Allowed

Punjab and Sind Bank v. M/S Guru Nanak Agriculture Works and Another

DRT17 Apr 2025OA/1003/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab & Sind Bank to recover Rs. 80,08,306.12 from respondents who defaulted on a term loan. The Tribunal directed issuance of a Recovery Certificate and allowed enforcement under SARFAESI provisions.

What did the court decide?

Recovery of Rs. 80,08,306.12 with simple interest at 8% p.a., enforcement via SARFAESI Act sale of assets or personal attachment.

Punjab and Sind Bank versus M/S Guru Nanak Agriculture Works… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1003/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.08.2024

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DATE OF DECISION: 17.04.2025

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Punjab & Sind Bank, a Body Corporate, Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1980 (Act No.40 of 1980) with its Head Office at 21, Bank House, Rajendra Place, New Delhi and branches amongst other places, one at GT Road, Phagwara, through Sh. Manoj Kumar, Chief Manager.

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… …..Applicant Versus

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M/s Guru Nanak Agriculture Works, Plot No.45/2, Industrial Area, Phagwara, District Kapurthala through its Proprietor Smt. Amandeep Kaur W/o Sh. Gurpreet Singh.

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Smt. Amandeep Kaur W/o Sh. Gurpreet Singh R/o Village Nangal, PO Chachoki, Phagwara, District Kapurthala.

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….……Defendants

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Advocates:

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Argued by Sh. Sahaj Punj, Advocate proxy for Sh. A.B.S. Sidhu, Advocate for the Applicant Defendants are ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.80,08,306.12p (Rupees Eighty Lacs Eight Thousand Three Hundred Six and Paise Twelve Only). The Original Application has been filed through Sh. Manoj Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorneys dated 23.04.2015, which is Annexure A1 to this OA.

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2 OA NO.1003/2024 PUNJAB AND SIND BANK VS M/S GURU NANAK AGRICULTURE WORKS AND ANOTHER

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The brief facts of the OA are that the defendant no.1 (through its Prop. defendant no. 2) had approached the applicant for the grant of Term Loan of Rs. 70.00 Lacs.

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The applicant sanctioned Term Loan of Rs. 70.00 Lacs vide Sanction Letter dated 09.08.2021, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 & 2 had hypothecated their movable machinery

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i.e.

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i. Piller Drill Machine 40MM

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ii. Frame 50 Ton(Stoke) Power Press and 6 Feet Fully Norton Lathe Machine

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iii. MIG Welding Machine(400 AMP)

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iv. ARC Welding Machine (200MM)

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v. Bendsaw cutting Machine (250 M)

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vi. 8 Feet Semi Norton Lathe

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vii. 8 Feet Fully Norton Lathe

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viii. Piller Drill Machine 50 MM Bore

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ix. Tool Kit

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x. Hydrolic Cutting Press

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xi. Hydrolic Bending Press 3 MTR

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xii. Double Cylinder Compressors 220 Pound

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xiii. Hydrolic Bending Press 3 MTR

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xiv. 8 Feet Semi Norton Lathe

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xv. 8 Feet Fully Norton Lathe

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xvi. Piller Drill Machine 50 MM Bore

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xvii. Double Cylinder Compressor 200 Pound

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xviii. Piller Drill Machine 40 MM

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xix. MIG Welding Machine 400 AMP

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xx. ARC Welding Machine 200 AMP

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xxi. Hydrolic Cutting Press

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3 OA NO.1003/2024 PUNJAB AND SIND BANK VS M/S GURU NANAK AGRICULTURE WORKS AND ANOTHER

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xxii. Bendsaw Cutting Machine 250 MM xxiii. Tool Kit
xxiv. C Frame 50 Ton Stoke Power Press
xxv. 6 Feet Fully Norton Lathe Machine
vide Billsdated 08.12.2021, 17.09.52021, 08.10.2021, 12.11.2021,
07.11.2021, 08.07.2021 and 26.07.2021, which areAnnexures A9 to A17to this OA.
Documents executed:- Term Loan Agreement, Deed of Hypothecation,
Undertaking, Cibil Undertaking, Letter of Undertaking and Undertaking all dated 09.08.2021, which areAnnexures A3 to A8to this OA;
Legal Notice dated 15.02.2023, which isAnnexure A18to this OA;
Statement of Account, which isAnnexure A19to this OA and
Certificate Evidence dated 26.07.2024, which isAnnexure A20to this OA.
5. The loan account became irregular and was classified as NPA
and after adjusting debit and credit entries in the loan account there
was a debit of Rs.80,08,306.12p, which is recoverable and the
defendants were served recall notices but they did not repay the
outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
6. The defendants were served notices to appear before this
Tribunal but no one appeared on behalf of defendants and they were
proceeded ex parte on 07.04.2025.
7. In support of the OA, affidavit ofSh. Manoj Kumar, Chief
Manager, Punjab & Sind Bankhas been filed.
8. Heard arguments and perused record.
9. It was argued by learned proxy counsel that in view of the
documentary evidence brought on record which had gone unrebutted,
the applicant bank had proved its case. From the perusal of all the
Annexure A1 to A20to this OA, it is proved that the defendants

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4 OA NO.1003/2024 PUNJAB AND SIND BANK VS M/S GURU NANAK AGRICULTURE WORKS AND ANOTHER

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approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 80,08,306.12p (Rupees Eighty Lacs Eight Thousand Three Hundred Six and Paise Twelve Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @09.40%p.a. along with penal interest @2%p.a. with monthly rests from 01.07.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.80,08,306.12p (Rupees Eighty Lacs Eight Thousand Three Hundred Six and Paise Twelve Only) jointly and severally, with costs, current

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5 OA NO.1003/2024 PUNJAB AND SIND BANK VS M/S GURU NANAK AGRICULTURE WORKS AND ANOTHER

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and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.05.2025

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 17.04.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. M/S Guru Nanak Agriculture Works and Another

Case brief

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What did the court decide?

Punjab and Sind Bank v. M/S Guru Nanak Agriculture Works and Another

Case brief

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What the court decided

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