CANARA BANK vs SH. U. K. JAIN on 22 July 2026

FINAL ORDER

This original application has been filed by the applicant bank, on 04.09.2019 through Sh. R.P. Chandel, Chief Manager of the applicant bank, under Section 19 of the RDB Act, 1993 against the de"endants for recovery of a sum of Rs.43,28,66,945.12 along with fufther applicable rate of interest p.a' compounded monthly with effect from date of filing of this O.A. till the realization in full.

2. The brief facts oi the case are that at the request of M/s Lumax Automotice Systems Limited i'e', Proforma $.

TANO.259of2023 2 defendant no.4, the applicant bank sanctioned a credit facility i.e., (i). SODH Facility of Rs.11.50 Crores.

(ii) . BG Facility of Rs.0:10 Crores. (iii). INLC/FLC Facility of Rs.5.00 Crores- Total of Rs.16.60 Crores, vide sanction letter dated L2.07.20t3. The defendant nos'1 to 3 stood as personal guarantors. The defendants created some securities in favour of the applicant bank i.e., (A). Primary security- Hypothecation of stock, stores & consumables & book debts on first pari-passu basis with IDBI bank for DP fixation stocks & book debts up till 90 days to be taken and (B). Collateral- (a). UREM of Plot No.78, Sector-6, Faridabad, Haryana, (b). UREM of Plot No.C-10, MIDC Industrial Area A, Aujra Waloj, Aurangabad, (c). D-11, zl4, MIDC IndustrialArea, Pimpri (Chinchwadi), Pune, (d)' Plot No. A-26, H-Block, Pimpri, Pune. (C) Second Charge on Plant & Machinery- Hypothecation of plant & machinery excluding machinery hypothecation to HSIDC on First Charge exclusive basis. (D)' Second Charge on immovable properties i.e., (a). Plot No.99, Phase-IV, Udyog Vihar, Gurgaon, (b). Plot No.46, Sector-3, IMT Manesar, Gurgaon. The proforma defendant no'4 executed all necesery loaning documents on L6.07.20t3.

3. It is further submitted that the defendants enjoyed and utilized the Loan facilities, but failed to maintain the financial discipline and failed to repay the due amounts' The applicant bank requested the defendants to regularize the loan account by visits and letters, but there was no response from the defendants. Hence, the account was classified as NPA dated 31'03'2013' The applicant bank served a demand notice dated 08'09'2015 to the defendants but failed to recover the same Thus, ET

TA NO. 259 of 2023

the present O.A.ff.A. is preferred by the applicant bank to recover its dues.

4. On notice by this Tribunal, defendant no'4 put appearance through counsel but failed to file written statement. The defendant nos.1 to 3 failed to put appearance at all. Thereafter, the defendants failed to put appearance in the matter, despite publication' Accordingly, the defendants were proceeded against exparte on L4.02.2025.

5. The applicant bank has filed evidence by way of affidavit of Sh. Rajesh Kumar Sinha, Chief Manager of the applicant bank as Annexure- 1 to Annexure A-11, which have gone unchallenged and un-rebutted. Hence, the case of the applicant stands fully established against the defendants with respect to nonpayment of outstanding amount.

6. After perusing the records, this Tribunal is of the view that the applicant bank has proved its case beyond reasonable doubts. The evidence and documents filed by the applicant bank not rebutted by the defendants by not placing any evidence and there is no question of disbelieving the evidence and documents filed by the applicant bank based upon the written/printed documents. In the light of the above discussions, the present T.A. deserues to be allowed against defendant nos.1 to 3. The defendant no.4 is before Ld. NCLT, therefore, no order can be passed against defendant no.4.

ORDER

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TA NO. 259 of 2023

1) I hereby allow this T.A. of the applicant bank and direct the defendant nos.l to 3 to pay jointly and severally to thg applicant bank within 30 days from today, a sum of Rs.43,28,66,945.t2 along with cost, expenses and interest @16.500/o from the date of filing of this O'A' which has become T.A till the date of realization.

2) In case of failure to deposit the above amount within the stipulated period, the same shall be recovered from the sale of personal movable and immovable assets of the defendant nos.1 to 3.

3) Recovery Certificate be issued forthwith and be sent to Recovery Offtcer, Debts Recovery Tribunal-Il, Delhi'

4) The registry of this Tribunal is hereby directed to issue free copy of the order and send the same to both the parties.

5) Parties are directed to appear before the Ld' Recovery Officer, DRT-II, Delhi on 22.09-2026' Pending IAs, if any, stand disPosed of. File be consigned to records. ,L Date:22.07.2026 (SUSHIL KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi This judgement has been signed, dated and pronounced in oPen court. ( srx (' 5^ 64 (susHIL rcrMnn nesroct) PRESIDING OFFICER DRT-II, Delhi Date:22.07.2026