PUNJAB NATIONAL BANK vs MILESTONE PRODUCTS (P) LTD. on 19 September 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 12.06.2018 before DRT-III Delhi & then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of Sd- Rs.4,67,89,721.14 (Rupees Four crore Sixty Seven lacs Eighty Nine thousand Seven hundred Twenty One and Fourteen only) as on 07.05.2018 together with pendentelite and future interest at @15.00% per annum with monthly rests from the date of filing of this application till its realization with costs. Further, the name of Sh.Akhouri Binay was substituted as authorized representative in place of erstwhile AR for the applicant bank.

2. The brief facts of the case are that at the request of defendant no.1 being private limited company of defendant no.2 & 3 as directors/guarantors engaged in the business of sanitary ware items etc. vide their loan application with KYC documents dated 24.07.2015, the applicant bank sanctioned Cash Credit facility of Rs.400.00 Lacs (Rupees Four crores only) on 06.08.2015 @10.15% per annum with monthly rests against hypothecation of stock and book debts as well as collateral security in the form of equitable mortgage of property at Plot No.163, Prakash Industrial Estate, Village Karkar Madan, Sahibabad, Ghaziabad, UP owned by defendant no.1.

3. That in order to avail the credit facility, the defendant no.1 through its directors/guarantors submitted loan application dated 24.07.2015 and executed Sanction Letter dated 06.08.2015 with terms and conditions, Agreement for Hypothecation of Goods & Book Debts, Agreement for Hypothecation of Current Assets to secure Cash Credit facility, Agreement of Continuing Guarantee, Supplementary Agreement and Letter of Acceptance all dated 06.08.2015 towards the applicant bank.

4. That in order to secure the credit facilities, the defendant no.1 hypothecated its entire stocks of raw materials and current assets in favour of applicant bank on 06.08.2015 and defendant no.2 as authorized signatory created equitable Sd- mortgage of property being Plot No.163, land measuring 483.33 sq.yds, Prakash Industrial Estate, Village Karkar Madan, Sahibabad, Pargana – Loni, Ghaziabad, UP by depositing Sale Deed no.8747, Book No.1, Jild No.11459 at Page 1 to 18 registered with Sub-Registrar Ghaziabad on 23.09.2013 and executed Affidavit/ Undertaking dated 10.08.2015 towards the applicant bank.

5. It has been submitted by the applicant bank that after availing the credit facility, the defendants miserably failed to maintain financial discipline and committed default in submission of stock, book debts and financial statements and neglected to pay regular interest due amount despite repeated letters and emails between 04.04.2017 to 30.05.2017, due to which account became irregular. The applicant bank classified the account as NPA on 30.06.2017 as per RBI guidelines but defendants neglected to make the payment for regularization of the account, hence, the applicant bank has approached this tribunal for recovery of their dues.

6. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 16.01.2026, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

7. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 12.07.2017 was issued upon defendants to liquidate the outstanding. The applicant bank issued notice u/s 13(4) for possession of property on 14.11.2017 and taken the possession vide possession notice dated 21.11.2017. The property was put on sale by auction sd- vide Proclamation of Sale notice dated 25.01.2018 on 26.02.2018 but could not be sold as no bid received.

8. In order to prove its case, the applicant bank has filed evidence by way of affidavit of Sh. Sanjeev Kumar Gupta and Shri Akhouri Binay, authorized representatives of the applicant bank who has proved documents such as Power of Attorney Ex-AW1/1, Loan Valuation report Ex-AW1/2, Application Form Ex-AW1/3, Sanction Letters with Terms & Conditions Ex-AW1/4(Colly), Hypothecation of Goods & Book Debts to Secure Cash Credit facility Ex-AW1/5, Agreement of Hypothecation of Current Assets to secure Demand Cash Credit facility Ex-AW1/6, Agreements of Continuing Guarantee & Letter of Acceptance Ex-AW1/7(Colly), Supplementary Agreement Ex-AW1/8, Affidavit Ex-AW1/9, Appendix 3 Ex-AW1/10, Letter of Authority Ex-AW1/11, Title Deeds confirming creation of Mortgage & Sale Certificate Ex-AW1/12(Colly), Letters Ex-AW1/13(Colly), Demand Notice u/s 13(2) Ex-AW1/14, Possession notice u/s 13(4) Ex-AW1/15, Proclamation of Sale Ex-AW1/16, Memorandum/record of outstanding dues Ex-AW1/17, Certified Statement of Account along with Certificate under Bankers' Books of Evidence Act 1891 Ex-AW-1/18.

9. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

10. The case filed by the applicant bank gone unrebuted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

Sd-

11. In the light of the above discussions, the Original Application deserves to be allowed.

**ORDER**

I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.4,67,89,721.14 (Rupees Four crore Sixty Seven lacs Eighty Nine thousand Seven hundred Twenty One and Fourteen only) as on 07.05.2018 together with pendentelite and future interest @15% per annum from 08.05.2018 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks consisting various raw materials, book debts, current assets and mortgaged property being Plot No.163, land measuring 483.33 sq.yds, Prakash Industrial Estate, Village Karkar Madan, Sahibabad, Pargana – Loni, Ghaziabad, UP. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 18.11.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

*sd* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 19.09.2026