INDIAN BANK vs GREEN NATURAL FOODS AND CO on 24 September 2026

FINAL ORDER

1. This application is filed by the applicant bank under Section 19(1) of Recovery of Debts and Bankruptcy Act, 1993 against the defendants seeking issuance of a Recovery Certificate for recovery of an aggregate sum of Rs.20,59,108/- comprising a sum of Rs.10,87,421/- together with interest at the rate of 9.80% per annum being the amount due under Cash Credit Limit and a sum of Rs.9,71,687/- together with interest at the rate of 11.65% p.a. being the amount due under Term Loan from the date of the application till the date of realisation along with costs of the application.

2. The subject matter of the case is the Credit facilities availed by the defendants from the Applicant Bank.

3. It is the case of the applicant that the 1st defendant is a Partnership firm and the defendants 2 and 3 are the partners. The defendants 2 and 3 approached the applicant bank for grant of credit facilities to meet the working capital requirements by submitting application dated 17.12.2015 along with partnership deed dated 02.08.2015. It is also the case of the applicant that considering the request for grant of credit facilities the applicant sanctioned a Cash Credit Limit of Rs.10 lakhs and Term Loan facility of Rs.15 lakhs on 21.12.2015.

4. It is also the case of the applicant that the defendants executed various loan and security documents on 22.12.2015. It is the further case of the applicant that the defendants executed Acknowledgement of Debts and Letter of promise to pay the outstanding dues on 29.11.2018. Despite the said letter the defendants failed to regularize the loan account.

5. It is the further case of the applicant that the defendants committed default and failed to regularize the loan account despite repeated requests and demands and hence the loan account was classified as NPA on 01.10.2019 and the applicant was constrained to issue the recall notice dated 07.01.2020 to the defendants. It is the case of the applicant despite the said notice the defendants did not come forward to clear the outstanding dues, hence this OA.

6. Summons was taken out to the defendants and the same returned with postal endorsement “Left” hence were served by way of paper publication. As there was no representation for the defendants continuously and on 13.09.2022, they were set ex-parte on that day. Applicant Bank filed Proof Affidavit along with 7 documents, which were marked as Ex. A-1 to A-12 on 22.02.2024. The Ld. Counsel for Applicant Bank made his submissions on 06.08.2026 and thereafter the matter stood till this date for passing final orders.

7. The following issues arise for consideration in the matter: - (a) Whether the applicant had succeeded in proving the liability of the defendants?

(b) What order as to cost of the proceedings need be passed? These issues are considered together.

8. Heard the Ld. Counsel for the applicant, perused the OA averments and the record placed before the Tribunal.

9. The evidence of the applicant is led by AW1 who produced the documents Exhibit A-1 to A-12 along with the proof affidavit. The documents produced in evidence are all found admissible. The proof affidavit of the applicant bank remained unchallenged and unrebutted. Therefore, on careful consideration of proof affidavit along with exhibits filed on behalf of the applicant bank, besides the material placed before the Tribunal, the Tribunal is satisfied that the applicant bank has successfully proved the OA claim against the defendants. Further, the statement of accounts in respect of the loan account produced and certified under the Banker’s Book Evidence Act, clearly indicates that the defendants had agreed to abide by the terms and conditions of the loan agreement and thus liable to pay a sum of Rs.20,59,108/- as on 6.9.2020 towards the above said loan account.

10. In view of the foregoing, it is clearly evident that the application filed by the applicant bank is well within the period of limitation and this Tribunal possesses the territorial and pecuniary jurisdiction to entertain this OA.

11. In view of the fact that the loan facility availed by the defendants is for the purpose of its business and the applicant has claimed interest at contractual rate till the date of filing of the OA, this Tribunal is of the view that the pendente lite interest can be awarded at reduced rates and prayer for grant of penal interest is rejected.

12. In view of the afore mentioned discussions, the only conclusion this Tribunal can draw is that the applicant had clearly proved the disbursement of the loan, which the applicant is entitled to realize. Hence, OA is disposed off in the following manner: - (a) TA No.534 of 2023 stands allowed.

(b) Applicant is permitted to realize a aggregate sum of Rs.20,59,108/- with further interest @9% per annum (simple) from the date of filing of the application till the date of realization in full, from the defendants jointly and severally after deducting all the amounts received / realized by them during the pendency of OA.

(c) The defendants 2 and 3 are personally liable for all such amounts due as ordered above.

(d) Applicant is permitted to realize cost of the proceedings and shall file cost memo within 15 days from the date of receipt of the copy of the order.

(e) The Recovery Certificate shall be drawn up and issued to the Recovery Officer in terms of this final order.

13. Communicate a copy of the order to the parties concerned in terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT (Procedure) Rules, 1993.

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(Dictated to PS, who typed in the system directly, corrected, signed and pronounced by me in Open Court, on this 24th day of September, 2026)

EXHIBITS MARKED BY APPLICANT BANK

S. No. Date Description of Documents Exhibit Nos.

1. 17.12.2015 Loan Application A-1

2. 02.08.2015 Partnership deed A-2

3. 21.12.2015 Sanction letter A-3

4. 22.12.2015 Acknowledgement to the sanction letter A-4

5. 22.12.2015 Demand Promissory Note for Rs.25 lakhs executed by the defendants A-5

6. 22.12.2015 General letter of hypothecation applicable in case individual and proprietorship firms A-6

7. 22.12.2015 Term Loan Agreement A-7

S. No. Date Description of Documents Exhibit Nos.

8. 29.11.2018 Acknowledgement of debt A-8

9. 29.11.2018 Letter of promise to pay the outstanding dues A-9

10. 07.01.2020 Final recall notice A-10

11. Statement of Accounts (CC Limit) A-11

12. Statement of Accounts (Term Loan Limit) A-12

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DESCRIPTION OF PROPERTY

NIL

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