Allowed

Canara Bank v. M/S Purti Textiles Mills

DRT26 Jun 2025TA/1054/2023

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RBI Act, 1993 filed by Canara Bank for recovery of dues. After the defendants were proceeded ex parte, the Tribunal found the bank's evidence unchallenged and directed payment of the principal amount with cost and interest.

What did the court decide?

Direct respondents to pay Rs.33,03,83,192.66 plus cost and interest at 12.70% p.a. within 30 days, with recovery from secured assets upon default.

Canara Bank versus M/S Purti Textiles Mills — Company and Corporate | DRT (2025)

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Before SUSHIL KUMAR RASTOGI, Presiding Officer Debts Recovery Tribunal-Il, Delhi

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TAlLO54l2023

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CANARA BANK VS M/S PURTI TEXTILES^{MILLS& ORS.}

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Reserued on :22,05.2O25 Pronounced on : 26.O6.2025

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Canara Bank

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Applicant bank

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Vs.

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M/s PurtiTextiles Mills

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Shri Dheeraj Aggarwal

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ShriSuman Chadha

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Shri Jangi l-al Chadha

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Shri Dilip Verma

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Smt. Rita Verma

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Punjab National^Bank

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-^Defendants

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Present Shri Ambuj Tiwari, Counsel^{appears for} applicant bank. Defendants are exparte^{since 28.01'2025.}

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FINAL ORDER.

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This original application^{has been filed by the} applicant bank, on^{27.05.20L5throughRajeshKumar} Redu, Chief Manager of the^{applicantbank, under} Section 19 of the^{RDB Act, 1993againstthe defendants} for recovery of a sum of^{Rs.33,03,83,192'66 along with} further interest thereupon @19.20olo^{per annum} compounded with monthly^{rests from date of filing of} this O.A. till the realization^{in full.}

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The brief facts of the^{case are that the applicant} bank is a lead bank and^{member of the consortium,} constituted between the^aPPlican t_ bank and the

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C-\

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TANO. t054/2023 2

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defendant no.7. The defendant no.7 had also sanctioned the OCC/ODBD facility to the tune of Rs.5.00 Crores, ILC facility to the tune of Rs.1.00 Crore and bill^{purchase/bill} discounting to^{the tune} of^Rs.1.00 Crore to the defendant no.1 firm and is^{having a first} charge along with the applicant bank on^Pari-Passu basis over the securities i.e., Stock of^{raw-material and} the whole of the other current assets of^{the defendant} no.1 firm i.e.,^plant & machinery^{and the industrial land} and building situated at^{Plot No.21-B,Sector-9, IIE} SIDCUL Industrial Area,^{Pant Nagar,Uttarakhand} belonging to and^{standingin the name of the defendant} no.1 firm and Residential^{property consistingof entire} Third Floor with Roof^{Right,a part of free-hold four} storeyed built-up^{property bearing no.50, having area} of 200.00 Sq.Mtr., in^{block no.H,Pocketno.3 Sector-} 18, together with impartible^{and undividedprorata} share of lift, Land etc.^{in Plot No.50, situated in the} Layout Plan of Rohini^{ResidentialScheme,Rohini,} DelhF89, belonging to and^{standingin the nameof the} defendant no.4 and^{Residential property consisting of} First and Second Floor^{(FF-2) Duplex dwelling unit} having covered area of LttJL^{Sq. Mtr', bearing no.S-} 20/8 together with impartible^{and undivided prorate} share of Land in^{Plot No.8, Road No.S-20, measuring} 264.00 Sq.Mts in Phase-III^{in the residentialcolony} know as DLF Qutub^{Enclave Complex,Village} Nathupur, Tehsil and^{Distt. Gurgaon, Haryana,} belonging to and^{standingin the name of the defendant} nos.5 & 6. As such,^{the defendant no.7 is the necessary} party to the present original application^{though no} relief/ claim is sought against^{it and is including in the} array of the defendant^{a!_Pl9f9rma party. It is} <.\

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TA NO. t05412023 3

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submitted that at request of the defendant no.1, acting through its^partners, the defendant nos.2 & 3 approached the applicant bank for^grant of Credit Limits (in a Consortium) to meet its business requirement in the nature of OCC/ODBD^(Stocks & Book- Debt) to meet working capital^{requirementand} Inland Letter of Credit in short ILC for^{procurement of} raw-material from local suppliers. The^balance requirement of credit facility^{was to be sanctioned by} the Punjab National^{Bank, i.e., the defendant no'7.To} secure the said OCC/ODBD^{(stocks & Book-Debts) &} ILC Facility, the defendant^{no.1 offeredthe securities,} on the basis of^First Charge-holder,^{runningPari-Passu} along with the defendant^{no.7 i.e. hypothecationof} stocks of raw-material and^{hypothecationof current} assets of the defendant^{no.1 firm i.e', plant &} machinery^{(consumable stores & spares) and personal} guarantee of the defendant nos.2 & 3 and^{the equitable} moftgage over^{the industrialland and building situated} at Plot No.21-B,^{Sector-9, IIE SIDCUL Industrial Area,} Pant Nagar, Uttarakhand^{belonging to and standing in} the name of the defendant^{no.1 and Residential} property consisting of First and Second^{Floor (FF-2)} Duplex dwelling unit^{havingcovered area of 111.71Sq.} Mtr., bearing no.S-20/8 together^{with impartible and} undivided^prorate share^{of Land in Plot No.8, Road} No.S-20, measuring^{264.00 Sq.Mts in Phase-IIIin the} residential colony known as^DLF Qutub^Enclave Complex, Village^{Nathupur, Tehsiland Distt. Gurgaon,} Haryana, belonging to^{and standingin the nameof the} defendant nos.5 & 6.^{The applicantbank sanctioned} (under Consortium), the OCC/ODBD^{(stocks & book-} debt) facility to the^{tune of Rs.5.00 Crores to meet} -q.\

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TA NO. 105412023 4

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working

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capital requirement and^ILC

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facility to the tune of Rs.9.00 Crores^{to procureraw-} material from local suppliers,^{vide sanctionletter dated} 19.07.2013 tenable till 15.07.2014.^{The applicant bank} sanctioned the aforesaid credit^{facilities againstthe} securities as first charge^{holder, running pari-passu} along with the Punjab^{NationalBan( defendantno'7.} i.e., hypothecation of^{stocks of raw-materials and the} hypothecation of the^plant &^{machineryand the} personal guarantee of the defendant^{nos,2& 3 and the} equitable mortgage over^{the industriallandand} building situated at^{Plot No.21-B, Sector-9,IIE SIDCUL} Industrial Area,^{Pant Nagar, Uttarakhand belongingto} and standing in^{the nameof the defendantno.1 and} Residential^{property consisting of First and Second} Floor^(FF-2) Duplex^{dwellingunit having coveredarea} of 111.71 Sq.^{Mtr.,bearing no.S-20/8together with} impaftible and^{undividedprorate share of Land in Plot} No.8, Road^{No.S-20, measuring264.00Sq'Mts in} Phase-III in the^{residentialcolony know as DLFQutub} Enclave Complex,^{Village Nathupur,Tehsil and Distt'} Gurgaon, Haryana,^{belonging to and standing in the} name of the^{defendant nos.5 & 6. The defendantno'1} availed the credit^{limits from PunjabNationalBank, the} defendant no.7^{in underconsortium (consistingof} applicant bank^{& PunjabNational Bankas members) to} tune of Rs.7.00^{Crores in total in the year 2013 against} the above said^{securities. It is submitted that it was} agreed between^{the defendantno.l firm, applicant} bank and the^{defendant no.7/Punjab National Bank} that the said^{OCC/ODBD limit to the tune of Rs'11'00} Crores⁽ applicant^{bankt share of Rs' 6.00 Crores and} PNB share of^{Rs.5.00Crores) and ILC limit to the tune}

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TANO. 1054/2023 5 of Rs.10.00 Crores^{(applicant bank' share} Rs.9.00 Crores & Punjab^{National Bank's share Rs.1'00} Crores) and BP/BD^{facility of Rs.1.00 Crores,( sanction} to & availed from^{Punjab National Bank) of total} Rs.22.00 Crores would be^{taken/treated under the} consoftium arrangement^{of which C-anara BanK the} applicant bank and^{Punjab National Bank, defendant} no.7, would be the^{members'It is submittedthat it was} further agreed between^{them the applicant banki.e.,} Canara Bank would^{be the leader of the consortium.} The defendant no.1 firm^{authorizedits partner,} defendant nos.2^{& 3 to executed and sign the joint loan} documents in^favour of^{the consortium members i.e.,} applicant bank^{and defendant no.7 for and on behalf of} the defendant no.1firm^{on 18.09.2013. The defendant} nos. 2 & 3 executed,^{signed and delivered on} 18.09.2013, the^{separate deed of guarantee for a sum} of Rs.22.00 Crores.^{The defendantno.1 confirmedto} the applicant bank of^{its having availed the credit} facility^(s) from^{Punjab National Bank, the defendant} no.7 in the^{year 2010 againstthe Equitable Mortgage} of its Immovable^{Property consisting of Land and} Building situated at^{Plot No'21-B, Sector-9, IIE SIDCUL} Industrial Area,^{Pant Nagar, Uttarakhand,measuring} an area of 4242Sq.^{Mts.The defendant no.1 requested} the applicant^{bank(Canara Bank)for having the first} charge over the^{aforesaid immovableProPeflY,} belonging to^{the defendant no.1, runningpari-passu} along with the^{defendant no.7 (Punjab National Bank)'} As such to secure^{the repayment of the amounts} sanctioned to^{and duly availed by the defendantno'l,} the defendant^{no.1 with the consent of the applicant} bank other^{members consortiuTi.e.,defendant no'7}

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TA NO. 105412023 6

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created first charge in favour^{of applicantbank,} running^pari-passu, Immovable^{Propertyconsisting of} Land and Building situated at^{Plot No.21-B, Sector-9,} IIE SIDCUL Industrial Area,^{Pant Nagar, Uttarakhand,} measuring an area of 4242 Sq.^{Mts.The defendantno.1} extended mortgaged the aforesaid^{propefito secure} the aforesaid loan, vide letter of^{continuity whichwas} executed and signed by the^{defendant no.1on} 17.09.2013. The defendant nos.5 & 6^createdan equitable mortgage over their^immovable ProPeB, jointly owned by them i.€., Residential^property consisting of First and^{SecondFloor (FF-2)Duplex} dwelling unit having^{covered area of LlL.7t Sq. Mtr.,} bearing no.S-2O/B together^{with impartible and} undivided^{prorate share of Land in Plot No.B, Road} No.S-20, measuring^{[email protected] in Phase-III in the} residential colony^{know as DLF} Qutub^Enclave Complex, Village^{Nathupur, Tehsiland Distt. Gurgaon,} Haryana. The defendant^{no'1 offered the personal} guarantee of the defendant no.4^{as well as the first} charge over his^{immovable property, runningpari-} passu among the members^{consortiumby way of} equitable mortgage^{over the said property' The} defendant no.4^{executed, signedand deliveredon} Lg.Og.zOl4,^{the separate deed of guaranteefor sum of} Rs.22.00 Crores.^{The defendantno.4 createdthe} equitable mortgage^{over his residential property} consisting of^{entire Third Floor with Roof Right,a part} of free-hold^{four storeyed built-up property bearing} no.50, having area^{of 200'00 Sq.Mtr',in blockno'H,} Pocket no.3^{Sector-18,together with impaftibleand} undivided^{prorata share of lift, Land etc' in Plot No'50,} situated in the^LaYo ut Plan of^{Rohini Residential} 9,\

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TA NO. 105412023 7

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Scheme, Rohini, Delhi-8g. Again, in the^year 20L4 at the request of defendant no.1 acting through its partners, defendant nos.2 & 3 for the grant of fresh Credit Facility in the nature of bill discounVbill purchase, in short CDB/SDB/BE facility for discounting of bills in connection with^purchase of^raw-material from various local manufactures/suppliers with^usance period not be exceed 60, the applicant bank sanctioned the CDB/SDB/BE facility to the^tune of^{Rs.15.00 Crores} against the^{personal guarantee} of^{its partners} defendant nos.2,3 & 4.^The defendant^{no.3 executed,} signed and delivered the^{loan documentsfor valuable} consideration on^{13.06.2014.In the Year 2014 again,} at the request of defendant^{no.1, acting through its} partner, defendant nos.2 & 3, the applicant^bank sanctioned an^{Ad-hoc OCC/ODBDfacility to the tune of} Rs.1.50 Crores. The^{defendantno'3 executed,signed} and delivered the^{loan documentsfor valuable} consideration on 13.12.2014.^{In the year of 20L4} again, at the^{request ofdefendantno.1, acting through} its^partner, the^{defendant nos'2 & 3, the applicant bank} sanctioned a^{temporary OCC/ODBDfacility to the tune} of Rs.14.00^{lacs to meet its business requirementon} the existing terms^{and conditions and against existing} securities.

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It is further^{submitted that the defendants} enjoyed and utilized^{the Loan facility, but failed to} maintain the^{financial discipline and failed to repay the} due amounts.^{The applicant bank requested the} defendants to^{regularize the loan accountby visitsand} letters, but there^{was no response from the} defendants,^{hence the account was classifiedas NPA} 9^

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TA NO. 105412023 8

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on 30.09.2014. Therefore, the applicant bank served a recall notice dated 30.01.2015 to the defendants demanding the amount due as on that date, but failed to recover the same. Thus, the^present O.{f[A is preferred by the applicant bank to recover its dues.

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On notice by this Tribunal, defendant nos.1,3 to 7 put appearance through counsel but failed to^file written statement. The defendant no.2^{put appearance} through counsel and filed written^{statement but failed} to file evidence. Thereafter, the defendants^{failed to} put appearance at all, despite issuance of default notice. Accordingly, the defendants^{were proceeded} against exparte on 28.01.2025.

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The applicant bank^{has flledevidenceby way of} affidavit of Ms. Supriya Singh,^{Law Officer of the} applicant as Paper^{No-1 to Paper No. 456 along with} the O.A which have^gone unchallenged^{and un-} rebutted. Hence, the case ofthe^{applicant bank stands} fully established against the defendants^{with respectto} nonpayment of EMI/ outstanding amount.

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After^perusing the records, this Tribunal^{is of the} view that the applicant bank has^{proved its case beyond} reasonable doubts. The evidence and^{documents filed} by the applicant bank not^{rebutted by the defendants} by not^placing any evidence and documents and^there is no question of disbelieving the evidence^and n--<te

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TA NO. 105412023 9

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documents filed by the applicant bank based upon the written/pri nted documents.

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In the light of the above discussions, the^present T.A. deserves to be allowed.

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ORDER

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I hereby allow this T.A. of the^{ApplicantBank and} direct the defendant nos.l to 6 to^{pay joinUy and} severally to the applicant bank^{within 30 days from} today, a sum of Rs.33,03,83,192.66 along^{with cost,} expenses and interest @ t2.70o/o^{from the date of flling} of this O.A. which has bemme^{TA till the date of} realization.

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In case of failure to deposit^{the above amount} within the stipulated^{period, the same shall be} recovered from the sale of^{the hypothecatedassets and} the sale of the^{properties (i) Industrial land and building} situated at Plot No.21-B,^{Sector-9, IIE SIDCUL} Industrial Area, Pant Nagar, Uttarakhand,(ii)^Property consisting of entire Third^{Floor with Roof Right, a paft} of free-hold four storeyed^{built-up property bearing} no.50, having area of^{200.00Sq'Mtr.,in block no'H,} Pocket no.3 Sector-18, together^{with impartibleand} undivided^{prorata share of lift, Land etc. in Plot No.50,} situated in the Layout^{Plan of Rohini Residential} Scheme, Rohini,^{Delhi-89(iii) Property consistingof} First and Second Floor^{(FF-2) Duplex dwelling unit} having covered area of^{LLt.7t Sq. Mtr., bearing no'S-} 20/8 together with impartible^{and undivided prorate} share of Land in^{Plot No.8, Road No.S-20, measuring}

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TA NO. 1054/2023 l0

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264.00 Sq.Mts in Phase-III in the residential colony know as DLF Qutub Enclave Complex, Village Nathupur, Tehsil and Disft. Gurgaon, Haryana. In case of short fall, the same shall be recovered from the sale of personal movable and immovable assets of the defendant nos.1 to 6.

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Recovery Certificate be issued forthwith and be sent to Recovery Officer, Debts Recovery Tribunal-Il, Delhi.

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The registry of this Tribunal is hereby directed to issue free copy of the order and send the same to both the parties.

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Parties are direct to appear before the Ld. Recovery Officer, DRT-II, Delhion 26.08.2025. Pending IAs, if any, stand disposed of.

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File be consigned to records.

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gJ'

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Date : 26.06.2025

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(SUSHIL KUMAR RASTOGI) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been signed, dated and pronounced in open court.

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S"\

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Date : 26.06.2025

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(susHrL KUMAR RASTOGT) PRESIDING OFFICER DRT-II, Delhi

Canara Bank v. M/S Purti Textiles Mills

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Canara Bank v. M/S Purti Textiles Mills

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