InfraLive September-15, 2025

DRT Order Exposes Sashidhar www.infralive.com 13 InfraLIVE September 15, 2025 recovery of following amounts: (a) Packing Credit Facility Rs 4,42,58,000.00 (b) Post Shipment Credit Facility Rs 8,00,52,000.00 (c) Debit in the Current Account Rs 2,31,41,929.35 The amount is sought to be recovered by liquidating mortgaged and hypothecated properties in which the Defendant Nos. 8 to 21 are ranking pari pasu, Defendant No. 8 being leader of the consortium. 2. The Defendant No . 8 is the Borrower Company while Defendant Nos. 2 to 6 are its Directors/promoters sued as Guarantors. The Defendant No. 7, being sister concern of the Defendant No. 1, is the corporate Guarantor. 3. In the year 1995, the consortium of the Applicant and Defendant Nos.8 to 21 had sanctioned to Defendant No. 1 Pre-Shipment Facility (Packing Credit) to the extent of Rs 5,400 Lacs and Post-Shipment Facility of Rs 8,100 Lacs. The Applicant's share therein was 5% and as such it had advanced Rs 270 Lacs and Rs 405 Lacs respectively. In lieu thereof, the Defendant No. l had executed Demand Promissory Notes, Letter of Hypothecation and Defendant Nos 2 to 5 had given Letter of Continuing Guarantee. The Defendant No. l had also created Equitable Mortgage, by Deposit of Title Deeds, with the leader of the consortium (Defendant No. 8) of property consisting of Gala Nos. 30l to 304, 306, 308, 310, 314 & 316 including fixed plant and machinery in order to secure outstandings of all the consortiummembers. 4. The Defendant No. l availed of the said facilities. Times Bank (which on 17.02.2000 merged into the Applicant under provisions of Section 44(a) of Banking Regulation Act) had in or about February 1996 sanctioned Ad-hoc Post- shipment Facility of Rs 10 Crores to Defendant No. l which was guaranteed by Defendant Nos. 2 & 3. In 1997 however Times Bank joined the consortium and as member thereof sanctioned Export Packing Credit Facility of Rs 260 Lacs and Post-shipment Facility of Rs 390 Lacs for which Defendant No. 2 had stood as Guarantor by executing Letter of Guarantee. The Defendant No. l had executed Demand Promissory Note and Letter of Hypothecation in lieu of the Facility. The Times Bank had also sanctioned Ad-hoc Post-shipment Facility of Rs 850 Lacs which however was repaid in or about September 1997. Thereafter Times Bank sanctioned from time to time (between 26.09.1997 to 14.01.2001) further Ad-hoc Limits aggregating to Rs 26.75 Crores. While the Defendant No. l had executed Demand Promissory Notes and Letters of Hypothecation in lieu thereof the Defendant No. 2 had given guarantee for Rs 13.75 Crores. The Defendant No. 6 stood as surely to the extent of Rs 2 Crores while Defendant No. 7 had given guarantee to the extent of Rs 8.75 Crores. The Defendant No. l had created