The Debt Recovery Tribunal allowed the applicant bank's original application for recovery. Directed defendants to pay the dues within 30 days or face recovery from hypothecated assets. Issued a recovery certificate.
Ordered defendants to pay Rs.24,54,569.26 with interest within 30 days; directed issuance of recovery certificate.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
T.A. No.996 of 2022
Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi
Presiding Officer: Shri Govind Ballabh Sharma
T.A. No. 996 of 2022
| Punjab National Bank Circle Sastra Centre, East Delhi Pocket E, Mayur Vihar Phase II, Delhi-110091 Applicant |
|---|
| Versus |
| 1. M/s. Mahalaxmi Engineering Works 2744, Gali Pyara Lal Wali Minerva Lane, Kashmere Gate Dehi-110006 |
| 2. Mrs. Sarita Devi w/o Mr. Vishv Pratap R/o Dasaupur, Post Mokalpur Faridpur, Sultanpur Uttar Pradesh-228171 also at: Mrs. Sarita Devi w/o Mr. Vishv Pratap Flat No.85, Block-A, DDA Flats :ahangir Puri, Delhi-110033 also at: Mrs. Sarita Devi w/o Mr. Vishv Pratap 2744, Gali Pyara Lal Wali Minerva lane, Kashmere Gate Delhi-110006 |
| 3. Mr. Surjeet Prajapati (Guarantor) R/o Flat no.85, Block-A, DDA Flats Jahangir Puri, Delhi-110033 Also at: Mr. Surjeet Prajapati (Guarantor) C-1057,�Jahangir Puri, Delhi-110033 Defe:Idants |
| resent: Sh. Rustam Singh, Counsel for the applicant bank 5d |
T.A. No.996 of 2022
Date of Institution: 29.09.2021
Date of Pronouncement: 27.02.2025
FINAL ORDER
This original application has been filed by the applicant I ank on 29.09.2021 before DRT-III, Delhi & then transferred 1 I. DRT-I, Delhi through Sh. Akhouri Binay, authorized epresentative of the applicant bank under Section 19 of ecovery of Debts Due to Banks and Financial Institutions Act, 993 against the defendants for recovery of a sum of s.24,54,569.26 (Rupees Twenty Four Lacs Fifty Four housand Five Hundred Sixty Nine and paisa Twenty Fix only) s on 15.09.2021 together with pendentelite and future terest @8.60% per annum with monthly rest from the date •f filing of this application till the date of realization and costs.
The brief facts of the case are that on the request of 0 efendant no.1 through its proprietor defendant No.2, the pplicant bank sanctioned Cash Credit Facilities of Ps.10.01 acs (Rupees Ten Lacs One Thousand only) and Term Loan of ID s.12.50 Lacs (Rupees Twelve Lacs and Fifty Thousand only) 9.65% interest per annum on 04.01.2018 against ypothecation of stocks and book debt under PMMY Scheme. he defendant no.3 stood as guarantor for the credit facilities vailed by defendant no.1 from the applicant bank. Further, he applicant bank sanctioned WCTL loan of Rs.3.82 lacs on 8.09.2020 under Guarantee Emergency Credit Line as per RBI otification dated 01.01.2019 in favour of defendants.
T.A. No.996 of 2022
In order to avail the credit facilities, the defendants ubmitted loan application along related documents and xecuted Hypothecation of Goods and Book Debts, Te:'m Loan greement and Agreement of Hypothecation of Current Assets n 04.01.2018 in favour of the applicant bank. The defendant o.3 executed Agreement of Guarantee in favour of applicant ank. In addition, the defendants executed Master Agreement, greement for Working Capital Term Loan (WCTL) and emand Promissory Note dated 28.09.2020 in favour of pplicant bank.
The defendants confirmed the debts towards applicant ank on 04.11.2020 acknowledging the debt of Rs.10,37,797/Cash Credit Account and Rs.8,85,187/- in Term Loan account s on 30.09.2020 towards applicant bank.
It has been submitted by the applicant bank that after vailing the aforesaid loan facilities, the defendants miserably ailed to repay the loan amounts and even neglected to pay the interest and instalment, failed to maintain financial discipline nd non-submission of financial statements as per terms and onditions despite legal notice dated 04.03.2021. The applicant 1p ank classified the account as NPA on 31.03.2021 as per extant BI guidelines and issue recall notice dated 04.04.2021 to clear he outstanding dues but neglected by the defendants. Hence, he applicant bank has approached this tribunal for recovery of is dues from the defendants
The defendant No.1 executed Balance and Security onfirmation Letter and acknowledged the debt towards pplicant bank on 04.11.2020 confirming and acknowledging he debt due towards the applicant bank in the CC acLount of
T.A. No.996 of 2022
s.10,37,797/- and term loan of Rs.8,85,187/- as on 0.09.2020.
Notice under Section 13(2) of the Securitisation and econstruction of Financial Assets and Enforcement of Security nterest Act 2002 dated 10.06.2021 was issued to the efendants by the applicant bank to which the defendants ailed to comply.
Notices of this O.A. were issued to the defendants and espite of proper service the defendants have chosen to absent rom the proceedings. As per order dated 26.11.2024, the efendants have been proceeded ex-parte as not appeared efore the Tribunal and even no written statement, evidence nd affidavit of assets have been filed by the defendants.
In order to prove its case, the applicant bank has filed its vidence by way of affidavit of Shri Akhouri Binay as authorized epresentative of the applicant who has proved the documents s General Power of Attorney Ex.AW1/A, GST Registration opy Ex.AW1/1, Sanction Letter Ex.AW1/2, Acceptance Letter x.AW1/3, Hypothecation of Goods and Book Debts Ex.AW1/4, erm Loan Agreement Ex.AW1/5, Agreement of Hypothecation •f Current Assets Ex.AW1/6, Agreement of Guarantee x.AW1/7, Letter of Acceptance Ex.AW-1/8 & Ex.AW1/9, estructure Loan Letter Ex.AW1/10, Sanction Letter x.AW1/11, Master Agreement Ex.AW1/12, Agreement for orking Capital Term Loan Ex.AW1/12, Demand Promissory Note Ex.AW1/13, Balance Confirmation Letters Ex.AW1/14 & Ex.AW1/15, Legal Notice Ex.AW1/16, Recall Notice Ex.AW1/17, Notice under Section 13(2) Ex.AW1/18, Notice for invocation of Guarantee Ex.AW1/19, Statement of Account Ex.AW1/C, Memorandum of Interest and Expense Ex.AW1/D.
5c/—
T.A. No.996 of 2022
In the light of the above discussions, the Original pplication deserves to be allowed.
ORDER
I, allow this OA and direct the defendants to pa; to the pplicant bank within a period of 30 days, jointly or severally, sum of Rs.24,54,569.26 (Rupees Twenty Four Lacs Fifty Four housand Five Hundred Sixty Nine and paisa Twenty Six only) gether with pendentelite and future interest @8.60% per nnum with monthly rests and penal interest from the date of iling of this application till the date of realization, failing which he aforesaid amount shall be recovered from the sale of ypothecated stock and book debts etc. In case of shortfall, he same shall be recovered from the sale of the movable and movable properties of the defendants.
II) The recovery certificate be issued forthwith and be sent o the Recovery Officer, Debt Recovery Tribunal-I, Delhi. kr-
T.A. No.996 of 2022
(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 28.04.2025. (IV) Copies of final order as well as Recovery Certificate are to be sent to all concerned free of cost. sq'---- 2 _,'2.42s'S'-'--- (GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 27.02.2025
F
2 issues framed by the court
Whether the Debt Recovery Tribunal is empowered to admit the application for recovery of dues from the defendants.
Whether the defendants are liable to pay the outstanding principal, interest, and costs to the applicant bank.
2 provisions across 2 enactments
Punjab National Bank
M/s. Mahalaxmi Engineering Works
Mrs. Sarita Devi
Mr. Surjeet Prajapati
Govind Ballabh Sharma
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
