Allowed

Punjab and Sind Bank v. Ms Awadh Milk Chilling Center

DRT10 Sept 2025OA/497/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by a bank to recover approximately Rs. 25.65 lacs from borrowers and a guarantor. The bank proved availing of credit facilities and the defendants failed to repay or contest the case. The Tribunal issued a recovery certificate and directed attachment of assets.

What did the court decide?

Issuance of recovery certificate for Rs. 25,65,236.95 plus interest at 8% per annum and costs of Rs. 23,000. Defendants directed to pay within two months; failure to do so entitles bank to sale of ass

Punjab and Sind Bank versus Ms Awadh Milk Chilling Center — Banking and Recovery | DRT (2025)

¶1

	'EBTS RECOVERYT] LUCKNOW	[B	rAL
a proceeding	r		bffice action tAken with
O.A. No.497/2024 10.09.2025	The Judgment is pronounced on separateshee1 attachedin07 sheets. Order be uploadedon website. ( (Prava Presi (MK)	;igned ,.Seal leTri d $ictat <br>I qKumaR dingOiIIl	and ately bnal’s ^{F:Dg h )}

¶2

IN THEIDEBTS RECOVERY TRIB IAL AT LUCKNOW
Prdsent: Pravas Kumar Singh, +resil lg Ofl
}f 2024
Case No. Original Application No.49
Dated: 10.09.202
t at
Charbbgh Branch, Lucknow; Uttar Prad.
lplica nt-bank
Versus
1.
s r M
Propribtor / Authorized Signatory IMohdy
Rizwah, Office of R/o Plot No.J-10, oPSIDd
Indusdrial Area, Sandila, Hardoi – 24120'
2. o r ]
AuthoFized Signatory M/s Awadh Milk +hillind
Cente}) S/o Hasim Ali, R/o Village-MbnkutiJ
Post ] Dilavar Nagar, Malihabad, Luckhow ]
22711
3.
I a mri
Vahan Loan Scheme) S/o Sh. AvadeshSinghJI
R/o –lvillage Bhatoia, Malihabad, Luckhow ] ...... Def&nba nts
22711
Ld. Counsel far Applicant-bank: Shri Vijay Praka+h Tiw811, Advo4a
Ld. Counsel fdr the Defendants: None.
JUDGEMENT
1. This Or{ginal Application has been filed ly the lpplica )ank under
Section 19(1) bf the Recovery of Debts & Bank+uptcy b, 199+, lgainst the
defendants f(
the recovery of Rs.25,65,236.9+ (Rudi is Twe AtI Five Lacs,
Sixty Five Thqusand, Two Hundred Thirty Six Ind P4 Ba Five Only)
together with bend,„t-lite a„d futu,e i„t„est, 4ost, aAa ,the, re{iefs etc.
I
qI
IIL

¶3

¶4

O.b, No.497 of 2

¶5

da nts 2. The briEf facts of case are that the defen 1 is a br+prieto firm of whichdefendant no.2 is the proprietor nd tI lefend4n+ No.3 guarantor. TAe defendant no.2 & 3 had appro ache. 1e Appllc{nt-ban financial assjstance. The Applicant-bank COI iderl the r4q+est of the defendants and sanctioned PSB Apna Vahan .oa n :ility o 15.00 lacs vide its sancjion letter dated 30.11.2022 on terms conditions (A,„„x„„ N+.2/3) t, this O,igi„al Application. 3. To sec are aforesaid credit facility, defeddant 2 had ;ecuted and It-ba nk on signed vario bs security documents in favoujr of AppI 30.11.2022. lhe defendant No.3 signed and ex+cutedl ua ra ntl Agree ment llicatio dated 30.11.d022 (Annexure No.5/6) to this Orbinal le d ldant & 3 had 4. It is p4rtinen} to mention here that Ina V4h n Loan of approached +he applicant bank for grant of Rs.15.00 lacs hide its sanction letter dated 30.14 202 Id in o}dbr to se the debt, thI applicant bank hypothecated lhe n pu rch. Mah Scorpio Regis+ration No.UP32 NJ 5150. (Annexl re N .7/8) tI Original Application. 5. SubseqUently, at the request of the defel dant bb.2 agai lpproached to the applicajnt bank for grant of Term Loan F. cility B 12.gO bacs vide its Sanction Lett4r dated 16.02.2023 on certain ter TIS a londit:ian (Annexu re No.A-9/10) tOt this Original Application. 6. To secure aforesaid term loan facility of defendant of the had executed the following loaning security I

¶6

o .A. N ,.497 , f 2024 applicant bank on 17.02.2023 (Annexure o.A' .2) tol this Original Application t is rdlevant to mention here that :he rl lest of defenda ime fo Tant of lgain abproached tl 1e applicant bank #econl dated .02.20 ,oa n )f Rs.12.50 lacs vide its Sanctioh Lett' certain ter and conditions (Annexurel No Application '0 a 1 thI )said credit facility, le A1 had o ounts the name of defendant INo. 1 order +o credit facil Afier availi defedd4nts fa the aforesaid credit fa4ility, le te n+ancial discipline and also failed Ito Cl Fly wi loan jadcount C th, 1,,n ,g„,m,„t, ,,nsequ4ntly, defendant 1/firm was classified as NPA o] bank l024 by guide] (Exhibit No. A- therl ,pplil -bank notrce the defendants No Legal/Ret d,f,nd,„t, bt,t,d n,-„,p,n„ ,nd th,y f,ill to re' the s. and the loan accounts the defendants are sti hencl this O Appli„ti,d h„ b,,n in,tit„t,d As p4r books of the bank maintained the laI andlo lnary cours of banking business, an outstanding of Rs.25J65,2: )5 (Ru Twe n and P. Nine Lacs, SixtyIFive Thousand, Two Hundred TI Only) inclubing interest upto 29.02.2024, {ere I' due payment which the ldefendants are jointly and seve[ally IIe tO lay the which the' did not pay despite repeateH reqb#sts and demand. The El I II I n\er -\

¶7

4 O.h. No.497 of 20 Applicant-bank filed the Statement of loan Acc bu nts chibit NoIA-16/17) to this Original Application. 11. The cabse of action for filing the prese1 t app ltion aFobe firstly o 30.11.2022, When the aforesaid credit facil ty WI sa nct lo by th he de' ldants Applicant-ba+k and the same were availed by [ b n e c e s s a r \r da nts e 30 2022 an documents Were executed by the defe1 16.02.2023. ]he cause of action further arose dn wh .egal nbt{ce was sent to the defen+ants, recalling the entire outsta ding a IS and ly failed to pay the samel 'fend 1 2 e T h 13 S 1U h 1rn 1C) n S W 1e r 1e S 1e r V 1e 1C1 U P on the dl throqgl registered post, but the defendants did not appear befor€ the bUIIat tO contest their case, hence the matter proceeded ex- parte agi inst defenc ants. 13. From the perusal of the record, it is evidl nt t :he defe ndants were provided with fair opportunities to contest tI e cIa of the bank. As the defendants +pted not to contest the case, s J only aint of :consideration before this T+b..al i, ,s to whethe, b,„k is 1,g IIly e led to 1hd amount as claimed in Original Application on the basis of do tments and pleading submitted by it. 14. In suppbrt of the case Shri Krishna Pal Si1 ;h, TI :hief Ua+ager o Applicant-baNk has filed an affidavit. 15. On a careful scrutiny of the eviden. e on idavit abd Exh marked as EXhibit No.A-1 to Exhibit No.A-19, t is ,ed th4t lefendan had availed the credit facilities from the App1 cant' Ik by oan and security documents detailed as above in fa' our Ihe Appl Int-ban [-

¶8

show that d The ordinarycou TheBank ha relevant u/s Applicant-ba defendants a j Accorq failing whicH - assets andp4 The monthlyres+ perusal of t	5 relie lpon cl um rlities bfendant hadutilizedthe aboveloan grante is of aLcbunt in ,pplicant-bank hadmaintained of thaIcianamo Fseofbankingbusinessshowinghisbu; p also charged interestfromtim1 and entrie also ,edtha b of the Banker Books of Evidencd Act.I] ldants,tderefor -hk’s claimiswithinlimitation againstd' re jointly andseverallyliabletoP+y th the bbIJncedue ingly,thedefendantsaredirect4dto bank within a period of 2mon }eIIthehkpoth H the Applicant-bank will beenti+ledtI rsonalassets/ properties ofthe !fen lplicant-bank has claimedinte&st@. ;% peI nrlurn +w.e.f. 29.02.2024 till the date olreali IStS ionan Oe application, evidence anddI	ea th unt tth s
s of forg j lite and fut reducing baI+ withcosts I fin+ creation of b succeeds as x-	going discussion, interest of justIcewi ifpend ese Ureinterestisgranted@8%p4ran withF lonthly +rIce from the dateof filingof the Io.A, Ifrealiza :hedat] + that the bank has pr,v,d th,ex4cutio, Ifloan )ument ortgage in its favour. In thergsult, Origil Applil ex-parte against thedefendan le bank costs	e r zti s and ion has
proved the l x availment of	oan execution of loandocume ,ourofFtheban lefe IntNos credit facility. The liability of the to 3 are j	3 joint

¶9

and pers	severaljand mortgagedproperty,hypothecatWIjasset{sjwell asthe onal proherties are to be sold. Itis,tHerefore,ordered
(i)	That +he Original Application No.497 +f 20241 bfthe for isbuance of Recovery Certificate t+ the (Rup4es Twenty FiveLacs,SixtyFivelhousab Six abd Paisa Ninety Five Only) alonbWitH annu[mwithmonthlyrest fromtheldate#l Applicationi.e.29.04.2024tilltheloqnisf#III succ+eds ex-parteagainstthe defendahts llicant bank !5,65,236.95 Ired Thirty @8%per e Original andcosts the ofR A,Two inter filing oftF liquid
(ii)	The #efendants aredirectedto paytHedue}llWithina periodof two months from the date of judgement, f+iling which the Applicant-bank will be entitled to recover the sabe fr## the securedassets, persbnal movables and immovable as4ets of +be defendants.
(iii) (iV) H„ „ „& H j	The4pplicant–bank is e„titled to reco+er afof#said a,not„t by saleof hyp+thecatedassets (if not sold earjier unabr theprovisionofthe S.A.+.F.A.E.S.I. Act2002).The amo,4t, if ,hk al,eady ,ec.„e,edby salejofany hypoth„ated a,setsorodhe,wiq£sh,II bpreco,e,able/if the huesofthe Applicant-bankstillrehain dMatisfie+,+hesameshall be rbcoveredby attachmentandsalejofth4jhrsonal 4ovableassets oftde defendant jointlyand severally The Hefenda„t, are h„eby „strai,,& by 4Han, ,fi,junctionf,om depFeting,tr,.,fe„ing,,.c.mb„i,g,I,Ii,.,}#go,i.1,4yW,yd,,Ii.g [ \|

¶10

(V) (vi)	with Applil LetRl Reco- byfi: The Reco' Bat Judgl Datel	7 :hei, prope,ties/estates without Int-bank. ICOV„y c„tin,,t, b, i„u,d id€ '„y,fD,bt,D„,t, B,nk,and+ ing 23.12.2025 before R.0., DRT, ,plicant-banki,di,ectedto file # 'e,y c,ran,,t, „is 19(22) of rptcyAct,1993. lent ispronouncedinthe open co 10.09.2025	e First medi€ +hand 3 Luc] #men# the brt. Fingth4 ly „/, ofcos1 }overy (Prava PH	OIA.No.z 97 o 4laim of 1l4(22),f prep Debt ( $1 Hey umL?S ding Of	f2024 the th, armg s 1: ?ign) ficer
(MK)

Punjab and Sind Bank v. Ms Awadh Milk Chilling Center

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Ms Awadh Milk Chilling Center

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

Similar cases

Bank of Maharashtra versus Shri Saket Kumar Jain

Canara Bank versus Ms true empire

Arjun Singh versus Indian Overseas Bank

Mohd Haider versus Punjab and Sind Bank

Sudhir versus Iifl Home Finance Limited

M S Silver King Silver versus Punjab National Bank