Allowed

State Bank of India v. Ms Net Four India Ltd.

DRT20 Aug 2025TA/1649/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of dues. Despite challenges regarding authorization and interest rates, the court found the bank proved its case and directed specific respondents to pay the outstanding principal, interest, and costs jointly and severally.

What did the court decide?

Defendants directed to pay Rs. 18,81,60,948 with 14% interest and costs jointly and severally within 30 days; Recovery Certificate to be issued.

State Bank of India versus Ms Net Four India Ltd. — Banking and Recovery | DRT (2025)

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Before SUSHIL^{KUMARRASTOGI, Presiding Officer} Debts Recovery^{Tribunal-Il,Delhi}

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TAlL649l2022

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STATE BANK^{OF INDIA VS M/S NET 4 INDIALTD & ORS'}

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Reserued on =^24-07-2025 Pronounced on^{: 20.08.2025}

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state Bank of^India

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Applicant bank

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Vs,

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M/s Net^{4 India Ltd.}

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M/s Net^{4 CommunicationLtd}

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Shri Jasjit^{Singh SawhneY}

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Shri Amarjit^{Singh SawhneY}

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through legal^heirs

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4a. Mrs. Pawanjot^SawhneY

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4b. Ms. Biba SawhneY

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-^Detendants

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Present: Shri Vipin^{Jai, Counsel appearsfor applicant} bank.

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Defendant Nos.1^{to 3 ai'e expafte since} 09.07.2024.

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LR's of the^{defendant no.4 are expafte since} 04.06.202s.

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FINAL ORDER

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This original^{application has been filed by the} applicant bank,^{on 10'03.2015throughSh' Susanta} Kumar Ray,^{Chief Manager and being the Branch} Manager and^{also a PrincipalOfficerof the applicant} bank, under^{Section 19 of the RDB Act, 1993 against} a sum of the defendants^for recovery of Rs.18,81,60,948/-^with pendentelite and future interest at^{applicable rates from the date of filling of} this O.A till^{the date of realization in full'}

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The^{brief facts of the caseare that at the request} of defendant,^{the appiicantbank sanctioned a Credit}

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€A

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TANOll649l2022²

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Facilities of Rs.15^{crores i.e., Fund Based of Rs.13} crores and Non^{Fund Facilities being LC/BG-Fully Inter-} Chargeable of^{Rs.2 Crores, vide sanctionlefterdated} 24.0t.20L2 against^{pari passu flrst charge with State} Bank of India for the^{entire current assetsof the} company including^{raw material,stock in progress,} finished^{goods,receivablesand other current assets} (both present and future).^{The defendant executedall} necessary loaning documents^{on 24.01'2012.The} defendant no.2^{has signed and executedcorporate} guarantee agreement dated^{24.01.2012,in favour of} the applicant bank,^{therebyguaranteeingthe} repayment of the entire^{outstandingin the nameand} account of the^{defendantin its various loan accounts,} together with up-to-date^{interest, costs etc' The} defendant nos.3^{and 4 had signedand executed their} individual^{personal guarantee agreementdated} 24.0L.20L2, in favour^{of the applicantbank, thereby} guaranteeing the repayment^{of the entire outstanding} in the loan accounts^{of the defendant,togetherwith} up-to-date^{interest,costs etc. Again,at the requestof} defendant, the^{applicantsanctioned/renewal-cum} enhancement^{of the FundBasedWorkingCapitalLimits} from Rs.13 Crores^{to Rs.15 Crores,with cancellationof} Non-Fund Based^{Limits of Rs.2 Crores,videsanction} letter dated 27.Lt'20t2.^{Again,at the request of} defendant, the^{applicant bank sanctioned Ad-hocCash} Credit Limit of^{Rs.5 Crores for 90 days w'e'i',} 23.05.2013 vide^{sanction letter dated 27.06'2013,the} total Cash Credit^{Limit sanctioned by the applicant bank} to the defendant^{amounted to Rs.20Crores' The} defendants executed^{all necessary loaning documents} on 28.06.2013. It^{is submitted that during the}

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(,\

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TANOll649l2022³

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pendency of the O.A, the defendant^no'4/Shri Amarjit Singh Sawhney^{was died and the LRs of} deceased defendanV^{Shri Amarjit Singh Sawhney were} impleaded in the Present^OMA.

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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 requestedthe} defendants to^{regularize the loan accountby visitsand} letters, but there^{was no response from the} defendants,^{hence the accountwas classifiedas NPA'} Therefore, the applicant^{bank serveda Legal Demand} Notice dated 27.02.2015^{to the defendantsbut failed} to recover the^{sameThus, the present O.A|IA is} prefeired by the applicant^{bank to recover its dues'}

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On notice^{by this Tribunal, the defendant no'1,2} and 4^put appearance^{through counseland filed written} statement and evidence.^{Thereafter,the defendant} nos. 1,2 and^{4 failed to put appearance in the matter,} despite issuance of^{default notice. Accordingly, the} defendant nos.1,2^{and 4 wereproceededagainst} expafte on 09.07.2024.^{The defendant no.3 failed to} put appearance at all, despite^{service. Accordingly,the} defendant no.3^{was proceededagainst exparteon} 01.07.2015.^{Vide order dated 07.02'2019,it has been} submitted by the^{Ld. Counselfor defendantno'1 that} the defendant^{no.2. is under liquidation and the same} has been represented^{through OL attached to Honble} High Court of Calcutta.

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<"I

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TANOlt649l2022⁴

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In their^{written statement the defendant} nos.1,2 and 4^{have deniedthe facts mentioned in the} OA. It is submitted^{that the originalapplication has not} been signed,^{verified nor instituted by duly authorized} and competent^{person. It is further submitted that the} documents^{on which the applicant bank is relying upon} being fabricated,^{manufacturedcannot be allowed to} be received^{as evidence. The statement account relied} upon by the^{applicantbank, have clearly not been} maintained^{in the ordinary courseof bankingbusiness'} It is submitted^{that the applicant bank has also sought} to debiVcharge^{interestover and above the rates on} interest mentioned^{in the documents heavily relied} upon by it.^{It is submitted that the claims of the bank} are even contrary^{to the MOA and the AOA of the} defendant^{no.1 as it doesnot permit the execution of} the certain^{documents which bank claimshave been} executed in it^{favour, thereby making such execution} illegal and void'^{The presentsuit/originalapplication} has not been^{valued properly for the purposeof} application^{fee. Nor has proper applicationfee been} affixed on the^{plaint/original application' It is prayed} that this Hon'ble^{Tribunal may dismiss the present} original aPPlication.

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The applicant^{bank and the defendantnos'1,2} and 4 have^{filed their respective evidence'}

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Heard^{the Ld. Counsel of the applicant bank and} perused the record.

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E\I

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TANOlt649l2022⁵

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The flrst^{contention of the defendant is that} the OA has^{not been filed by the competentperson who} is authorized to^{verify and file the presentOA' From} perusal of the record, it^{is clear that the applicant bank} has filed^{relevant documentsregarding} the authorization of^{Shri Susanta Kumar Ray,} Chief Manager and^{being the Branch Manager and also a} Principal Officer^{to sign, verify and institute the OA} before this^{Tribunal. Therefore,there is no groundto} reject the^{OA on this ground.}

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The^{next contention of the defendantis that the} applicant^{bankhas not filed the complete statement of} account as^{required as per the rules' In this regard I} have^{perused the record. On perusal of the record,it is} clear that the^{applicant bank has filed the complete} statement of^{account. Therefore,there is no force in} the contention^{of the defendant'}

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The^{next contentionof the defendantis that the} applicant^{bank has chargedexorbitant rate of interest'} On the other^{hand, the Ld. counsel of the bankhas} submitted^{that the interesthas been chargedas per} agreement^{between the parties' In this regard I have} gone through the^{record.From perusalofthe statement} of account^{it is clear that the applicant bank is charging} rate of interest^{as per agreement' Therefore,it cannot} be said that^{the applicant bank is charging exorbitant} rate of interest.

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TANOll649l2022⁶

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From^{perusalof the entire evidence,it is clear} that the defendants^{have failed to prove their case as} claimed in the^{written statement. On the other hand,} the applicant^{bank has proved his case against the} defendants^{and therefore,the defendantsare liableto} pay jointly and severally^{the amount claimed by the} applicant^{bankand the OAfl-Aof the applicant bank is} liable to be^{allowed against the defendant nos' 1, 3 and} 4a and 4 B.^{The defendant no.2 is under liquidation'} therefore,^{the OA/ TA cannot be decided against the} defendant^{no.2 and defendantno'2 shall be boundby} the orders^{of the liquidation'}

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In the light of^{the above discussions,the present TA} deserves^{to be allowed againstdefendantno'1, 3 and} 4a and 4^B.

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ORDER

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I hereby^{allow this T'A. of the ApplicantBank and} direct the^{defendant nos. 1, 3 and 4a & 4b to pay jointly} and severally^{to the applicantbank within 30 days from} today, a^{sum of Rs.18,81,60,9481-along with cost'} expenses^{and interest@14olo from the date of filing of} this O.A^{which has become TA till the date of} realization.^{However,the liability of defendant no'4a &} 4b being^{LRs of deceased defendantno'4lSh' Amarjit} Singh Sawhney^{islimited to the extentof} property/assets^{inherited by them from deceasedSh'} Amarjit Singh^SawhneY'

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In^{case of failure to depositthe above amount} within the^{stipulatedperiod, the same shall be} recovered^{from the sale of the hypothecated assets'In} case of short^{fall, the same shall be recovered from the} I- e"\

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TANOlr649l2022⁷

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sale of^{personalmovable and immovable assets of} the defendant^{nos.1,3 and 4a & 4b.}

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Recovery^{Certificatebe issuedforthwith andbe} sent to Recovery^{Officer, Debts Recovery Tribunal-Il,} Delhi.

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The registry^{of this Tribunal is hereby directedto} issue free copy ofthe^{order and send the sameto both} the^parties.

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Parties^{are direct to appear before the Ld'} Recovery Officer,^{DRT-II, Delhion 22.t0'2025' Pending} IAs, if any,^{standdisPosed of.}

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File be consigned^{to records'} -

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9r<br>

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Date: 20.08.2025

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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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Date :20.08.2025

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(susHIL KU^{pTAR RASTOGI)} PRESIDING OFFICER DRT-II, Delhi

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State Bank of India v. Ms Net Four India Ltd.

Case brief

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State Bank of India v. Ms Net Four India Ltd.

Case brief

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