INDIAN OVERSEAS BANK vs SAMEER GUPTA on 6 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 28.03.2022 before DRT-III Delhi and then transferred to DRT-I Delhi under section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of Rs.30,12,732.69 (Rupees Thirty Lacs Twelve Thousand Seven Hundred Thirty Two and paisa Sixty Nine only) as on 28.02.2022 along with interest

@8.90% per annum with monthly rests from 01.03.2022 till the date of its realization and costs.

2. The brief facts of the case are that at the request of defendant running business of manufacturing of paper corrugated rolls, boxes and cartons, the applicant bank converted Cash Credit limit into WCTL of Rs.22,00,000/- (Rupees Twenty Two lacs only) and WCDL of Rs.3,90,000/- (Rupees Three Lacs Ninety Thousand only) @8.90% interest rate on 29.10.2020 against First charge on all the assets including fixed and floating assets of the firm by way of hypothecation covered under CGTMSE scheme of the Govt. The WCTL and WCDL facility was to be repaid in instalments spanning over a period of Seven years from May 2021 to October 2027.

3. That in order to secure the loan facility, the defendant submitted request letter and executed Sanction Letter, Letter of Undertaking, Demand Promissory Note, Agreement of Term Loan and Hypothecation, Form F-110-E Letter of Hypothecation in favour of applicant bank, details of which were registered with CERSAI on 04.11.2020.

4. It has been submitted by the applicant bank that after availing the loan facility, the defendant failed to comply with the terms and conditions to repay the installments in the account and not routed their business sale proceeds in the account due to which the account of defendant became NPA on 31.05.2021. The defendant neglected to request of applicant bank, hence the applicant bank has approached this Tribunal for recovery of their dues. 5d-

5. 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 03.03.2025, the defendant has been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed. The defendant filed IA No.718/2025 praying to set aside the ex-parte order which was opposed by applicant bank. It was ordered on 06.10.2025 that as the OA paper book was supplied to defendant on 24.07.2024 and Written Statement was not filed till date by defendant, hence right to file Written Statement on behalf of defendant stands closed.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Mahesh Chandra Meena, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Credit Sanction Advice, Demand Promissory Note, Letter of Undertaking, Agreement of Term Loan, Form-110-E Letter of Hypothecation, Demand Notice dated 01.09.2021, Certified Statement of Account' as per Banker's Book of Evidence Act marked as EX.PW1/1 to EX.PW1/8.

7. 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.

8. 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

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

ORDER

I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.30,12,732.69 (Rupees Thirty Lacs Twelve Thousand Seven Hundred Thirty Two and paisa Sixty Nine only) as on 28.02.2022 along pendentelite and future interest @8.90% per annum with monthly rest from 28.02.2022 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of the hypothecated stocks and book debts. In case of default, the same shall be recovered from sale of the moveable and immovable properties of defendant. (II) The recovery certificate be issued forthwith and be sent the Recovery Officer, Debt Recovery Tribunal-I, Delhi. (III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 05.08.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALA L—Trg

- HA MA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 06.06.2026