Allowed

Phonix Arc v. Ess Aay Fashion Pvt. Ltd. through Its Director

DRT30 Jul 2025TA/1314/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the T.A. filed by the appellant bank. The Tribunal found that the respondent borrowers failed to repay the sanctioned loan facility. Since the respondents did not appear, the evidence was accepted, and a direction was issued to pay the sum along with interest and costs.

What did the court decide?

Direct the defendants to pay Rs.53,82,433.02 along with interest at 18% p.a. and costs within 30 days; in case of default, recovery from sale of their assets.

Phonix Arc versus Ess Aay Fashion Pvt. Ltd. through Its Director — Banking and Recovery | DRT (2025)

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Before SUSHIL KUMAR RASTOGI, Presiding Officer Debts R.ecovery Tribunal-Il, Delhi

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TA NO.1314 0F 2022

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M/S PHOENIX ARC PvT LTD VS MS. ESS AAY FASHION INDIA PvT LTD & ORS

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Reserved on =^O2.O7.2O25 Pronounced on : 30.07.2025

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M/s Phoenix ARC M Ltd.

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Applicant bank

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Vs.

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M/s ESS AAY Fashion India tut Ltd

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Mr. Sanjay Tayal

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Mr. AjayTayal

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Defendants

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Present: Mr. Vishnu Jaysaval, Counsel for applicant bank. Defendants are exparte dated 05.02.2020.

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FINAL ORDER

¶14

This original application has been^{filed by the} applicant bank, on 04.05.2016^{through Sh. Hariom} Sharma, Authorised^{Representative of the applicant} bank, under Section¹⁹ of the^{RDB Act, 1993 against} the defendants for^recovery of^{asum of} Rs.53,82,433.02 together with^{cost, charges and} pendentellite and future interest as^{per contractual} rate being @18.00o/o^{p.a. in respect from date of filing} of this O.A. till the^{realization in full.}

¶15

The brieffacts ofthe^{case are that the defendant} initially approached^{the original Lendor Bank i.e.,} Barclays Bank for sanction^{of business loan for} Rs.35,00,000/- which^{was to be repaid in 36 equated} monthly installments^{for sum of Rs'1,26,5341-'The} defendant had entered^{into agreementfor the Term} Loan along with the^registered t2s^{and conditionsfor}

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TN13t412022

the loan facility, acknowledgment^{form and} demand^promissory note with the^{Barclays Bank. The} loan agreement number 3637683 dated^27.04.2010 wherein the defendant is the borrower^{in the loan} agreement with the^{Barclaysbank Plc. The defendant} executed the documents^{(and relied by the applicant} company) in favour of the^{Barclays Bank Ltd/Original} Lendor on 27.04.2010. It is^{submitted that Barclays} Bank Plc has transfer/assign^{its debt recoverablefrom} the defendant in^{favour of PhoenixARC h/t Ltd as per} deed of assignment^{dated 06.11.2012.}

¶20

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 applicantbank requestedthe} defendant to^{regularize the loan account by visits and} letters, but there^{was no response from the} defendants. Therefore,^{the applicantbank served a} notice dated^{27.04.20t6 to the defendants but failed to} recover the same'^{Thus, the present O'AII'A' is} preferred by the applicant^{bank to recover its dues'}

¶21

On notice^{by this Tribunal, the defendants failed} to put appearance^{at all, despitepublication'} Accordingly, the^{defendantswere proceeded against} the exparte^{on 05.02.2020'}

¶22

The^{applicant bank has filedevidenceby way of} affidavit of Sh.^{Naveen Kumar, Authorized} Representative^{of the applicant company as documents} as Paper No.16^{to Paper No.B3 which havegone} unchallenged^{and un-rebutted'Hence, the case ofthe} 9)

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TNt3t4l2022

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applicant bank stands fully established^{against the} defendants with respect to^{nonpaymentof outstanding} amount.

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After^perusing the^{records, this Tribunalis of the} view that the applicant bank has^{provedits case} beyond reasonable doubts. The^evidenceand documents filed by the applicant^{banknot rebuttedby} the defendants by not^{placing any evidenceand there} is no^question of disbelieving the^evidenceand documents filed by the applicant^{bank based upon the} written/printed dilcuments.

¶27

In the light of the above^{discussions, the presentT.A.} deserves to be allowed.

¶28

ORDER

¶29

I hereby allow this T.A. of^{the Applicant Bank and} direct the defendant^{nos. 1 to 3 to pay jointly and} severally to the applicant^{bank within30 days from today,} a total sum of Rs.53,82,433.02^{along with cost, expenses} and interest @18.00%^{from the date of filing of this OA} which has become^T.A till^{the date of realization.}

¶30

In case of failure^{to depositthe above amountwithin} the stipulated^{period, the same shall be recoveredfrom} sale of^personal movable^{and immovable assets of the} defendant nos. I to^3.

¶31

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

¶32

The registry of this^{Tribunal is hereby directedto} issue free copy of the^{order and sendthe same to both} the parties. '<r-

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TN131412022⁴ 5) Parties are direct to appear^{before the Ld.} Recovery Officer, DRT-II,^Delhi on^{30'09.2025. Pending} IAs, if any, stand disPosed^of. ) 14' File be consigned to^records. {sl Date : 30.07.2025^(SUSHILKUMAR ) PRESIDING OFFICER DRT-II, Delhi

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This^judgement has been^{signed, datedand} pronounced in open court.

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Date : 30.07.2025

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C e^ il ,{ za./' z- ' (SUSHIL KUMAR RASTO GI) PRESIDING OFFICER DRT-II, Delhi

Phonix Arc v. Ess Aay Fashion Pvt. Ltd. through Its Director

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Phonix Arc v. Ess Aay Fashion Pvt. Ltd. through Its Director

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