Allowed

Bank of Maharashtra v. M/S Nishant Home Appliances and Anr.

DRT22 May 2026TA/3061/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application by Bank of Maharashtra seeking recovery of a loan facility of Rs. 57.70 crores against defendants who failed to regularize accounts. The defendants were unrepresented and proceeded ex-parte, resulting in a recovery certificate directing payment or sale of assets.

What did the court decide?

Amount of Rs. 57,70,165.19 with interest recovered from sale of hypothecated stocks or properties. Recovery certificate issued.

Bank of Maharashtra versus M/S Nishant Home Appliances and Anr. — Banking and Recovery | DRT (2026)

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T.A. No.3061 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. 3061 of 2022

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Bank of Maharashtra Sector 11, Rohini Delhi-110085 Applicant

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Versus

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M/s Nishant Home Appliances Through its proprietress Smt. Renu Garg Shed No.323, Extn Lal Dora Shahbad Daulatpur, North West Delhi-110042

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Also at: F-2, 158-159, First Floor Sector-11, Rohini, Delhi-110085

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Smt. Renu Garg Proprietress of M/s Nishant Home Appliances F-2, 158-159, First Floor Sector-11, Rohini, Delhi-110085 Defendants

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Present: Sh.Harish Kumar, Counsel for the applicant bank

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Date of Reserve: 06.05.2026 Date of Pronouncement: 22.05.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 04.12.2021 before DRT-III, Delhi & then transferred to DRT-I Delhi under Section 19 of Recovery of Debts and Bankruptcy Act,1993 against the defendants for recovery of a sum of Rs.57,70,165.19 (Rupees Fifty Seven Lacs Seventy

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T.A. No.3061 of 2022

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Thousand One Hundred Sixty Five and paisa Nineteen only) as on 20.11.2021 together with pendentelite and future interest @10.15% per annum with monthly rest from date of filing of this application till its realization with costs.

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The brief facts of the case are that at the request of defendant No.1 through its proprietress being defendant no.2 engaged in manufacturing of Utensils, the applicant bank sanctioned Cash Credit (Hypothecation) facility of Rs.45,00,000/- (Rupees Forty Five lacs only) on 19.07.2018 @11.50% interest and @2% penal interest over agreed rate of interest in case of delay in repayment of interest against hypothecation of stocks and book debts covered under CGTMSE scheme.

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That in order to avail the credit facility, the defendants no.2 being proprietress of defendant no.1 executed Request Letter, Sanction Letter, Agreement of Hypothecation of Goods & Book Debts, Letter of Proprietorship, Demand Promissory Note, Deed of Hypothecation, Cash Credit Facility Agreement and Letter of Confirmation towards applicant bank on 19.07.2018 and 18.06.2020 respectively.

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It has been submitted by the applicant bank that in order to secure the loan facility, defendant no.1 through defendant no.2 hypothecated the stock of raw material and finished goods, utensils and book debts with applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendants failed to honor its commitments to make the payment due to the applicant as per terms and conditions of the sanction and failed to regularize the account despite regular follow up, visits etc. The applicant bank classified the account as NPA on Sc/

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T.A. No.3061 of 2022

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28.01.2020 and issued legal notice dated 14.09.2021 but defendants failed to liquidate the outstanding dues. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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The defendant no.1 through its proprietress executed Balance and Security Confirmation letters on 18.06.2020 towards the applicant bank.

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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 23.01.2024, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have 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 Dheeraj Barui, authorized representative of the applicant bank who has submitted the documents such as Board Resolution EXH.A1/1, Sanction Letter EXH.A1/2, Application / Request Letter EXH.A1/3, Letter of Sole Proprietorship EXH.A1/4, Demand Promissory Note EXH.A1/5, Receipt of Amount of Loan EXH.A1/6, Deed of Hypothecation EXH.A1/7, Deed of Clean Cash Credit facility EXH.A1/8, Statement showing NPA EXH.A1/9, Certified Statement of Account EXH.A1/10, Balance & Security Confirmation EXH.A1/11, Legal Notice EXH.A1/12, Regd. ND Receipts EXH.A1/13(colly), Returned Regd. ND EXH.A1/14.

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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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T.A. No.3061 of 2022

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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.57,70,165.19 (Rupees Fifty Seven Lacs Seventy Thousand One Hundred Sixty Five and paisa Nineteen only) as on 20.11.2021 @10.15% per annum pendentelite from date of filing of this application till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks and book debts. 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 21.07.2026.

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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: 22.05.2026

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Bank of Maharashtra v. M/S Nishant Home Appliances and Anr.

Case brief

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Bank of Maharashtra v. M/S Nishant Home Appliances and Anr.

Case brief

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