THE NAINITAL BANK LIMITED vs M/S ARC OUTDOOR MEDIA LIMITED on 17 January 2026

FINAL ORDER

This original application has been filed by the applicant bank on 23.07.2020 before DRT-II, Delhi & then transferred to DRT-I Delhi through Ms. Ruchi Singh, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of Rs.1,24,32,578/- (Rupees One Crore Twenty Four Lacs Thirty Two Thousand Five Hundred Seventy Eight only) as on 21.07.2020 together with pendentelite and future interest per annum @12.90% with monthly rests from 22.07.2020 till the date of realization and costs.

2. The brief facts of the case are that at the request of defendant no.1 (earlier known as Luminelle Solar Technologies Ltd. and changed to LSTL Media Ltd in 2011) being registered company, the applicant bank initially sanctioned Cash Credit (Hyp) limit for Rs.20.00 lacs in the year 2005 which was reviewed and enhanced to Rs.1.25 Crore in the year 2015 and then enhanced to Rs.1.50 Crore on 19.12.2015 @12.75% interest per annum against hypothecation of book debts, FDRs as prime security and collaterally secured by mortgage of immovable properties of defendant no.5 and 6. The defendants also agreed to pay penal interest @2% per annum in case of default or delay in repayment. The defendant no.2 to 6 stood as guarantors for the credit facility sanctioned in favour of the defendant no.1 by the applicant bank.

3. That in order to avail the credit facility, the defendant no.1 submitted loan application and executed Hypothecation of Book Debts, Demand Promissory Note, Letter for Continuing Security, Letter of Undertaking, Power of Attorney in respect of book debts, Declaration cum General Undertaking, Affidavit, Letter of Consent regarding disclosures of information & CIBIL data with the applicant bank on 19.03.2016. The defendant no.2 to 6 executed Guarantee Deed promising to repay entire loan amount with all charges etc. jointly and severally with defendant no.1.

4. That in order to secure the credit facility, the defendant no.5 and 6 extended mortgage of their immovable properties i.e. Flat no.E-602, Krishna Apra Residency, Block E, lot no.8, Sector 61, Noida and Shop n.G-14, Shree G Mall, Part of property bearing Municipal no.2190, Ward no.16, Block 3, Gali no.62-63, Naiwala, Karol Bagh, Delhi in favour of the applicant bank by depositing original Transfer Deeds dated 27.08.2011 and Sale Deed dated 07.05.2014 and also executed Letter of Intention to create mortgage on 19.03.2016 towards applicant bank. The defendant no.1 also deposited the FDR with face value of Rs.10,94,649/- in favour of applicant bank as collateral security.

5. It has been submitted by the applicant bank that after availing the credit facility, the defendants failed to maintain financial discipline and neglected to regularize the account as per the terms and conditions of sanction. The applicant bank classified the account as NPA on 31.03.2019 as per RBI guidelines but defendants failed to take any steps to liquidate their liability, hence the applicant bank has approached this tribunal for recovery of its dues.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 23.12.2019 was issued by the applicant bank as well notice under Section 13(4) of SARFAESI Act calling upon to pay the dues but defendants failed to liquidate their liability.

7. The defendant no.1 agreed for settlement to deposit Rs.1,29,16,477/- vide letter dated 24.01.2020 to which the applicant bank agreed vide its letter dated 31.01.2020 but defendant no.1 failed to pay despite repeated requests and reminders. Ultimately, the applicant bank issued a legal notice dated 02.07.2020 but defendants failed to clear the dues.

8. 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 10.01.2025, 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.

9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Ms. Ruchi Singh, authorized representative of the applicant bank who has proved the documents as Power of Attorney, Sanction Letters, Board Resolution, Letter of Acceptance of Terms & Condition, Instrument of Hypothecation of Book Debts, Demand Sd-

Promissory Note, Letter for Continuing Security, Letter of Undertaking, Power of Attorney, Declaration cum General Undertaking, Affidavit cum Undertaking, Letter of Consent regarding Disclosures of Information & CIBIL Data, Original Guarantee Deed, Attendance Sheet, Letter of Intention, Supplemental Memorandum of Deposit of Title Deeds, Letter of FDR, Notice u/s 13(2) of SARFAESI Act, Letters dated 24.01.2020 & 31.01.2020, Acceptance of Settlement, Notice dated 02.07.2020, Certified Statement of Account and Certificate dated 22.07.2020 marked as Ex.AW-1/1 to Ex.AW- 1/27.

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 unrebutted and there is no question of disbelieving the case of the applicant bank and 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

al!ow 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.1,24,32,578/- (Rupees One Crore Twenty Four Lacs Thirty Two Thousand Five Hundred Seventy Eight only) along with pendentelite and future interest @12.90% per sd- annum with monthly rests from 22.07.2020 till the date of realization, failing which the aforesaid amount shall be recovered from sale of hypothecated book debts and Mortgaged properties being: Flat no.E-602, Krishna Apra Residency, Block E, Plot no.8, Sector-61, Noida; Shop no.G-4, Shree G Mall, part of property bearing Municipal no.2190, Ward no.16, Block J, Gali no.62-63, Naiwala, Karol Bagh, New Delhi. In case of shortfall, the amount be realized from the sale of other properties of 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 the Recovery Officer, DRT-I, Delhi on 18.03.2026. a) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. _ (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 17.01.2026