Allowed

Punjab National Bank v. M/S Umaxe Projects

DRT25 Apr 2025TA/2479/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application proceeding ex-parte against absent defendants. The Tribunal directed payment of the outstanding principal sum plus future interest at a reduced rate of 12% per annum, recoverable from specified movable and immovable properties.

What did the court decide?

Direction to pay Rs. 10,47,52,876.74 with pendent lite and future interest @ 12% per annum; issuance of recovery certificate.

Punjab National Bank versus M/S Umaxe Projects — Banking and Recovery | DRT (2025)

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T.A. No.2479 of 2022

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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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T.A. No. 2479 of 2022

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Punjab National Bank (e-Oriental Bank of Commerce) Circle Sastra, First Floor Rajendra Bhawan, Rajendra Place New Delhi-110008

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Ppplicant

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Versus

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M/s Umaxe Projects Director Sh.Sanjay Garg A-115, 4th Floor, Vakeel Chamber Vikas Marg, Shakarpur, Delhi-110092

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Also at:

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D-332, 3rd Floor, Vivek Vihar, Delhi-110095

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Also at:

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UG-7, Tirupati Plaza, A-212C, Vikas Marg Shakarpur, Delhi-110092

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Also at:

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390, Avas Vikas, Haridwar Uttarakhand — 249401

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Sh. Sanjay Garg s/o Sh.Sukhbir Singh Director (Borrower/Mortgagor/Guarantor) R/o 5/793, Ground Floor Sector-5, Vaishali, Ghaziabad-201014

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Also at:

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H.No. 148/2, Ward No.24, Near MCL Water Tank Kaka Nagar, Gautampuri Shamli, Muzaffarnagar, UP-247776

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T.A. No.2479 of 2022

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Also at:

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Plot No.96, Ramprastha Greens Vaishali Extension, Ghaziabad-201010

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Also at:

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390, Avas Vikas, Haridwar

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Uttarakhand — 249401

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Sh. Ajay Garg s/o Sukhbir Singh (Borrower/Mortgagor/Guarantor)

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H.No. 148/2, Ward No.24, Near MCL Water Tank Kaka Nagar, Gautampuri

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Shamli, Muzaffarnagar, UP-247776

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Also at:

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Plot No.96, Ramprastha Greens Vaishali Extension, Ghaziabad-201010

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Smt.Neha Garg (Borrower/Mortgagor/Guarantor) R/o 5/793, Ground Floor

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Sector-5, Vaishali, Ghaziabad-201014

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Also at:

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D-332, 3rd Floor, Vivek Vihar, Delhi-110095

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Also at:

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Plot No.96, Ramprastha Greens Vaishali Extension, Ghaziabad-201010

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Smt. Kaushalya Devi D-332, 3rd Floor, Vivek Vihar, Delhi-110095

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Smt. Babita Bansal w/o Shiv Bansal D-332, Vivek Vihar, Delhi-110095

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Sh.Vinod Kumar s/o Sh.Atma Ram H.No. 178, Ward No.24, Near MCL Water Tank Kaka Nagar, Gautampuri Shamli, Muzaffarnagar, UP-247776

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Sh.Harpal Singh Gambhir s/o Sh.Jaspal Singh Gambhir H-36, Third Floor, Kailash Colony New Delhi-110048

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T.A. No.2479 of 2022

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M/s Cozy Garments Pvt.Ltd. Through its directors Sh.Harpal Singh Gambhir & Meenakshi Jain A-143, Madhur Vihar, Delhi-110092

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Also at: 103, New Rajdhani Enclave, Vikas Marg, Delhi-110092 Also at: 11-1 at Mahila Udyog Park II Noida-201306 Defendants

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Present: Sh.G.P.S.Verma, Counsel for the applicant bank Date of Institution: 18.03.2021 Date of Pronouncement: 25.04.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 18.03.2021 before DRT-III, Delhi & then transferred to DRT-I, Delhi through Sh.Virender Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.10,47,52,876.74 (Rupees Ten Crores Forty Seven Lacs Fifty Two Thousand Eight Hundred Seventy Six and Paisa Seventy Four only) as on 30.11.2020 together with pendentelite and future interest @15.40% per annum in Cash Credit Account and @9.15% in Vehicle Loan from defendant no.1 to 7 with monthly rest till the date of realization and costs.

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The brief facts of the case are that at the request of the defendant no.1 through defendant no.2 to 7, the applicant bank sanctioned Cash Credit limit of Rs.2.00 crores on

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T.A. No.2479 of 2022

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13.07.2009 @13.50% interest per annum with monthly rest against hypothecation of stocks, book debts and mortgage of properties which was increased from time to time lastly on 26.11.2015 sanctioning Cash Credit facility of Rs.5.50 crores, BG of Rs.10.00 crores and LC of Rs.1.00 crore. On the request of defendant no.1, the applicant bank sanctioned adhoc limit of Rs.1.00 crore on 30.12.2017 and Rs.0.50 crore on 09.12.2013 in addition to CC limit of Rs.5.50 crores. The defendant no.8 stood as Corporate guarantor for the credit facilities sanctioned by the applicant bank in favour of defendant no.1. On the request of defendant no.1, the applicant bank sanctioned / reviewed the credit facilities of Rs.16.50 crores within which Cash Credit limit of Rs.5.50 crore, BG of R.10.00 crores and LC for Rs.1.00 crores against hypothecation of stock, book debt and extension of immovable properties of defendant no.2 to 5 and defendant no.7 @14.45% interest per annum subject to change by RBI from time to time on 15.10.2017. In addition to the above, the applicant bank sanctioned Vehicle loan of Rs.20.00 lacs in favour of defendant no.1 against hypothecation of ISUZUMU-7 Car bearing no.UK08-AL-4041 on 13.01.2016 @10.20% floating rate of interest with monthly rest to be repayable in 84 EMI of Rs.33,410/-. The defendants shall be liable to pay penal interest @2% over and above the rate on overdrawn portion.

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In order to avail the credit facilities by the defendant no.1, the defendant no.2 to 7 submitted Board Resolutions of defendant no.1 and executed LTR 21, Agreements of Guarantee, Agreement of Hypothecation, Common Agreement, Affidavit, Supplementary Agreement, Counter Guarantee Agreement, Irrevocable Letter of Authority, Agreement of Corporate Guarantee on various dates as and when the limits

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were enhanced. In addition, the defendants executed Balance and Security Confirmation Letters on 26.07.2012, 05.11.2012, 06.07.2013 and 10.12.2015. The defendant no.9 submitted Board Resolution dated 25.07.2012, 06.07.2013 and 10.12.2015 confirming pledge of their property, extended for enhanced limits and authorizing the execution of documents by Sh.Rajesh Jain, guaranteeing the credit facilities availed by defendant no.1 with the applicant bank. The defendant no.2 on behalf of defendant no.1 executed Common Agreement, Agreement of Term Loan, LTR-20, Agreements of Guarantee with the applicant bank.

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That in order to secure the credit facilities, the defendant no.1 through defendant no.2, hypothecated the stocks of construction material, entire book debts, receivables, currents assets, finished goods etc. along with ISUZU MU-7 Car with the applicant bank.

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That in order to secure the credit facilities, the defendants created equitable mortgage of properties viz:

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i) Property situated at D-332, Vivek Vihar, Delhi owned by defendant no.4 vide registered Sale Deed Document No.4807, Addl. Book No.I, Vol. No.4513 at Pages 169 to 175 with Sub Registrar VIII on 26.03.2010;

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ii) Property at Ground Floor, MIG Flk No.793/5, GDA Double Storey, Vaishali Ghaziabad, UP owned by defendant no.2 by depositing registered Sale Deed vide Bahi No.1, Jild No.5602, Pages 445/470, Document No.11287 with Sub Registrar IV, Ghaziabad on 27.05.2005;

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iii) Plot at Mohalla Kaka Nagar, Gautampuri, Pargana Shamli, Tehsil Kairana, Dist. Muzaffarnagar, UP measuring 41.82 sq.meters owned by defendant no.7 duly register ed vide

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set--

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T.A. No.2479 of 2022

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Bahi No.I, Jild No.2117 at Pages 172/173, Doc No.4622 in the office of Sub Registrar, Kairana on 26.09.1995;

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iv) Plot at Mohalla Kaka Nagar, Gautampuri, Pargana Shamli, Tehsil Kairana, Dist. Muzaffarnagar, UP measuring 75.56 sq.meters owned by defendant no.2 and 3 vide registered Sale Deed Bahi No.I, Jild No.1/26 at Pages 97/7-12 Doc No.1070 with Sub Registrar, Shamli on 31.03.1999;

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v) Plot at Mohalla Kaka Nagar, Gautampuri, Pargana Shamli, Tehsil Kairana, Dist. Muzaffarnagar, UP measuring 100 sq.meters owned by defendant no.2 vide registered Sale Deed Bahi No.I, Jild No.1896 at Pages 377/378 Doc No.6468 with Sub Registrar, Shamli on 13.11.1991;

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vi) Property No.96, Sector-7, Vaishali Extension, Ghaziabad owned by defendant no.4 duly registered Vide Bahi Nod, Jild No.17623 at Pages 309 to 414 Doc No.10981 with Sub Registrar IV Ghaziabad on 16.05.2011;

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vii) Property No.11-A, Mahila Udyog Park II, Echotech-III, Greater Noida, UP measuring 1000 sq.meters owned by defendant no.9 vide Sale Deed Bahi No.I, Jild No.3791 at Pages 47 to 108 Doc No.12113 with Sub Registrar Gautambudh Nagar on 15.10.2008.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants miserably failed and neglected to pay the interest and instalment and failed to maintain financial discipline as per terms and conditions despite various request and notices. The applicant bank classified the account as NPA on 13.09.2019 as per extant RBI guidelines. Bank Guarantees in favour of Air Force Naval Housing Board were invoked amounting to Rs.717.69 lac which was crystallized in the Cash Credit account. Further, some

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T.A. No.2479 of 2022

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guarantees issued favoring Bharat Heavy Electricals Ltd. were still outstanding till filing of this application.

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Notice under section 13(2) of the Securitizat: on and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 12.03.2020 was issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank which was acknowledged by the defendants on 19.012020.

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Notices of this O.A. were issued to the defenclzrits and despite of proper service the defendants have chosen to absent from the proceedings. As per order dated 01.11.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not 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 Shri Virender Kumar as authorized representative of the applicant who has proved the documents as Copy of Power of Attorney of AR, Sanction Letters, Board Resolutions, LTR 21, Agreements of Guarantees, Agreement of Hypothecation, Common Agreement, Affidavits of Defendants, Hypothecation on Company' Entire Stocks etc., Counter Guarantee Agreement, Agreement of Corporate Guarantee, Sale Deeds of Mortgaged Properties, Extension of Mortgage, Balance and Security Confirmation, Undertakings, Letters on various dates, Irrevocable letter of Authority, Proforma Invoice of Car, Vehicle Loan sanction, Agreement of Term Loan, Renewal cum Sanction Letters, Notice u/s 13(2) of

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T.A. No.2479 of 2022

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Sarfaesi Act, Acknowledgement by defendant, State' nent of Accounts.

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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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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 beyond reasonable doubts.

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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim, the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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In the light of the above discussions, the Original Application deserves to be allowed.

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T.A. No.2479 of 2022

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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.10,47,52,876.74 (Rupees Ten Crores Forty Seven Lacs Fifty Two Thousand Eight Hundred Seventy Six and Paisa Seventy Four only) together with pendentelite and future interest @12.00% per annum with monthly rests from 01.12.2020 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, ISUZU MU-7 Car having Registration No.UK08-AL-4041 and immovable mortgaged properties:

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i) Property situated at D-332, Vivek Vihar, Delhi owned by defendant no.4;

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ii) Property at Ground Floor, MIG Flat No.793/5, GDA Double Storey, Vaishali Ghaziabad, UP owned by defendant no.2;

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iii) Plot at Mohalla Kaka Nagar, Gautampuri, Pargana Shamli, Tehsil Kairana, Dist. Muzaffarnagar, UP measuring 41.82 sq.meters owned by defendant no.7;

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iv) Plot at Mohalla Kaka Nagar, Gautampuri, Pargana Shamli, Tehsil Kairana, Dist. Muzaffarnagar, UP measuring 75.56 sq.meters owned by defendant no.2 and 3;

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