Allowed

Punjab National Bank (Oriental Bank of Commerce) v. M/S Kkr Fashion

DRT2 Jul 2025TA/2752/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Punjab National Bank for recovery of dues against M/s KKR Fashion and proprietor Sh. Mohd. Ehsan, who were absconders in ex-parte proceedings, directing payment of principal, interest, and costs.

What did the court decide?

Directing Defendants to pay Rs. 29,45,237/- along with pendent lite and future interest @7.30% p.a. and costs within 30 days.

Punjab National Bank (Oriental Bank of Commerce) versus M/S… — Banking and Recovery | DRT (2025)

¶1

T.A. No. 2752 of 2022

¶2

Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

T.A. No. 2752 of 2022

¶5

Punjab National Bank (e-Oriental Bank of Commerce) CSC Complex, East Delhi Pocket E, Mayur Vihar Phase II,

¶6

Delhi-110091 Applicant

¶7

Versus

¶8

M/s KKR Fashion Proprietorship firm of Sh.Mohd Ehsan 6290, Block No.6B

¶9

Plot No.28, Gali No.3

¶10

Dev Nagar, Karol Bagh, New Delhi-110005

¶11

Sh.Mohd. Ehsan

¶12

Proprietor M/s KKR Fashion 6573, Block No.9, Gali No.2 Dev Nagar, Karol Bagh New Delhi-110005 Defendants

¶13

Present: Sh.Ajay Kumar, Counsel for the applicant bank

¶14

Date of Institution: 09.05.2022 Date of Pronouncement: 02.07.2025

¶15

FINAL ORDER

¶16

This original application has been filed by the applicant before DRT II, Delhi on 09.05.2022 and then transferred to DRT-I Delhi through Shri Surendra Singh, authorized representative of the applicant bank under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, sd-

¶17

T.A. No. 2752 of 2022

¶18

1993 against the defendants for recovery of a sum of Rs.29,45,237/- (Rupees Twenty Nine Lacs Forty Five Thousand Two Hundred Thirty Seven only) as on 28.02.2022 together with pendentelite and future interest @7.30% per annum with monthly rests from 01.03.2022 till the date of realization and costs. Further, the name of Ms Durgawati Kumari was substituted as authorized representative in place of Shri Surendra Singh, erstwhile AR for the applicant bank.

¶19

The brief facts of the case are that at the request of defendant no.1, proprietorship concern of defendant no.2 vide their loan application dated 23.01.2020, the applicant bank sanctioned Cash Credit facility of Rs.25,00,000/- on 29.01.2020 @7.95% interest per annum with monthly rests against hypothecation of stocks and finished goods etc. under Oriental Tatkal scheme. The defendants also agreed to pay penal interest @2% per annum on overdue amount.

¶20

That in order to avail the said loan facility, the defendants submitted loan application and executed Sole Proprietorship Letter, Agreement of Hypothecation of Assets (DOC-1), Common Agreement (DOC-38), Letter of Undertaking and Affidavit in favour of the applicant bank on 30.01.2020.

¶21

It has been submitted that after availing the aforesaid loan facility, the defendants miserably failed and neglected to pay the interest in the account and failed to maintain financial discipline as per terms and conditions despite various notices and reminders. The applicant bank classified the account as NPA on 31.03.2021 as per RBI guidelines and issued recall notice on 15.04.2021 but the defendants failed to regularize

¶22

¶23

T.A. No. 2752 of 2022

¶24

the account. Hence, the applicant bank has approached this tribunal for recovery of its dues.

¶25

Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 was issued on 19.07.2021 to the defendants by the applicant bank but they failed to clear the dues.

¶26

Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings. As per order dated 14.08.2024, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

¶27

In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Surendra Singh, AR of the applicant who has proved the documents as General Power of Attorney Ex.AW1/1, Loan Application Form Ex.AW1/2, Sanction Letter Ex.AW1/3, Sole Proprietorship Letter Ex.AW1/4, Agreement of Hypothecation of Assets Ex.AW1/5, Common Agreement Ex.AW1/6, Letter of Undertaking & Affidavit Ex.AW1/7(Colly), Legal Notice Ex.AW1/8, Notice u/s 13(2) Ex.AW1/9, Statement of Account Ex.AW1/10.

¶28

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.

¶29

The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant

¶30

¶31

T.A. No. 2752 of 2022

¶32

bank and the applicant bank has proved its case beyond reasonable doubts.

¶33

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

¶34

ORDER

¶35

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within 30 days, a sum of Rs.29,45,237/- (Rupees Twenty Nine Lacs Forty Five Thousand Two Hundred Thirty Seven only) as on 28.02.2022 together with pendentelite and future interest @7.30% per annum with monthly rests from 01.03.2022 till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks and assets etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

¶36

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

¶37

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 01.09.2025.

¶38

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

¶39

56/

¶40

(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

¶41

(Dictated and pronounced in open court) Dated: 02.07.2025