CANARA BANK vs M/S PURTI TEXTILES MILLS on 26 June 2025

FINAL ORDER.

This original application has been filed by the applicant bank, on 27.05.20L5 through Rajesh Kumar Redu, Chief Manager of the applicant bank, under Section 19 of the RDB Act, 1993 against the defendants for recovery of a sum of Rs.33,03,83,192'66 along with further interest thereupon @19.20olo per annum compounded with monthly rests from date of filing of this O.A. till the realization in full.

2. The brief facts of the case are that the applicant bank is a lead bank and member of the consortium, constituted between the aPPlican C-\ t_ bank and the

TANO. t054/2023 2 defendant no.7. The defendant no.7 had also sanctioned the OCC/ODBD facility to the tune of Rs.5.00 Crores, ILC facility to the tune of Rs.1.00 Crore and bill purchase/bill discounting to the tune of Rs.1.00 Crore to the defendant no.1 firm and is having a first charge along with the applicant bank on Pari-Passu basis over the securities i.e., Stock of raw-material and the whole of the other current assets of the defendant no.1 firm i.e., plant & machinery and the industrial land and building situated at Plot No.21-B, Sector-9, IIE SIDCUL Industrial Area, Pant Nagar, Uttarakhand belonging to and standing in the name of the defendant no.1 firm and Residential property consisting of entire Third Floor with Roof Right, a part of free-hold four storeyed built-up property bearing no.50, having area of 200.00 Sq.Mtr., in block no.H, Pocket no.3 Sector- 18, together with impartible and undivided prorata share of lift, Land etc. in Plot No.50, situated in the Layout Plan of Rohini Residential Scheme, Rohini, DelhF89, belonging to and standing in the name of the defendant no.4 and Residential property consisting of First and Second Floor (FF-2) Duplex dwelling unit having covered area of LttJL Sq. Mtr', bearing no.S- 20/8 together with impartible and undivided prorate share of Land in Plot No.8, Road No.S-20, measuring 264.00 Sq.Mts in Phase-III in the residential colony know as DLF Qutub Enclave Complex, Village Nathupur, Tehsil and Distt. Gurgaon, Haryana, belonging to and standing in the name of the defendant nos.5 & 6. As such, the defendant no.7 is the necessary party to the present original application though no relief/ claim is sought against it and is including in the array of the defendant a!_Pl9f9rma party. It is <.\

TA NO. t05412023 3 submitted that at request of the defendant no.1, acting through its partners, the defendant nos.2 & 3 approached the applicant bank for grant of Credit Limits (in a Consortium) to meet its business requirement in the nature of OCC/ODBD (Stocks & Book- Debt) to meet working capital requirement and Inland Letter of Credit in short ILC for procurement of raw-material from local suppliers. The balance requirement of credit facility was to be sanctioned by the Punjab National Bank, i.e., the defendant no'7. To secure the said OCC/ODBD (stocks & Book-Debts) & ILC Facility, the defendant no.1 offered the securities, on the basis of First Charge-holder, running Pari-Passu along with the defendant no.7 i.e. hypothecation of stocks of raw-material and hypothecation of current assets of the defendant no.1 firm i.e', plant & machinery (consumable stores & spares) and personal guarantee of the defendant nos.2 & 3 and the equitable moftgage over the industrial land and building situated at Plot No.21-B, Sector-9, IIE SIDCUL Industrial Area, Pant Nagar, Uttarakhand belonging to and standing in the name of the defendant no.1 and Residential property consisting of First and Second Floor (FF-2) Duplex dwelling unit having covered area of 111.71 Sq. Mtr., bearing no.S-20/8 together with impartible and undivided prorate share of Land in Plot No.8, Road No.S-20, measuring 264.00 Sq.Mts in Phase-III in the residential colony known as DLF Qutub Enclave Complex, Village Nathupur, Tehsil and Distt. Gurgaon, Haryana, belonging to and standing in the name of the defendant nos.5 & 6. The applicant bank sanctioned (under Consortium), the OCC/ODBD (stocks & book- debt) facility to the tune of Rs.5.00 Crores to meet -q.\

TA NO. 105412023 4 working capital requirement and ILC facility to the tune of Rs.9.00 Crores to procure raw- material from local suppliers, vide sanction letter dated 19.07.2013 tenable till 15.07.2014. The applicant bank sanctioned the aforesaid credit facilities against the securities as first charge holder, running pari-passu along with the Punjab National Ban( defendant no'7. i.e., hypothecation of stocks of raw-materials and the hypothecation of the plant & machinery and the personal guarantee of the defendant nos,2 & 3 and the equitable mortgage over the industrial land and building situated at Plot No.21-B, Sector-9, IIE SIDCUL Industrial Area, Pant Nagar, Uttarakhand belonging to and standing in the name of the defendant no.1 and Residential property consisting of First and Second Floor (FF-2) Duplex dwelling unit having covered area of 111.71 Sq. Mtr., bearing no.S-20/8 together with impaftible and undivided prorate share of Land in Plot No.8, Road No.S-20, measuring 264.00 Sq'Mts in Phase-III in the residential colony know as DLF Qutub Enclave Complex, Village Nathupur, Tehsil and Distt' Gurgaon, Haryana, belonging to and standing in the name of the defendant nos.5 & 6. The defendant no'1 availed the credit limits from Punjab National Bank, the defendant no.7 in under consortium (consisting of applicant bank & Punjab National Bank as members) to tune of Rs.7.00 Crores in total in the year 2013 against the above said securities. It is submitted that it was agreed between the defendant no.l firm, applicant bank and the defendant no.7/Punjab National Bank that the said OCC/ODBD limit to the tune of Rs'11'00 Crores ( applicant bankt share of Rs' 6.00 Crores and PNB share of Rs.5.00 Crores) and ILC limit to the tune c^

TANO. 1054/2023 5 of Rs.10.00 Crores (applicant bank' share Rs.9.00 Crores & Punjab National Bank's share Rs.1'00 Crores) and BP/BD facility of Rs.1.00 Crores, ( sanction to & availed from Punjab National Bank) of total Rs.22.00 Crores would be taken/treated under the consoftium arrangement of which C-anara BanK the applicant bank and Punjab National Bank, defendant no.7, would be the members' It is submitted that it was further agreed between them the applicant bank i.e., Canara Bank would be the leader of the consortium. The defendant no.1 firm authorized its partner, defendant nos.2 & 3 to executed and sign the joint loan documents in favour of the consortium members i.e., applicant bank and defendant no.7 for and on behalf of the defendant no.1firm on 18.09.2013. The defendant nos. 2 & 3 executed, signed and delivered on 18.09.2013, the separate deed of guarantee for a sum of Rs.22.00 Crores. The defendant no.1 confirmed to the applicant bank of its having availed the credit facility (s) from Punjab National Bank, the defendant no.7 in the year 2010 against the Equitable Mortgage of its Immovable Property consisting of Land and Building situated at Plot No'21-B, Sector-9, IIE SIDCUL Industrial Area, Pant Nagar, Uttarakhand, measuring an area of 4242Sq. Mts.The defendant no.1 requested the applicant bank (Canara Bank) for having the first charge over the aforesaid immovable ProPeflY, belonging to the defendant no.1, running pari-passu along with the defendant no.7 (Punjab National Bank)' As such to secure the repayment of the amounts sanctioned to and duly availed by the defendant no'l, the defendant no.1 with the consent of the applicant bank other members consortiuTi.e., defendant no'7 5J

TA NO. 105412023 6 created first charge in favour of applicant bank, running pari-passu, Immovable Property consisting of Land and Building situated at Plot No.21-B, Sector-9, IIE SIDCUL Industrial Area, Pant Nagar, Uttarakhand, measuring an area of 4242 Sq. Mts.The defendant no.1 extended mortgaged the aforesaid propefi to secure the aforesaid loan, vide letter of continuity which was executed and signed by the defendant no.1 on 17.09.2013. The defendant nos.5 & 6 created an equitable mortgage over their immovable ProPeB, jointly owned by them i.€., Residential property consisting of First and Second Floor (FF-2) Duplex dwelling unit having covered area of LlL.7t Sq. Mtr., bearing no.S-2O/B together with impartible and undivided prorate share of Land in Plot No.B, Road No.S-20, measuring 2@.00 Sq.Mts in Phase-III in the residential colony know as DLF Qutub Enclave Complex, Village Nathupur, Tehsil and Distt. Gurgaon, Haryana. The defendant no'1 offered the personal guarantee of the defendant no.4 as well as the first charge over his immovable property, running pari- passu among the members consortium by way of equitable mortgage over the said property' The defendant no.4 executed, signed and delivered on Lg.Og.zOl4, the separate deed of guarantee for sum of Rs.22.00 Crores. The defendant no.4 created the equitable mortgage over his residential property consisting of entire Third Floor with Roof Right, a part of free-hold four storeyed built-up property bearing no.50, having area of 200'00 Sq.Mtr', in block no'H, Pocket no.3 Sector-18, together with impaftible and undivided prorata share of lift, Land etc' in Plot No'50, ut Plan of Rohini Residential situated in the LaYo 9,\

TA NO. 105412023 7 Scheme, Rohini, Delhi-8g. Again, in the year 20L4 at the request of defendant no.1 acting through its partners, defendant nos.2 & 3 for the grant of fresh Credit Facility in the nature of bill discounVbill purchase, in short CDB/SDB/BE facility for discounting of bills in connection with purchase of raw-material from various local manufactures/suppliers with usance period not be exceed 60, the applicant bank sanctioned the CDB/SDB/BE facility to the tune of Rs.15.00 Crores against the personal guarantee of its partners defendant nos.2,3 & 4. The defendant no.3 executed, signed and delivered the loan documents for valuable consideration on 13.06.2014. In the Year 2014 again, at the request of defendant no.1, acting through its partner, defendant nos.2 & 3, the applicant bank sanctioned an Ad-hoc OCC/ODBD facility to the tune of Rs.1.50 Crores. The defendant no'3 executed, signed and delivered the loan documents for valuable consideration on 13.12.2014. In the year of 20L4 again, at the request ofdefendant no.1, acting through its partner, the defendant nos'2 & 3, the applicant bank sanctioned a temporary OCC/ODBD facility to the tune of Rs.14.00 lacs to meet its business requirement on the existing terms and conditions and against existing securities.

3. It is further submitted that the defendants enjoyed and utilized the Loan facility, 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 9^

TA NO. 105412023 8 on 30.09.2014. Therefore, the applicant bank served a recall notice dated 30.01.2015 to the defendants demanding the amount due as on that date, but failed to recover the same. Thus, the present O.{f[A is preferred by the applicant bank to recover its dues.

4. On notice by this Tribunal, defendant nos.1,3 to 7 put appearance through counsel but failed to file written statement. The defendant no.2 put appearance through counsel and filed written statement but failed to file evidence. Thereafter, the defendants failed to put appearance at all, despite issuance of default notice. Accordingly, the defendants were proceeded against exparte on 28.01.2025.

5. The applicant bank has flled evidence by way of affidavit of Ms. Supriya Singh, Law Officer of the applicant as Paper No-1 to Paper No. 456 along with the O.A which have gone unchallenged and un- rebutted. Hence, the case ofthe applicant bank stands fully established against the defendants with respect to nonpayment of EMI/ 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 documents and there is no question of disbelieving the evidence and n--<te TA NO. 105412023 9 documents filed by the applicant bank based upon the written/pri nted documents. 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 direct the defendant nos.l to 6 to pay joinUy and severally to the applicant bank within 30 days from today, a sum of Rs.33,03,83,192.66 along with cost, expenses and interest @ t2.70o/o from the date of flling of this O.A. which has bemme TA 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 the hypothecated assets and the sale of the properties (i) Industrial land and building situated at Plot No.21-B, Sector-9, IIE SIDCUL Industrial Area, Pant Nagar, Uttarakhand,(ii) Property consisting of entire Third Floor with Roof Right, a paft of free-hold four storeyed built-up property bearing no.50, having area of 200.00 Sq'Mtr., in block no'H, Pocket no.3 Sector-18, together with impartible and undivided prorata share of lift, Land etc. in Plot No.50, situated in the Layout Plan of Rohini Residential Scheme, Rohini, Delhi-89 (iii) Property consisting of First and Second Floor (FF-2) Duplex dwelling unit having covered area of LLt.7t Sq. Mtr., bearing no'S- 20/8 together with impartible and undivided prorate share of Land in Plot No.8, Road No.S-20, measuring 9A

TA NO. 1054/2023 l0 264.00 Sq.Mts in Phase-III in the residential colony know as DLF Qutub Enclave Complex, Village Nathupur, Tehsil and Disft. Gurgaon, Haryana. In case of short fall, the same shall be recovered from the sale of personal movable and immovable assets of the defendant nos.1 to 6.

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.

5) Parties are direct to appear before the Ld. Recovery Officer, DRT-II, Delhion 26.08.2025. Pending IAs, if any, stand disposed of. File be consigned to records. Date : 26.06.2025 gJ' (SUSHIL KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi This judgement has been signed, dated and pronounced in open court. S"\ (susHrL KUMAR RASTOGT) PRESIDING OFFICER DRT-II, Delhi Date : 26.06.2025