PUNJAB NATIONAL BANK vs MS APEX AIM RETAILS PVT LTD AND ORS on 30 September 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 30.09.2021 before DRT-II, Delhi & then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.80,80,739.21 (Rupees Eighty Lakhs Eighty Thousand Seven Hundred Thirty-Nine and Twenty-One paisa only) as on 12.09.2021 together with pendentelite and future interest @9.35% per annum with monthly rests till realization in full.

2. The brief facts of the case are that on the request of defendant no.1 through defendants no.2 to 6 being directors vide their loan application dated 27.02.2014, the applicant bank sanctioned Cash Credit facility of Rs.125.00 lacs on 27.02.2014 with interest @BR+4.50% i.e. @14.75% against hypothecation of stocks, receivables and equitable mortgage of immovable properties owned by defendant no.2, 5 and 7. On the request of defendant no.1 through defendant no.2, the applicant bank renewed the credit facility from time to time on various occasions lastly on 31.03.2018. The defendant no.7 stood as guarantor for the credit facilities sanctioned in favour of defendant no.1 by the applicant bank.

3. In order to avail the Cash Credit facility, the defendant no.1 through defendant no.2 as its authorized signatory Sd- executed Agreement of Hypothecation of Assets, Common Agreement, Agreements of Guarantees, Sanction Letters, Letter of Undertaking and Board Resolution Certificate dated 28.02.2014 and other security documents in favour of the applicant bank on various dates.

4. That in order to secure the credit facility, the defendants created equitable mortgage of immovable properties by deposit of title deeds and extension of charge over the properties on , including inter alia:

- • DDA built Freehold SFS Flat No.256, Pocket GH-4, Category-II, Third Floor, Paschim Vihar, New Delhi, owned by defendant no.5 by depositing Sale Deed dated 03.08.2005, registered as Registration No.3446, Book No.I, Volume No.131, Page No.147 to 157;

- • Extension of Charge on Flat no.B-206, Second Floor, Sagar Building No.31, Apna Ghar Unit No.11, Co-operative Housing Society Ltd., Shree Swami Samartha Nagar, Andheri (West), Mumbai owned by Mr. Prem Nath Kapani(since deceased) by depositing Gift Deed dated 25.03.2013 registered as Document No.BDR-16-2381-2013 with Joint Registrar on 02.04.2013 with defendant no.7;

- • Apartment No.38-B, First Floor, Green View Apartments, Sector 99, Noida, District Gautam Budh Nagar, UP, owned by defendant no.2 by depositing Lease Deed dated 04.05.2011 by NOIDA authority registered as Registration No.5024, Book No.I, Volume No.3338 at Page no.147 to 200 on 04.05.2011 deposited on 17.04.2014.

The defendants continued to acknowledge the subsisting liability and security.

SP

5. The defendant no.2 on behalf of defendant no.1 submitted Board Resolution dated 28.02.2014 and 21.05.2018 authorized to confirm, acknowledged the debt towards the applicant bank and executed Balance and Security Confirmation Letter dated 21.05.2018 acknowledging debt of Rs.1,24,99,233.21 in respect of Cash Credit facility.

6. It has been submitted by the applicant bank that after availing the loan facility, the account of defendants remained irregular and installments not been paid regularly. The applicant bank issued recall notices to the defendants but they failed to comply with the terms and conditions despite several requests and reminders. Ultimately, the applicant bank classified the account as NPA on 31.03.2019 as per RBI guidelines but no efforts made by the defendants, hence the applicant bank has approached this tribunal for recovery of its dues.

7. Notice under Section 13(2) of the SARFAESI Act, 2002 was issued by the applicant bank on 27.05.2019 for sum of Rs.1,28,14,445.21 but defendants neglected. The applicant bank issued possession notice under Section 13(4) on 03.08.2019 and took symbolic possession of mortgaged properties and put up for auction and sold one property situated at Flat No.256, Third floor, Pocket GH, Paschim Vihar, Delhi-110063 measuring 965 sq.ft. for sum of Rs.68,25,000/- to Ms. Sarita Chawla through e-auction held on 22.10.2019 and issued sale certificate on 31.12.2020.

8. Notice of this O.A. was issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. Vide its order dated 10.07.2026, SD

the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed by the defendants.

9. In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Sh. Akhouri Binay, authorized representative of the applicant bank, who has who has proved the documents such as Power of Attorney Exh.AW1/1, Original Application Exh.AW1/2, Sanction Letter Exh.AW1/3, Undertaking Exh.AW1/4, Board Resolution with Certificate Exh.AW1/5, Hypothecation Agreement Exh.AW1/6, Common Agreement Exh.AW1/7, Agreements of Guarantee Exh.AW1/8 to Exh.AW1/12, Letters of Undertaking Exh.AW1/13 to Exh.AW1/18, Sale Deed Exh.AW1/19, Gift Deed dated 25.03.2011 Exh.AW1/20, Lease Deed dated 04.05.2011 Exh.AW1/21, Title Deed dated 01.03.2014 Exh.AW1/22 to Exh.AW1/24, Original Letters Exh.AW1/25 to Exh.AW1/27, Sanction Letters Exh.AW1/28 to Exh.AW1/30, Board Resolution and Acknowledgement Letter Exh.AW1/31, Balance and Security Confirmation letter Exh.AW1/32, Demand Notice along with postal receipts Exh.AW1/33 and Exh.AW1/34(Colly), Possession Notice along with postal receipts Exh.AW1/35 and Exh.AW1/36, Newspapers Publication Exh.AW1/37 and Exh.AW1/38, Sale Certificate Exh.AW1/39, Statement of Accounts Exh.AW1/40.

10. 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.

11. The case filed by the applicant bank gone unrebuted and there is no question of disbelieving the case of the applicant *Sd-*

bank and the applicant bank has proved its case beyond reasonable doubts.

12. 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.80,80,739.21 (Rupees Eighty Lakhs Eighty Thousand Seven Hundred Thirty-Nine and Twenty-One Paisa only) as on 12.09.2021 together with pendentelite and future interest @9.35% per annum with monthly rests from 12.09.2021 till its realization with costs, failing which the aforesaid amount shall be recovered from hypothecated stocks, receivables, other current assets and immovable properties viz.:

- - Flat no.B-206, Second Floor, Sagar Building No.31, Apna Ghar Unit No.11, Co-operative Housing Society Ltd., Shree Swami Samartha Nagar, Andheri (West), Mumbai owned by Mr. Prem Nath Kapani(since deceased);

- - Apartment No.38-B, First Floor, Green View Apartments, Sector 99, Noida, District Gautam Budh Nagar, UP, owned by defendant no.2.

In case of shortfall, the same shall be recovered from 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.

*Sd-*

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 30.11.2026.

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

*e sd- 30/9/2026* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court)

Dated: 30.09.2026