Allowed

Punjab National Bank v. M/S Skyla Fashion

DRT23 Dec 2025OA/328/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for the recovery of dues amounting to Rs. 73,23,243.18 from the defendants, who failed to repay sanctioned loan facilities and interest.

What did the court decide?

Defendants directed to pay Rs. 73,23,243.18 along with interest and costs within 30 days; recovery certificate to be issued to Recovery Officer.

Punjab National Bank versus M/S Skyla Fashion — Contract and Commercial Disputes | DRT (2025)

¶1

O.A. No. 328 of 2023

¶2

Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

O.A. No. 328 of 2023

¶5

Punjab National Bank Circle Sastra Centre, East Delhi Pocket E, Mayur Vihar Phase II, Delhi-110091 Applicant

¶6

Versus

¶7

M/s Skyla Fashion Proprietress Smt. Shukla Aroral Shop No.2, DC Chowk Market Near Amba Tower, Sector-9, Rohini, North West Delhi-110085

¶8

Smt. Shukla Arora w/o Sh.Devender Arora R/o H.No.H-5/23, 2nd Floor, Sector-11, Rohini, Narela, North West Delhi-110085

¶9

Also at:

¶10

F-3/8, Second Floor, Sector-11 Rohini, Delhi-110085

¶11

Sh.Devender Arora s/o K.L.Arora F-3/8, Second Floor, Sector-11 Rohini, Delhi-110085 Defendants

¶12

Present: Sh.Sunav Rastogi, Counsel for the applicant bank

¶13

Date of Reserve: 04.12.2025

¶14

Date of Pronouncement:23.12.2025

¶15

FINAL ORDER

¶16

This original application has been filed by the applicant bank on 28.02.2023 through Shri Akhouri Binay, _authorized representative of the applicant bank under Section 19 of

¶17

¶18

O.A. No. 328 of 2023

¶19

Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.73,23,243.18 (Rupees Seventy Three lacs Twenty Three Thousand Two Hundred Forty Three and paisa Eighteen only) as on 31.01.2023 together with pendentelite and future interest @12.95% per annum with monthly rests along with @2% penal interest from the date of filing of this application till the date of realization and costs.

¶20

The brief facts of the case are that at the request of defendant no.1 through its proprietress being defendant no.2 in the business of retail store of shoes and accessories, the applicant bank sanctioned Cash Credit limit of Rs.49.00 lacs (Rupees Forty Nine Lacs only) on 20.03.2020 @9.20% interest per annum under Stand up India Scheme against hypothecation of goods, book debts, moveable assets and current assets. The defendant no.3 stood as guarantor for the loan facility sanctioned in favor of defendant no.1 by the applicant bank. On the request of defendant no.1, the applicant bank sanctioned FITL of Rs.1,83,900/- on 29.06.2021 and FITL II of Rs.3,92,056.99 @8.75% interest on 19.07.2021 by converting unserved interest in CC account. The FITL was to be repayable in 18 EMIs of Rs.21,780/-. In addition, the applicant bank sanctioned GECL of Rs.14.70 lacs on 04.12.2021 @7.60% interest per annum to be repaid in 36 EMIs of Rs.40,834/-. All the limits sanctioned in favour of defendant no.1 by applicant bank were covered under CGSSI Scheme. 3. That in order to avail the aforesaid loan facilities, the defendant no.1 & 2 submitted loan applications and executed Hypothecation of moveable assets forming part of fixed / block assets, Hypothecation of Current Assets and Hypothecation of Goods and Book Debts on 20.03.2020 in favour of the applicant

¶21

¶22

O.A. No. 328 of 2023

¶23

bank. The defendant no.1 & 2 executed Agreement for WCTL, IT Authorization, DP Note and Master Agreement on 06.01.2022 & further executed FITL Agreement on 19.07.2021 and defendant no.3 executed Agreement of Guarantee towards applicant bank on 01.01.2022.

¶24

The defendant no.1 and 2 acknowledged the liability vide Balance and Security Confirmation dated 25.07.2022 towards applicant bank.

¶25

It has been submitted by the applicant bank that after availing the loan facilities, the defendants miserably failed and neglected to pay the interest and installments in the account and failed to maintain financial discipline as per sanction terms. The applicant bank classified the accounts as NPA on 30.08.2022 as per RBI guidelines but defendants not responded to clear the dues, hence, the applicant bank has approached this tribunal for recovery of its dues.

¶26

Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 13.10.2022 was issued but the defendants neglected to regularize and repay the dues of the applicant bank.

¶27

Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings. As per order dated 21.07.2025, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

O.A. No. 328 of 2023

In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Akhouri Binay, authorized representative of the applicant who has proved the documents as General Power of Attorney, Loan Applications, Sanction Letters, Agreement of Hypothecation of Goods & Book Debt, Agreement of Hypothecation of Movable Assets, Agreement for Hypothecation of Current Assets, FITL Agreement, Agreement of Guarantee, Master Agreement, Balance and Security Confirmation, Notice u/s 13(2) dated 13.10.2022, Statement of Accounts and Certificate of 2A of Bankers' Books Evidence Act, Certificate u/s 65B of Indian Evidence Act marked as Exhibit - 1/1 to Ex.AW-1/16.

¶32

The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

¶33

The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

¶34

In the light of the above discussions, the Original Application deserves to be allowed.

¶35

ORDER

¶36

allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within 30 days, a sum of Rs.73,23,243.18 (Rupees Seventy Three lacs Twenty Three

¶37

¶38

O.A. No. 328 of 2023

¶39

Thousand Two Hundred Forty Three and paisa Eighteen only) as on 31.01.2023 together with pendentelite and future interest @12.95% per annum with monthly rests from 01.02.2023 till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, current / fixed assets etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

¶40

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

¶41

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 20.02.2026.

¶42

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

¶43

—

¶44

(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

¶45

(Dictated and pronounced in open court) Dated: 23.12.2025

¶46

Punjab National Bank v. M/S Skyla Fashion

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Skyla Fashion

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

Coram

Case details

All orders in this case

Similar cases

State Bank of India versus Ms. Indu Soni

Indian Bank (Allahabad Bank) versus Parminder Singh

Canara Bank versus Iqbal Singh

Srt Subrata Mahanta and Anr. versus Punjab National Bank

Punjab National Bank versus Shubh Foods Products Co.

Icici Bank Limited versus Sevendra Sharma