Allowed

Karnataka Bank Limited v. M/S Dhir International Pvt. Ltd.

DRT26 Feb 2026TA/2241/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application to recover dues of Rs.46.23 crores with interest from the respondents, a defaulting borrower and guarantors, following the rejection of their defense merits and ex-parte processing due to non-appearance.

What did the court decide?

Direct defendants to pay Rs.46,23,43,509 with interest, allow sale of hypothecated/mortgaged properties, and issue recovery certificate to Recovery Officer.

Karnataka Bank Limited versus M/S Dhir International Pvt. Ltd. — Banking and Recovery | DRT (2026)

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T.A. No.2241 of 2022

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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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T.A. No. 2241 of 2022

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Karnataka Bank Limited

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Overseas Branch, 8-B

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Upper Ground Floor, Pusa Road Rajendra Park, New Delhi-110060

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Applicant

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Versus

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M/s Dhir International Pvt. Ltd. Through its Directors

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#299-300, Udyog Vihar

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Phase II, Gurugram-122014, Haryana

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Mr. Harsh Dhir s/o Sh. M.K. Dhir Director of Dhir International Pvt. Ltd.

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#14, Navjian Vihar, New Delhi-110017

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Also at:

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Mr. Harsh Dhir s/o Sh. M.K. Dhir #299-300, Udyog Vihar

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Phase II, Gurugram-122014, Haryana

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Mr. Mahender Kumar Dhir s/o Sh. D.C. Dhir Director of Dhir International Pvt. Ltd. #14, Navjian Vihar, New Delhi-110017

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Also at:

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Mr. Mahender Kumar Dhir s/o Sh. D.C. Dhir #299-300, Udyog Vihar Phase II, Gurugram-122014, Haryana

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Mrs. Shilpi Dhir w/o Sh. Harsh Dhir #14, Navjian Vihar New Delhi-110017

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Also at:

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Mrs. Shilpi Dhir w/o Sh. Harsh Dhir #299-300, Udyog Vihar Phase II, Gurugram-122014, Haryana

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M/s Dhir Global Industries Pvt. Ltd. #375, Udyog Vihar Phase IV, Gurugram-122014 Haryana

Defendants

Sei

T.A. No.2241 of 2022

Present: Shri Sagar Diwan, Counsel for applicant bank

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Date of Reserve: 09.02.2026

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Date of Pronouncement: 26.02.2026

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ORDER

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This original application has been filed by the applicant bank on 19.06.2017 before DRT-III Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.46,23,43,509.90 (Rupees Forty Six Crores Twenty Three Lacs Forty Three Thousand Five Hundred Nine and Paisa Ninety only) with interest @13.50% per annum against WCTL account, @14.75% per annum against OD account, @17.25% per annum against the Post Shipment facility and @14.05% per annum with quarterly rests against WCDPN facility from the date of filing of this application till the final realization along with penal interest @3% per annum with costs.

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The brief facts of the case are that on the request of defendant no.1 being company engaged in the business of manufacturing and exporter of high fashion readymade garments through defendant no.2, 3 and Late Mrs. Madhu Dhir as its directors / guarantors and defendant no.2 to 4 as coobligants. The defendant no.3 stood as mortgagor and defendant no.5 as corporate guarantor as per their Board Resolution for the credit facility sanctioned in favour of defendant no.1. The defendant no.1 availed various credit facilities since 29.09.2009 and the applicant bank sanctioned and renewed/enhanced the credit facilities on 25.09.2010/27.09.2010 against hypothecation of stocks in trade, export receivables, duty draw-back, receivables

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T.A. No.2241 of 2022

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advances to suppliers, goods covered under bill of exchange as prime security and collateral security of plant & machinery and equitable mortgage of properties. Further, the applicant bank restructured existing facilities on 28.01.2013, 01.02.2013 and 09.03.2015 as per request of defendant no.1 and in addition to above, sanctioned Pre-Shipment credit facility of Rs.200.00 lacs on 31.10.2015 and Working Capital DPN limit of Rs.175.00 lacs.

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S.N.	Nature of Facility	Amount (Rs.in Lacs)
1	Renewal of Post Shipment LC/NLC/DIRECT (DP/DA)	500.00
2	Pre-shipment with existing limit	1725.00
3	Additional Post-shipment Credit	500.00
4	Overdraft facility	125.00
5	Credit Line for Forward Contract	40.00

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That in order to avail various credit facilities, the defendants submitted applications for credit facilities and executed Demand Promissory Note cum Take Delivery Letters (F.No.959H), Export Credit Agreements, Letters of Repayment, Request for Overdraft/Cash Credit Facilities (F.No.951), Request to Retain Account Number of OD A/c, General Power of Attorney, Hypothecation Agreement (F.No.981), Letter of Hypothecation, Letter / F No.1209, 1203, Letters for Cheque, Bills, Hundies etc., Declarations (F.No.952), Consent Letters (F.No.1113A & B), Guarantee Letters (F.No.971 & 973) by Defendant no.2 to 5, Affidavit, Advance against Deposit (F.No.929) Export Credit Agreement (F.No.508). Declaration (F.No.952) in favour of the applicant bank on various dates as and when the limits were sanctioned/renewed/enhanced. The defendant no.5 submitted their resolution for furnishing the corporate guarantee for credit facilities sanctioned/ renewed by the applicant bank agreeing said guarantee is continuing to the extent of loan amount with interest fvg. Defendant no.1. The ECGC extended cover under ECIB PC/PS vide letter dated 19.03.2016 approved within limit of Rs.2507.08 lacs upto

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T.A. No.2241 of 2022

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31.12.2014 as per request of defendant no.1 restricted to Rs.1725.00 lacs under WTCP and Rs.782.80 lacs under WTPS subject to application cover percentage under respective covers.

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The defendant no.1 to 4 confirmed the balance in Overdraft account on 09.09.2010 for Rs.3.00 crores plus interest from 01.03.2011 by executing Acknowledgement of Debt and defendant no.1 to 5 jointly executed Acknowledged of Debt of debt in Term Loan account on 17.11.2015 in favour of the applicant bank.

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That Mrs.Madhu Dhir, one of the directors of defendant no.1 expired on 02.10.2010 and defendant no.1 vide their Resolution dated 01.03.2011 acknowledged the debt with other guarantors. The defendant no.2 and Mrs.Upma Chadha, her daughter submitted affidavit confirmed that Mrs.Dhir executed WILL on 18.08.2010 in favor of defendant no.3 and no claim in respect of property no.14, Navjivan Vihar, Delhi.

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In order to avail the said loan facilities, the defendant no.1 hypothecated the stock in trade, export receivables, dutydrawback, receivables advance to suppliers, goods, plant & machinery etc. in favour of applicant bank.

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That in order to secure the loan facilities, the defendant no.1 and 3 created equitable mortgage of properties by depositing original property documents along with chain of documents and further extended on renewal/ enhancement / sanction of limits:

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i) All that part and parcel of Property bearing no.1405/320, Block M, Naiwala bearing Municipal No.2466-2469, Street

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T.A. No.2241 of 2022

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no.10, Beadonpura, Karol Bagh, New Delhi owned by defendant no.3, mortgaged on 29.08.1991, 03.03.2008 and 31.03.2015;

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ii) All that part and parcel of Plot no.14, Navjivan Vihar, New Delhi owned by defendant no.3, mortgaged on 09.10.2020 and 31.03.2015;

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iii) Industrial land & building at Plot No.585, Sector-37, Pace City-II, Urban Estate, Gurgaon, Haryana owned by defendant no.1 (the said property was released to Oriental Bank of Commerce vide letter dated 06.08.2014 of applicant bank against payment of Rs.410.00 lacs purchased by M/s Pearl Apparels approved vide resolution of defendant no.1 on 03.09.2015).

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The charge of applicant bank in respect of credit facilities was filed before ROC vide receipt dated 28.04.2015.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant no.1 failed to comply with the sanction terms and conditions and despite of several requests to defendant no.2 to 5 being guarantors to impress upon defendant no.1 to make the payment in the account, the defendants failed to do so. The applicant bank classified the account as NPA on 08.09.2016 in terms of RBI guidelines, hence the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 11.11.2016 issued to the defendants to make payments of Rs.42,93,35,054.79 as on 31.10.2016 but defendants failed to comply the notice.

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T.A. No.2241 of 2022

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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 13.02.2019 on IA No.1795/18, written statement of defendants was taken on record. Vide order dated 13.10.2025, all the defendants proceeded ex-parte as not appeared before the Tribunal and, evidence and affidavit of assets have not been filed by the defendants.

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It has been submitted that defendant no.1 to 5 have filed written statement wherein it has been submitted that the applicant bank unilaterally reduced the sum available and deducted from the account. It has also been submitted that the applicant bank breached the terms of sanction and did not provide the promised moratorium. It has further been submitted by the defendants that the applicant bank wrongfully declared account as NPA. It has been submitted that the defendants suffered various financial repercussions in the form of lossesloss of profit, loss of business, damages because of conduct of the applicant bank.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Santhosh Kumar, authorized representative of the applicant bank who has proved the documents as Sanction letters, Resolutions, Balance Confirmation letter, Affidavits, Agreements, Letters, Undertakings, Demand Promissory note cum Take Delivery Letters, Export Credit agreement, Letter of Repayment, Request for Overdraft, General Power of Attorney, Guarantee/Indemnity Letter, Hypothecation agreement, Letters of Hypothecation, Declarations, Consent letters, Guarantee letters, Acknowledgement of debt, Letter of

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T.A. No.2241 of 2022

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Authority, Notices, Title deeds, Statement of account certified under Section 2-A of the Banker's Books Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/107.

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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 original application and direct the defendants to pay to the applicant bank, jointly or severally, within 30 days, a sum of Rs.46,23,43,509/- (Rupees Forty Six Crores Twenty Three Lacs Forty Three Thousand Five Hundred Nine only), out of which:

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Rs.16,33,82,825.83 in WCTL account together with @13.50% interest per annum with quarterly rests;

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Rs.3,84,41,531.96 in Overdraft account together with @14.75% interest per annum with quarterly rests; Rs.2,00,70,979/- in WCDPN account together with @14.05% interest per annum with quarterly rests;

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Rs.19,42,59,662/- in Pre-Shipment account together with @17.25% interest per annum with quarterly rests;

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T.A. No.2241 of 2022

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Rs.4,61,88,510.81 in Post-Shipment account together with @17.25% interest per annum with quarterly rests.

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with costs from the date of filing of this application till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts, raw materials, plant & machinery, assets of defendant no.1 and sale of mortgaged properties

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a) All that part and parcel of Property bearing no.1405/320, Block M, Naiwala bearing Municipal No.2466-2469, Street no.10, Beadonpura, Karol Bagh, New Delhi owned by defendant no.3, mortgaged on 29.08.1991, 03.03.2008 and 31.03.2015;

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b) All that part and parcel of Plot no.14, Navjivan Vihar, New Delhi owned by defendant no.3, mortgaged on 09.10.2020 and 31.03.2015.

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In case of shortfall, the same shall be recovered from the sale of moveable and immovable properties of the defendants.

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

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 28.04.2026.

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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 BAL �ARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 26 02.2026

Karnataka Bank Limited v. M/S Dhir International Pvt. Ltd.

Case brief

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Karnataka Bank Limited v. M/S Dhir International Pvt. Ltd.

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