Allowed

Punjab National Bank v. Arm Tech (India) Ltd.

DRT24 Jul 2026TA/1158/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of a principal sum of Rs. 9,57,99,096.08 along with interest and costs from five respondents who secured loan facilities and failed to repay. The Tribunal directed a Recovery Certificate to be issued.

What did the court decide?

Direct respondentNos.1 to 5 to jointly and severally pay Rs.9,57,99,096.08 along with cost, expenses and interest @14.50/o.

Punjab National Bank versus Arm Tech (India) Ltd. — Banking and Recovery | DRT (2026)

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Before SUSHIL^{KUMARRASTOGI, Presiding Officer} Debts RecoverY^{Tribunal-Il,Delhi}

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TA No.1158^{OF 2022}

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PUNIAB^{NATIONAL BANKVSARM TECH (INDIA) tTD} &oRs

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Reserued on : 1O.O6'2026 Pronounced^{on z 24'07'20.26}

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Punjab^NationalBank Vs.

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-Applicant bank

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Arm^{Tech (India) Limited}

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Mr.^{Krishan Kumar Mawai}

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Ms.^SheetalMawai

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Mr.^{Mahender Singh}

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Ms.^{Ram RatiDevi}

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Defendants

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Counsel^appearsfor Present: Mr. Sagar^Diwan, applicant^bank. None for^defendants'

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FINAL^ORDER

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This original^{application has been filed by the} applicant^{bank, on 30'12'2016 throughMr' RajeshKumar} Sharma,^{Chief Managerof the applicantbank' under} SectionlgoftheRDBAct,lgg3againstthedefendants for recovery^{of a sum of Rs.9,57,99,096.08together with} cost,^{chargesand pendentellite and future interest} @15.75olo^{from date of filing of this O'A' till the realization} in full.

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2.^{The brief facts of the case are that at the request} of defendant^{no'1 through its ManagingDirector} defendant^{no.2, the applicantbank sanctioneda Cash} cA

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TA NO. ll58^of 2022

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Credit Facility of^{Rs'50 Lakhs and Bank Guarantee} Limit of Rs.10O^{Lakhs' It was, inter alia, covenantedthat} the credit facility^{would be primarily securedby} hypothecation^{of stocks and book debts, the credit facility} shall be collaterally^{securedby personalguarantee of} defendant^{nos.2,3 & 5 as also mortgage of (i)'} Immovable Property^{bearing 1901, Sector-28, Urban} Estate Faridabad^{in the name of defendant no'3 and (ii)'} Immovable^{Property bearing MIG House No'C-24,Shastri} Nagar, Meerut^{in the name of defendant no'5' The} defendant nos.1^{& 2 executed all necessaryloaning} documents on^{13'02.2008.Again, at the request of} defendant^{no.1, the applicant bank renewed with} enhancement^{of the existing Cash Credit (H) Limit against} book debts^{Facility from an amount of Rs'50 Lakhsto} Rs.100 Lakhs^{and Bank GuaranteeLimit from Rs'100 to} Ra.400 Lakhs,^{vide sanctionletter dated 06'06'2008'The} defendant^{nos.1 & 2 executedall necessaryloaning} documents^{on 03.07.2008.The guarantee of defendant} nos.2,3 and 5^{is continuingin nature' Again, at the} request of^{defendant no.1, the applicantbank renewed} with enhancement^{of the existingCash Credit (H) Limit} against book^{debts Facility from an amount of Rs'100} Lakhs to^{Rs.200 Lakhs and Bank Guarantee Limit from} Rs.400 to^{Ra'550Lakhs,vide sanction letter dated} 25.02.2009.^{The defendantnos'1 & 2 executed all} necessary^{loaning documentson 02'03'2009' The} guarantee of defendant^{nos.2,3 and 5 is continuing in} nature. Again,^{at the reqr,rest of defendant no'1' the} applicant^{bank renewedwith enhancementof the existing} Cash Credit^{(H) Limit against book debts Facility of Rs'200} Lakhs and^{Bank GuaranteeLimit from Rs'550 to Rs'800} Lakhs, vide^{sanction letter dated 09'03'2010' The} q

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TANO. 1158of2022 J defendant^nos.1 & 2 executed^all necessary loaning documents^{on 10.05.2010' The defendantnos'1} & 2 with^{the intention to collaterally secure the credit} facilities sanctioned^{to defendant no'1 created mortgage} of its immovable^{propefi bearing Flat No'LIG-VF-04'} First Floor,^{Vinayak Avenue,Village Karariya,Tehsil} Huzur, District,^{Bhopal (Madhya Pradesh) in favour of the} applicant by^{deposit of originalsale deed dated} 14.05.2008.^{Again, at the request of defendantno'1' the} applicant bank^{enhanced the existingCash Credit(H)} Limit against^{book debtsFacility from an amount of} Rs.200 Lakhs^{to Rs.400 Lakhs and renewedthe Bank} Guarantee of^{Rs.800 Lakhs,vide sanction letterdated} 12.11.2010.^{The defendantnos'1 & 2 executed all} necessary^{loaning documentson 27'71'2010' The} defendant^{nos.1 & 2 with the intentionto collaterally} secure the^{credit facilitiessanctionedto defendantno'1} created moftgage^{of its immovable property bearingB-} 308, 4t'^{Floor,Vardhman City Plaza,Chola Road' Ward} No.18, Tehsil^{Huzur, Bhopal in favourof the applicant} bank by^{depositof original sale deed date 15'09'2010'} The defendant^{no.1 passed a Resolution dated February'} 2011, whereby^{it was resolvedthat defendant no'4be} requested^{to guarantee,the above said limits already} disbursed on^{27.L1.2010and mortgage his property} situated at^{Plot KhasraNo.926, Shiv ShaKiVihar,Village} DatawaliGesupurGarhRoad,Meerut,UP'Theproperty was mortgaged^{in exchange or release of the FDR} pledged with the^{applicant for an amount of Rs'25 Lakhs'} The fact of^{creationof mortgageis confirmedby} defendant^{no.4 vide letter dated 11'02'2011'The} defendant^{nos.l & 2 created moftgage of its immovable} property viz. situated^{at propefi situatedat Flat No'201'}

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gJ..

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TA NO. ll58^{of 2022}

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Ind Floor^{Lake view apaftments Sector I of the} RakshaKhandShardaNagar,RaiBareliRoad'Lucknow in favour^{of the applicantby deposit of original sale deed} dated 30.03.2011'^{Again, at the requestof defendant} no.1, the^{applicant bank renewedthe existingCash Credit} (H) Limit against^{book debts Facitity of Rs'400Lakhs and} extension^{of the BankGuarantee Limit from Rs'800 Lakhs} to Rs.1100^{Lakhs, vide sanctionletter dated 24'04'20t2'} The defendant^{nos.1 & 2 executedall necessary loaning} documents^{on 24.04'2012'Again' at the request of} defendant^{no.1, the applicantbank renewed/enhanced} the existing^{credit facilities i'e', (1)' Cash Credit (Book} Debts)^{Limit of Rs'0400 Lakhs' (2)' Cash Credit} (Conversion^{of unavailed non-fund-based Limit to Fund} Based Limit)^{of Rs.0229 Lakhs, (3)' Bank Guarantee of} Rs.0871^{Lakhs, vide sanction letter dated 30'09'20124'} The defendant^{nos.1 & 2 executedall necessary loaning} documents^{on 30.09'2014' The defendantnos'2'3'4and} 5 executed^{agreementsof guarantee'}

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It is further^{submittedthat the defendants enjoyed} and utilized^{the Loan facilities, but failed to maintain the} financial^{disciplineand failed to repay the due amounts'} The applicant^{bank requested the defendants to} regularize^{the loan account by visits and lefters' but there} was no^{response from the defendants' Hence'the} account^{was classifled as NPA dated 31'03'2015' The} applicant^{bank serveda demand notice dated 06'05'2015} and^{legal notice dated 19'12'2015 to the defendants but} failedtorecoverthesameThus'thepresentO'A'fl-'A'is preferred by^{the applicant-bankto recover its dues'} d..

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TA NO. ll58^{of 2022}

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On^{notice bY} this Tribunal,^{defendantsPut} appearance^{throughcounsel but failed to file written} statement^{and the right to file written statement of} defendants^{was closedvide order dated 05'01'2018'}

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The^{applicant bank has filed evidenceby way of} affidavit of^{Sh. Suresh Kumar, Manager of the applicant} bank as^{Annexure A-2 to Annexure A-116' whichhave} gone unchallenged^{and un-rebutted'Hence'the case of} the applicant^{stands fully establishedagainst the} defendants^{with respect to nonpayment of outstanding} amount.

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After^{perusing the records, this Tribunal is of the} view that^{the applicant bank has proved its case beyond} reasonable^{doubts. The evidenceand documentsfiled by} the applicant^{bank not rebutted by the defendants by not} placing any evidence^{and there is no question of} disbelieving^{the evidenceand documentsfiled by the} based upon^{the written/Printed} applicant^bank documents.

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In the light^{of the abovediscussions'the present T'A'} deserves^{to be allowed.}

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ORDER

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I^{hereby allow this T'A' of the applicant bank and} directthedefendantnos.lto5topayjointlyandseverally to the applicant^{bankwithin30 days from today' a sum}

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TA NO. ll58^{of 2022}

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of Rs.9,57,99,096.08^{along with cost, expensesand} interest @14.50o/o^{from the date of filing of this O'A'} which has^{becomeT.A till the date of realization'}

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In^{case of failure to deposit the aboveamount} within the^{stipulated period, the sameshall be recovered} from the^{sale of hypothecated assets and the sale of} moftgaged^{propeftiesi.e', (i)' Plot KhasraNo'926'Shiv} ShaKi^{Vihar, Near Medical College, Village Datawali} Gesupur^{Garh Road, Meerut-250001,UP, (ii)' Flat No'LIG-} VF-04, First^{Floor, Vinayak Avenue,VillageKarariya'} TehsilHuzur,District,Bhopal(MadhyaPradesh)'(iii)'UG Flat at 8-308,^{4s Floor, Vardhman City Plaza Part of} Survey^{No.19-22,Near Dawa Bazar, Cola Road'Tehsil} Huzur, Bhopal,^{Madhya Pradesh, (iv)' Flat No'201'2nd} Floor Lake^{view Apartments Sector -1 of the Raksha} Khand, Sharda^{Nagar Scheme,Rai BareliRoad' Lucknow'} UP, (v).^{1901, Sector-28,Urban Estate of Faridabad} Haryana-121008,^{(vi). C-24, Shastri Nagar' Meerut'UP-} 250001. In^{case of short fall, the same shatl be recovered} from the^{sale of personal movable and immovableassets} of the defendant^{nos.1 to 5'}

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Recovery^{Certificatebe issuedforthwith and be sent} to Recovery^{Officer, Debts Recovery Tribunal-Il'Delhi'}

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The^{registryof this Tribunal is hereby directedto} issue free^{copy of the order and send the same to both} the^parties.

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TANO. 1158of2022⁷ 5)^{Partiesare directed to appear before the Ld'} Recovery Officer,^{DRT-II, Delhi on 24'09'2026'Pending} IAs, if anY,^{standdisPosed of'}

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File be consigned^{to records'}

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Dale :24.07.2026

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SA (susHIL KUMAd'usroq) PRESIDING^OFFICER DRT-II,^Delhi

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This^{judgement has been signed, datedand} pronounced in^{oPen court'} (cA (susHIL KUMAR nA$roct) Date :24.07.2026 PRESIDING^OFFICER DRT-II,^Delhi

Punjab National Bank v. Arm Tech (India) Ltd.

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Punjab National Bank v. Arm Tech (India) Ltd.

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