PUNJAB NATIONAL BANK vs MS SAMRPN OVERSEAS PVT LTD AND ORS on 14 August 2026

FINAL ORDER

This original application has been filed by the applicant on 29.09.2021 before DRT-II Delhi & 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.1,20,64,307.25 (Rupees One Crore Twenty Lacs Sixty Four Thousand Three Hundred Seven & paisa Twenty Five only) as on 07.09.2021 together with pendentelite and future interest @10.75% per annum from 10.06.2020 till its realization in full. Further, the name of Sh.Sunil Kumar Chaurasia was substituted as authorized representative in place of erstwhile ARs for the applicant bank.

2. The brief facts of the case are that at the request of defendant no.1 as private limited company of defendant no.2 and defendant no.3 as directors/guarantors, engaged in the business of manufacturing and exports of readymade garments and hosiery products and import of shoes vide their loan application dated 05.04.2018 along with relevant KYC and lease agreements etc., the applicant bank sanctioned Cash Credit facility (Hyp.) for a sum of Rs.1,00,00,000/- (Rupees One Crore only) @9.75% interest per annum subject to change as per bank's guidelines on 07.05.2018 for working capital Sci requirements against hypothecation of stocks and book debts. In case of default in repayment of interest, the defendants agreed to pay penal interest @2% over the agreed rate of interest.

3. That in order to avail the credit facilities, the defendants submitted loan application dated 05.04.2018 and executed Hypothecation of Moveable Assets Forming part of Fixed / Block Assets, Hypothecation of Current Assets, Hypothecation of Goods and Book Debts to Secure Cash Credit Facility, Agreements of Guarantee and Master Undertaking on 08.05.2018 in favour of the applicant bank.

4. It has been submitted by the applicant bank that after availing the credit facility, the defendants miserably neglected to pay the interest as well as submission of renewal papers and also failed to maintain financial discipline as per sanction terms. Consequently, the applicant bank classified the account as NPA on 10.06.2020 as per RBI guidelines and issued demand cum regularization notice on 02.11.2020 but the defendants failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its dues.

5. Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings. As per order dated 03.01.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

6. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Kamal Singh, authorized representative of the applicant who has proved the documents such as Power of Attorney, Photocopies of PAN Card, Udyog Aadhaar of defendant no.1, Aadhar Card & PAN Cards of defendant no.2 and 3, Lease Agreements of Office Address and Manufacturing Unit, Sanction Letter dated 07.05.2018, Hypothecation of Moveable Assets Forming Part of Fixed/Block Assets, Hypothecation of Current Assets, Hypothecation of Goods & Book Debts to Secure Cash Credit facility, Agreement of Guarantee, Master Undertaking from Cash Credit Borrowers, Reminder Notice, Email and Demand Notice, Statement of Accounts and Memorandum of Recorded Interest duly Certified as per Bankers Books Evidence Act 1891 marked as Ex.AW1/1 to Ex.AW1/19.

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 defendants to pay to the applicant bank within 30 days, jointly or severally, a sum of Rs.1,20,64,307.25 (Rupees One Crore Twenty Lacs Sixty Four Thousand Three Hundred Seven & paisa Twenty Five only) as on 07.09.2021 together interest @10.75% per annum with monthly rests from 07.09.2021 till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks and book debts etc. 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 13.10.2026. (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: 14.08.2026