Allowed

Indian Overseas Bank v. M/s Allwyn Furniture Pvt. Ltd.

DRT25 Nov 2025TA/404/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Indian Overseas Bank under the RDB Act, 1993, directing five respondents to pay a sum of Rs. 98,09,561 along with interest, rejecting defenses regarding forged documents, blank signatures, and NPA classification.

What did the court decide?

Defendants directed to pay jointly and severally Rs. 98,09,561 along with interest and costs within 30 days.

Indian Overseas Bank versus M/s Allwyn Furniture… — Contract and Commercial Disputes | DRT (2025)

¶1

Before SUSHIL KUMAR RASTOGI, Presiding Officer Debrts Recovety Tribunal-Il, Irelhi

¶2

TAlfi4l2024

¶3

INDIAN OVERSEAS BANK VS M/S^{ALLWYN FURNITURE} P\IT LTD & ORS.

¶4

Reserued on : O9.1O.2O25 Plonounced on : 25.11.2025

¶5

Indian Overseas Bank

¶6

Applicant bank

¶7

Vs.

¶8

M/s Allwyn Furniture h/t Ltd

¶9

Ms. Mamta^Rani

¶10

Mr. Basant^{Lal Bhatia}

¶11

Mr. Jagdish^{Lal Bhatia}

¶12

Mr. Jitender Dua

¶13

-^DefendanB

¶14

Present: Mr. Ujjwal^{Kumar,Counselappears for} aPPlicant bank. None for defendants.

¶15

FINAL ORDER

¶16

This original application^{has been filed by the} applicant bank,^{on 04.02.20L6through Mr' Hansraj} Singh, Chief^{Managerof the applicant bank, under} Section^{19 of the RDB Act, 1993 againstthe defendants} for recovery of^{a sum of Rs.98,09,561/-along with} interest @14olo^{p.a. from the date of filling of this O'A} till the date of^{realization in full'}

¶17

The^{brief facts of the case are that at the request} of defendant^{no.1 through defendant nos'2 & 3, the} applicant^{bank sanctioned a Cash Credit Limit Facilityof} Rs.60,00,000/-^{against hypothecation of stocks and} books debts^{and TermLoan Facility of Rs'37,97,000/-} for^{purchaseof CNC Turret Punch WEla355 with two} auto Index^{(one), Lantek P-urch (One) Toolingsfor}

¶18

¶19

TANOl404l2024 2

¶20

above punch (20 seb) against the hypothecation of machinery, vide sanction letter dated 15.05.2012. The said cash credit and term loan facility has been collaterally secured by creation of hypothecation of stocks and book debts both^present and future etc.ⁱⁿ favour of applicant. The defendant no.1^through defendant nos.2 & 3 along^{with defendant no.4} executed loan documents in^{favour of applicantbankas} borrower/guarantors. The defendant^{nos.4 and 5 are} present director of the defendant no.1'^{The defendant} nos.1 to 4 executed all necessary^{loaningdocumentson} 15.05.20 12, 17 .02.20t5,^{26.04.20L5and 0 1. 10'20 15.}

¶21

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 account by visits and} letters, but there^{was no response from the defendants,} hence, the account^{was classified as NPA dated} 31.03.2015. Therefore,^{the applicantbank serued a} demand/legal notice^{dated 11.07.2015 tothe} defendants but failed^{to recover the same. Thus, the} present O.Afl-A is^preferred by^{the applicant bank to} recover its dues.

¶22

On nctice by^{this Tribunal, the defendants put} appearance through^{counsel and filed written} statement and^evidence.

¶23

5, In their written^{statementthe defendantshave} denied the faets^{mentioned in the OA. It is submitted} that the cause of^{action as alleged by the applicantin} the O.A is false^{and mncocted one and as such, O.A'} -'L

€A

TANOl404l2024

deserves outright^{dismissal under order 7 Rule 11} C.P.C. It^{is further submitted that the respondents are} not liable to^{the amountclaimedin the present} application^{or any interest thereonas is being claimed} by the applicant^{in the present O'A' It is submitted that} the respondent^{no.l was makingthe payment against} the overdue^{facilityavailed by them regularlybut the} officials of^{the applicant bank staltedadopUng hostile} attitude^{towards the respondents by manipulatedthe} record and^{other documents against the respondentsin} order to^{make out a false caseand they failed to supply} the copy^{of the statement of account to the respondent} no.1. Even^{the applicant bank also itlegally and wrongly} declared^{the loan account of the respondent bankas} NPA and^{thereafter started the presentproceedings} against^{the respondents as per their whims and fancies'} The respondent^{no.l bank never deniedtheir genuine} and legal^{tiability and he is still ready to pay the same} subject^{to the condition that the applicantbank corrects} its record^{and removes the exorbitant amountwhich} has been^{includedby the applicant bank in the form of} interest,^{penalinterest, late fees, penalty and other} hidden^{charges. It is further submitted that the O'A' of} the applicant^{bank is not maintainable as the same is} based upon^{false declaration and forged and fabricated} documents^{just to extract moneyfrom the respondent} no.1. It is^{submitted that the applicant bank had} obtained^{the signatures of the respondents on blank} paper and thus,^{there was no contract with the} applicant^{bank. It is further submittedthat the O'A of} the applicant^{bank is not maintainable as the case of} the applicant^{is barred by the period of limitation and} the claim^{is highty banql!{me'The O'A has not been} eJ.

¶28

TANOl404l2024⁴

¶29

filed an authorized^{and competent person for and} on behalf^{of the aPPlicant.}

¶30

The applicant^{bank and the defendantshave filed} their resPective^evidence.

¶31

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

¶32

The^{first contention of the defendantsin the} written slatement^{is that the OA has been filed without} any cause^{of action.In this regard I have gone through} the record.^{From perusal of the record, it is clearthat} the applicant^{bank has issued legal notice to the} defendants to^{repay the amount due and the} defendants^{has failed to repaythe entire due amount} and therefore,^{the causeof action to file the OA has} duly arise^{and therefore,the contention of the} defendants^{has no force.}

¶33

The^{next contention of the defendantsis that the} applicant^{bank has not filed the complete statement of} account^{as requiredas per the rules' In this regard I} have^{perused the record' On perusalof the record'it is} clear that^{the applicant bank has filed the complete} statement^{of account. Therefore,there is no forcein} the contention^{ofthedefendants'}

¶34

The^{nextcontentionofthedefendantsisthat NPA} has been^{wrongly declared' In this regardI have gone} through the^{statement of account'From perusal of the} statement^{of account it is clearthat the contentionof} the defendants^{is againstthe evidence' The account has} been declared^{NPA as per RBI guidelines'therefore'the} contention^{of the defendantshas no force'}

¶35

The^{next contention of the defendantsis that the} exorbitant^{rate of interest'} applicant^{bank has cha}

¶36

TANOl404l2024^s

¶37

On the other hand, the^{Ld. counsel of the bankhas} submitted that the^{interesthas been chargedas per} agreement between^{the pafties.In this regard I have} gone through the record' From^{perusalofthestatement} 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.^{Therefore, there is no force in the} contention of^{the defendants'}

¶38

The next^{contention of the defendantsis that the} applicant bank^{has obtained signatureson the blank} proformas. Butthe contention^{ofthe defendantshas no} force. The defendants^{are well educated businessman,} therefore,^{it cannot be presumed that they have signed} the^papers without^{going through the conditionsof the} sanction letter.^{Further, the defendant has never filed} any complaint^{before the mmpetent forum in this} regard.

¶39

The^{next contention of the defendantsis that the} application^{is barred by limitation'But from perusal of} the record,^{it is clear that the OA has been filed within} limitation Period.

¶40

The^{next contention of the defendantsis that the} OA has not^{been filed by the competent person.Mr'} Hansraj Singh,^{Chief Managerof the applicant bank'} who is authorized^{to veriff and file the present OA'} From^{perusal of the re@rd, it is clear that the officer of} the bank^{has been authorizedby the bank to file the} present OA and therefore,^{the contentionof the} defendants^{that the OA has not been filed by authorized} person has no^force.

¶41

9-.'

¶42

TANO|404/2024 6

¶43

From^perusal of 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 defendants^{are liable to} pay jointly and severally the amount claimed by the applicant bank and the OAfl-A^{of the applicant bank is} liable to be allowed.

¶44

In the light of the above^{discussions,the present TA} deseryes to be allowed.

¶45

ORDER

¶46

I hereby allow^{this T.A. of the Applicant Bank and} direct the defendant^{nos. 1 to 5 to pay jointly and} severally to the applicant^{bank within 30 days from} today, a sum of^{Rs.98,09,56U- along with cost,} expenses and^interest @13olo^{from the date of flling of} this O.A which^{has become TA till the date of realization'}

¶47

In case of^{failure to depositthe above amount} within the stipulated^{period, the same shall be} recovered from^{the sale of the hypothecatedassets and} machinery. In case^{of shoft fall, the sameshallbe} recovered from^{the sale of the of personal movable and} immovable assets^{of the defendant nos.1to 5'}

¶48

Recovery^{Certificatebe issuedforthwith and be} sent to Recovery^{Officer,DebtsRecovery Tribunal-Il,} Delhi.

¶49

The registry^{of this Tribunal is herebydirected to} issue free copy^{of the order and send the sameto both} the parties. T

¶50

TANOl404l2024 7

¶51

Parties are direct to appear before the Ld. Recovery Officer, DRT-II, Delhion 27.01.2026. Pending IAs, if any, stand disposed of.

¶52

File be consigned to records.

¶53

g<br>

¶54

Date: 25.11.2025 (SUSHIL KL,lvl-AR R/q3ibb!''PRESIDING OFFICER DRT-II, Delhi

¶55

This^judgement has been signed, dated and pronounced in open court.

¶56

--'--^'.--'

¶57

SA (susHr L KU MAd RAsl'Udii PRESIDING OFRCER DRT-II, Delhi

¶58

Date :25.11.2025

Indian Overseas Bank v. M/s Allwyn Furniture Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Indian Overseas Bank v. M/s Allwyn Furniture Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Parties & counsel

Coram

Case details

Similar cases