PUNJAB NATIONAL BANK vs MR RAHUL MURARKA on 5 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 13.03.2020 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 a sum of Rs.55,25,869.34 (Rupees Fifty Five Lacs Twenty Five

Thousand Eight Hundred Sixty Nine & paisa Thirty Four only) as on 18.02.2020 along with pendentelite and future interest @13.50% per annum with monthly rests from 18.02.2020 till the date of its realization along with costs.

2. The brief facts of the case are that on the request of defendant no.1 being sole proprietor of M/s Aavya Polymers in the business of manufacturing and printing of polymer laminated HDPE woven bags vide their loan application dated 18.12.2009, the applicant bank sanctioned Cash Credit facility for Rs.28,00,000/- (Rupees Twenty Eight lacs only) @12.50% interest per annum on 31.12.2009 which was enhanced to Rs.40,00,000/- (Rupees Forty lacs only) @14.50% interest per annum on 11.06.2011 against hypothecation of stocks and book debts covered under CGTMSE scheme. The applicant bank renewed the credit facilities on various dates between 30.04.2013 to 09.04.2018 on the request of defendants. In case of default in repayment of interest, the defendant consented for charging of penal interest @2% over and above normal rate on overdrawn portion.

3. That in order to avail the credit facility, the defendant as proprietor submit loan applications/renewal requests and executed Sanction Letters with Terms and conditions, Loan Enhancement Letters, Hypothecation of Moveable Assets forming part of Fixed/Block Assets, Agreement for Hypothecation of Current Assets, Hypothecation of Goods and Bok Debts to Secured Cash Credit Facility and other documents etc. on various dates whenever credit limit was renewed towards the applicant bank. Scf-

4. The defendant acknowledged the debt as of 04.09.2018 and executed Balance & Security Confirmation on 04.09.2018 of Rs.44,61,477.60 towards the applicant bank.

5. It has been submitted by the applicant bank that after availing the credit facility, the defendants failed to maintain financial discipline and not routed their transactions thru the account and defaulted in repayment of loan despite various reminders issued. Ultimately, the applicant bank classified the accounts as NPA on 30.06.2018 as defendants failed to regularize the account as per RBI guidelines but defendans neglected. Hence, the applicant bank has approached this tribunal for recovery of its dues from the defendants.

6. Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 14.08.2018 was issued upon defendants to liquidate the outstanding liability but defendants failed to respond. During visit by officials of applicant bank, there was no hypothecated stock to which bank immediately issued production notice dated 19.03.2019 expressing intention to file FIR to which defendant replied on 26.03.2019 acknowledge the existing of agreement guaranteed by CGTMSE.

7. 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 12.07.2022, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Anchal Kumar Jain, authorized representative of the applicant bank who has proved the Original documents such as Power of Attorney, Cash Credit Agreement, Sanction Letters, Loan Application Form, Hypothecation of Moveable Assets Forming Part of Fixed/Block Assets, Agreement for Hypothecation of Current Assets, Hypothecation of Goods and Book Debts to Secure Cash Credit Facility, Security and Confirmation. Letter, Demand Notice, Recall Notice, Production Notice, Reply of Defendants, Certified Statement of Account under Bankers Book of Evidence Act & Certificate u/s 65B of Evidence Act marked as Exhibit AW- 1/1 to Exhibit AW-1/14.

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 approved.

10. 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.

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.55,25,869.34 (Rupees Fifty Five Lacs Twenty Five Thousand Eight Hundred Sixty Nine & paisa Thirty Four only) S'd- as on 18.02.2020 together with pendentelite and future interest @13.50% per annum with monthly rests from 18.02.2020 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of stock and book debts etc. In case of default / 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 the Recovery Officer, DRT I, Delhi on 04.08.2026. IV) 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: 05.06.2026