the parties. Guidelines were also issued by the Hon’ble Apex Court to the effect that if the Court finds that in the principal sum adjusted on the date of the suit a component of interest is dispropo… and post decree interest at a lower rate or may even decline awarding such interest. Keeping in view the law laid down by the Hon’ble Apex Court, a perusal of the record will show that the interest c

Reportable/ Non Reportable
IN THE DEBTS RECOVERY APPELLATE TRIBUNAL AT KOLKATA
THE HON’BLE  MR.  JUSTICE ANIL KUMAR SRIVASTAVA
CHAIRPERSON
   (Appeal No. 236 of 2018)
(Arising out of O.A. No. 573 of 2017 in DRT-II Hyderabad)
With
(Appeal No. 46 of 2018)
(Arising out of O.A. No. 573 of 2017 in DRT-II Hyderabad)
    
   (Appeal No. 236 of 2018)
(Arising out of O.A. No. 573 of 2017 in DRT-II Hyderabad)
1. Sanjay Re Rolling Mills Pvt. Ltd. A-28/1/16, Road No. 14 IDA, 
Nacharam, Hyderabad-501507. 
             
2. Ashok Kumar Agarwal, Residing at Sundar Apoorva Elegance, 
Behind Melange Tower, Honda Cars Showroom, Patrika Nagar, 
Madhapur, Hyderabad-500081.
                                                                            …Appellants
                                            -Versus-
1. Asset Reconstruction Company India Limited, The Ruby, 10th Floor, 29 
Senapati Bapat Marg, Dadar (West) Mumbai -4000028
                      …  Respondents
Counsel for the parties
Mr. Nemani Srinivas,  
Learned Counsel,  for the 
Appellant
Ms. Sonal Shah, 
Learned Counsel Ms. 
Ritika Banerjee,  
Learned Counsel for 
the Respondents
                                        
(Appeal No. 46 of 2018)
(Arising out of O.A. No. 573 of 2017 in DRT-II Hyderabad)
1.
Asset Reconstruction Company (India) Limited. The Ruby, 10th 
Floor, 29 Senapati Bapat Marg, Dadar (West) Mumbai -400028.
             
                                                                            …Appellants

2
                                            -Versus-
1. 
M/s. Sanjay Re-Rolling Mills Pvt. Ltd. A-28/1/16, Road No. 14 IDA,
Nancharam, Hyderabad-501507.
2.
Sri Ashok Agarwal, 21-1-390m Rikabganj Opp. High Court Hyderabad 
(Or) C/o K.P. Steels Ltd. Shop No. 23 & 24, Minerva Complex, 
Secunderabad- 500003.
3.
Sri Rajendra Kumar Gupta, 21-1-390m Rikabganj Opp. High Court
Hyderabad (Or) C/o K.P. Steels Ltd. Shop No. 23 & 24, Minerva Complex, 
Secunderabad- 500003.
4.
Sri Kanti Kumar Gupta, 
21-1-390m 
Rikabganj 
Opp. 
High 
Court
Hyderabad (Or) C/o K.P. Steels Ltd. Shop No. 23 & 24, Minerva Complex, 
Secunderabad- 500003.
5.
The Commissioner of Customs and Central Excise, Hyderabad – III, 
Commissionerate, Baseerbagh, Hyderabad -500029.
6.
The Deputy Commissioner, Central Excise, Hyd-V Division, CLS 
Building, Nampally Station Road, Hyderabad -500001.
7.
The Assistant Commissioner of Customs and Central Excise,  
V. 
Division, 3rd Floor, CLS Building, Nampally Station Road, Hyderabad- 500001.
                      …  Respondents
Counsel for the parties
Mr. Nemani Srinivas,  
Learned Counsel,  for the 
Appellant
Ms. Sonal Shah, 
Learned Counsel Ms. 
Ritika Banerjee,  
Learned Counsel for 
the Respondents
 
JUDGMENT                         
:   
On    2nd  May, 2024  
THE APPELLATE TRIBUNAL :           
                
Since both the Appeals No. 236 of 2018 and Appeal No. 
46 of 2008 have arisen against a judgment passed by the 

3
Learned DRT Hyderabad on 14.02.2018 in O.A No. 573 of 
2017 (old O.A. No. 276 of 2000 of DRT-1 Hyderabad), hence 
both the Appeals are being decided by a common judgment.  
2.
Facts in brief of the case are that the Canara Bank filed 
an O.A. application under Section 19 of the RDDB Act 
against defendant Nos. 1 to 4 namely Sanjay Re Rolling and 
Sri Ashok Kumar Agarwal, Sri Rajendra Kr. Gupta and Sri 
Kanti Kumar Gupta for recovery of Rs. 1,39,67,002/- jointly 
and severally with costs and future interest at the rate of 
18.87% per annum with quarterly rests from the date of 
filing of the O.A. till realisation.  Pending O.A. proceedings, 
the debt along with the securities were assigned to Asset 
Reconstruction Company India Limited.
3.
In 1985 M/s Sanjay Re-Rolling Mills approached the 
Canara Bank and O.C.C. Limit of Rs. 12 lacs and Rs. 10 lacs 
as Bank guarantee was sanctioned to the defendant No. 1.  
Necessary 
documents 
were 
executed 
and 
equitable 
mortgage was created.  Limits were enhanced from Rs. 12 
lacs to Rs.19 lacs.  Def

…