PUNJAB NATIONAL BANK vs ASIAN THAI FOODS AND INVESTMENT PVT LTD on 27 August 2026

FINAL ORDER

This original application has been filed by the applicant bank on • 13.08.2018 under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act,1993 against the defendants for recovery of Rs.10,06,53 833.16 (Rupees Ten Crores Six lacs Fifty Three Thousand Eight Hundred Thirty Three and Sixteen paisa only) as on 31.07.2018 together with pendentelite and future interest at @13.30% per annum in with monthly rests from 01.08.2018 with costs.

2. The brief facts of the case are that at the request of defendant no.1 being private limited company of defendant no.2 & Late Sh.Samit Sarda as directors/guarantors engaged in the business of manufacturing of woven sacks, PVC items, Polyster Yarn & trading of imported items vide their Board Resolution dated 17.04.2008, the applicant bank sanctioned Cash Credit facility of Rs.250.00 Lacs (Rupees Two Crores Fifty lacs only) and Term Loan facility of Rs.500.00 lacs (Rupees Five Crores only) totaling Rs.750.00 lacs @BPLR plus 2% with monthly rests on 24.04.2018 which was renewed/ enhanced from time to time, lastly. on 27.09.2016 by sanctioning Cash Credit facility of Rs.800.00 lacs on 21.08.2014 against hypothecation of raw materials, stocks, finished goods, book debts and mortgage of property at Pant Nagar, owned by defendant no.1 duly approved by Board Resolution dated 16.08.2014 @13.45% interest per annum with monthly rests. In addition, on the request of defendant no.1 vide letter dated 17.04.2014, the applicant bank sanctioned adhoc limit of Rs.93.00 lacs on 17.04.2014. The defendant no.3 stood as guarantors for the credit facilities availed by defendant no.1. In case of default in repayment in instalment/interest, the defendants liable to pay penal interest @2% per annum over the agreed rate of interest.

3. That in order to avail the credit facilities, the defendant no.1 authorized the defendant no.2, as authorized signatory for execution of security documents with applicant bank for credit facilities thru various Board Resolutions executed Agreements 50/

for Hypothecation of Goods & Book Debts, Term Loan Agreement, Agreements for Hypothecation of Moveable Assets forming part of Fixed/Block Assets, Undertakings, Letters of Continuity, Agreement for Hypothecation of Current Assets etc. on 17.04.2008 and thereafter on various dates as and when the credit facilities were enhanced/renewed/modified by the applicant bank. In addition, defendant no.2 along with Sh.Anand Jaju, Nirmala Sarda, Shiv Rattan Sarda, Sarita Sarda, Gaurav Sarda,,Lata Sarda and late Sh.Samit Sarda as then directors/guarantors executed Agreement of Continuing Guarantees between 24.04.2008 to 23 09.2010. The defendant no.2 & 3 executed Agreement of Continuing Guarantee on 16.07.2013 and on 21.08.2014 to secure the liability undertaken by defendant no.1 duly authorized vide Board Resolutions to execute necessary documents for sanction and enhancement of credit facilities.

4. That in order to secure the credit facilities, the defendant no.2 as authorized signatory on behalf of defendant no.1, hypothedated the stocks, stocks in process, finished goods of pulses, book debts, current assets etc. along with machinery to be purchased in favour of applicant bank. In addition, the defendant no.1 created equitable mortgage of factory land & building situated at Plot No.1, 2, 3 and 4, Sector-3, 11E, Pant Nagar, Udham Singh Nagar, Uttarakhand by depositing Lease Deed dated 03.10.2005 registered vide Document No.3570- 3571, ABOI, Vol.No,307/306, Page No.367 to 428 on 16.11.2015 with Sub-Registrar, Kichha, Udham Singh Nagar, Uttarakhand which was extended from time to time. The defendant no.1 thru authorized signatory executed Agreement for Negative Lien on property on 24.04.2008 fvg applicant bank situated at 39A, Madhya Marg, DLF Phase II, Gurgaon in the name of Smt.Sarita Sarda, Smt.Nirmal Sarda and Smt.Lata Sarda having 1/4 share each.

5. The defendant no.1 executed / created Form-8P0 and charge / modification of charge with ROC and Certificate of Registration of Charge in respect of mortgaged property created on 24.04.20(38 and later on modified on 23.07.2009, 16.07.2013, 17.04.2014 and 21.08.2014. The defendant no.3 created Certificate of Registration on 16.07.2013 and modified on 21.08.2014 for Corporate Guarantee.

6. It has been submitted by the applicant bank that after availing the credit facilities, the defendants stopped submission of details of hypothecated goods, stocks as well as book debts and also failed to pay their dues in accordance with sanction terms and conditions 'despite repeated requests to maintain financial discipline. The defendants neglected to regularized the account and applicant bank classified the account as NPA on 13.04.2017 as per RBI guidelines and internal guidelines of applicant bank. The applicant bank issued legal notice on 26.07.2016 by invoking the guarantees to defendants to pay total dues of Rs.8,48,21,630.16 together with further interest but there was no response, hence, the applicant bank has approached this tribunal for recovery of their dues

7. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 20.04.2017 was issued to the defendants. The defendants reply to the demand notice on 19.06.2017 raised objections/ representations under Section 13(3A) of SARFAESI Act which was replied on 05.07.2017 by the applicant bank. the applicant bank again issued recall notice dated 09.11.2017 to the defendants to repay the outstanding and issued another notice dated 13.11.2017 to defendant no.2 and 3 and late Sh.Samit Sarda to pay together with further interest thereon from date of filing of present application. Since, legal heirs of Sh.Samit Sarda not known into the knowledge of applicant bank however, seeks liberty to implead the legal heirs at later stage.

8. 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 08.04.2019, the defendant no.1 & 3 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. The defendant no.1 filed I.A.No.2605/2019 praying therein to recall and set aside the ex-parte order dated 28.02.2013 against them and pray for condonation of delay of 146 days in filing the present application for setting aside the said order. The said IA was heard on 20.06.2024 and was dismissed fining no merit in the application.

9. In order to prove its case, the applicant bank has filed evidence by way of affidavit of Sh. Sibananda Bhanja, authorized representative of the applicant bank who has proved documents such as Authorization Certificate, Board Resolution, Acceptance Letters, Term Loan Agreement, Hypothecation of Goods & Book Debts to Secure Cash Credit Facility, Hypothecation of Moveable Assets, Agreements for Hypothecation of Current Assets, Agreements of Continuing Guarantees, Letters of Intent, Copy of EM Register dated 24.04.2008, Agreement for Negative Lien, Board Resolutions, Agreement for Hypothecation of Moveable Assets Forming Part of Fixed / Block Assets, Sanction Letters, Undertakings, Letters of Continuity, Renewal Letters with Terms & Conditions, Request Letters & Acceptance, Loan Applications, Form-8P0 with ROC, Certificate of Registration, NPA Certificate, Legal Notice, Demand Notice u/s 13(2), Reply u/s 13(3A), Reply to Objections & Corrigendum, Recall Notice along with Postal Receipts, Guarantee Invocation Letters, Statement of Account sd and Break up Sheet, Certificate as per Bankers' Books Evidence Act, Balance & Security Confirmation Letters marked as Exhibit AW1/1 to Exhibit AW1/65.

10. 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.

11. 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.

12. 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.10,06,53,833.16 (Rupees Ten Crores Six lacs Fifty Three Thousand Eight Hundred Thirty Three and Sixteen paisa only) as an 31.07.2018 together with pendentelite and future interest @13.30% interest per annum with monthly rests from 01.08.2018 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, current assets, machinery and mortgaged property situated at Plot No.1, 2, 3 and 4, Sector-3, 11E, Pant Nagar, Udham Singh Nagar, Uttarakhand owned by defendant not In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants. Sce -

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi. (Ill) 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. so( - (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 27.08.2026