Allowed

Punjab National Bank v. M/S Capsag Consulting Services Private Limited

DRT10 Jun 2025OA/545/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of outstanding dues of approximately 40 lakhs. The court proceeded ex-parte, awarded principal amount, interest at 12% per annum, and costs, and directed the issuance of a recovery certificate.

What did the court decide?

Defendants directed to pay Rs. 40,18,375.41 with future interest at 12% p.a. and costs; recovery certificate issued; proceedings before Recovery Officer ordered.

Punjab National Bank versus M/S Capsag Consulting Services… — Banking and Recovery | DRT (2025)

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O.A. No.545 of 2023

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

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 545 of 2023

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Punjab National Bank (e-Oriental Bank of Commerce) Circle Sastra Centre, East Delhi, CSC, Pocket E, Mayur Vihar Phase II Delhi-110091 Applicant

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Versus

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1.^{M/s Capsag Consulting Services Private Limited} Regd Office at:

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Flat No.A2, Archana CHS Plot No.18 Sector-17, Vashi, Navi Mumbai-400703

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Also at:

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809A, 2nd Floor, Udyog Vihar Phase V, Gurgaon, Haryana-122016

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Sh.Retash Bhansali s/o Arvind Bhansali R/o Flat No.1603, Tower-B

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Hirananandani Maitri Park Chambur, Mumbai, Maharashtra

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Smt.Sharda Hotchandani w/o Sh.M.C.Hotchandani R/o 2091, ATS Hone, Hamlet Sector-104, Noida, UP-201304

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Smt.Manjusha Hotchandani w/o Sh.Rajesh Hotchandani A-759, Sarita Vihar Defendants New Delhi-110076

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Present: Shri G.P.S.Verma, Counsel for the applicant bank Date of Institution: 17.06.2023 Date of Pronouncement: 10.06.2025

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O.A. No.545 of 2023

FINAL ORDER

This original application has been filed by the applicant bank on 17.06.2023 through Sh.H.S.Kardam, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.40,18,375.41 (Rupees Forty Lacs Eighteen Thousand Three Hundred Seventy Five and paisa Forty One only) as on 31.05.2023 along with pendentelite and future interest @14.40% per annum with monthly rests from 01.06.2023 till the date of its realization and costs.

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The brief facts of the case are that on the request of the defendant no.1 through its directors being defendant no.2 to 4, the applicant bank sanctioned Cash Credit Facility of Rs.40,00,000/- (Rupees Forty Lacs only) on 14.02.2018 @11.90% interest per annum which was renewed from to time against hypothecation of stock and book debts covered under CGTMSE Scheme. The account was lastly renewed on 24.08.2020 for three months as required documents were not arranged by the defendants due to Covid 19 and applicant bank renewed the account till 26.11.2020. Further, on the request of defendant no.1, the applicant bank renewed the working capital limit for a period of six months on 31.01.2022.

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That in order to avail the credit facility, the defendant no.1 through its Board Resolution dated 14.02.2018 authorized defendant no.2 as signatory to execute documents with applicant bank. The defendant no.2 executed Agreement for Hypothecation of Assets, Common Agreement, Undertakings to route their sale proceeds through the account in favour of the

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O.A. No.545 of 2023

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applicant bank on 16.02.2018. The defendant no.2 to 4 executed Agreement of Guarantee dated 16.02.2018.

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That in order to secure the credit facility, the defendant no.1 hypothecated the stock and book debts etc. in favour of applicant bank and applicant bank created charge with ROC on 16.02.2018.

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The defendant no.1 through its directors acknowledged and executed Balance and Security Confirmation Letter dated 03.08.2019 and 14.07.2022 with the applicant bank.

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It has been submitted by the applicant bank that after availing the loan facility, the defendants failed to comply with the terms and conditions of sanction and regularize the account with applicant bank. Ultimately, the applicant bank classified the account as NPA on 02.01.2023 as per RBI guidelines due to non-adherence to financial discipline but neglected by the defendants. Hence, the applicant bank approached this tribunal for recovery of their dues.

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Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 24.01.2023 was issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank.

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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 17.12.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed. � 54- I

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O.A. No.545 of 2023

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. H.S.Kardam, authorized representative of the applicant bank who has proved the documents as Authority Letter/ Power of Attorney of AR Ex.AW-1/1, Sanction Letter Ex.AW-1/2, Resolution Ex.AW-1/3, Agreement for Hypothecation of Assets Ex.AW-1/4, Common Agreement Ex.AW-1/5, Undertaking Ex.AW-1/6, Undertaking to route Sale Proceeds Ex.AW-1/7, Agreement of Guarantees Ex.AW-1/8 to AW-1/10, ROC Certificate Ex.AW-1/11, Balance Confirmation Letter Ex.AW-1/12, Renewal Letter Ex.AW-1/13, Emails Ex.AW-1/14(colly), Letters for Renewal by Defendant Ex.AW-1/15(colly), Letter for Renewal dated 24.11.2020 Ex.AW-1/16(colly) & Ex.AW-1/17, Application for Loan under MSME Ex.AW-1/18, Sanction Letter dated 21.01.2022 Ex.AW1/19, Emails Ex.AW-1/20(colly), Balance & Security Confirmation Ex.AW-1/21, Postal Receipts Ex.AW-1/22(colly), Demand Notice Ex.AW-1/23, Statement of Account Ex.AW1/24, Certificate under Banker's Books Evidence Act Ex.AW1/25.

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10.^{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.

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11.^{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.

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12.^{As per the provision of Section 19(20) of the Recovery of} Debts Due to Banks and Financial Institution Act, 1993 which

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O.A. No.545 of 2023

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is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days a sum of Rs.40,18,375.41 (Rupees Forty Lacs Eighteen Thousand Three Hundred Seventy Five and paisa Forty One only) as on 31.05.2023 along with pendentelite and future interest @12.00% per annum from 01.06.2023 till its realization with costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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

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(III)^{Parties are directed to appear before Recovery Officer,} DRT I, Delhi on 08.08.2025.

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O.A. No.545 of 2023

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

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(GOVIND BA LABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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