Allowed

Indian Renewable Energy Devlopment Agency Ltd. v. M/S Shree Kedarnath Sugar & Agro Product Ltd. & or

DRT26 Aug 2025TA/1519/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for recovery of dues from respondent guarantors despite the primary borrower's pendency in insolvency proceedings. The court held that since no relief was claimed against the borrower in this specific proceeding, the Tribunal passed orders for payment and execution against the guarantors.

What did the court decide?

Respondents nos. 2 to 4 were directed to jointly and severally pay the principal amount of Rs. 36,66,43,614/- along with interest from the date of filing till realization, and a Recovery Certificate w

Indian Renewable Energy Devlopment Agency Ltd. versus M/S… — Execution and Attachment | DRT (2025)

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Before SUSHIL KUMAR RASTOGI,^{Presiding Officer} Debts RecoverY Tribunal-Il,^Delhi

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TAlLsLgl2023

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INDIAN RENEWABLE ENERGY^{DEI'ELOPMENTAGENGY} LTD VS M/S SHREE KEDARNATH^SUGAR&AGRO PRODUCTS LTD & ORS.

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Reserued on : 30.O7.2025

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Pronounced on : 26.O8.2025

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Indian Renewable Energy Development Agency Limited - Applicant bank

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Vs.

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M/s Shree Kedarnath Sugar^{& Agro} Products Ltd

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Shri Vikramsinh H. AParadh

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Shri Ranjeetsinh Vikramsinh^Aparadh

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Mls V.H. Aparadh Hotels Private^Limited

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Smt. RekhadeviV.^AParadh

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ShriRejendrasinh B.^Patil

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Shri Rajesh Vasanthrao^AParadh

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Syndicate Bank

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Central Bank of India

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Andhra Bank

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Indian Overseas Bank

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IFCI Ltd

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-^Defendants

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Present:

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Ms. Athira Pillai, Counselappears^FI. Shri Himanshu Singh,^{prory counsel for}

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defendant nos. 3 to 5.

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Defendant nos.1 & 2 are exparte^since 20.11.2018.

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Defendant nos.6 & 7 are^expartesince 23.05.2016.

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None for other defendants.

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FINAL ORDER

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This original application has been^{filed by the} applicant bank, on 09.01.2015^{through Sh' Manish} Chandra, Deputy^{Manager (Law), of the applicantbank,} under Section 19 of^{the RDB Act, 1993 against the} Q^'

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defendant nos.l to 4 for recovery of a^{sum of} Rs.36,66,43,614/- together with interest at^the contractual rates from the date of^filing of^the application till decree thereof^{and furtherinterestat the} same rate from the date of^{judgment/decree till the} dated of realization in full.

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The brief facts of the case are that^{at the request} of defendant no.1, the applicant bank^{sanctioned Term} Loan facility of Rs.2450.00 lakhs^{for setting up a 15 MW} (subsequently enhanced to 18 MW) bagasse cogeneration^plant in 2500^{TCD New Sugar Mill, near} village Kerkalmatti, Taluka Badami, District^Bagalkot, Karnataka, vide sanction letter dated^{16.03.2007. The} securities were created by defendant no.1ⁱⁿ consideration of the loan agreement to secure^the repayment of loan of Rs.2450.00 lakhs with^interest, liquidated damages and other^monies etc.^{i.e., (a).} Defendant no.1 created exclusive first charge^{in favour} of the applicant by executing deed^{of hypothecation} dated 20.04.2007, thereby^{hypothecatingthe wholeof} the moveable assets, including and^{pertainingto 15} MW (increased to 18 MW) Bagasses Co-generation Plant in 2500 TCD New Sugar Mill near^village Kerkalmatti, Taluka Badami, District Bagalkot^{in the} State of Karanatka, being^{projectno.1803and} elsewhere, including its movable^{plant and machinery,} machinery spares, tools and accessories and^other movables, both^present and future, subject^{to prior} charges created and/or to be created^{and all} receivables of^{power generated} wherever^lying or^held in the Trust and Retention account^{including any other} monies credited therein or held by or due^{from any}

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TA NO/1519/2023 3

purchaser of power including the Karnataka Power Transmission Corporation Limited^{by way of} exclusive charge.^(b). The defendant^{nos.2 and 4} executed deeds of^guarantee dated^{20.04.2007and} defendant no.3 executed deed of^{guarantee on} 22.03.20t0 which was accepted in^{place of guarantee} of one Shri Rajendrasinh B.^{Patil who had retiredas} Director of defendant no.1 company^{and his guarantee} was released. The said deeds of^{guaranteeso executed} were unconditional, irrevocable and^{in favour of the} applicant. (c). The defendant^{no.2, on 09.08.2007,} submitted a declaration and undertaking^whereby defendant no.2 deposited the title^{deeds of his} immovable properties with the intention to^create security by way of mortgage in^{respect of his} immovable^property situated at^{Flat No.3, Building"A",} admeasuring 93.21 sq.m. on^{the second floor in Konark} Enclave, Building "A', Survey No.472lB^{CTS No.22,} Final Plot No.261, Bund Garden^{Road,Ghorpadi,Taluka} Haveli, District Pune together^{with all buildings and} structures thereon and all installment,^{plant and} machinery attached to the earth.^{(d). The defendant} no.5, through her constituted attorney,^{on 13.01'2010} deposited title deeds in^respect of^{her immovable} properties with the intention to create security for^the aforesaid loan, sanctioned^{to defendant no.1 by way of} moftgage on her immovable^{properties comprisedin} land admeasuring 501.7 sq.m,^{situated at City Survey} No. 2113C/19, 'Pratiksha'^{NimbalkarColony, E-Ward} Kohlapur, Maharashtra together^{with all buildings and} structures thereon and all^{installation plant and} machinery attached to the earth or^permanently fastened to anything attached^to. the^{earth. The said} .€.\

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security was accepted in^{lieu of the bank guarantee} of Rs.123 lakhs which had^{been furnished by the} defendant no.l company to^{IREDAas and by way of} collateral security. The applicant^{submitted that} defendant no.1^had also^{availed creditfacilities from} various other financial^{institutions. The other flnancial} institutions, apart from the^{applicant, who have} granted defendant no.1 credit facility include^Syndicate Bank, Central Bank of India,^{AndhraBank and Indian} Overseas Bank who are^{defendantnos. 8,9,10and 11} respectively. In this consortium^{of lenders,Syndicate} Bank is the Lead Lender.^{The defendant no'1 company} created mortgage on its^{immovable assetsby way of} first charge in favour of the^{applicant,on paripassu} basis with defendant^nos.8 to^{10, Syndicate Bank,} Central Bank of India,^{AndhraBank. The said mortgage} was created by executing a Simple^{Mortgage deed} dated 22.06.2007. The^{defendant nos.2,3,6 and 7, who} are the owners of 52^Acres and^{28 Guntasof landin} the various sutvey numbers of^{Ganganabudihaland} Jalageri Villages, Badami^{Taluka, Bagalkot District,} Karnataka, created mortgage^{in favour of the applicant,} on pari^passu basis with^{defendantnos. B to 10, by} deposit of title deeds on^{03.04.2008with defendant} no.8.

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It is further submitted^{that the defendants} enjoyed and utilized the^{Loan facility, but failed to} maintain the financial discipline^{and failed to repay the} due amounts. The applicant^{bank requested the} defendants to regularize the^{loan accountby visits and} letters, but there was no^{response from the} defendants, hence the account^{was classifiedas NPA} CI

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dated 31.03.2012 and consequently,^defendant no.8/ Syndicate Bank, being the^{lead lender, serued a} notice dated 28.05.2012 under^{Section 13(2) of the} SARFAESI Act. Thereafter,^{the applicant seryeda} Notice dated 24.03.20t4 under^{Section 13(2) of} SARFAESI Act to the^{defendants but failed to recover} the dues. Thus, the^{present O.AffA is preferred by the} applicant bank to recover^{its dues.}

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On notice by this Tribunal,^{the defendant nos.1} to 5 and defendant nos. 7 to^{12 put appearance} through counsel. The defendant^{nos. 8,10 & 12 have} filed their written statement^{and evidence.The} defendant nos.1, 2 &^{11 have filed written statement} but failed to file evidence.^{Thereafter, the defendant} nos.1 & 2 failed to^{put appearancein the matter.} Accordingly, the defendant^nos.1 & 2^proceeded against exparte on^{20.11.2018.The defendant nos. 6} & 7 failed to^put appearance^{in the matter. Accordingly,} the defendant nos.6 & 7^{proceededagainst expafte on} 23.05.2016.

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In their written statement^{the defendant} no.8/Syndicate Bank & defendant^{no.l0/Andhra Bank} have submitted that they are^{the co-lender along with} the applicant and sanctioned^{credit facilities to} borrower/defendants under^{Consortium arrangement} with some common security on^{pari passu basis,} therefore, the sale^proceeds of the^properties mentioned in the Schedule &^{C and D be appropriated} by the members of Syndicate^{Bank Consortium who} have pari^passu charge in the^{proportion of the amount} lent under Consortium arrangement.^{In the written}

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g,)..

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statement, the defendant no.12/^{has submittedthat} the defendant no. 1 company M/s.^{Shree Kedarnath} Sugar and Agro Products Ltd approached^{Govt of} India/IFCI for sanction of financial assistance^for meeting the short fall in^promoter contribution^for implementing 18 MW bagasse based^cogeneration power project at village Kerkalmatti, Distt. Bagalkot, Karnatka and in^pursuance of^{whichthe Govt. of India} sanctioned Sugar Development^{Funds Loan of Rs' 1482} Lakhs vide its letter dated 19th June,^{2008. The} defendant no. 1, company, executed a^Tri-partite agreement in favour of the^{defendant no.12} /^{Govt of} India on 25th Sep. 2008 for the^{said loan of Rs. 1482} lakhs. It is further submitted that^{the defendantno' 1} company secured the captioned^{loan money by way of} registered mortgage document on^{12.03.2010on all} immovable^properties consisting of^{various pieces and} parcel of land at Badami Tq. Distt. Bagalkot, Karnataka aggregating Guntas of^{sugar factorytogether 41 A-01} with all building/structures standing^{thereon on Pari-} Passu 1s charge basis along^{with the applicant and} defendant no. B to 12. The^{defendantno.1 company} has also executed deed of^{hypothecationdated 9th} March 2010 creating Pari^Passu lst^{charge on all} movable^plants and machinery of^{the sugar factory.} The execution of the loan documents^{to the extent of} Rs.14B2 Lakhs, the defendant^{no.LZl Govt of India} disbursed the sanctioned^loans of^{Rs.1482Lakhsto the} defendant company on 30th^{July, 2010. It is submitted} that the loan documents entered^{by the defendantno.} 1, the interest on the loan^is to^{be paid annuallyfor the} first three^year from the date^{of disbursement and after} which it shall be^paid half^{yearly along with the}

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€"\

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installment of the repayment of the^principal which is repayable in 10th half^{yearly installment i'e.} 30th July 2013 to Jan^{2018. It is submitted that as per} the record of the defendant^{no.12, the defendant no. 1} company is in default for a^{sum aggregating} Rs.18,82,08,7651- i.e., towards^{the principal amountof} Rs.14,82,00,000/- and Rs.4,00,08,755/-^toward interest. the defendant^{no.12 is lawfullyentitled for} pro. rata share along with applicant and defendant^no. 8 to 12 in case the Honble^{Tribunalpass a decree and} consequent upon the sales of^{the assets of the} defendant no l/company.

¶50

The applicant bank^{and defendant nos. 8,10 and} 12 have filed their respective^evidence.

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Heard the Ld. Counsels^{of applicantFI and Ld.} Counsel for defendant^{no. 3 to 5 and perusedthe} record.

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During the course^{of arguments, the Ld. Counsel} for applicant FI has^{submitted that the defendantno.1} is before Ld. NCLT and^{no claim has been made against} defendant no.1. The defendant^{no.1 is under} liquidation, therefore,^{the OA cannotbe decided against} defendant no.1 and^{defendant no.1 shall be bound by} the orders of liquidation.

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The defendant no.12 IFCI^{Ltd.hasfiled the WS} and submitted that the^{defendantno.1 companyhas} taken a loan from defendant^{no.12 for a tune of} Rs.1482 Lacs vide sanction^{letter dated 19.05.2008 and} defendant no.1 company^{has securedthe loan amount} by way of registered^{mortgage documents on} 12.03.2010 on all immovable^{properties consisting of}

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6.\

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various^pieces and^parcel of land at^{BadamiTq.Distt.} Bagalkot, Karnatka aggregating 41A-01^{Guntas of} sugar factory together with all^{building/structures} standing therein on^paripassu 1* charge^{basis along} with the applicant and defendant^{no. 8 to 12. The} defendant no.l has failed to^{repay the amountand} therefore, defendant no.12^{is also entitled to recover} the amount from the defendant^{no.1 company.From} perusal of the above statement and the evidence^{it is} clear that defendant no.1 company^{has also taken loan} from defendant no.12.^{The defendant no.1 companyis} before Ld. NCLT and therefore,^{no decreecan be} passed against defendant no.l as the^proceedings under the insolvency^{are pending beforethe competent} Tribunal. More over defendant^{no.12 has every right to} recover the same by filing appropriate^application before appropriate forum.^{In the present matterthe} applicant bank is not seeking^{any relief against} defendant no.l, therefore,^{there is no hindrancein} passing order against defendant no.2 to 4.^The defendant no.12^{has nevercontended that defendant} no.2 to 4 has created any^{chargeor mortgagein favour} of the defendant^{no.12, therefore, the RC may be} issued against the defendant^{no.2 to 4 and in favour of} the applicant bank.

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The defendant^{no.8 & 10 has filed WS and} submitted that they^{have also sanctioned loan to the} defendant no.1^{company and defendant no.1 company} has failed to repay the^{loan. From perusal of the OA} filed by the applicant bank^{it is clear that the applicant} bank has also submitted^{that defendant no.l was} granted credit facility fromthe Syndicate^{Bank, Central} q).

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TA NO/I519/2023

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Bankoflndia, Andhra^{Bank and Indian Overseas Bank} through consortium of^{which the SyndicateBank was} the Lead Lender. It^is also^{submittedthat the defendant} no.l company has created^{mortgageon its immovable} assets by way of^{first charge in favour of the applicant,} on pari^passu basis^{with defendant nos.8 to 10' The} said mortgage was created^{by executing a simple} mortgage deed dated^{22.06.2007and samewas} rectified vide rectification^{deed dated 20.09.2007'It is} also submitted that the^{charge in favour of the} applicant and other consortium^{was duly registered} with the ROC. It is also submitted^{that separate} SARFAESI^{proceedings have been initiated for the sale} of the assets held under^{pari passu charge through} defendant no.8^{(Syndicate Bank)'Therefore,it is clear} that consortium of^{banks lead by Syndicate Bankhas} also^granted loan^{to the defendant no.1 company'The} defendant no.1 company^{is underinsolvencyand} proceedings are still pending before the^competent forum and the applicant^{has not claimed any relief} against the defendant^{no.1 company. Therefore, the} loans regarding defendant^{no.l companywhich has} been^granted by^{the consortium of banks will be} decided only after^{completion ofinsolvency} proceedings. Therefore, there is no^{embargoto pass} any order against^{defendant no.2 to 4 and in favour of} applicant bank.

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From^{perusal of the entire evidence, it is clear that} the applicant bank has^{provedhis case againstthe} defendant no.² to^{4 and therefore,the defendantno.} 2 to 4 are liable to^{pay jointly and severallythe amount}

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€J.

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claimed by the applicant bank^{and the OMIAof the} applicant bank is liable to be allowed.

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ORDER

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I hereby allow this T.A. of the^{ApplicantBankand} direct the defendant nos. 2 to 4 to^{pay jointly and} severally to the applicant bank within 30^{days from} today, a sum of Rs.36,66,43,614/- along^{with cost,} expenses and interest @10.5olo from^{the date of filing} of this O.A which has become^TA till^{the date of} realization.

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In case of failure to deposit the above^amount within the stipulated^period, the^{same shall be} recovered from the sale of^{the mortgagedproperty land} admeasuring 501.7 sq.m,^{situatedat City SurueyNo.} 2lt3clL9,'Pratiksha' Nimbalkar^{Colony, E-Ward} Kohlapur, Maharashtra together^{with all buildings and} structures erection etc.^{constructedand/ or to be} constructed thereon and the^{plant and machinery} attached to the earth or^{permanentlyfastened to} anything attached to the^{earth/fixture and fittings} erected/installed or to^{be erected/installedthereon and} every part thereof both^{presentand future and Flat} No.3, admeasuring 93.21^{sq.m. on the second floor in} Konark Enclave, Survey^{No.472lBCTS No.22,Final Plot} No.261, Bund Garden^{Road, Ghorpadi,Taluka Haveli,} District Pune together^{with all buildings and structures,} erection etc. constructed^{and/or to be constructed} thereon and the^{plant and machineryattachedboth} present and future and the^plant and^machinery attached to the earth^{or permanently fastenedto} l._e.'

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anything attached to the earth/fixture^{and fittings} erected/installed or to be erected/installed^{thereon and} every part thereof both^present and future and^the properties mentioned in Schedule'C'and 'D'of the OA. In case of short fall, the same shall be^{rectrvered from} the sale of^personal movable and immovable^assetsof the defendant nos.2 to 4.

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Recovery Certificate be issued forthwith and^be sent to Recovery Officer, Debts Recovery Tribunal-Il, Delhi.

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The registry of this Tribunal is hereby directed to issue free copy of the order and send tte^same to^both the^parties.

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Parties are direct to appear before the^Ld. Recovery Officer, DRT-II, Delhion 24.10.2025.^Pending IAs, if any, stand disposed of.

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File be consigned to records.

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Date: 26.08.2025

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er\ (susHrl KurvrAR RASIOGI) PRESIDING OFRCER DRT-II, Delhi

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This^judgement has been signed, dated and pronounced in open coutt.

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Date :25.08.2025

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<"\ (susHrl KUi6R RASTdGI) PRESIDING OFFICER DRT-II, Delhi

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Indian Renewable Energy Devlopment Agency Ltd. v. M/S Shree Kedarnath Sugar & Agro Product Ltd. & or

Case brief

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Indian Renewable Energy Devlopment Agency Ltd. v. M/S Shree Kedarnath Sugar & Agro Product Ltd. & or

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