PUNJAB NATIONAL BANK vs GRANDEUR INDIA PVT LTD on 27 August 2026

FINAL ORDER

This original application has been filed by the applicant bank on 04.06.2018 under Section 19 of Recovery of Debts and Bankruptcy Act,1993 against the defendants for recovery of Rs.4,06,96,256/- (Rupees Four crores Six lacs Ninety Six thousand Two Hundred Fifty Six only) as on 31.05.2018 together with pendentelite and future interest at @contractual rate of interest monthly rests from 01.06.2018 with costs. sc(

2. The brief facts of the case are that at the request of defendant no.1 being private limited company of defendant no.2 to 4 as directors/guarantors engaged in the business of manufacturing of insulated power cables & wires approached the applicant bank on 27.03.2010 vide Board Resolution submitted loan application with KYC documents, the applicant bank sanctioned Cash Credit (Hyp.) facility of Rs.100.00 lacs (Rupees One Crore only) on 30.03.2010 covered under CGTMSE scheme. On the request of defendant no.1 with Board Resolution dated 27.01.2014, the Cash Credit limit was enhanced to Rs.300.00 lacs (Rupees Three Crores only) along with fresh Bank Guarantee of Rs.100.00 lacs on 27.01.2014 @15.25% per annum with monthly rests against hypothecation of all types of stock, book debts, current assets, plant & machinery etc. and mortgage of properties at Bahadurgarh and Mundka owned by defendant no.2 and 4. The defendants also liable to pay penal interest @2% per annum in case of default in repayment of interest and instalments.

3. That in order to avail the credit facilities, the defendant no.1 submitted loan application with their Board Resolution dated 27.03.2010 and 27.01.2014 authorizing the defendant no.2 and 3 to execute all necessary security documents. The defendant no.2 and 3 accepted the terms and conditions and executed Letter of Acceptance dated 27.01.2014, Agreements of Hypothecation of goods & book debts to secure CC facility, Hypothecation of Current Assets, Hypothecation of Moveable Assets forming part of Fixed/Block Assets, General Counter Indemnity and Supplementary Agreements on 27.03.2010 and Agreements of Guarantee on 04.02.2014 in favour of the applicant bank.

4. That in order to secure the credit facilities, the defendant no.1 hypothecated the raw material & stocks in trade including PVC aluminium cables and copper wires, semi finished goods, S4 r current assets, receivables and book debts in favour of applicant bank.

5. The defendant no.2 created equitable mortgage of following properties on 17.11.2014 towards the applicant bank situated at: Property No.B-50, Khasra No.106/5, Sarwan Park, Industrial Area, Mundka, Delhi area measuring 1000 sq.yds. by depositing Sale Deed dated 05.06.2007 registration No.3000, Book No.1, Volume No.703 on pages 71 to 76 with SR-IIA, Punjabi Bagh Commercial property bearing no.S-1, Delhi; MIE Part-B, Bahadurgarh, Haryana by depositing Deed of Settlement/Partition dated 10.08.2004 registration no.3658 in Book No.1, Volume No.219, Page 47 to 48. The defendant no.2 executed letter of intent on 18.11.2014 and 05.02.2014 for creation of mortgage and acknowledged the deposit of title deed on 19.11.2014 in favour of applicant bank.

6. The defendant no.1 acknowledge the debt of Rs.30421754/- as on 31.03.2016 by executing Balance and Security Confirmation Letter dated 27.04.2016 towards the applicant bank.

7. It has been submitted by the applicant bank that after availing the credit facilities, the defendants failed to abide by the terms and conditions of agreements and stopped submitting details of stocks, goods etc. and neglected to pay their dues as per agreement and repayment schedule despite request and reminders. The applicant bank classified the account as NPA on 30.06.2017 as per RBI guidelines and internal guidelines but defendants did not accede to the request of applicant and kept on committing defaults, hence, the 5d- applicant bank has approached this tribunal for recovery of their dues.

8. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 14.07.2017 for Rs.3,31,64,723.69 was issued to the defendants to pay the outstanding along with future interest but defendants not regularized the accounts. The applicant bank issued notice under Section 13(4) of SARFAESI Act 2002 dated 21.09.2017 for possession of hypothecated assets and mortgaged properties and took the possession of mortgaged properties on 23.042018. The applicant bank auctioned the mortgaged property being Part of Khewat No.1335, Min Khata No.2142 Min.Khasra 1666/15(0-4) Plot No.S-1, MIE Part B, Near Red Cross Road, Bahadurgarh, Haryana for Rs.102.00 lacs on 05.04.2019 and hypothecated plant & machinery for Rs.20.34 lacs on 25.04.2019 and sale proceeds have been appropriated in the account.

9. 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 02.05.2019, the defendant no.3 and 4 have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants. Vide order dated 11.12.2019, defendant no.1 has been proceeded ex-parte as written statement not filed and nobody appeared on its behalf. The defendant no.2 filed written statement but failed to file evidence despite sufficient time given hence right to file evidence was closed on 01.09.2025.

10. The defendant no.2 filed written statement and raised the objection that the authorized representative is not duly so/

authorized to sign and institute the present application, application is barre by law of limitation, false, fabricated and manufactured documents and no cause of action arise upon such documents. The applicant bank got the signature of the defendants on blank documents while granting the loan facilities to the defendants. This Tribunal has gone through the documents which are duly filled and executed by the defendants and this Tribunal is of the view that plea of blank documents is no plea in the eyes of law as has been held by the Hon'ble Delhi High Court in the matter of "Indian Bank Vs. Cheese Wafers (India) Pvt. Ltd. It was held if the defendants have not filed any complaint before higher authorities of the bank or filed any complaint before police authorities ". Thus, the plea of blank documents is not maintainable after filing of the suit and limitation plea and the same are rejected.

11. The defendants have also challenged the statement of account of the bank stating as fabricated and manufactured. This Tribunal is of the view that statement of account is duly certified under Section 4 of the Bankers Books of Evidences Act and the same cannot be challenged unless specific entry is pointed by the defendants. Hence, the said objection is not

12. In view of the above facts and circumstances, this Tribunal is of the view that the defendants have failed to convince this Tribunal and this Tribunal do not find any merit and reject the contentions of the defendants as baseless. I hereby allow this O.A. as the applicant bank has proved its claim beyond reasonable doubt.

13. In order to prove its case, the applicant bank has filed evidence by way of affidavit of Sh. Sanjeev Kumar Gupta, authorized representative of the applicant bank who has 5d proved documents such as Power of Attorney, Loan Board Resolution, Loan Application, Sanction Letter with Terms & Conditions, Hypothecation Agreements of Goods & Book Debts to Secure Cash Credit Facility, Hypothecation Agreements of Current Assets, Hypothecation Agreements of Moveable Assets forming part of Fixed / Block Assets, Board Resolutions, Request Letter dated 27.01.2014 Guarantee, General Counter Indemnity, Agreements of Supplementary Agreement, Letter of Intent and Letters of Acknowledgement, Equitable Mortgage Register, NPA Certificate, Demand Notice u/s 13(2), Possession Notice u/s 13(4), Statement of Account and Break up Sheet, Certificate as per Bankers' Books Evidence Act and Balance & Security Confirmation Letter marked as Exhibit AW1/A1 to Exhibit AW1/A24.

14. 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.

15. 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.

16. 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, jointly or severally, within a period of 30 days, a sum of Rs.4,06,96,256/- (Rupees Four crores Six lacs Ninety

Six thousand Two Hundred Fifty Six only) as on 31.05.2018 together with pendentelite and future interest @15.25% interest per annum with monthly rests from 01.06.2018 till the date of its realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, current assets and mortgaged Property No.B-50, Khasra No.106/5, Sarwan Park, Industrial Area, Mundka, Delhi area measuring 1000 sq.yds. by depositing Sale Deed dated 05.06.2007 registration No.3000, Book No.1, Volume No.703 on pages 71 to 76 with SR-IIA, Punjabi Bagh, Delhi. 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 26.10.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. 54 --- (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 27.08.2026