PUNJAB NATIONAL BANK vs M/S SHREE BANKEY KUNJ BIHARI MILK FOODS PVT LTD on 18 March 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 30.10.2021 through Shri Surendra Singh, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act,1993 against the *sd-*

defendant for recovery of a sum of Rs.1,90,70,813.24 (Rupees One Crore Ninety Lacs Seventy Thousand Eight Hundred Thirteen and paisa Twenty-Four only) as on 27.09.2021 along with pendentelite and future interest @12.05% per annum with monthly rests till the date of realization along with costs.

2. The brief facts of the case are that at the request of defendant no.1 company engaged in the business of milk and dairy products through its directors / guarantors being defendant no.2 to 3 vide loan application dated 22.07.2013, the applicant bank sanctioned Cash Credit facility for Rs.150.00 lacs on 27.07.2013 @15.75% per annum in order to takeover loan from Indian Bank against hypothecation of stocks and book debts as prime security and mortgage of property as collateral security. The defendant no.4 stood as guarantor for the credit facility sanctioned in favour of the defendant no.1 by the applicant bank. It is submitted by applicant bank that after takeover of loan in favour of defendant no.1, the Indian Bank issued No Dues Certificate dated 30.07.2013.

3. That in order to avail the credit facility, the defendant no.1 thru its directors/guarantors submitted loan application and defendant no.3 executed Hypothecation of Goods and Book Debts to secure Cash Credit facility, Hypothecation of Moveable Assets forming part of Fixed/Block Assets and Purchase Discounting of Cheques and Bill on 29.07.2013 as per Board Resolution dated 29.07.2013. The defendant no.2 to 4 executed Agreement of Personal Guarantee to secure credit facility on 29.07.2013.

4. That in order to secure the credit facility, defendant no.1 through its directors hypothecated the stock in trade, book debts and other current assets towards the applicant bank. The defendant no.4 created equitable mortgage of her property bearing Plot no.406, Sector 37, Faridabad, Haryana measuring Sd- 2325.06 sq. ft. in favour of the applicant bank on 1st charge basis by deposit of title deeds on 01.07.2013 and confirm the same on 01.08.2013. The applicant bank created charge with ROC in respect of security documents executed/created by defendant no.1 on 28.08.2013 for Rs.150.00 lacs.

5. The defendant no.1 executed Balance and Security Confirmation letter dated 21.05.2020 in favour of the applicant bank.

6. It has been submitted by the applicant bank that after availing the loan facility, the defendants failed to abide by the terms and conditions of loan agreements and stopped submitting stock statements, financial papers and book debts statement despite several requests made to regularize the account. The applicant bank classified the account as NPA on 31.03.2021 and issued loan recall notice dated 07.04.2021 and invoked the guarantee of defendant no.2 to 4 on 13.04.2021. Hence, the applicant bank has approached this tribunal for recovery of their dues.

7. Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 was issued on 20.04.2021 for Rs.1,79,45,728.24 as of 31.03.2021 by applicant bank to the defendants but they 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 05.12.2025, 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.

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9. In order to prove its case, the applicant bank has filed evidence by way of affidavit of Sh. Surendra Singh, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Loan Application Form, Letter dated 27.07.2013, Sanction Letter, Acceptance Letter, Board Resolution, No dues Certificate, Hypothecation of Goods and Book Debts, Hypothecation of Moveable Assets, Purchase Discounting of Cheques and Bills, Agreements of Guarantee, Letter of Intent, Letter of Acknowledgement, Copy of EM Register, Registration of Charge, Record of CERSAI, NPA Certificate, Recall Notice, Invocation of Guarantees, Notice u/s 13(2) of SARFAESI Act, Statement of Account, Breakup sheet, Balance and Security Confirmation Letter marked as Ex.AW-1/1 to Ex.AW-1/23.

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 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.1,90,70,813.24 (Rupees One Crore Ninety Lacs Seventy Thousand Eight Hundred Thirteen and paisa Twenty Four only) together with pendentelite and future interest @12.05% per annum with monthly rests from the date of filing *Sd/-*

of this application till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged property bearing Plot no.406, Sector 37, Faridabad, Haryana measuring 2325.06 sq.ft., owned by defendant no.4. 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 18.05.2026.

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

*Sd-* *2026* **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 18.03.2026