Allowed

Central Bank of India v. M/S Kiwi Consultancy Pvt. Ltd.

DRT17 Oct 2025TA/1286/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application filed by Central Bank of India for recovery of a loan of Rs. 1.30 crore and future interest. The defendants were absent. The court directed payment of the principal and reduced interest at 12% p.a. with costs from the defendants.

What did the court decide?

Defendants directed to pay Rs. 1,30,52,339/- plus 12% interest and costs within 30 days, recoverable from mortgaged property.

Central Bank of India versus M/S Kiwi Consultancy Pvt. Ltd. — Execution and Attachment | DRT (2025)

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T.A. No. 1286 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 T.A. No.1286 of 2023
C ntral Bank of India Ai mal Khan Road, Karol Bagh New Delhi-110005 Applicant
ersus
1 M/s Kiwi Consultancy Pvt. Ltd T rough its Managing Director 1.39/31, Hardhian Singh Road rol Bagh, New Delhi-110005
lso at: o 158, Vishnu Trading Company ew Grain Market, Samalkha, P nipat„ Haryana-132101
2. Sh.Lalit Sharma irector & Personal Guarantor /0 158, Vishnu Trading Company ew Grain Market, Samalkha, anipat, Haryana-132101
Mrs.Basanti Devi irector & Personal Guarantor /o 158, Vishnu Trading Company ew Grain Market, Samalkha, anipat, Haryana-132101
Sh.Nand Kishore Sharma ersonal Guarantor /0 158, Vishnu Trading Company ew Grain Market, Samalkha, anipat, Haryana-132101 Defendants
resent: Sh.Sunil Kumar, Counsel for the applicant bank
Date of Reserve: 03.10.2025
Date of Pronouncement: 17.10.2025
Sc

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T.A. No. 1286 of 2023

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FINAL ORDER

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This original application has been filed by the applicant b nk before �Delhi on 01.03.2021 and then transferred to DRT-I Delhi, through Sh. Satyendra Kumar Pandey, a thorized representative of the applicant bank under Section 1: of Recovery of Debts and Bankruptcy Act, 1993 against the d fendants for recovery of a sum of Rs.1,30,52,339/- (Rupees • ne Crore Thirty Lacs Fifty Two Thousand Three Hundred T irty Nine only) as on 08.02.2021 along with pendentelite and f ture interest @13.75% per annum with monthly rests from 0:.02.2021 till the date of realization with costs.

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2 The brief facts of the case are that on the request of the d fendant no.1 being private limited company run by d fendant no.2 and 3 as directors / guarantors vide loan a•plication dated 09.09.2016 together with legal opinion cum e cumbrance certificate dated 09.09.2016, conveyance deed d ted 06.12.2006 and valuation report dated 07.09.2016, the a•plicant bank sanctioned Cash Credit facility for a sum of s.1,50,00,000/- (Rupees One Crore Fifty Lacs only) on 12.09.2016 for trading business of food grains, confectionery •^{oods, rice and paddy etc. against hypothecation of stocks and} ortgage of property owned by defendant no.4. The efendant no.4 stood as guarantor giving consent letter dated I 9.09.2016 for the credit facility sanctioned in favor of the efendant no.1 by the applicant bank.

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That in order to avail the loan facility, the defendant no.1 t rough its directors viz. defendant no.2 & 3 created charge ver movable properties, Letter of Hypothecation of Book I ebts, Letter of Continuity, Letter of Waiver, Letter of Interest 5d -

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T.A. No. 1286 of 2023

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V riation and Demand Promissory Note with the applicant bank o 12.09.2016. The defendant no.2,3 and 4 executed Forms of uarantee for Advances and Credit on 12.09.2016 in favour of a •plicant bank.

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4 That in order to secure the loan facility, the defendant n•.4 created equitable mortgage of property of Commercial S op bearing No.158, New Grain Market, situated at Samalkha, P nipat, Haryana by way of deposit of title deed with the plicant bank. The applicant bank got its charge registered ith Registrar of Companies vide letter dated 30.09.2016. The d fendant no.1 submitted Registration Certificate on Form o.CHG-1 filed before ROC on 07.10.2016.

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5 It has been submitted by the applicant bank that after a ailing the aforesaid loan facility, the defendants failed to c•mply with the terms and conditions of sanction and were

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regular in maintaining the account. Ultimately, the applicant •ank classified the account as NPA on 31.03.2017 as per RBI • uidelines but defendants failed to clear the overdue, hence t e applicant bank has approached this Tribunal for recovery •f their dues.

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Notice under section 13(2) of the Securitization and econstruction of Financial Assets and Enforcement of Security I terest Act 2002 dated 16.06.2017 was issued to the efendants. The defendants replied vide letter 31.07.2017 ssuring to maintain financial discipline but they failed to do o. The applicant bank issued Notice u/s 13(4) dated 0.09.2017 duly published in newspapers on 24.09.2017. The pplicant bank auctioned the mortgage shop for Rs.122.60 lacs nd issued Sale Certificate and confirm the sale of property

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T.A. No. 1286 of 2023

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v de letter dated 01.09.2018. The defendants tried several ti es for OTS but failed to honor the sanction of One Time S ttlement of the account. Now, remaining amount of • .1,30,52,339/- is still payable as per Discharge Quote dated 0:.02.2021.

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7 Notices of this O.A. were issued to the defendants and d spite of proper service, the defendants have chosen to assent from the proceedings. As per order dated 21.12.2023, t e defendants have been proceeded ex-parte as they have not a•peared before the Tribunal and even written statement, e idence and affidavit of assets have not been filed by the d fendants.

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8 In order to prove its case, the applicant bank has filed its e idence by way of Affidavit of Sh. Satyendra Kumar Pandey, a thorized representative of the applicant bank who has p oved the documents as Power of Attorney, Original Loan a• plication, Legal opinion cum Non Encumbrance Certificate, I onveyance Deed, Valuation Report, Guarantor's Consent L tter, Employment/Business Verification Report, Sanction L tter, Letter of Hypothecation of Book Debts and Loans, Letter • Continuity, Letter of Waiver, Forms of Guarantee for dvances and Credits, Personal Guarantees, Letter of Interest ariation, Demand Promissory Note, Letters, Form no.CHG-1, emand Notice dated 16.06.2017, Reply dated 31.07.2017, ewspaper Publication, Certificate of NPA, Sale Notices, Order sated 22.02.2018, OTS Proposals, Sale Confirmation Letter, ale Certificate, Statement of Account, Discharge Quote, Letter confirming outstanding dues as Ex.A-1 to Ex.A-43.

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T.A. No. 1286 of 2023

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9 The applicant bank has fully corroborated the averments ade in the O.A. Even otherwise the whole case of the

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a• plicant bank is based on the documents and the same have b-en duly approved.

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1s As per the provision of Section 19(20) of the Recovery of ebts Due to Banks and Financial Institution Act, 1993 which analogous to Section 34 of CPC, on filing of the suit/claim, t e contract between the parties comes to an end and the urt/Tribunal has a discretion to award the same depending u•on the circumstances of each case. Same principle has been I. id down by the Hon'ble Apex Court in the case of Central Bank

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India Vs. Ravindra & Others. Taking stock of all the c rcumstances and keeping in view that there is a drastic fall in r tes of interest globally and domestically, I am of the opinion t at interest of justice will be served if the interest at the rate o 12% p.a. is awarded.

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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 the applicant bank has proved its case eyond reasonable doubts.

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In the light of the above discussions, the Original pplication 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 pplicant bank, jointly or severally, within a period of 30 days, sum of Rs.1,30,52,339/- (Rupees One Crore Thirty Lacs Fifty sd-

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T.A. No. 1286 of 2023

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T o Thousand Three Hundred Thirty Nine only) as on 0:.02.2021 together with pendentelite and future interest I 12% per annum from 08.02.2021 till the date of realization a d costs; failing which the aforesaid amount shall be r covered from the sale of hypothecated stocks. In case of s ortfall, the same shall be recovered from the sale of movable a d immovable properties of the defendants.

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

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II) Parties are directed to appear before the Recovery fficer, DRT I, Delhi on 16.12.2025.

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V) Copies of final order as well as Recovery Certificate be • s nt to all concerned free of cost.

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