PUNJAB NATIONAL BANK vs ARM TECH (INDIA) LTD on 24 July 2026

FINAL ORDER

- Defendants Mr. Sagar Diwan, applicant bank. None for defendants' This original application has been filed by the applicant bank, on 30'12'2016 through Mr' Rajesh Kumar Sharma, Chief Manager of the applicant bank' under SectionlgoftheRDBAct,lgg3againstthedefendants for recovery of a sum of Rs.9,57,99,096.08 together with cost, charges and pendentellite and future interest @15.75olo from date of filing of this O'A' till the realization in full.

2. The brief facts of the case are that at the request of defendant no'1 through its Managing Director defendant no.2, the applicant bank sanctioned a Cash cA

Credit Facility of Rs'50 Lakhs and Bank Guarantee Limit of Rs.10O Lakhs' It was, inter alia, covenanted that the credit facility would be primarily secured by hypothecation of stocks and book debts, the credit facility shall be collaterally secured by personal guarantee of defendant nos.2,3 & 5 as also mortgage of (i)' Immovable Property bearing 1901, Sector-28, Urban Estate Faridabad in the name of defendant no'3 and (ii)' Immovable Property bearing MIG House No'C-24, Shastri Nagar, Meerut in the name of defendant no'5' The defendant nos.1 & 2 executed all necessary loaning documents on 13'02.2008. Again, at the request of defendant no.1, the applicant bank renewed with enhancement of the existing Cash Credit (H) Limit against book debts Facility from an amount of Rs'50 Lakhs to Rs.100 Lakhs and Bank Guarantee Limit from Rs'100 to Ra.400 Lakhs, vide sanction letter dated 06'06'2008' The defendant nos.1 & 2 executed all necessary loaning documents on 03.07.2008. The guarantee of defendant nos.2,3 and 5 is continuing in nature' Again, at the request of defendant no.1, the applicant bank renewed with enhancement of the existing Cash Credit (H) Limit against book debts Facility from an amount of Rs'100 Lakhs to Rs.200 Lakhs and Bank Guarantee Limit from Rs.400 to Ra'550 Lakhs, vide sanction letter dated 25.02.2009. The defendant nos'1 & 2 executed all necessary loaning documents on 02'03'2009' The guarantee of defendant nos.2,3 and 5 is continuing in nature. Again, at the reqr,rest of defendant no'1' the applicant bank renewed with enhancement of the existing Cash Credit (H) Limit against book debts Facility of Rs'200 Lakhs and Bank Guarantee Limit from Rs'550 to Rs'800 Lakhs, vide sanction letter dated 09'03'2010' The q TANO. 1158of2022 defendant nos.1 J & 2 executed all necessary loaning documents on 10.05.2010' The defendant nos'1 & 2 with the intention to collaterally secure the credit facilities sanctioned to defendant no'1 created mortgage of its immovable propefi bearing Flat No'LIG-VF-04' First Floor, Vinayak Avenue, Village Karariya, Tehsil Huzur, District, Bhopal (Madhya Pradesh) in favour of the applicant by deposit of original sale deed dated 14.05.2008. Again, at the request of defendant no'1' the applicant bank enhanced the existing Cash Credit (H) Limit against book debts Facility from an amount of Rs.200 Lakhs to Rs.400 Lakhs and renewed the Bank Guarantee of Rs.800 Lakhs, vide sanction letter dated 12.11.2010. The defendant nos'1 & 2 executed all necessary loaning documents on 27'71'2010' The defendant nos.1 & 2 with the intention to collaterally secure the credit facilities sanctioned to defendant no'1 created moftgage of its immovable property bearing B- 308, 4t' Floor, Vardhman City Plaza, Chola Road' Ward No.18, Tehsil Huzur, Bhopal in favour of the applicant bank by deposit of original sale deed date 15'09'2010' The defendant no.1 passed a Resolution dated February' 2011, whereby it was resolved that defendant no'4 be requested to guarantee, the above said limits already disbursed on 27.L1.2010 and mortgage his property situated at Plot Khasra No.926, Shiv ShaKiVihar, Village DatawaliGesupurGarhRoad,Meerut,UP'Theproperty was mortgaged in exchange or release of the FDR pledged with the applicant for an amount of Rs'25 Lakhs' The fact of creation of mortgage is confirmed by defendant no.4 vide letter dated 11'02'2011' The defendant nos.l & 2 created moftgage of its immovable property viz. situated at propefi situated at Flat No'201' gJ..

Ind Floor Lake view apaftments Sector I of the RakshaKhandShardaNagar,RaiBareliRoad'Lucknow in favour of the applicant by deposit of original sale deed dated 30.03.2011' Again, at the request of defendant no.1, the applicant bank renewed the existing Cash Credit (H) Limit against book debts Facitity of Rs'400 Lakhs and extension of the Bank Guarantee Limit from Rs'800 Lakhs to Rs.1100 Lakhs, vide sanction letter dated 24'04'20t2' The defendant nos.1 & 2 executed all necessary loaning documents on 24.04'2012' Again' at the request of defendant no.1, the applicant bank renewed/enhanced the existing credit facilities i'e', (1)' Cash Credit (Book Debts) Limit of Rs'0400 Lakhs' (2)' Cash Credit (Conversion of unavailed non-fund-based Limit to Fund Based Limit) of Rs.0229 Lakhs, (3)' Bank Guarantee of Rs.0871 Lakhs, vide sanction letter dated 30'09'20124' The defendant nos.1 & 2 executed all necessary loaning documents on 30.09'2014' The defendant nos'2'3'4 and 5 executed agreements of guarantee'

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 lefters' but there was no response from the defendants' Hence' the account was classifled as NPA dated 31'03'2015' The applicant bank served a demand notice dated 06'05'2015 and legal notice dated 19'12'2015 to the defendants but failedtorecoverthesameThus'thepresentO'A'fl-'A'is preferred by the applicant-bank to recover its dues' d..

4. On notice bY

this Tribunal, defendants Put appearance through counsel but failed to file written statement and the right to file written statement of defendants was closed vide order dated 05'01'2018'

5. The applicant bank has filed evidence by way of affidavit of Sh. Suresh Kumar, Manager of the applicant bank as Annexure A-2 to Annexure A-116' 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 documents. based upon the written/Printed In the light of the above discussions' the present T'A' deserves to be allowed.

ORDER

1) I hereby allow this T'A' of the applicant bank and directthedefendantnos.lto5topayjointlyandseverally to the applicant bank within 30 days from today' a sum s\

of Rs.9,57,99,096.08 along with cost, expenses and interest @14.50o/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 hypothecated assets and the sale of moftgaged propefties i.e', (i)' Plot Khasra No'926' Shiv ShaKi Vihar, Near Medical College, Village Datawali Gesupur Garh Road, Meerut-250001, UP, (ii)' Flat No'LIG- VF-04, First Floor, Vinayak Avenue, Village Karariya' TehsilHuzur,District,Bhopal(MadhyaPradesh)'(iii)'UG Flat at 8-308, 4s Floor, Vardhman City Plaza Part of Survey No.19-22, Near Dawa Bazar, Cola Road' Tehsil Huzur, Bhopal, Madhya Pradesh, (iv)' Flat No'201' 2nd Floor Lake view Apartments Sector -1 of the Raksha Khand, Sharda Nagar Scheme, Rai Bareli Road' Lucknow' UP, (v). 1901, Sector-28, Urban Estate of Faridabad Haryana-121008, (vi). C-24, Shastri Nagar' Meerut' UP- 250001. In case of short fall, the same shatl be recovered from the sale of personal movable and immovable assets of the defendant nos.1 to 5'

3) Recovery Certificate be issued forthwith and be sent to Recovery Officer, 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. 2^

TANO. 1158of2022 7

5) Parties are directed to appear before the Ld' Recovery Officer, DRT-II, Delhi on 24'09'2026' Pending IAs, if anY, stand disPosed of' File be consigned to records' SA (susHIL KUMAd'usroq) PRESIDING OFFICER DRT-II, Delhi Dale :24.07.2026 This judgement has been signed, dated and pronounced in oPen court' Date :24.07.2026 (cA (susHIL KUMAR nA$roct) PRESIDING OFFICER DRT-II, Delhi