Allowed

Canara Bank v. Happy Acoustics Pvt. Ltd.

DRT29 May 2026TA/3307/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of an outstanding debt of over Rs. 50 crores. The court directed respondents to pay the principal sum, pending interest, and future interest along with costs, with enforcement via sale of security in case of default.

What did the court decide?

payment of Rs. 50,37,62,024.18 as on 31.05.2020, pendentelite, future interest @ 15.35% p.a., and costs recoverable from sale of secured assets on default.

Canara Bank versus Happy Acoustics Pvt. Ltd. — Banking and Recovery | DRT (2026)

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T.A. No.3307 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. 3307 of 2022

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Canara Bank

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SAM Branch, C-34, Defence Colony, New Delhi-110024 Applicant

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Versus

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M/s Happy Acoustics Private Limited C-WZ-15, Ground Floor Uggarsain Market, Ashok Nagar New Delhi-110018

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Also at:

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Happy Acoustics Private Limited 92/8-9, Udyog Nagar Mundka, New Delhi-110041

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Sh.Amarjit Singh Kalra K.No.66/166, Nirajpura, Tehsil Amritsar, Amritsar, Punjab

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Also at: Sh.Amarjit Singh Kalra C-130, 1s' Floor, Mansarover Garden New Delhi-110015

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Mrs.Surinder Kaur Kalra C-130, 1st Floor, Mansarover Garden New Delhi-110015

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Also at:

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Mrs.Surinder Kaur Kalra E-49, Guruananak Pura, Jail Road New Delhi-110018 Defendants Present: Shri Akash Swami, counsel for applicant bank

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Date of Institution: 07.05.2026

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Date of Pronouncement: 29.05.2026

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T.A. No.3307 of 2022

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ORDER

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This original application has been filed by the applicant on 08.06.2020 through Shri Saurabh Kumar, 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.50,37,62,024.18 (Rupees Fifty Crores Thirty Seven Lacs Sixty Two Thousand Twenty Four & paisa Eighteen only) as on 31.05.2020 together with pendentelite and future interest @15.35% per annum with monthly rests from 31.05.2020 till the final realization along with cost and charges.

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The brief facts of the case are that on the request of defendant no. 1, being private limited company of defendant no.2 and 3 as directors as well as guarantors, the applicant bank sanctioned PC/FDBP/E Orders/PBLC/BRD limit of Rs.21.50 crores, OCC/ODBD limit of Rs.3.50 crores, aggregating Rs.25.00 crores @10.45% interest rate on 05.11.2013 against hypothecation of raw material, finished goods in transit, Receivables, Machinery & Equipments and mortgage of Industrial Plot at Amritsar owned by defendant no.2 along with Corporate Guarantee of M/s Visual & Acoustics Corporation LLP and Indian Acoustics Pvt.Ltd. covered under ECGC. The applicant bank renewed the credit facility of defendant no.1 by enhancing the total limit from Rs.25.00 crores to Rs.38.00 crores vide letter dated 18.08.2015 @12.75% rate of interest and further enhanced to Rs.40.00 crore on 25.09.2018 within which PC/PCFC,FDB/E(PBLC) Rs.38.50 crores and OCC/ODBD limit of Rs.1.50 crore against hypothecation of stocks, receivables having first charge on with Kotak Mahindra Bank and HDFC Bank including existing mortgage of property at

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T.A. No.3307 of 2022

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Amritsar and additional security of property at Mundka in the name of defendant no.1. Further, the credit facilities are secured by hypothecation of machinery and equipment and fresh KDR in the name of defendant no.1 valued Rs.51.00 lacs. In addition to the above, the applicant bank sanctioned Adhoc limit of RsA.00 crore on 07.02.2019 for 90 days period to meet urgent working capital requirement to execute order on urgent basis.

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That in order to secure the credit facilities, the defendant no.1 executed Sanction Letters, Deed of Power of Attorneys, Indemnity Agreements, Hypothecation Agreement for Plant & Machinery, Pronotes, Supplementary Hypothecation Agreements for stocks and book debts etc., Counter Indemnity Letters, Undertakings, Guarantee Agreements executed by defendant no.2 and 2 dated 08.11.2013, 23.09.2015, 04.05.2017 and 12.02.2019 as well as Corporate Guarantee by M/s Visual & Acoustics and M/s Indian Acoustics in favour of applicant bank for the credit facilities sanctioned by the applicant bank.

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That in order to secure the credit facilities, the defendant no.1 marked first charge over the hypothecated stocks, book debts and machinery along with equipment towards the applicant bank on various dates as and when the limits were renewed/modified/ sanctioned. The defendant no.1 created equitable mortgage of following properties in favour of applicant bank for credit facilities sanctioned viz.:

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i) EMT of Industrial Plot at Khasra no.9/2/2 (0-13), 10/1/1 (0-3), 10/1/3 (0-11), 11/1 (5-7), 12/1 (3-17), Khatoni no.102/190, total area measuring 6 Kanal 9 Marls

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sd-

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T.A. No.3307 of 2022

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(3902.55 sq.yds), Nirajpura, Tehsil & District Amritsar in the name of defendant no.2;

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ii) EMT of Property comprising land measuring 1 Bigha situated at Khasra No.92/8 min (0-07) & 92/9/1 in the revenue estate of Village Mundka, Delhi-41 admeasuring 1008 sq.yds. in the name of defendant no.1.

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The defendant no.1 vide Board Resolution dated 21.09.2015, 17.03.2017, 25.09.2018 authorized defendant no.2 to avail credit facilities from the applicant bank and Adhoc facility of Rs.4.00 crore vide Board resolution dated 07.02.2019. M/s Visual & Acoustics and M/s Indian Acoustics vide their Board Resolutions dated 21.09.2015 approved their consent for Corporate Guarantee for defendant no.1 and issued agreement of Guarantee vide letter dated 04.05.2017 in favour of applicant bank. Further, the defendant no.1 issued Letter of Undertaking dated 04.05.2017 for Rs.3.50 crores and dated 25.09.2018 for Rs.1.50 crores to applicant bank.

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The defendant no.1 through defendant no.2 executed Acknowledgement of Debt and Security dated 23.09.2015 acknowledging the outstanding amounts of Rs.5,40,81,424/and Rs.2,99,62,454.35. Again vide acknowledgements dated 04.05.2017, acknowledged the debt of Rs.1,34,61,168.55, Rs.6,49,36,379/- and Rs.34,81,24,635/- and thereafter on 25.09.2018 for Rs.25,85,43,346/- and Rs.9,95,87,354/- and Rs.87,80,897.17 towards applicant bank.

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It has been submitted by the applicant bank that after availing the various credit facilities, the defendants failed to comply with the terms and conditions and despite of several requests by email/letters and reminders, the defendants failed

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T.A. No.3307 of 2022

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to pay the interest and installments in the account and clear the outstanding dues to the applicant bank. The applicant bank classified the account as NPA on 27.05.2019 as per RBI guidelines but the defendants did not clear the dues of the applicant bank, 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 08.07.2019 was issued to the defendants demanding payment of outstanding dues of Rs.43,28,59,580.65 but defendants intentionally neglected and failed to clear the dues despite several reminder and requests.

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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 27.12.2023, 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 Saurabh Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Original Sanction Letter, Pronote, Deeds of Power of Attorney, General Covering Letters, Guarantee Agreements, Indemnity Agreements, Addendum to Hypothecation Agreement, Request Letters for Overdraft Facilities, Letters for Renewal of Limits with Enhancement/ Modifications, Board Resolutions of Defendant no.1, Board Resolutions of Visual & Acoustics Corporation LLP, Board Resolution of Indian Acoustics Pvt.Ltd. for Corporate Guarantee, Two Pronotes, Indemnity Letter, Guarantee

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T.A. No.3307 of 2022

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Covering Letters, Supplemental Hypothecation Agreements, Letter dated 30.09.2015, Letter dated 10.03.2017, Letters of M/s Visual & Acoustics and M/s Indian Acoustics Pvt.Ltd. dated 04.05.2017 for submission of any Dispute, Counter Indemnity Letters, Letters of Undertaking, Acknowledgements of Debt & Security, Letters of Renewal, Acknowledgement of Execution of Certain Documents, Counter Indemnity Letters, Legal Demand Notice, Certified Statement of Account u/s 4 of Bankers' Books of Evidence Act, marked as Exhibit AW1/1 to Exhibit AW1/78.

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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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FINAL ORDER

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I, allow this OA and direct the defendants to pay to the applicant bank within 30 days, jointly or severally, a sum of Rs.50,37,62,024.18 (Rupees Fifty Crores Thirty Seven Lacs Sixty Two Thousand Twenty Four & paisa Eighteen only) as on 31.05.2020 together with pendentelite and future interest

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So(

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T.A. No.3307 of 2022

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@15.35% per annum along with costs from 01.06.2020 till the date of its realization failing which the aforesaid amount shall be recovered from the sale of hypothecated Stocks, Book Debts, Machineries, Equipment etc. of defendant no.1 and from sale of mortgaged properties:

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a) Industrial Plot at Khasra no.9/2/2 (043), 10/1/1 (0-3), 10/1/3 (0-11), 11/1 (5-7), 12/1 (3-17), Khatoni no.102/190, total area measuring 6 Kanal 9 Marls (3902.55 sq.yds), Nirajpura, Tehsil & District Amritsar in the name of defendant no.2;

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b) Property comprising land measuring 1 Bigha situated at Khasra No.92/8 min (0-07) & 92/9/1 in the revenue estate of Village Mundaka, Delhi-41 admeasuring 1008 sq.yds. in the name of defendant no.1.

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

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

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(II) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 28.07.2026.

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(III) 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: 29.05.2026

Canara Bank v. Happy Acoustics Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Canara Bank v. Happy Acoustics Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

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