INTERNATIONAL ASSET RECONSTRUCTION COMPANT PVT LTD vs MS. TRIMURTI CONSTRUCTION DEVELOPERS AND BUILDERS on 18 March 2026

**FINAL ORDER**

This original application has been filed originally by Allahabad Bank now assigned to IARC and UCO Bank before DRT-III, Delhi on 02.01.2012 and then transferred to DRT-I

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Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of Rs.12,39,60,913/- (Rupees Twelve Crores Thirty Nine Lacs Sixty Thousand Nine Hundred Thirteen only) for Applicant no.1 (e-Allahabad Bank) and Rs.2,64,07,205.50 for Applicant no.2 as on 31.12.2011 along with pendentelite and further interest @17.0% interest per annum and @16.05% interest per annum respectively from date of filing of this application till the date of realization and costs. The Allahabad Bank assigned the account along with security interest in favour of M/s IARC for recovery of dues against defendants.

2. The brief facts of the case are that the on the request of defendant no.1 being partnership firm of defendant no.2 to 4 as partners/guarantors in the business of construction and development of real estate was sanctioned Cash Credit (Hyp.) of Rs.15.00 lacs (Rupees Fifteen lacs only) which was renewed/enhanced/sanctioned/modified on various occasions lastly for Overdraft facility of Rs.500.00 lacs @13.25% interest per annum, Bank Guarantee of Rs.700.00 lacs for business purpose on 24.10.2008 and Term Loan of Rs.33.00 lacs @13.25% interest per annum on 01.03.2008 to be repayable in 60 EMIs of Rs.79,000/- for purchase of BMW car by Applicant Bank no.1. The credit limits were sanctioned against hypothecation of goods, stocks, book debts, receivables, movable assets and BMW Car. The defendant no.5 stood as Corporate Guarantor as per resolution dated 03.03.2008 and 18.08.2008 and offer to mortgage its immovable properties as collateral security for the credit facilities sanctioned in favour of defendant no.1.

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3. Applicant No.2 i.e. UCO Bank granted/reviewed/renewed the Cash Credit (Hyp.) of Rs.430.00 lacs and BG of Rs.50.00 lacs on 24.10.2008 in favour of defendant no.1. The limits were secured by hypothecation of goods, stocks, book debts etc. and continuing guarantees of defendant no.2 to 5.

4. That in order to secure the loan facilities of Applicant no.2 i.e. UCO Bank, the defendants executed Demand Promissory Note, Agreement for Waive of Presentment of Pronote, Letter of Deposit of Demand Promissory Note, Agreement of Extension of Charge by way of Hypothecation over Current assets to secure Non-Fund based limit, Hypothecation of Book Debts, Hypothecation of Goods to secure Cash Credit limit, Permanent/Omnibus Counter Guarantee by defendant 1 to 4, Letter of Undertaking, Undertaking for Disclosure of Name of Default, Agreements of Guarantees by defendant no.1 to 5 on 24.10.2008 and 01.09.2009.

5. The Allahabad Bank and UCO Bank formed Consortium on 24.10.2008 and Allahabad Bank being lead bank continued granting Cash Credit (Hyp) of Rs.500.00 lacs, BG of Rs.500.00 lacs by Allahabad Bank and UCO Bank granting Rs.430.00 lacs as Cash Credit (Hyp) and BG of Rs.50.00 lacs. Both the banks jointly executed inter-se Agreement dated 31.12.2008 containing contractual privities between them. The defendants executed Working Capital Consortium Agreement, Joint Deed of Hypothecation, Agreement of Guarantee by defendant no.2 & 3 and Corporate Guarantee executed by defendant no.5 on 31.12.2008 based on their Resolution dated 20.12.2008.

6. The Allahabad Bank vide Assignment Agreement dated 11.02.2014 assigned the debt of defendant no.1 in favour of International Assets Reconstruction Company -IARC

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(hereinafter referred as Assignor FI) together with all rights, title and interest, securities etc. and to continue / initiate legal proceedings for recovery of dues.

7. That in order to avail the various loan facilities, the defendant no.1 executed Letter of Acceptance of Credit Facilities, Demand Promissory Notes, Letter Waiving Presentment of Pronote, Agreement of Hypothecation, Agreements of guarantee, Letter of Acceptance of Credit Facilities, General Counter Indemnity, Letters of Undertaking, Power of Attorney, Agreement of Hypothecation of Book Debts, Agreement of Medium term Loan, First Supplementary General Letter of Hypothecation on 25.07.2006, 26.10.2006, 04.03.2008, 21.08.2008 in favour of the Applicant No.1. The defendant no.2 to 5 executed Agreements of Guarantee constituting continuing guarantees in favor of Applicant no.1.

8. That in order to secure the loan facilities, the defendant no.1 hypothecated the stocks, book debts, receivables etc. towards applicant bank no.1 and defendant no.2 and 5 mortgaged their immovable properties on 31.03.2007 and extended on 03.03.2008 and 22.08.2008:

- i) Land admeasuring 82 decimals, Mauza Dakshinhat, Khatian 247, P.S.Barasat, Holding No.136, DAG No.9, Ward No.11, Nandi Bagh, Madhyam gram Municipality, North 24 Parganas, West Bengal owned by defendant no.5;

- ii) Plot No.55, P.C.Ghosh Road, Block A, Lake Town, Kolkata, West Bengal by depositing original Sale Deed dated 02.08.2001 owned by defendant no.5; *sd-*

- iii) Plot No.43, Block B, Sector 122, Noida, UP admeasuring 162 sq.meters by depositing original Transfer Deed dated 27.02.2007 owned by defendant no.2;

- iv) Plot No.D-18, Sector 122, Noida, UP admeasuring 300 sq.meters by depositing original Transfer Deed dated 09.04.2007 and Lease Deed dated 30.06.2006 owned by defendant no.2;

- v) Plot No.330, Rajpur Sonapur Municipality, District 24 Parganas (South), West Bengal by depositing Original Deed of Conveyance dated 06.02.2002 owned by defendant no.2;

- vi) Plots No.9/61 & 9/62, Rajpur Sonapur Municipality, District 24 Parganas (South), West Bengal by depositing Original Deed of Conveyance dated 08.11.2001 owned by defendant no.2;

9. It has been submitted that after availing the loan facilities, the defendants miserably failed to adhere to the financial discipline and term of sanction and consequently, operation and conduct of accounts became irregular and due to which, both the applicants classified the accounts as NPA on 31.03.2009 and 30.06.2009 respectively in accordance with RBI guidelines and approached this tribunal for recovery of its dues.

10. Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 10.09.2009 was issued for both the bank accounts duly served upon defendants. Further, possession notice dated 22.12.2009 for property at Plot No.43, Block B, Sector-122, Noida & Plot No.D-18, Sector-122, Noida, UP and sold for Rs.44,22,222/- and Rs.70.01 lacs respectively Sd/- and sale proceeds apportioned in the accounts of both the banks in the ratio of 82.48:17.52. The Applicant no.1 Bank sold the BMW car bearing Registration No.DL3CAY4936 for Rs.20,91,485/- and appropriated in their Car Loan account.

11. Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings despite given opportunity to file written submission subject to payment of Rs.1.00 lacs as cost but defendants failed to do so. As per order dated 11.08.2015, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

12. In order to prove its case, the Applicant FI has filed its evidence by way of affidavit of Shri Rashmi Ranjan Mahapatra, authorized representative who has proved the documents such as Power of Attorney, Certificate of Incorporation & Registration with RBI, Assignment Deed, Power of Attorney of Allahabad Bank and Applicant No.2, Sanction Letters of Cash Credit and Bank Guarantees, Loan Applications, Overdraft Facility Sanction/ Review, Board Resolutions, Letter of Acceptance, Demand Promissory Note, Letter Waiving Presentment of Pronote, Agreements of Hypothecation, Agreements of Guarantees, Letters of Acceptance, General Counter Indemnity, Letters of Undertaking, Power of Attorneys, Agreement of Hyp.of Book Debts, Agreement of Medium Term Loan, General Counter Indemnity, Letters qua Change of Address, Conveyance Deeds, Letters of Extension of Mortgage, Supplemental Letter, Recitals, Inter-se Agreement, Minutes of Consortium, Working Capital Consortium Agreement, Joint Deed of Hypothecation, Agreement of Guarantees, Corporate Guarantee, Letter ceding Charge, Letter of Authority, Sd- Resolution dated 20.12.2008, Supplementary Deed of Partnership, Notice under Section 13(2), Possession Notices, Sale Certificates, Certified true copy of Statement of Accounts, Certificate under Bankers' Books Evidence Act and Unapplied Interest marked as Ex-AW1/1 to Ex-AW1/98.

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

14. The case filed by the applicant FI gone unrebutted and there is no question of disbelieving the case of the applicant FI and the applicant FI has proved its case beyond reasonable doubts.

15. As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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

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**ORDER**

I, allow this OA and direct the defendants to pay to the applicants within 30 days, jointly and severally, a sum of Rs.12,39,60,913/- (Rupees Twelve Crores Thirty Nine Lacs Sixty Thousand Nine Hundred Thirteen only) for Applicant no.1 together with pendentelite and future interest @17.00% per annum with monthly rests and Rs.2,64,07,205.50 for Applicant no.2 together with pendentelite and future interest @16.05% per annum with monthly rests from the 02.01.2012 till the date of its realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated goods and movable assets of defendant no.1 and following mortgaged properties:

1. i) Land admeasuring 82 decimals, Mauza Dakshinhat, Khatian 247, P.S.Barasat, Holding No.136, DAG No.9, Ward No.11, Nandi Bagh, Madhyam gram Municipality, North 24 Parganas, West Bengal owned by defendant no.5;

2. ii) Plot No.55, P.C.Ghosh Road, Block A, Lake Town, Kolkata, West Bengal by depositing original Sale Deed dated 02.08.2001 owned by defendant no.5;

3. iii) Plot No.330, Rajpur Sonapur Municipality, District 24 Parganas (South), West Bengal by depositing Original Deed of Conveyance dated 06.02.2002 owned by defendant no.2;

4. iv) Plots No.9/61 & 9/62, Rajpur Sonapur Municipality, District 24 Parganas (South), West Bengal by depositing Original Deed of Conveyance dated 08.11.2001 owned by defendant no.2; In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(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 18.05.2026.

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

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

(Dictated and pronounced in open court) Dated: 18.03.2026