Allowed

Central Bank of India v. Ms Iknitted Textile Private Limited

DRT21 Feb 2026OA/369/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Central Bank of India against M/s Iknitted Textile Private Limited and individual defendants for recovery of loan dues, disallowing no defense due to non-appearance, and directed payment of principal, interest, and costs.

What did the court decide?

Directed defendants to pay Rs. 1,01,77,584.98 plus interest and costs within 30 days; recovery from sale of assets in case of default; issuance of recovery certificate.

Central Bank of India versus Ms Iknitted Textile… — Contract and Commercial Disputes | DRT (2026)

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O.A. No. 369 of 2024

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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.369 of 2024

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Central Bank of India

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H-3/36, Sector-18, Rohini North West, Delhi-110089

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Applicant

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Versus

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M/s Iknitted Textile Private Limited Through its Directors

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R/o G-75, Sector D-1, Tronica City, Loni, Ghaziabad, U.P.-201102

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Also at:

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M/s Iknitted Textile Private Limited

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F-4, Sector D-1, Tronica City Loni, Ghaziabad, U.P.-201102

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Also at:

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M/s Iknitted Textile Private Limited GH-248, GF-01, Antriksh Green Apartment Road, Bhuvapur, Village Kaushambi, Ghaziabad Uttar Pradesh-201010

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Also at:

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M/s Iknitted Textile Private Limited F-13/3, UGF Model Town II New Delhi-110009

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Also at: M/s Iknitted Textile Private Limited 7-B, Prem Shanti Kunj-2, Club Road Civil Lines, Delhi-110054

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Sh. Tarun Jain s/o Kewal Prakash Jain R/o F-13/3, UGF Model Town-II Delhi-110009

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Also at:

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Sh. Tarun Jain s/o Kewal Prakash Jain 7-B, Prem Shanti Kunj-2, Club Road Civil Lines, Delhi-110054

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O.A. No. 369 of 2024

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Smt. Shivangi Jain w/o Mr. Tarun Jain R/o F-13/3, UGF Model Town II Delhi-110009

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Also at:

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Smt. Shivangi Jain w/o Mr. Tarun Jain 7-B, Prem Shanti Kunj-2, Club Road Civil Lines, Delhi-110054 Defendants

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Present: Shri Manoj Sharma, Counsel for the applicant bank

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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 31.05.2024 through Sh.Harish Nehra, authorized 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.1,01,77,584.98 (Rupees One Crore One Lac Seventy Seven Thousand Five Hundred Eighty Four and paisa Ninety Eight only) as on 07.05.2024 along with pendentelite and future interest @ contractual rate of interest with monthly rests from the date of filing of this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 through its directors/ guarantor being defendant no.2 & 3 in business of manufacturing of garments vide loan application dated 06.06.2013 along with various documents, the applicant bank sanctioned Cash Credit cum ODBD under MSME General facility for Rs.4,00,00,000/(Rupees Four crores only) on 28.07.2023 @9.60% per annum against hypothecation of stocks, book debts and plant & sd

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O.A. No. 369 of 2024

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machinery covered under CGTMSE scheme. The applicant bank modified and reduced the limit to Rs.2,00,00,000/- (Rupees Two Crores only) on 09.08.2023 and disbursed / released the loan amount of Rs.1,00,00,000/- (Rupees One Crore only) on 11.09.2023 to the supplier M/s Kamal Design against copy of invoice/bills along with E-way Bills.

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That in order to avail the loan facility, the defendant no.1 through its directors submitted loan application and executed Agreement of Hypothecation, Letter of Consent, Letter of Consent by Guarantors, Supplementary Agreement, Form of Guarantee for Advances & Credits, Undertaking & Declaration, General Irrevocable Power of Attorney, Letter of Hypothecation, Letter of Continuity, Demand Promissory Note, Letter of Interest Variation, Letter of Waiver and Letter of Deposit with the applicant bank on 02.08.2023.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendants failed to comply with the terms and conditions of sanction and failed to regularize the account with the applicant bank. It has further been submitted that the during visits of officials of applicant bank, it was found that there was no stock available. The applicant bank issued various letters requesting defendants to contact them but defendants neglected it and disposed of stock and machinery from their business unit.

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It has been stated that the applicant bank lodged a criminal complaint dated 16.11.2023 to DCP Economic Offence Wing, Police Station, Mandir Marg Complex, New Delhi vide diary no.D-2690. Further, the applicant bank issued email and notice dated 11.12.2023 regarding declaration of account as fraud. Ultimately, the applicant bank classified the account as NPA on 07.01.2024 as per RBI guidelines and issued legal sd-

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O.A. No. 369 of 2024

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notice dated 12.04.2024 but the same was returned with remarks 'Addressee left without intimation' and hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notices under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 05.02.2024 was issued for Rs.1,01,77,584.98 to the defendants but defendants did not pay any heed to clear the dues.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 11.12.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of Affidavit of Shri Harish Nehra, authorized representative of the applicant bank who has proved the documents as Power of Attorney, Loan Application, Aadhar Cards, PAN Cards, GST Registration Certificate, Certificate of Incorporation, Rent Agreement, Guarantor's Consent Letter, Asset/Liability Statement, Memorandum of Association and Articles of Association, Lease Deed, Due diligence Report, PreInspection report, Common Appraisal Memorandum for SME, Board Resolution, Sanction Letters, Agreement of Hypothecation, Letter of Consent of Borrowers, Supplementary Agreement, Form of Guarantee for Advances & Credits, Undertaking and Declarations, Letter of Hypothecation, Letter of Continuity, Demand Promissory Note, Letter of Interest variation, Letter of Waiver, Letter of Deposit, Letters, Post Inspection Reports, Criminal Complaint, Notices alongwith

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O.A. No. 369 of 2024

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Postal Receipts, Courier Receipts, Tracking Reports and Statement of account marked as Ex.AW-1/1 to Ex.AW-1/27.

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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 approved.

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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 a period of 30 days, a sum of Rs.1,01,77,584.98 (Rupees One Crore One Lac Seventy Seven Thousand Five Hundred Eighty Four and Paisa Ninety Eight only) as on 07.05.2024 together with pendentelite and future interest @9.60% per annum from the date of filing of this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, goods, movable 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.

O.A. No. 369 of 2024

(III)^{Parties are directed to appear before the Recovery} Officer, DRT I, Delhi on 23.04.2026.

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

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(Dictated and pronounced in open court) Dated: 21.02.2026

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Central Bank of India v. Ms Iknitted Textile Private Limited

Case brief

What is this about?

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Central Bank of India v. Ms Iknitted Textile Private Limited

Case brief

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