DEBTS RECOVERY APPELLATE TRIBUNAL, DELHI

Appeal No. 139/2019

(Arising out of O.A No. 178/2016 decided by DRT–I, Delhi)

Jammu & Kashmir Bank Ltd.

......Appellant

Vs.

1.Punjab National Bank

2.Invent Assets Securitization &

Reconstruction Pvt. Ltd.

3.Golden Rathi Star Industries Ltd.

4.Supreme Alloys Ltd.

5.Mr. Jagjiv Kumar Arora

6.Mr. Sahil Arora

7.Mr. Mohinder Lal Arora

8.Syndicate Bank

......Respondents

Dated: 18.12.2019

CORAM:- Mr. Justice P.K. Bhasin, Chairperson

Appearances:

Mr. T.K Ganju, Sr. Adv with Mr. Syed Arselan Abid, Mr. Prateek

Khaitan and Mr. Apoorv Malhotra, counsel for the appellant

Mr. Hashmat Nabi, counsel for the respondent no. 1

Mr. Amit Singh Chadha, Sr. Adv with Mr. Shashank K. Lal and Mr.

Sahil Mongia, advocates for respondent no. 2 (Invent ARC)

Mr. Ravi Data, advocate for respondent no.3 (Golden Rathee)

Mr. Anand Aggarwal, advocate for the respondents no. 4 to 7

Ms. Riya Dhingra and Mr. Shashurat Jain, advocate for

respondent no. 8

Page 2 of 22

Appeal No. 139/2019

ORDER

The appellant Bank has filed this appeal against the order

dated 21.02.2109 passed by DRT-I, Delhi in the

Original

Application(O.A.) filed by respondent no.1 Punjab National Bank under

Section 19 of the Recovery of Debts Due to Banks and Financial

Institutions Act, 1993(„RDDBFI ACT,1993‟ in short) against other

respondents and the appellant Bank.

2. The relevant parts of the impugned order which give the

background facts are re-produced below:-

“1. The applicant bank has filed the OA on

15.03.2016 for recovery of Rs.82,46,65,330.53

(Rupees Eighty Two Crores Forty Six Lakhs Sixty

Five Thousand Three Hundred Thirty and paise fifty

three only) as on 15.03.2016 alongwith pendentelite and

future interest at contractual rate currently @14.60% p.a.

monthly rests in CC Account and @15.10% in the Term

Loan Account with further interest @2% from the date of

filing of the present OA till its realization.

4.

It is stated that the defendant No.1 approached the

applicant bank for availing the Working Capital (Cash Credit

Facility) of Rs.10 crores and term loan of Rs.24 crores

which was sanctioned by the applicant bank on 23.09.2010

to the defendant No.1. Defendant No.1 to 4 executed the

various loaning and security documents in favour of the

applicant bank.

5.

The defendant No.5 has auctioned/sold the plot

No.575-76 measuring 43241 sq.yds. under Khasra No.58,

62-66, 569, 571, 573-577 Village Bisnoli, Dujana Road,

Dadri, Distt. Gautam Budh Nagar, through defendant No.6.

Page 3 of 22

Appeal No. 139/2019

6.

It is stated that the same was mortgaged with the

applicant bank by defendant No.1 but the said auction was

set aside by DRT and the applicant bank has right to

claim the amount of refund from defendant No.5 &

6. The defendant No.7 has also extended certain facilities

to defendant No.1 and as a security for the facilities

extended, the defendant No.7 is having first charge on the

(block assets) and applicant bank is having first charge

over the (land building plant and machinery) of the

property of defendant No.1 situated at Village Bishnauli,

Dadri, District Gautam Budh Nagar (Uttar Pradesh) and at

Khasra No.64, 575, 576, 577, 66, 569, 574, 473, 65, 58,

571, 570 & 53 at Village Bishnauli & Acheja, Dujana, Road,

Near Dadri, Distt. GB Nagar, Uttar Pradesh

7.

It is also stated that the defendant No.1 again

approached the applicant bank for enhancement of WC

limit of Rs.10 crores to Rs.25 crores and cancellation of

NFB Limit of Rs.5 crores. The said request was considered

by the applicant bank and enhanced the WC Limit to

Rs.25.00 crores on 04.08.2011. Further, the defendant

No.1 to 4 executed loaning documents in favour of the

applicant bank.

8.

It is also stated that the defendant No.1 again

approached the applicant bank for enhancement of WC

Limit of Rs.25 crores to Rs.30 crores which was enhanced

by