Allowed

Punjab and Sind Bank v. R P M Food Producrts Pvt. Ltd.

DRT18 Dec 2025OA/30/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for issuance of a recovery certificate against defaulting borrowers. The defendants appeared ex parte. The court admitted to a reduced interest rate of 10% (simple) despite the agreement.

What did the court decide?

Issuance of Recovery Certificate for Rs.46,27,237/- with interest at 10% p.a. (simple) from the date of filing.

Punjab and Sind Bank versus R P M Food Producrts… — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA

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AT BENGALURU

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Dated this 18^th Day of December, 2025

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Present: Sri. T. RAJESH

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Presiding Officer

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OA.No.30/2022

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BETWEEN:

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Punjab & Sind Bank, Branch office called as J C Road, Bangalore Branch, Bangalore- 560 002.

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…APPLICANT

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AND:

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R.P.M Food Producrts Pvt Ltd, Earlier at: No. 266-C, Harohalli Industrial Area, Harohalli Village, Kanakapura Taluk, Ramanagara District, Now at: No. 305, 3^rd Floor, Mallikarjuna Residency, Gubblala Village, Bangalore- 560 061. Represented by its Directors: Prasanna Maruthi Yadav.A.

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Prasanna Maruthi Yadab A, Chartered Accountant, No. 207, Sai Varenya Apartment, Turahalli, Bangalore- 560 078.

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Raviteja A, No. 77, 1^st Main, Gururaghavendra Layout, J.P. Nagar 7^th Phase, Bangalore- 560 078.

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Geetha K.P, W/o S.M. Prema Kumar, No. 305, 3^rd Floor, Mallikarjuna Residency, Gubblala Village, Bangalore- 6560 061. ...DEFENDANTS

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OA 30/2022

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Counsel on record/appeared for:

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Applicant : M/s. D H Mokhashi & Associates 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.46,27,237/- (Rupees Forty Six Lakh Twenty Seven Thousand Two Hundred Thirty Seven Only) with further interest thereon from the date of filing the Application till realization.

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It is the case of the applicant that the defendants availed term loan of Rs. 75,00,000/- (Rupees Seventy Five Lakh Only) and Cash Credit Limit of Rs. 25,00,000/- (Rupees Twenty Five Lakh Only).

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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 along with consent clause and hypothecation of goods.

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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 complying 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 balance

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OA 30/2022

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amount due in the account.

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Despite, summons on the defendants, they failed to appear resulting the defendants being set exparte on 05.12.2024.

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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-28 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 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 claim

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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 credit facilities as stated in the OA, the defaults committed in the accounts. The liability of the defendants and the claim of the

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OA 30/2022

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amount due are also proved by the above documents. The claim of the

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applicant is well within the limitation.

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Hence in view of the findings arrived herein above, the Tribunal

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find both these issues in favour of applicant and hence, this Tribunal is of

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the view that OA is to be allowed.

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Taking into consideration the facts that the credit facilities are

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availed for Business purpose and also that the OA claim is arrived at by calculating interest at the agreed rate, this Tribunal in view of the OA can be allowed with a reduced interest of 10.00% (simple).

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In the result, OA.No.30/2022, stands allowed,

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i) The applicant is allowed to recovery an aggregate sum of

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Rs.46,27,237/- (Rupees Forty Six Lakh Twenty Seven Thousand Two Hundred Thirty Seven Only) with further interest @10.00 % p.a.(simple) from the date of filing OA till the realization, from the defendants jointly, severally & personally, after giving credit to all the amount recovered and received during the pendency of the OA and allowed the same to be recovered by proceeding against the defendants jointly, severally & personally and also proceeding against their assets.

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ii) The applicant bank is allowed cost of the proceedings which

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

OA 30/2022

order.

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

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transferred to Recovery for execution.

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iv) Interim application pending, if any, stands disposed of in terms

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of this final order.

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Communicate a copy of the order to the parties concerned in terms

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

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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 18^th Day of December, 2025].

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Sd/- (T. RAJESH)

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PRESIDING OFFICER

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ANNEXURES

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WITNESSES EXAMINED FOR THE APPLICANT BANK:

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AW-1: Anirudha Kumar Vashishtha, Chief Manager, of Applicant Bank.

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Exhibits on the part of the Applicant:

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Exhibit Nos.	List of documents
A3	Authorization letter
A4	Copy of loan application
A5	Copies of the resolution, certificate of incorporation, MOA/AOA
A6	Copies of the machineries invoices and vouchers (Disbursal schedule)
A7	Certificate of execution of document dated 25.07.2016 executed by the defendants
A8	Form No. 14 on demand promissory note dated 25.07.2016 executed by the defendants
A9	Form No. 106 dated 25.07.2016 executed by the defendants

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OA 30/2022

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A10	Form No. 103/291/412 dated 25.072016 executed by the defendants
A11	Form No. 199 dated 25.7.2016- undertaking letter executed by the defendants
A12	Form No. 200 dated 25.7.2016, executed by the defendants regarding revised clauses pertaining to rate of interest
A13	Consent clause-I dated 25.7.2016 executed by defendants
A14	Attestation memo of documents executed by the defendants dated 25.7.2016
A15	Mortgage deed for hypothecation of goods dated 25.7.206
A16	Notice dated 2.6.2017 issued by the applicant bank
A17	Notice dated 25.9.2019 issued by the applicant bank
A18	Revival letter dated 28.6.2019
A19	Annexure-I credit guarantee fund trust for micro and small enterprises dt. 10.3.2020
A20	Annexure-II credit guarantee fund trust for micro and small enterprises dt. 10.3.2020
A21	Annexure-III credit guarantee fund trust for micro and small enterprises dt. 10.3.2020
A22	Photographs showing the running unit of RPM food products ltd.
A23	Insurance coverage for the unit RPM food products ltd.
A24	One time settlement offer letter dated 17.11.2020
A25	One time settlement acceptance letter by the bank dated 2.1.2021
A26	Request letter dated 17.8.2016 for releasing of second installment of loan
A27	Request letter dated 29.8.2016 for releasing of third installment of loan
A28	Statement of loan account of term loan from 25.7.2016 to 9.12.2021 maintained by the applicant bank

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

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-Nil -

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-Nil -

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PRESIDING OFFICER

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Sd/- (T. RAJESH)

Punjab and Sind Bank v. R P M Food Producrts Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. R P M Food Producrts Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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