INDIAN BANK vs ANSH ELECTRONICS AND ORS on 15 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 18.01.2017 before DRT-II 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 defendants for recovery of a sum of Rs.33,88,398/- (Rupees Thirty Three Lacs Eighty Eight Thousand Three Hundred Ninety Eight only) as on 13.01.2017 together with pendentelite and future interest @Base Rate + 3.00% per annum with monthly rest from 14.01.2017 along with costs.

2. The brief facts of the case are that at the request of defendant No.1 through its proprietor being defendant no.2, the applicant bank sanctioned Cash Credit limit facility under All Bank Trade Scheme of Rs.30,00,000/- (Rupees Thirty Lacs Only) with interest @Base Rate+3% per annum on 05.05.2011 as working capital for trading of electronics and electrical equipment business against hypothecation of stock, book debts and equitable mortgage of property as collateral security. The defendant no.2 and 3 stood as guarantor for the credit facility availed by defendant no.1.

3. That in order to avail the cash credit facility, the defendant no.1 through its proprietor being defendant no.2 executed Demand Promissory Note, General Letter of Hypothecation of all Tangible & Fixed Assets on 06.05.2011 in favour of applicant bank. The defendant no.2 and 3 executed Deed of Guarantee (ADV-42) dated 06.05.2011 towards the applicant bank.

4. That in order to secure the credit facility, defendant no.1 through defendant no.2 hypothecated the stocks, current assets and book debts towards that applicant bank. In addition, the defendant no.2 created equitable mortgage of property by - depositing the original title deeds of the property no.7/76, 1st Floor, area measuring 116.12 sq.metres, Sector-2, Rajender Nagar, Sahibabad, Ghaziabad, UP on 07.05.2011 along with declaration on affidavit dated 06.05.2011.

5. It has been submitted by the applicant bank that after availing the loan facility, initially the defendant no.2 as proprietor of defendant no.1 deposited stocks statement and acknowledged their liability vide letter dated 04.08.2014 and 29.03.2016, but the account continued to be irregular. The applicant bank vide letter dated 05.02.2016 requested the defendants to route their transactions thru the account and to submit ITRs, Balance Sheets etc. and the defendants despite requests, paid no heed and willfully neglected to pay the outstanding dues and also failed to deliver financial commitments as per terms and conditions. Ultimately, the applicant bank classified the account as NPA on 29.06.2016 as per RBI guidelines and issued legal notice on 06.01.2017. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

6. Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 30.06.2016 was issued to defendants. The applicant bank vide possession notice u/s 13(4) dated 23.09.2016 taken the symbolic possession of property but the defendant neglected to regularize and repay the dues of the applicant bank.

7. Notices of this O.A. were issued to the defendants and despite of proper service, the defendant have chosen to absent from the proceedings. As per order dated 06.02.2018, the defendants have been proceeded ex-parte as not appeared sat- before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

8. In older to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Varun Kumar, authorized representative of the applicant bank who has submitted the documents such as Attestation and Power of Attorney Ex.AW- 1/1 & AW-1/B, Loan Application Ex.AW-1/2, Sanction Letter Ex.AW-1/3, Demand Promissory Note & Acknowledgement of Liability Ex.AW-1/4(Colly), General Letter of Hypothecation Ex.AW-1/5, Deed of Guarantee Ex.AW-1/6, Letter of Mortgagor confirming Deposit of Title Deeds Ex.AW-1/7(Colly), Stock Statements & Vouchers Ex.AW-1/8(Colly), Letter dated 05.02.2016 Ex.AW-1/9, Demand Notice u/s 13(2) Ex.AW-1/10, Possession Notice Ex.AW-1/11, Legal Notice dated 06.01.2017 Ex.AW-1/12, Statement of Account Ex.AW-1/13.

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 proved.

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.33,88,398/- (Rupees Thirty Three Lacs Eighty Eight Thousand Three Hundred Ninety Eight only) as on 13.01.2017 together with pendentelite and future interest @13.00% per annum from 14.01.2017 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts and mortgaged property bearing no.7/76, 1st Floor, area measuring 116.12 sq.metres, Sector-2, Rajender Nagar, Sahibabad, Ghaziabad, UP. 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 17.08.2026. (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: 15.06.2026