Allowed

Punjab National Bank v. M/S Ruhi Saree Pvt. Ltd.

DRT21 Feb 2026OA/25/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs. 50,96,038.88 along with interest and costs from defaulting borrowers who failed to repay sanctioned cash credit and WCTL loans, proceeding ex-parte due to non-appearance.

What did the court decide?

Defendants directed to jointly and severally pay Rs. 50,96,038.88 plus future interest, costs, and penalty within 30 days; recovery certificate to be issued.

Punjab National Bank versus M/S Ruhi Saree Pvt. Ltd. — Banking and Recovery | DRT (2026)

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O.A. No. 25 of 2023

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

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 25 of 2023

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Punjab National Bank Circle Sastra North Delhi, Vikrant Tower 2nd Floor, Rajendra Place, New Delhi-110008

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Applicant

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Versus

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M/s Ruhi Saree Pvt. Ltd. House no.17, Kh no.83/17 & 18 Phase-1, Ground floor

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Blk-T-1, Budh Vihar, West Delhi Delhi-110086

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Also at:

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M/s Ruhi Saree Pvt. Ltd.

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T-1/17, Main Market, Budh Vihar Delhi-110086

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Mrs. Kavita Sharma w/o Sh. Deepak Sharma L-2/16, Phase I, Budh Vihar North West, Delhi-110086

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Mr. Ashish Sharma s/o Sh.Subhash Sharma E-47, Kallu Colony, Budh Vihar Phase 2, North West Delhi-110086 Defendants

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Present: Sh.Anshuman Srivastava, Counsel for applicant bank Date of Reserve: 30.01.2026 Date of Pronouncement: 21.02.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 26.12.2022 through Shri Vivek Kumar, authorized

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O.A. No. 25 of 2023

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representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.50,96,038.88 (Rupees Fifty Lacs Ninety Six Thousand Thirty Eight and paisa Eighty Eight only) as on 31.10.2022 together with pendentelite and future interest plus penal interest @2% per annum with monthly rests from 31.10.2022 till the date of realization and costs.

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The brief facts of the case are that at the request of defendant being company through its directors, the applicant bank sanctioned Cash Credit (Hypothecation) loan facility for a sum of Rs.20,00,000/- (Rupees Twenty Lacs only) for enhancement of garments business on 17.11.2018 against hypothecation of goods, book debts and movable assets which was renewed and enhanced to Rs.35,00,000/- (Rupees Thirty Five Lacs only) on 27.12.2019 @10.10% interest per annum. Further, as per RBI guidelines, the applicant bank sanctioned WCTL loan under GECL scheme due to Covid-19 pandemic for a sum of Rs.6,00,000/- (Rupees Six Lacs only) on 17.07.2020 @7.65% interest per annum. The defendants also agreed to pay @2% penal interest per annum in case of default or delay in repayment of interest and instalment.

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That in order to avail the aforesaid loan facilities, the defendant thrugh its directors submitted loan application and executed Hypothecation of Goods & Book Debts, Cash Credit Limit Sanction Acknowledgement Letter, Hypothecation of Movable Assets, Letter by Borrower, Agreement for Hypothecation of Current Assets, Authorization Letter, Application Form for GECL, Demand Promise Note, Undertaking, Agreement for WCTL, Master Agreement,

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O.A. No. 25 of 2023

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Certificate u/s 2A(b) of Banker's Book of Evidence Act and 65B of Indian Evidence Act and Statement of Accounts in favour of the applicant bank.

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It has been submitted that after availing the aforesaid loan facilities, 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 requests. The applicant bank classified the accounts as NPA on 10.062021 as per RBI guidelines but the defendants failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of its dues.

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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 27.05.2025, 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.

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In order to prove its case, the applicant bank has filed various documents such as Power of Attorney, Loan application, Hypothecation of goods & book debts, CC Limit Sanction Acknowledgement letter, Hypothecation of movable assets, Letter by borrower, Agreement for hypothecation of current assets, Authorization letter, Loan application acknowledgement letter, Demand Promise note, Undertaking, Agreement for WCTL, Master agreement, Certificate by the officer/manager in charge of the computer system, Statement of account as Annexure A-1 to A-19 from page no.1 to 133.

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O.A. No. 25 of 2023

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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.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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

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ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within 30 days, a sum of Rs.50,96,038.88/- (Rupees Fifty Lacs Ninety Six Thousand Thirty Eight and Paisa Eighty Eight only) as on 31.10.2022 together with pendentelite and future interest @12.10% per annum with monthly rests from 31.10.2022 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.

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

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(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 22.04.2026.

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O.A. No. 25 of 2023

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

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-Cd--

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

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(Dictated and pronounced in open court) Dated: 21.02.2026

Punjab National Bank v. M/S Ruhi Saree Pvt. Ltd.

Case brief

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Punjab National Bank v. M/S Ruhi Saree Pvt. Ltd.

Case brief

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