IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD HON’BLE SRI JUSTICE NAGESH BHEEMAPAKA WRIT PETITION No. 4112 OF 2025

05.03.2026 Between:

M/s UCO Bank, Rep. by Zonal Manager Mr. N. Srikanth .. Petitioner And The State of Telangana, Rep. by its Principal Secretary, Home Department & others ..Respondents

O R D E R:

The case of Petitioner is that it is a body corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 10, BTM Sarani, Kolkata, and inter alia a Zonal Office at Road No.10, Banjara Hills, Hyderabad 500 034, with an Asset Management Branch falling under the said Zonal Office. It is stated, M/s Jupiter Bio Sciences Limited (hereinafter referred to as "the Company"), incorporated on 21.12.1985, having its registered office at 24, Kolhar, IDA Bidar, Karnataka-585401 and corporate office at 10-2-71, 10-2-72/1, Road No.3, West Maredpally, Secunderabad 500 026, maintained its account with Petitioner Bank at its Kukatpally Branch.

1.1. Petitioner states that the Company was originally incorporated as a private limited company on 21.02.1985 and was converted into a public limited company in 1992. The Company is engaged in the manufacture of pharmaceutical products in the areas of peptides, advanced organic chemistry, chiral chemistry and biotechnology. The Company has two subsidiaries, namely Vix Sven Genetech Ltd and Jupiter Bioscience Inc., USA, both operating outside India. It also engaged in manufacture of peptide raw materials, intermediates and finished active pharmaceutical ingredients (A.P.L.), polyester yarn, organic drug intermediates and A.P.I., and specialty and fine chemicals. The Company had three manufacturing units located at Kolhar Industrial Area, Bidar (Karnataka), Cheryala Village, Sangareddy District, Telangana State and Gaddapotharam Village, Medak District, Telangana State.

1.2. It is contended, the Company obtained two term loans and one corporate loan aggregating to Rs.56 crores during 2008 and 2009. Term Loan-1 aggregating to Rs.20 crores was obtained on 21.06.2008. The second term loan aggregating to Rs.21 crores was obtained on 02.06.2009. The third loan in the form of a corporate loan aggregating to Rs.15 crores was also obtained on 02.06.2009. As security for the said loans, the Company mortgaged its modernized equipment and all fixed assets on a pari passu charge basis as primary security. As collateral security, land in Sy.No.64 admeasuring Ac. 1.32 guntas situated at Bairagiguda Village, Rajendranagar Mandal, valued at Rs.10 crores, and land in Sy.No.281/part and 281/A admeasuring Ac.2.00 guntas situated at Bowrampet Village valued at Rs.3.50 crores were mortgaged. Apart from the above, personal guarantees of the Managing Director, Mr.

Kalavakolannu Venkat Ramana, and others were furnished.

1.3. Petitioner states that loans obtained in the years 2008 and 2009 were classified as Non-Performing Assets on 31.03.2011 and the total due amount as on that date aggregated to Rs.47.37 crores, excluding applicable interest and other charges. They therefore, invoked the provisions of the SARFAESI Act by issuing notice under Section 13(2) on 03.04.2011 and thereafter, notice under Section 13(4) on 20.09.2011. Pursuant to the notice under Section 13(4), e-auction notices were issued with regard to two properties given as collateral security and e-auctions were conducted on 12.03.2013 and 23.10.2013. By virtue of the said e-auctions, the Bank realized a sum of Rs.2.90 crores from the sale of the two collateral properties, which amount was appropriated to the loan account.

1.4. For the remaining outstanding due of Rs.48.25 crores, petitioner is stated to have approached the Debts Recovery Tribunal, Hyderabad, under the Recovery of Debts and Bankruptcy Act by filing O.A. No.554 of 2011 (New O.A. No.410/2017). The Recovery Tribunal, Hyderabad Bench, allowed the said O.A. by order dated 23.11.2017 and issued Recovery Cer