Allowed

State Bank of India v. Ms Vinayak Metasteel Pvt. Ltd.

DRT29 May 2026OA/213/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of dues. The Tribunal found the defendants liable for the outstanding loan amount after reviewing unchallenged evidence, since the defendants appeared ex parte. Relief for recovery from assets was granted. Given the ex parte nature and summary order.

What did the court decide?

Defendants directed to pay Rs.13,10,59,631 along with interest @10.25% within 30 days; recovery to be effected from sale of mortgaged and hypothecated assets.

State Bank of India versus Ms Vinayak Metasteel… — Contract and Commercial Disputes | DRT (2026)

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Before SUSHIL KUMAR RASTOGI,^{Presiding Officer} Debts Recovety Tribunal-Il,^Delhi

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OA No.213 OF 2023

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srATE BANK OF rNDrA^{VS M/S VTNAYAK METASTEEL} PvT LTD & ORS

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Reserued on t 27.04.2026 Pronounced on : 29.05.2026

State Bank of India

-Applicant bank

Vs.

M/s Vinayak Metasteel^{hrt Ltd}

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Mr. Ganesh Kumar^Agarwal

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Mr. Vikas Agarwal Defendants

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Present: Ms. Ritika Satpathy,^{Counsel appearsfor} applicant bank. Defendants are exparte,^{since,2L.08.2025.}

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FINAL ORDER

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This original application^{has been filed by the} applicant bank, on^{04.03 .2023 through Mr. Ashutosh} Rathore, Chief Manager^{of the applicantbank, under} Section 19 of the^{RDB Act, 1993 against the defendants} for recovery of a^{sum of Rs.13,10,59,631/- along with} fufther^{pendentelite and future interest at the} contractuat rate of^interest @17.25o/o^{p.d. in the cash} credit A/c No.3848404t137^and @11.30o/o^{p.a. in the} GECL A/c No.39363555995^{from date of filing of this} O.A. till the realization^{in full.}

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The brief^{facts of the case are that at the request} of defendant no.l^{M/s Vinayak Metasteel Pvt Ltd.,}

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OA NO.^{213 of} 2023

through its^{authorizedsignatory/dhector, the} applicant bank^{sanctioned a Fund Basedworking} capital^{Facility by way of cash credit Limit Facilityof} Rs.6.50 crores,^{vide letter of arrangement(sME-l)} dated 10.04.2019^{and against primary securityi.e.,} Exclusive 1*^{hypothecationcharge on entire current} asse6 comprising:^{1. Stock of R'M', stocks & Spares'} consumables,^{SIP, FG, etc. at its works, godownsetc''} (present and future)^{and includingstock in transit and} cash/credit^{balance in their loan accounts. 2. All} present and future^{book debts/receivableas also clean} or documentary^{bills, domestic or expott, whether} he otherwise and accepted^or cheque/drafts/instruments^{etc. The defendantshad} equitably^{mortgagedthe propertiesi'e', (1)' Factory} land & Building^{survey No.3/978 and 3/998, situatedat} Khasra No.3/978^{and 3/998, Village Rampura,Tehsil.} Amer, Sikar^{Road, Jaipur, Jaipur (Semi Urban)'} admeasuringTotalarea3T93.62Sq.Mtr.inthename Plot of defendant^no.t. (2)' No. 5 1,60,6L,62,63,7^{0,7 L,72,73,7 4 situate at Kha nchan} Industrial^{Park, Village Lalsar, the. Kishangarh Renwal,} Dist Jaipur^{in the name of defendant no'3' (3)' Plot} No.64,65 ,66,67,68,69,85^{situated atKhanchan} Industrial^{Park, villageLalsar, The. Kishangarh Renwal,} bist, Jaipur^{in the name of defendantno'2' The} defendants^haveexecuted all necessary^loaning documents on^10.04.2019 and 28.05.2019.^The defendant^{nos.2 & 3 along with Mrs. Anita Devi Agarwal} and Mrs.^{NeelamAgarwal jointlyexecutedin favour of} applicant bank^{the guarantee agreementdated} 10.04.2019.^{Again, at the request of defendants, the} applicant^{bank sanctioned a Total fund Based credit} ,5\

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OA NO.^{213 of} 2023

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Limits Facility of^{Rs.7.15Crores, vide its letter of} arrangement^{dated 30.04.2020.The defendantshave} executed all^{necessary loaning documents on} 30.04.2020.^{The defendants being the owners of their} aforesaid^{immovable properties had executed letter of} confirmation^{for extension of mortgageby depositof} title deeds^{dated 30.04.2020in favour of the applicant} bank.Again,attherequestofdefendants,the applicant^{bank issued offer letter dated 27.05.2020 to} the defendant^{no.1 company in respect of pre-} approved^{Loan Facility under Guaranteed Emergency} credit Line^{(GECL) and offered wcTL under GECL} Facility of^{Rs.1,29,95,400|-.It is submitted that in} terms and^{conditions of aforesaid officer letter dated} 27.05.2020^{of the applicant bank and request letter} dated^{27 .05.2020 of the defendantno' 1' the} competent^{authority of the applicant bank was pleased} to sanctioned^{the Guaranteed Emergencycredit Line} (GECL)FacilityofRs.t,29,95,4OO/-andrenewedthe aforesaid.existing^{fund basedcredit limits of Rs.7'15} Crores, vide^{its letter of arrangement dated} 29.05.2020.^{i.e., cash creditFacility- Existing Limits of} Rs.6.50 Crores.^{Proposed Limits of Rs.6.50 Crores,} CcEcL(CommonCovid-lgEmergencyLineofCredit Existing^{Limits of Rs.0.00- ProposedLimit of Rs.0.65} crores, GECL^{(Guaranteed Emergency credit Line)-} Existing Limits^{of Rs.0.00- Proposed Limits of Rs.1.29} crores, Total^{FundBased Limit- ExistingLimitsof} Rs.7.15 Crores-^{ProposedLimits of Rs.7.15 Crores and} Total FB+NFB-^{Existing Limits of Rs.7.t5crores-} Proposed^{Limits of Rs.8.44crores. The defendants} have executed^{all necessary loaning documents on} 29.05.2020.ThedefendqnEdulysignedandexecuted sli

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4 OA NO. 213^of ?023 certificate dated 30.09.2021,^{in favourof} the applicant bank^{and acknowledgedthe sanctioned} cash credit limit of^{Rs.6.50 crores and also} acknowledged^{the outstanding amount of Rs.0.28} crores in the^{ccEcL account and a sum of Rs.1.15} Crores in the^{GECL account and further certified that} the funds availed^{form the applicantbank have been} utilized only^{for the purposesto purchase of raw} materials, finished^{goods, stocks and othercurrent} assets, to the^{purchaseof plant & machineries, civil} construction,^{fixed assetsetc. Again, at the requestof} defendants,^{the applicant bank sanctioned a Total Fund} Based and^{Non-FundBased credi Facilitiesof Rs.12.59} Crores, vide^{its letter of arrangement dated27.t0.202L} against the^{primary securityi.€., Exclusive1st} hypothecation^{charge on entire currentassets} comprising:1.^{Stock of R.M', stocks & Spares,} consumables, sIP,^{FG, etc. at its works, godowns etc.,} (present and future)^{and includingstock in transit and} cash/credit balance^{in their loan accounts. 2. All} present and future^{book debts/receivableas also clean} or documentary^{bills, domestic or export, whether} he otherwise and accepted or cheque/drafts/instruments^{etc. and collateralsecurity} i.e., (t). Factory^{land & Building SurveyNo'3/978 and} 3lgg}, situated^{at Khasra No.3/978 and 31998, Village} Rampura,^{Tehsil.Amer,Sikar Road, Jaipur, Jaipur (Semi} Urban), admeasuring^{Total area 3793.62 Sq. Mtr. in the} name of defendant^{no.l. (2). Immovable Property} bearing Survey^{Number:734, 8871733,8881736'} 8921735,^{situated at KhasraNo'734,BB71733'} 888/736 ,^{8921735, Lalasar,KrishangarhRenwal'} Jaipur,Jaipur(SemiUrban),admeasuringTotalArea +\

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OANO. 213^of 2023

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17450.10 Sq. Mtr',^{in the name of defendant no'2'} The defendants^{have executedall necessary loaning} documents on^{27.L0.2021. In consideration of the} applicant^{bank havingat their request agreed to grant} of aforesaid^{enhancedfund based credit facility of} Rs.4, 50,00,000/-,^{aggregate total exposure of Rs'1 2'94} Crores^{(includingCC Limit of Rs.11.00 Crores,CCECL} of Rs.0.65 Crores,^{GECL of Rs.1.29Crores) to the} defendant no.l,^{the defendantnos'2 & 3 jointly} executed in^{favour of and delivered to the applicant} bank the^{guarantee agreementdated 27'10'2021' The} defendant nos.l^{& 2 beingthe ownerof their aforesaid} properties had executed^{letter of confirmation for} extension of^{mortgage by deposit of title deeds dated} 27.L0.2021in^{favour of the applicant bank' The detail} of moftgaged^{properties i.e., (1). Factory land &} Building Survey^{No.3/978 and 3/998, situated at Khasra} No.3/978 and^{3/998, VillageRampura, Tehsil-Amer,} Sikar Road,^{Jaipur, Jaipur (SemiUrban), admeasuring} Total area 3793.62^{Sq. Mtr. in the name of defendant} no.1.^(2). Immovable^{Properly bearing Suruey Number:} 734, 8871733,^{B88/736, 8921735, situated at Khasra} No.734, 8871733,^{888/736, 8921735, Lalasar'} Krishangarh^{Renwal, Jaipur, Jaipur(Semi Urban),} admeasuring^{TotalArea 17450.10Sq' Mtr',in the name} of defendant^no.2.

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It is further^{submitted that the defendants} enjoyed and^{utilized the Loan facilities, but faited to} maintain the^{financial discipline and failed to repay the} due amounts.^{The applicantbank requested the} defendants^{to regularize the loan accountby visitsand} from the but there was^no letters, SJ,

OA NO.^{213 of} 2023

defendants. Hence^{the account was classifiedas} NPA on tB.Og.2O22.^{Therefore,the applicant bank} serued a demand^{notice dated L9.09.2022to the} defendants but^{failed to recoverthe sme. Thus, the} present o.A. is^{preferredby the applicant bank to} recover its dues.

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on notice^{by this Tribunal, the defendants failed} to put appearance^{at all, despitepublication.} Accordingly, the^{defendantswere proceeded against} exparte on^21.08.2025.

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The applicant^{bank has filed evidenceby way of} affidavit Mr.^{Ashutosh Rathore, Manager of the} applicant bank^{as Annexure A-1 to AnnexureA-51} along with the^{oA, which have gone unchallengedand} un-rebutted.^{Hence,the case of the applicant bank} stands fully^{establishedagainst the defendants with} respect to^{nonpaymentof outstanding amount'}

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After^{perusing the records, this Tribunalis of the} view that the^{applicant bank has provedits case} beyond reasonable^{doubts. The evidenceand} documents^{filed by the applicant bank not rebuttedby} the defendants^{by not placing any evidenceand there} is no^{question of disbelievingthe evidenceand} documents^{filed by the applicantbank based upon the} written/Printed^documents.

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In the light of^{the abovediscussions,the present o.A.} deserues to^{be allowed-} -- S",

OA NO.^{213 of} 2023

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I hereby^{allow this o.A. of the applicant bank and} direct the defendant^{nos.l to 3 to pay jointly and} severally to^{the applicantwithin 30 days from today, a} sum of Rs.13,10 ,5g,63L1-^{along with cost, expenses} and interest @^{L0.25o/ofrom'thedate of filing of this} O.A. till the^{date of realization.}

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In case^{of failure to deposit the above amount} within the^{stipulated period, the same shall be} recovered^{from the sale of hypothecatedassets and the} sale of mortgaged^{property i.e., (1)' Factoryland &} Building survey^{No.3/978 and 3/998, situatedat Khasra} No.3/978 and^{3lgg8, village Rampura,Tehsil-Amer,} Sikar Road,^{Jaipur, Jaipur (Semi Urban), admeasuring} Total area^{3793.62Sq. Mtr. (2). Immovable Propefi} bearing Survey^{Number:734, 8871733,8881736'} gg21735, situated at Khasra No.734, 8871733,888/736, BgZl735,^{Lalasar, Krishangarh Renwal, Jaipur, Jaipur} (semi Urban), admeasuring^{Total Area 17450.10 sq.} Mtr.,. In case^{of short fall, the same shall be recovered} from the sale^{of personal movable and immovable} assets of the^{defendant nos.1 to 3'}

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Recovery^{certiflcate be issued forthwith and be} sent to Recovery^{officer, Debts Recovery Tribunal-Il,} Delhi.

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The^{registry of this Tribunat is hereby directed to} issue free^{copy of the order and send the same to both} the^parties.

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SA^?

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,.\

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8 OA NO.^{213 of 2023} 5) Parties^{are directed to appear before the Ld.} Recovery officer,^{DRT-II, Delhi on29.07.2026.Pending} IAs, if ?hY,^{standdisPosed of.}

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File be consigned^{to records.} -

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9"^ Date :29.05.2026 (SUSHIL rUmnn^{RnSl osr)} PRESIDING^OFFICER DRT-II, Delhi

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This^{judgement has been signed, dated and} pronounced in open^couft. gA\ Date z 29.05.2026 (susHIL rcirqen^-M$oGI)' PRESIDING^OFFICER DRT-II, Delhi

State Bank of India v. Ms Vinayak Metasteel Pvt. Ltd.

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State Bank of India v. Ms Vinayak Metasteel Pvt. Ltd.

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