Allowed

Punjab National Bank v. Ms Ssg Exports

DRT25 Jul 2025OA/1539/2022

Case brief

AI extract

What is this about?

DRT allowed a recovery certificate application filed by PNB against M/s SSG Exports and partners for Rs. 6.78 crore. The defendants were ex parte. The Tribunal allowed reduced interest at 12% simple.

What did the court decide?

Issuance of Recovery Certificate for Rs. 6,78,15,565/- with 12% simple interest from date of filing.

What the court decided

Punjab National Bank versus Ms Ssg Exports — Contract and Commercial Disputes | DRT (2025)

¶1

IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 25^th Day of July, 2025

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Present: Sri. T. RAJESH Presiding Officer OA.No.1539/2022

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BETWEEN:

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Punjab National Bank, Jayanagar Branch, #1382, 32 ND Cross, 4^th Block, Jayanagar Bangalore-78, Represented through its Stressed Assets Targeted resolution & Action (SASTRA) Raheja Towers, No.26-27, M.G. Road, Bangalore- 560001 And Authorised Officer and GPA Holder, Shri. Chandrajeet Kumar.

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…APPLICANT

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AND:

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M/s. SSG Exports, Represented through Partners: Mrs. Latha Preeti P.M & M. Pawan Kumar #307/7, 23^rd Cross, 6^th Block, Jayanagar, Bangalore- 560011.

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Also at: Narendra Plaza, 5^th Floor, 27^th Cross, 4^th Block, Jayanagar, Bangalore- 560011.

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Mrs. Latha Preeti P.M., Aged about 40 years, W/o Pawan Kumar M, Partner of M/s SSG Exports, #307/7, 23^rd Cross, 6^th Block, Jayanagar, Bangalore- 560082.

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Mr. M. Pawn Kumar,

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OA 1539/2022

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Aged about 46 years, S/o M. Nagireddy, #307/7, 23^rd Cross, 6^th Block, Jayanagar, Bangalore- 560082.

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...DEFENDANTS

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Counsel on record/appeared for:

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Applicant : Sushree Priya Mohanty Defendants : Exparte

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FINAL ORDER

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The present Original Application in short (OA) has been filed under section 19 of Recovery of Debts and Bankruptcy Act 1993 seeking issuance of Recovery Certificate against the defendants for Rs. 6,78,15,565/- (Rupees Six Crore Seventy Eight lakh Fifteen Thousand Five Hundred and Sixty Five Only) with further interest thereon from the date of filing the Application till realization. The defendant No.1 is a partnership firm and defendant No.2 & 3 are its partners.

¶20

It is the case of the applicant that, the defendants availed various credit facilities which are as follows:-

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Working Capital in form of cash credit of Rs. 500.00 lakhs and,

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GECL scheme of Rs. 100.00 lakhs and,

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Funded Interest Term loan (FITL) of Rs. 40.00 Lakhs.

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It is also the case of the applicant that, in view of the above availed loans, the defendants executed necessary loan documents

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OA 1539/2022

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along with hypothecation, agreement of guarantee and memorandum of deposit of title deeds.

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It is further contended that, despite availing the credit facilities, agreeing to service the loan account promptly and regularly, the defendants failed in compliance of the same, resulting in default in repayment and consequentially turning the loan accounts as NPA.

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In the above circumstances, the applicant approached this Tribunal by filing this OA seeking issuance of Recovery Certificate for the amount due in the account.

¶30

Despite, service of summons on the defendants, they failed to appear, resulting the defendants being set exparte on 28.06.2024.

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The applicant had let in evidence through AW-1, who filed Proof Affidavit reiterating the contentions taken in the OA and also produced Exhibits A-3 to A-34 and got the same marked in evidence.

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Heard the Ld. Counsel for the Applicant and considered the contentions as taken in the OA in the light of documentary evidence and the proof affidavit.

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The following issues arise for consideration in this matter:

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i) Whether the applicant had succeeded in proving the OA

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OA 1539/2022

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claim as against the defendants?

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ii) What order are to be passed?

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Both these issues are gone into and decided together.

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The case put forth by the applicant in the Application remains unrebutted as defendants remained exparte. The evidence tendered by the applicant remains uncontroverted and undisputed. The evidences put forth by the applicant were found admissible and are sufficient to prove availment of the credit facilities as stated in the OA, creation of security interest as claimed by the applicant bank and the defaults committed in the accounts. The liability of the defendants and the claim of the amount due are also proved by the above documents. The claim of the applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal find both these issues in favour of applicant and hence, this Tribunal is of the view that OA is liable to be allowed.

¶42

Taking into consideration the facts that the credit facilities are availed for Business purpose and also that OA claim is arrived at by calculating interest at the agreed rate, this Tribunal is of the view that the OA can be allowed with a reduced interest of 12.00% (simple).

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OA 1539/2022

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In the result, OA.No.1539/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of Rs. 6,78,15,565/- (Rupees Six Crore Seventy Eight lakh Fifteen Thousand Five Hundred and Sixty Five Only) with further interest @ 12.00 % p.a.(simple), from the date of filing OA till the realization, from the defendants jointly, severally & personally after giving credit to all the amounts recovered and received during the pendency of the OA and allowed to recover the same by proceeding against the schedule Property. Properties schedule to the OA be the schedule to the recovery certificate.

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ii) If the sale proceeds are not found sufficient to cover the amount due and payable to the applicant bank, the defendants jointly, severally & personally and their other assets are liable for all such amounts due under the loan accounts.

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iii) The applicant bank is allowed cost of the proceedings

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which applicant to file cost memo within 7 days from the date of receipt of the order.

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iv) The Recovery Certificate to be drawn in terms of this order

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and transferred to Recovery for execution.

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v) Interim application pending, if any, are disposed of with this

OA 1539/2022

Final Order.

Communicate a copy of the order to the parties concerned in

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terms of Section 19(21)(i) of the RDB Act, read with Rule 16 of DRT

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(Procedure) Rules, 1993.

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[Dictated to the Stenographer (AJ), transcribed by her, corrected and signed and pronounced by me in the Open Court, this the 25^th Day of July, 2025].

Sd/- (T. RAJESH)

ANNEXURES

WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: E. Shivakumari D/o. M Eswaran, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	Date	Particulars of Documents
A1	--	Affidavit
A2	--	List of documents
A3	24.01.2005	Copy of Deed of Partnership
A4	30.09.2019	Copy of Sanction letter
A5	30.09.2019	Copy of Agreement for Cash Credit
A6	30.09.2019	Copy of letter of acknowledgement of accept conditions
A7	30.09.2019	Copy of Hypothecation
A8	30.09.2019	Copy of agreement of guarantee by Pawan Kumar
A9	30.09.2019	Copy of Agreement of guarantee by Latha Preethi
A10	30.09.2019	Copy of affidavit by M/s. SSG Exports
A11	30.09.2019	Copy of master agreement
A12	04.07.2020	Copy of property declaration
A13	04.07.2020	Copy of sanction letter for W.C

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OA 1539/2022

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A14	04.07.2020	Copy of agreement for W.C
A15	07.07.2020	Copy of affidavit by M/s. SSG Exports
A16	07.07.2020	Copy of Master Agreement
A17	07.07.2020	Copy of Promissory Note
A18	30.06.2021	Copy of sanction letter for FITL
A19	30.06.2021	Copy of agreements for FITL
A20	30.06.2021	Copy of guarantee agreement by P.Kumar
A21	30.06.2021	Copy of guarantee agreement by Mr. L. Preeti M
A22	30.06.2021	Copy of affidavit by M/s. SSG Exports
A23	30.06.2021	Copy of master agreement
A24	30.06.2021	Copy of letter of continuity
A25	30.06.2021	Copy of restructuring of loan of Covid-19
A26	30.06.2021	Copy of promissory note
A27	27.09.2006	Copy of gift deed
A28	05.10.2019	Copy of MOD
A29	08.07.2020	Copy of MOD
A30	04.10.2021	Copy of recall notice
A31	13.10.2021	Copy of SARFEASI Notice
A32	--	Account Statement of working A/c 1287008700000988
A33	--	Account statement of WCTL A/c 128700IL00000049
A34	--	Account Statement of FITL A/c 128700IB00005196

¶70

Witness Examined for the Defendants: List of Documents Exhibited for the Defendants:

-Nil -

-Nil -

Sd/- (T. RAJESH)

PRESIDING OFFICER

Punjab National Bank v. Ms Ssg Exports

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Punjab National Bank v. Ms Ssg Exports

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