Allowed

Punjab National Bank v. Ms Satvat Products Private Limited

DRT10 Jun 2026OA/73/2023

Case brief

AI extract

What is this about?

In an original application filed by Punjab National Bank for recovery of dues of Rs. 26,34,099/-, the Tribunal ruled that the respondents are jointly and severally liable to pay the amount. The bank was granted permission to recover dues from hypothecated assets and personal properties.

What did the court decide?

Directing respondents to pay Rs. 26,34,099/- with future interest at 10%, allowing recovery from hypothecated and personal assets, and directing issuance of a Recovery Certificate.

Punjab National Bank versus Ms Satvat Products Private Limited — Company and Corporate | DRT (2026)

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“ORIGINAL APPLICATION” No. 73 OF 2023

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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. 73 OF 2023

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DATE OF DELIVERY OF ORDER 10.06.2026

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Punjab National Bank , having its Head Office at Plot No. 4, Sector10, Dwarka, New Delhi-110075 and a Branch Office at Madri Industrial Area, Udaipur (Raj.) and Circle Sastra, LIC Building 3rd Floor, Sub City Centre, Udaipur through its Senior Manager/Authorized officer Mr. Abadhesh Kumar Jha.

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…..Applicant Bank…..

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VERSUS

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1. M/s Satvat Products Private Limited registered office address - 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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Factory address at E-44, Road No. 3, Madri Industrial Area, Udaipur (Rajasthan) - 313001 through its directors Rajat Sharma and Puneet Sharma.

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2. Rajat Sharma S/o Shri Ghanshyam Sharma, resident of 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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E-44, Road NO. 3, Madri Industrial Area, Udaipur (Rajasthan)- 313001.

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3. Punit Sharma S/o Shri Ramchandra Sharma, resident of 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Order signed & uploaded on 11.06.2026.

OA No. 73 OF 2023

Also at: -

E-44, Road NO. 3, Madri Industrial Area, Udaipur (Rajasthan)- 313001.

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……Defendants…..

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Counsel for the Applicant Bank Sh. R. C. Sharma Defendants Ex parte

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JUDGMENT

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This Original Application was filed by the applicant bank on 12.12.2022 for recovery of outstanding amount of Rs. 26,34,099/- from the Defendants.

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As per the pleadings, Defendant No. 1 is a private limited company registered under the provisions of the Companies Act, 2013 and engaged in the trading of Namkeen and Snacks etc. Defendant No. 2 and 3 are the directors of the Defendant No. 1 Company. The facts of the matter are that the Defendant No. 1 through its directors approached to the Applicant Bank for seeking credit facilities i.e. Term Loan of Rs. 15 Lac and Cash Credit of Rs. 10 Lac.

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After due consideration, Term Loan of Rs. 15 Lac and Cash Credit facility of Rs. 10 Lac was sanctioned by the Applicant Bank in favour of Defendants in the year 2020 vide sanction letter dated 15.10.2020.

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It is submitted that Defendant No. 1 company offer to hypothecated the assets, entire stock (Present & Future), manufacturing unit and book debts in favour of the

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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Applicant Bank and Defendant No. 2 and 3 are stood as guarantors of the Company.

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It is submitted that as the defendants failed to abide by the financial discipline of the aforesaid Credit facilities availed by them and further failed to operate and regularize the loan account satisfactorily as per the terms and conditions of sanction and security documents executed by the defendants and accounts were not running properly and outstanding/dues/installments and interest were not being deposited by the defendants. Further financials also were not submitted by the defendants and further no interest was paid by the defendants therefore the aforesaid loan accounts of the defendant no. 1 Company became irregular.

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Defendants failed to maintain financial discipline and therefore, their loan account was classified as NPA on 20.04.2022. 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 08.02.2023. Applicant Bank has filed proof of Dasti service along with affidavit of Dasti service dated 31.05.2023. Despite service none were appeared on behalf of the Defendants, therefore, they were proceeded ex-parte vide order dated 20.07.2023.

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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 Abadhesh Kumar Jha coupled with the recitals in the documents, viz Exhibit A/1 to A/16 marked on behalf of the applicant bank, clinches the claim of the

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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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. 73 OF 2023 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. 26,34,099/- (Rupees Twenty Six Lac Thirty Four Thousand and Ninety Nine Only) with pendente lite and future interest @ 10% (simple) 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/stock/manufacturing unit/ book debts 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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11.The recovery certificate be issued forthwith and be sent to the Recovery Officer, DRT, Jaipur.

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12.Parties are directed to appear before the Recovery Officer, DRT, Jaipur on 21.07.2026 .

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13.Prepare Recovery Certificate accordingly.

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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14.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. 10.06.2026 .

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

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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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. 73 OF 2023

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DATE OF DELIVERY OF ORDER 10.06.2026

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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)

…..Applicant Bank…..

VERSUS

1. M/s Satvat Products Private Limited registered office address - 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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Factory address at E-44, Road No. 3, Madri Industrial Area, Udaipur (Rajasthan) - 313001 through its directors Rajat Sharma and Puneet Sharma.

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2. Rajat Sharma S/o Shri Ghanshyam Sharma, resident of 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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E-44, Road NO. 3, Madri Industrial Area, Udaipur (Rajasthan)- 313001.

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3. Punit Sharma S/o Shri Ramchandra Sharma, resident of 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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E-44, Road NO. 3, Madri Industrial Area, Udaipur (Rajasthan)- 313001.

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……Defendants…..

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Recovery Certificate for Rs. 26,34,099/-

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In terms of final order dated 10.06.2026 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. 26,34,099/- (Rupees Twenty Six Lac Thirty Four Thousand and Ninety Nine Only) with pendente lite and future interest @ 10% (simple) 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/stock/manufacturing unit/ book debts 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 21.07.2026 .

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

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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This Certificate has been issued under my signatures and seal of the Tribunal on this 10.06.2026 .

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

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Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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BEFORE THE DEBTS RECOVERY TRIBUNAL, JAIPUR

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PRESENT- SHRI VIMAL GUPTA

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PRESIDING OFFICER

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O.A. NO. 73 OF 2023

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DATE OF DELIVERY OF ORDER 10.06.2026

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SCHEDULE TO RECOVERY CERTIFICATE

MEMO OF COST

…..Applicant Bank…..

VERSUS

1. M/s Satvat Products Private Limited registered office address - 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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Factory address at E-44, Road No. 3, Madri Industrial Area, Udaipur (Rajasthan) - 313001 through its directors Rajat Sharma and Puneet Sharma.

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2. Rajat Sharma S/o Shri Ghanshyam Sharma, resident of 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

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E-44, Road NO. 3, Madri Industrial Area, Udaipur (Rajasthan)- 313001.

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3. Punit Sharma S/o Shri Ramchandra Sharma, resident of 4, Gundia Bheru, Sutharwada, Udaipur, Rajasthan.

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Also at: -

¶113

Order signed & uploaded on 11.06.2026.

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OA No. 73 OF 2023

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E-44, Road NO. 3, Madri Industrial Area, Udaipur (Rajasthan)- 313001.

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……Defendants…..

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S. No.	Item of Costs	Amount (Rs.)
1	Fee on the Application	29,000.00
2	Process Fee (Inc. Publication)	408.00
3	Advocate Fee	1,250.00
4	Court Commissioner’s Fees	NIL
5	Commission/Receiver/Valuation	NIL
6	Miscellaneous Charges	NIL
	Total	30,658.00

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

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Order signed & uploaded on 11.06.2026.

OA No. 73 OF 2023

10.06.2026

Counsel: Sh. R. C. Sharma, Counsel for Applicant Bank Defendants are ex-parte

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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 11.06.2026.

OA No. 73 OF 2023

10.06.2026

Counsel: Sh. R. C. Sharma, Counsel for Applicant Bank Defendants are ex-parte

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The Tribunal vide order dated 10.06.2026 , 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 10.06.2026 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 11.06.2026.

Punjab National Bank v. Ms Satvat Products Private Limited

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ms Satvat Products 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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