Allowed

Shivalik Small Finance Bank Limited- v. Arth Micro Finance Private Limited

DRT12 Jun 2026OA/1300/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of a loan outstanding against a private limited company and its directors/guarantors who failed to maintain financial discipline and default on dues totaling approximately Rs. 2.89 crores.

What did the court decide?

Defendants liable to pay Rs. 2,89,03,272.03 + interest + costs; Recovery Certificate issued for realization from assets; Appearance before Recovery Officer directed.

Shivalik Small Finance Bank Limited- versus Arth Micro… — Company and Corporate | DRT (2026)

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“ORIGINAL APPLICATION” No. 1300 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1300 OF 2025

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DATE OF RESERVE OF ORDER 09.06.2026 DATE OF DELIVERY OF ORDER 12.06.2026

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Shivalik Small Finance Bank Limited , having its registered office at 501, Salcon Aurum, Jasola District Centre, New Delhi - 110025 and its Head Office at 2nd Floor, Add India Tower, Plot No. A-6A, Sector 125, Noida- 201303, Uttar Pradesh through its Authorized Signatory Mr. Siddharth Sinha.

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…...Applicant Bank…...

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VERSUS

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1. M/s Arth Micro Finance Private Limited through its Authorized Signatory having its Registered Office: A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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2. Mr. Pramod Kumar Paliwal , R/o A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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3. Mr. Kuldeep Kumar Arora S/o Nand Lal Arora, R/o A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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Also At:-

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Mr. Kuldeep Kumar Arora S/o Nand Lal Arora, R/o. PN 51, Shree Nagar, Avasiy Colony, Reliance Petrol Pump ke pass, Jhalawar City, Jhalawar, Rajasthan – 326001.

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……Defendants…...

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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Counsel for the Applicant Bank Sh. Vineet Sharma Defendants None

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JUDGMENT

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This Original Application was filed by the applicant bank on 24.09.2025 for recovery of outstanding amount of Rs. 2,89,03,272.03/- from the Defendants.

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As per the pleadings, Defendant No. 1 is private limited company and Defendant 2 & 3 are the directors and personal guarantors of the Defendant No. 1.

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Defendants had approached the Applicant Bank for seeking Credit facility in the form of Term Loan.

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After due consideration, credit facility was sanctioned by the Applicant Bank in favour of Defendants in the year 2024 vide sanction letter dated 07.03.2024 for a total sum of Rs. 5.00 Crore.

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It is submitted that to secure the credit facility, the Defendants specifically agreed to create charge over the Book Debts equivalent to 110% of the total sanction limit along with the personal guarantees.

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It is submitted that looking to the regular defaults committed by the Defendant, the applicant bank issued loan recall notices dated 30.08.2025 pertaining to the aforesaid loan accounts, despite of which the Defendant failed to clear the due amount of the applicant bank.

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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Defendants failed to maintain financial discipline and therefore, their loan account was classified as NPA. Applicant Bank has therefore, filed this original application for recovery of its dues against the Defendants.

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Summons were issued to the Defendants on 17.10.2025 through court commissioner. The Court Commissioner filed his report on 21.11.2025. Despite service none appeared on behalf of the Defendants.

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Heard arguments and perused the record.

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As stated supra, the Applicant Bank filed the evidence affidavit of Shri Siddharth Singh coupled with the recitals in the documents, viz Exhibit Aw/1 to Aw/15 marked on behalf of the applicant bank, clinches the claim of the applicant bank against the Defendants. Hence, I hold that the Defendants are jointly & severally liable to pay to the applicant bank the claim made in O.A. with future interest and costs.

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In the result, this O.A. No. 1300 of 2025 is allowed declaring that:-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 2,89,03,272.03/(Rupees Two Crore Eighty Nine Lac Three Thousand Two Hundred Seventy Two and Three Paisa Only) with pendente lite and future interest @ 10% (simple) from 29.08.2025 till the date of realization.

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets/Book Debts and as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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12.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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13.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 22.08.2026 .

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14.Prepare Recovery Certificate accordingly.

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15.A copy of the Judgment and Recovery Certificate be given or sent by registered post to each of the parties free. A copy of the Recovery Certificate be sent to the Recovery Officer of this Tribunal for necessary action as per the law.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order pronounced in the open court today i.e. 12.06.2026 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1300 OF 2025

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DATE OF RESERVE OF ORDER 09.06.2026

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DATE OF DELIVERY OF ORDER 12.06.2026

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RECOVERY CERTIFICATE

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(UNDER SUB Section 22 of the Recovery of Debts due to Banks and Financial Institutions Act, 1993 (Act 51 of 1993)

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…...Applicant Bank…...

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VERSUS

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1. M/s. Arth Micro Finance Private Limited through its Authorized Signatory having its Registered Office: A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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2. Mr. Pramod Kumar Paliwal , R/o A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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3. Mr. Kuldeep Kumar Arora S/o Nand Lal Arora, R/o A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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Also At:-

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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Mr. Kuldeep Kumar Arora S/o Nand Lal Arora, R/o. PN 51, Shree Nagar, Avasiy Colony, Reliance Petrol Pump ke pass, Jhalawar City, Jhalawar, Rajasthan – 326001.

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……Defendants…...

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Recovery Certificate for Rs. 2,89,03,272.03/-

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In terms of final order dated 12.06.2026 passed by this Tribunal in the above mentioned case, it is ordered that the-

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a) The Defendants are jointly & severally liable to pay to the applicant bank a sum of Rs. 2,89,03,272.03/(Rupees Two Crore Eighty Nine Lac Three Thousand Two Hundred Seventy Two and Three Paisa Only) with pendente lite and future interest @ 10% (simple) from 29.08.2025 till the date of realization.

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b) The applicant bank is entitled to recover the above amount from the sale of hypothecated assets/Book Debts and as well as from the personal movable and immovable properties/assets of Defendants. The applicant bank is entitled to proceed against the same towards recovery of its debt.

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c) The applicant bank is entitled to the costs of the O.A.

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Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 22.08.2026 .

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The Recovery Officer shall realize the amount as per this Certificate in the manner and mode prescribed under Section 25 and 28 of the Recovery of Debts Due to Banks and Financial

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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Institutions Act, 1993 (as amended from time to time) from the above named Certificate Debtor.

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This Certificate has been issued under my signatures and seal of the Tribunal on this 12.06.2026 .

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & uploaded on 12.06.2026.

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OA No. 1300 of 2025

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 1300 OF 2025

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DATE OF RESERVE OF ORDER 09.06.2026

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DATE OF DELIVERY OF ORDER 12.06.2026

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SCHEDULE TO RECOVERY CERTIFICATE

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MEMO OF COST

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…...Applicant Bank…...

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VERSUS

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2. Mr. Pramod Kumar Paliwal , R/o A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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3. Mr. Kuldeep Kumar Arora S/o Nand Lal Arora, R/o A-64, Residential Colony, Sitapura Industrial Area, Tonk Road, Jaipur, Rajasthan – 302022.

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Also At:-

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Mr. Kuldeep Kumar Arora S/o Nand Lal Arora, R/o. PN 51, Shree Nagar, Avasiy Colony, Reliance Petrol Pump ke pass, Jhalawar City, Jhalawar, Rajasthan – 326001.

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Order signed & uploaded on 12.06.2026.

OA No. 1300 of 2025

……Defendants…...

S.No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	1,50,005.00
2	Process Fee (Inc. Publication)	NIL
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	10,000.00
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	1,61,255.00

¶105

(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

¶106

Order signed & uploaded on 12.06.2026.

OA No. 1300 of 2025

12.06.2026

Counsel:

Sh. Vineet Sharma, Counsel for Applicant Bank None for the Defendants

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Judgment dictated separately and pronounced in the open court. As per order the O.A. is allowed. Recovery Certificate be prepared accordingly and the Registry is directed to verify the Recovery Certificate as per Regulation 22(1) of Debts Recovery Tribunal Regulation 2024 and after verification place the same before the Tribunal.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & uploaded on 12.06.2026.

OA No. 1300 of 2025

12.06.2026

Counsel:

Sh. Vineet Sharma, Counsel for Applicant Bank None for the Defendants

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The Tribunal vide order dated 12.06.2026 , directed the Registrar to verify the Recovery Certificate as per Regulation 22(1) of Debts Recovery Tribunal Regulation 2024.

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The Registrar vide order dated 12.06.2026 verified the Recovery Certificate as per Regulation 22(1) of Debts Recovery Tribunal Regulation 2024. Recovery Certificate be prepared accordingly. Copy of the Judgment and Recovery Certificate be given free to the concerned parties as well as be sent to the Recovery Officer for further proceedings. File be put up before the Registrar for compliance. After compliance file be consigned to record.

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(Vimal Gupta) Presiding Officer, Debts Recovery Tribunal, Jaipur

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Order signed & uploaded on 12.06.2026.

Shivalik Small Finance Bank Limited- v. Arth Micro Finance Private Limited

Case brief

What is this about?

What did the court decide?

Shivalik Small Finance Bank Limited- v. Arth Micro Finance Private Limited

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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