commercial Building located at Sy.No.361/2, Chillakuru Village and Panchayat, Chillakuru Mandal, Nellore District with land measuring 0.64 acres or 64 cents or 3097.60 Sq. Yards with Ice Factory Building constructed in ground & First Floors along with ACC sheet roofed in first floor. The property is in the name of Mr.Shaik Abdul Aziz.

2.12 The applicant submits that the Principal Borrower on 27-06-2016 executed simple debit balance confirmation letters confirming their indebtedness and acknowledging their liabilities to the applicant as on 31.03.2016 with future interest.

2.13 The details of the mortgage created by the 1st defendant are as follows: a. Date of Mortgage

: 17.10.2016 b. Name of Mortgagor : Shaik Abdul Aziz 1st defendant herein c. Name of Mortgagee : Union Bank of India d. Amount availed

: Rs.264.69 crores e. Property secured

: Sy.No.361/2, Chillakuru Village and Panchayat, Chillakuru Mandal, Nellore District with land measuring 0.64 acres or 64 cents or 3097.60 Sq. Yards

2.14 It is alleged that contrary to the various undertakings given in the above referred loan and mortgage documents, the defendants and the Principal Borrower failed and neglected to keep up the repayment schedule, thereby allowing the account to slip into a Non-Performing Asset on 31.03.2016 as per the extant guidelines of Bank. As such, the applicant was constrained to send various demands and requests but there was no positive response from the defendants. The applicant has also issued a demand notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 on 19-12-2016, calling upon the Principal Borrower & guarantors to repay the dues, but of no avail. On 19.09.2018, the applicant caused a legal notice to the defendants with copies marked to the principal borrower. Though the defendants have received the legal notice, they have not sent any reply nor cleared the dues. Hence, the present application.

2.15 The applicant further submits that they had initiated Corporate Insolvency Resolution Process against the principal borrower before the Honourable National Company Law Tribunal, Chennai. The applicant submits that the application has been admitted and moratorium has been granted in favour of the corporate debtor. The applicant submits that the resolution plan submitted has been approved by the Committee of Creditors and has been placed before the Honourable Adjudicating Authority for Corporate Persons and the same is pending. While so, the applicant submits that last of the guarantee agreements were executed by the defendants 1 to 5 on 13.04.2015. The applicant submits that the moratorium granted by the NCLT will protect only the Corporate Debtors and not the guarantors as held by the Honourable Supreme Court of India in the case of State Bank of India Vs. V.Ramakrishnan and others decided on 27.07.2018. As such the applicant moves this Tribunal only against the guarantors with a liberty to implead the principal borrower as and when so advised.

2.16 The Applicant Bank seeks the enforcement of the guarantees on different heads of loans granted with different rate of interest as mentioned below:- Facility Contractual Rate of Interest Present Rate of Interest (p.a) Term Loan Base Rate + 5.00% i.e 15.00% 14.10% FDBP / FUDBP Base Rate + 1.25% i.e. 11.25% 10.35% FDBP / FUDBP Under LC Base Rate + 0.75% i.e. 10.75% 9.85% Packing Credit Base Rate + 1.00% i.e. 11.00% 10.10% SBLCs Invoked 15.30% LCs Devolved 17.25% Current Account 18.25%

2.17 The applicant Bank has not debited the interest post NPA in view of the directions of the RBI, regarding income recognition and assets classification of loan accounts, under which, if an account is running irregular for more than 90 days it has to be classified as Non-performing asset. This however does not relieve the defendants from their liability to pay interest. As per the said stipulation, the present rate of interest payable by the defendants is described in the above table. As per the statement of accounts, interest has been charged up to 31-03-2016 in respect of the credit facilities. The interest rate is subject to enhancement from time to time as may be decided by the Applicant Bank in conformity with the terms agreed by the defendants. Hence, as per Section 21A and 35A of the Banking Regulation Act, 1940, the Applicant Bank is entitled to receive interest at the contractual rate from the defendants until repayment in full. The applicant further submits and declares that the penal interest has not been capitalised in the loan account.

MEMO OF CALCULATION (Amount in Rs.)

Nature of Facility

Account Number

The amount outstanding in the account with interest debited up to 31.03.2016 Interest accrued for the period from 31.03.2016 till 30.11.2018 at the periodical rate of interest

Total Term Loan 530706390000374 65,53,955.27 26,08,062.00 91,62,017.27 Term Loan 530706390000375 3,71,07,249.71 1,47,66,288.00 5,18,73,537.71 Term Loan 530706390000376 5,22,13,148.29 2,33,57,377.00 7,55,70,525.29 FDBP/FUDBP 506809030000272 68,52,54,708.00 29,37,10,526.02 97,89,65,234.02 FDBP/FUDBP 530709030000040 38,12,63,783.00 15,40,85,396.73 53,53,49,179.73 Packing Credit 506807220000020 56,44,41,413.42 27,68,42,057.08 84,12,83,470.50 SBLCs Invoked (Invoked on 20-02-2016) 530707040000017 2,02,22,669.37 (as on 20-02-16) 1,07,66,482.00 3,09,89,151.37 SBLCs Invoked (Invoked on 07-06-2016) 530707040000018 33,34,61,038.98 (as on 07-06-16) 7,41,82,533.00 40,76,43,571.98 SBLCs Invoked (Invoked on 27-04-2018) 530707040000019 1,47,11,400.00 (as on 27-04-18) 13,03,893.00 1,60,15,293.00 LCs Devolved (Devolved on 17-02-2016) 530707030000259 1,95,33,613.00 (as on 17-02-16) 89,91,618.00 2,85,25,231.00 LCs Devolved (Devolved on 530707030000260 2,96,41,067.00 (as on 26-02-16) 1,36,44,226.00 4,32,85,293.00

26-02-2016) LCs Devolved (Devolved on 11-03-2016) 530707030000261 3,30,68,528.00 (as on 11-03-16) 1,52,21,946.00 4,82,90,474.00 Current Account 506801010029029 -33,07,037.92 36,11,692.00 3,04,654.08 Grand Total

2,17,41,65,536.12 89,30,92,096.83 3,06,72,57,632.95

*The dates mentioned are of SBLC invoked / LC devolved.

With these pleadings the reliefs are sought on different heads.

3.0 As already noted, the Defendants 1 to 5 were served when the matter was pending before the DRT-II, Chennai. It is seen from the Order Sheet dated 01.07.2019 of the Registrar that one Counsel Mr.Zafarullah Khan undertook to file the Vakalathnama for D1 to D5. Thereafter such Vakalathanama is not filed and the Defendants did not participate in the proceedings. However, all the Defendants were placed exparte before this Tribunal vide order dated 07.02.2023. Hence there is no written statement since the Defendants remained exparte. 4.0 The Applicant Bank in order to prove their case had examined AW1 Mr.MLR Srikanth the Assistant General Manager and AW2, Deepa Devi the Chief Manager. The depositions of these witnesses go unrebutted. AW2 was examined to produce the additional documents namely the guarantee deed dated 13.04.2015 executed by the Defendants 2, 4 & 5 and the letter of guarantee individually executed by Defendant No.2. 5.0 Perused the pleadings and the evidence available on record. Heard the Ld. Counsel for the Applicant Bank. 6.0 With the available oral and documentary evidence, the only question that arises for determination in this OA is: Whether the Applicant is eligible to recover the amounts claimed in the OA as prayed for against all the Defendants?

7.0 The evidence of AW1 by way of affidavit is perused. The facts pleaded in the OA are reiterated. The term loan agreement, the general term loan agreement and demand promissory note for Rs.7,81,00,000/- and Letter of continuity of the guarantee, all dated 13.04.2015 and the documents of the same nature pertaining to the term loan agreement of Rs.4,90,00,000/- of the same date and the documents of the like nature pertaining to the term loan of Rs.98 Lakhs and another loan for a sum of Rs.187,00,00,000/- of the same date and further the documents in the nature of packing credit agreement along with the promissory note for a sum of Rs.50,00,00,000/- all of the same date and the corresponding hypothecation deeds and letter of undertaking executed by the principal borrower and the guarantor are produced at Exh.A1 to A25. The letter of guarantee executed by the partnership firm namely Defendant No.4 is at Exh.A27. 7.1 The case of the Applicant bank is that they extended all the above loan facilities to the borrower namely M/s.Star Agro Marine Exports Pvt. Ltd., which is not a party before this Tribunal. 7.2 The Ld. Counsel appearing for the Applicant submits that in view of the guarantee deeds executed by the Defendants towards the transactions of the principal borrower, the liability of these Defendants cannot be escaped. 7.3 The Ld. Counsel had filed the synopsis of their arguments also. In the synopsis it is contended that D2, D4 & D5 have jointly executed the guarantee letter dated 13.04.2015. He submits that this is evidenced by Exh. A27. The Ld. Counsel submits that the same is in the capacity of partners as well as personal guarantee. 7.4 The perusal of the document shows that Exh.A27 at Pages 122 to 125 is marked as Exh.A27. This is the Letter of Guarantee executed by D1 & D3. 7.7 The evidence of AW1 speaks of the execution of guarantee deeds at Exh.A27 dated 13.04.2015 in Para.10. Perused the same (Page-122 of the Proof Affidavit).

Though this document does not describe the executants in the recitals, the contents of the same are read and it is signed by two persons. The names of these persons are mentioned in the last page (At Page 125) of Exh.A27 matches with the names of Defendant No.1 and Defendant No.3. There is a specific mention that this guarantee is additional and without prejudice to any securities or obligations of the bank and also a continuing one. The executants namely D1 & D3 have also given up the rights under Section 133 to 135, 139 and 141 of the Contract Act. There is also an unequivocal averment in the guarantee deed that “If this Guarantee is given by a Limited Company alone, the various joint and several agreements herein contained shall be read or construed as if they were several”. 7.8 Thus, from the reading of the guarantee letter, executed by Defendants 1 & 3 at Exh.A27, this Tribunal has no hesitation to conclude that these Defendants have bound themselves to the personal liability arising under the above agreement. 7.9 In the further evidence adduced by the Applicant Bank through AW2 Ms.Deepa Devi, it is submitted that Defendants 2, 4 & 5 have collectively and 2nd Defendant individually executed the joint and several letters of guarantee which the applicant proves through documentary evidence at Exh. A47 and Exh.A48. Exh.A47 is executed by M/s.Star Organic Foods Inc., which is Defendant No.4. Likewise, Exh.A48 is the letter of guarantee signed by Defendant No.2. The liability of Defendant No.5 is claimed as Partner of Defendant No.4 Firm. 7.10 Though the letters of guarantee do not find the description of the executants in the recitals of such letters of guarantee the names of the signatories are clearly typed out and the same is visible. While tendering the evidence, AW2 had stated that while examining AW1, these two documents were not tendered and this Tribunal has allowed marking of the documents as secondary evidence vide order dated 24.01.2024 as far as AW1 is concerned. Exh.A2 to A9, A11 to A19, A21 to A27 and A29 and A32 were produced in original and they were returned by the Registry.

Thereafter, the applicant bank had filed an IA No.110/2024 with a prayer to produce the additional proof affidavit and to adduce additional documents. The same was allowed by an order dated 09.07.2024 and accordingly, AW2 was examined on 21.08.2024. After going through the contents of the documentary evidence at Exh.A27, A47 & A48, the liability of the Defendants 1 to 5 is established. 7.11 The Defendants remained exparte and did not adduce any evidence to demolish the say of AW1 & 2. 7.12 After perusal of the entire documentary evidence and after hearing the Ld. Counsel this Tribunal is of the considered opinion that the relief sought by the applicant bank cannot be denied. 7.13 Since the applicant has not pursued the IA seeking restraint order against the ICICI Bank Ltd., during the arguments and the written synopsis, the same stands disposed of as not pressed. Accordingly the following Order:-

: - O R D E R - :

8.0 The Defendants 1 to 5 are hereby ordered to pay to the Applicant Bank jointly and severally a total sum of Rs.306,72,57,632.95 (Rupees Three Hundred and Six Crores Seventy Two Lakhs, Fifty Seven Thousand Six Hundred and Thirty Two, Paise Ninety Five only) together with future interests and rests as per the detailed break up mentioned below for each of the facilities.

i) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.13,66,06,080.27 (Rupees Thirteen crores Sixty Six Lakhs Six Thousand Eighty and paise Twenty Seven only) together with interest at the rate of 14.10% per annum with monthly rests in respect of the Term Loan from the date of this application (01.12.2018) till the date of final payment in full or till the date of realisation in full.

ii) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.97,89,65,234.02 (Rupees Ninety seven crores Eighty nine lakhs sixty five thousand two hundred thirty four and paise two only) together with interest at the rate of 10.35% per annum with monthly rests in respect of FDBP/ FUDBP (A/c No.506809030000272) from (01.12.2018) the date of this application till the date of final payment in full, or iii) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.53,53,49,179.73 (Rupees Fifty three crores Fifty three lakhs Forty nine thousand one hundred and seventy nine and paise seventy three only) together with interest at the rate of 9.8% per annum with monthly rests in respect of FDBP / FUDBP (A/c No.530709030000040) from (01.12.2018) the date of this application till the date of final payment in full, or iv) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.84,12,83,470.50 (Rupees Eighty Four crores Twelve Lakhs Eighty Three Thousand Four Hundred and Seventy and paise Fifty only) together with interest at the rate of 10.10% per annum with monthly rests in respect of Packing Credit Loan from the date of this application (01.12.2018) till the date of final payment in full, or till the date of v) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.45,46,48,016.35 (Rupees Forty Five crores Forty Six Lakhs Forty Eight Thousand and Sixteen and Paise Thirty Five only) together with interest at the rate of 15.30% per annum with monthly rests in respect of Standby Letter of Credit (SBLC – Invoked) from the date of this application (01.12.2018) till the date of final payment in full, or till the date of vi) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.12,01,00,998.00 (Rupees Twelve crores One Lakh Nine Hundred and Ninety Eight only) together with interest at the rate of 17.25% per annum with monthly rests in respect of Letter of Credit (LC- Devolvement) from the date of this application (01.12.2018) till the date of final payment in full, or till the date of realisation in full.

vii) The Defendants 1 to 5 are directed to jointly and severally to pay to the Applicant Bank a sum of Rs.3,04,654.08 (Rupees Three Lakhs Four Thousand Six Hundred and fifty four and paise eight only) together with interest at the rate of 18.25% per annum with monthly rests in respect of Current account (Overdraft) from the date of this application (01.12.2018) till the date of final payment in full, or till the date of realisation in full.

viii) It is hereby ordered that in case of default in payment of the aforesaid outstanding dues by the Defendants, the Applicant Bank is entitled to sell the schedule mentioned properties and to adjust the sale proceeds thereof towards the amount due and if the sale proceeds are found insufficient after defraying the expenses of such sale for the payment of all such amounts, the defendants are personally liable to the amount of such deficiency with interest and costs mentioned above until realisation. ix) It is also ordered that any other amount remitted or realized, if any, shall be adjusted towards the loan account. x) Due deductions to the sums realised from D1 in the NCLT proceedings be accounted and the Defendants are directed to pay the remaining balance. 9.0 The applicant bank is directed to file costs memo within two weeks of the receipt of this order. 10.0 Issue recovery certificate in favour of the applicant bank in terms of this final order if the proper memo of calculations regarding the outstanding dues pursuant to

this order with the statement of accounts is furnished. Such statement of accounts and the memo of calculations properly signed by the AR of the bank be filed within 15 days on receipt of this order. 11.0 Communicate a copy of this order to the parties concerned as per Rules. Sd/-

SCHEDULE OF PROPERTIES Land and Commercial Building located at Sy.No.361/2, Chillakuru Village and Panchayat, Chillakuru Mandal, Nellore District with land measuring 0.64 Acres or 64 Cents or 3097.60 Sq. Yards with Ice Factory Building constructed in Ground & First Floors along with ACC Sheet roofed in First Floor. The property is in the name of Mr.Shaik Abdul Aziz. Sd/-

LIST OF EXHIBITS MARKED THROUGH AW1 Mr.M.L,R.SRIKANTH Sl.No. DATE DESCRIPTION OF DOCUMENTS EXHIBITS

1. Power of Attorney A1

2. 13.04.2015 Term Loan Agreement for Rs.7,81,00,000/- A2

3. 13.04.2015 General Term Loan Agreement for Rs.7,81,00,000/- A3

4. 13.04.2015 Demand Promissory Note for Rs.7,81,00,000/- A4

5. 13.04.2015 Letter of continuity for Rs.7,81,00,000/- A5

6. 13.04.2015 Letter of Guarantee A5A

7. 13.04.2015 Term Loan Agreement for Rs.4,90,00,000/- A6

8. 13.04.2015 General Term Loan Agreement for A7

Rs.4,90,00,000/-

9. 13.04.2015 Demand Promissory Note for Rs.4,90,00,000/- A8

10. 13.04.2015 Letter of continuity for Rs.4,90,00,000/- A9

11. 13.04.2015 Term Loan Agreement for Rs.98,00,000/- A10

12. 13.04.2015 General Term Loan Agreement for Rs.98,00,000/- A11

13. 13.04.2015 Demand Promissory Note for Rs.98,00,000/- A12

14. 13.04.2015 Letter of continuity for Rs.98,00,000/- A13

15. 13.04.2015 Draft Letter along with the demand promissory note for past shipment advance A14

16. 13.04.2015 Demand Promissory Note for Rs.1,87,00,00,000/- A15

17. 13.04.2015 Letter of continuity for Rs.1,87,00,00,000/- A16

18. 13.04.2015 Demand Promissory Note for Rs.50,00,00,000/- A17

19. A18

20. 13.04.2015 Packing credit Agreement for Rs.50,00,00,000/- A19

21. 13.04.2015 Agreement on the rate of interest A20

22. 13.04.2015 Letter of extension of validity of mortgage in favour of the applicant A21

23. 13.04.2015 Letter of Hypothecation of Bills A22

24. 13.04.2015 Composite Hypothecation Deed A23

25. 13.04.2015 Supplementary Deed t Hypothecation A24

26. 13.04.2015 Letter of undertaking from Principal borrowers and Guarantors not to alienate A25

27. 13.04.2015 Letter from the Directors A26

28. 13.04.2015 Letter of guarantee by Star Organic Funds Inc A27

29. 2510.2013 Memorandum recording past transactions of creation of mortgage by deposit of title deeds and extension of the same (Document No.1434/2013) A28

30. 25.10.2013 Memorandum recording past transactions of creation of mortgage by deposit of title deeds and extension of the same (Document No.1435/2013) A29

31. 17.10.2016 Memorandum confirming deposit of title deeds (Document No.1841/2016) A30

32. 27.06.2016 Simple Debit Balance Confirmation letters – 14 Nos. A31

33. 09.06.1999 Sale Deed (Document No.738/1999 with translation A32

34. 31.03.2016 to 30.11.2018 Statement of Accounts 1 (Account No.530706380000374) A33

35. 31.03.2016 to 30.11.2018 Statement of Accounts 2 (Account No.530706380000375) A34

36. 31.03.2016 to 30.11.2018 Statement of Accounts 3 (Account No.530706380000376) A35

37. 31.03.2016 to 30.11.2018 Statement of Accounts 4 (Account No.506809030000272) A36

38. 31.03.2016 to 30.11.2018 Statement of Accounts (Account No.530709030000040) A37

39. 31.03.2016 to 30.11.2018 Statement of Accounts 5 (Account No.506807220000020) A38

40. 06.06.2016 to 30.11.2018 Statement of Accounts 1 (Account No.530707040000017) A39

41. 06.06.2016 to 30.11.2018 Statement of Accounts 2 (Account No.530707040000018) A40

42. 06.06.2016 to 30.11.2018 Statement of Accounts 3 (Account No.530707040000019) A41

43. 07.06.2016 to 30.11.2018

Statement of Accounts (Account No.530707030000259) A42

44. 07.06.2016 to 30.11.2018 Statement of Accounts (Account No.530707030000260) A43

45. 07.06.2016 to 30.11.2018 Statement of Accounts (Account No.530707030000261) A44

46. 07.06.2016 Statement of Accounts (Account A45

to 30.11.2018 No.506801010029029)

47. Certificate under Bankers Books of Evidence Act

48. 19.09.2018 Legal Notice issued to the Defendants to pay the dues of Star Agro Marine Exports Private Ltd A46

LIST OF EXHIBITS MARKED THROUGH AW2 Mrs.DEEPA DEVI Sl.No. DATE DESCRIPTION OF DOCUMENTS EXHIBITS

1. 13.04.2015 Letter of Guarantee A47

2. 13.04.2015 Letter of Guarantee A48

List of witness and documents on behalf of Defendants Nil.

Sd/-

(Dictated to PS, typed by him in the System, corrected, signed and pronounced by me on this 27th Day of February, 2025)