Allowed

Canara Bank v. Stich Poly Threads Private Ltd.

DRT6 Dec 2025OA/888/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of Rs. 52,23,269.79 along with interest and penal charges. The respondent companies and guarantors were absent. The court directed payment within 30 days and issuance of a recovery certificate.

What did the court decide?

Directed defendants to jointly or severally pay Rs. 52,23,269.79 plus interest; recovery certificate issued to Recovery Officer.

Canara Bank versus Stich Poly Threads Private Ltd. — Banking and Recovery | DRT (2025)

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O.A. No.888 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. 888 of 2023

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Canara Bank CSC Market, Pocket-A Mayur Vihar Phase-II New Delhi-110091

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Applicant

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Versus

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M/s Stich Poly Threads Pvt. Ltd. R-22, Ground Floor, Block-R Chanakya Place, Part 2 Uttam Nagar, Delhi-110059

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Sh.Ashu Ansari s/o Zahir Abbas R/o R-22, Ground Floor, Block-R Chanakya Place, Part 2 Uttam Nagar, New Delhi-110059

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Sh.Ashraf Ansari s/o Zahir Abbas R/o R-22, Ground Floor, Block-R Chanakya Place, Part 2 Uttam Nagar, New Delhi-110059

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Defendants

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Present: Sh. Anuj Aggarwal, Counsel for the applicant Bank

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Date of Reserve: 25.11.2025

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Date of Pronouncement: 06.12.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 16.11.2023 through Ms. Neha Verma, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the

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O.A. No.888 of 2023

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defendants for recovery of a sum of Rs.52,23,269.79 (Rupees Fifty Two Lacs Twenty Three Thousand Two Hundred Sixty Nine and paisa Seventy Nine only) along with pendentelite and future interest @10.80% per annum with monthly rests plus @2% penal interest from 01.11.2023 till the date of realization and costs.

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The brief facts of the case are that at the request of defendant no.1 through its directors being defendant no.2 & 3, the applicant bank sanctioned Term Loan for Rs.20.00 Lacs and Overdraft facility for Rs.25.00 Lacs which was modified into overdraft limit for Rs.45.00 Lacs on 10.05.2021 @11.50% interest per annum against hypothecation of stocks and machineries covered under CGTMSE scheme. The defendant no.2 and 3 stood as guarantors for the loan sanctioned in favour of the defendant no.1 by the applicant bank.

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That in order to avail the said loan facility, the defendants submitted loan application dated 24.04.2021 along with Certificate of Incorporation, GST Registration Certificate, Udyam Registration Certificate, TAN Certificate, PAN Card and executed Cash Credit Agreement, Pronote, Request for Overdraft Facility, Letter of Undertakings, Letter of Renewal on 10.05.2021 and 16.09.2022 in favour of applicant bank.

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The Defendant no.1 executed Acknowledgement of Debt dated 16.09.2022 acknowledging the outstanding amount in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to maintain financial disciplined and comply with the terms and conditions of sanction and did not route all business

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O.A. No.888 of 2023

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transactions through the loan account. Ultimately, the applicant bank classified the account as NPA on 14.02.2023 as per RBI guidelines and issued legal notice dated 06.06.2023 but defendants failed to regularize the account. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 13.05.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets has been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Jagdev Singh, authorized representative of the applicant bank, who has proved the documents such as Authority Letter, General Power of Attorney, Loan Application Form, Letter for Term Loan, Letter for Modification, Letter of Undertaking, Request for Overdraft Facilities, Pronote, Cash Credit Agreement, Letter of Guarantee, Guarantee Agreement, Certificate of Incorporation, Udhyam Certificate, GST Registration Certificate, Extract of Board Resolution, Letter of Renewal, List of Directors, Certificate of CA, Letter of Undertakings, Acknowledgement of Debt, Letters for Regularization, Legal Notice, Statement of Accounts marked as Exhibit AW-1/1 to AW-1/34 (Colly).

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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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O.A. No.888 of 2023

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

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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.52,23,269.79 (Rupees Fifty Two Lacs Twenty Three Thousand Two Hundred Sixty Nine and Paisa Seventy Nine only) together with pendentelite and future interest @10.8% per annum with monthly rests from 01.11.2023 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable property/assets 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 the Recovery Officer, DRT I, Delhi on 04.02.2026.

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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 BALLAB ARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 06.12.2025

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Canara Bank v. Stich Poly Threads Private Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Stich Poly Threads Private Ltd.

Case brief

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What did the court decide?

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