Allowed

Punjab National Bank v. New Welcome Saree Showroom

DRT7 Aug 2025OA/117/2022

Case brief

AI extract

What is this about?

The EBTS Recovery Tribunal decided an original application filed by a bank for recovery of dues against five defendants. The court allowed the application ex-parte and directed the respondents to pay the claimed amount.

What did the court decide?

Directed respondents to pay dues within two months; restrained alienation of properties; authorized recovery from secured assets and hypothecated property under RERA Act 2023.

Punjab National Bank versus New Welcome Saree Showroom — Banking and Recovery | DRT (2025)

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'EBTS RECOVERY T] [BUNAL LUCKNOW

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a proceeding				}ffice action t£ken with te
O.A.No.117/2022 07.08.2025	The Judgment is pronounced on separate shee attachedin08 sheets. Order be uploaded on website. ( (Prava Pres	signed +s. Sepa +he Trib ©ictated P bKurh£ Off iding	and rately unal’s ) b/ J FSingh icer
	(MK)

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INTHE Pre: ,	HDEBTS RECOVERY TRIB sent: Pravas Kumar Singh, Case No. Original Application Dated:07.08.202	rAL ’resid H No.117	AT LUC ing OH bf2022	KNOW Ir
a Sard , Sastr+, ,	hbna Branch, Meerutthrough , Meerut West,District-Meerut. Versus	M ICircle		icant-bank
e itsPr& Babu z, , 25006 1.	+M &prietorShriAbdulValisituated a J Kabari Bazar, Sardhana, Me 62.	dBudha z, , brut
1 Sare4 z Mohq , , –250l34 2.	4 Showroom S/o Shri Nizamud qlla Mandi Chamaran, Sardhana, 342.	m 4 zdinR/o q , ,Meerut
1 Charr+, 3.	aran,Sardhana, Meerut–25034:	1i
a Moh4 , , – 25d34 4.	4lla Mandi Chamaran, Sardhana, – 342.	4 , , beerut
o Kass4, , 5.	4wan, Sardhana Rural, Meerut–2+34	a 0342.	H	Hem
Ld.Counsel+ Ld.Counself	orApplicant-bank: Shri N.K.Tripg, or theDefendants:None. JUDGEMENT	thi,Ad+	ocate
1. This } Section19(i)	riginalApplication has beenfilel 9 of theRecoveryofDebts& BaN	by th4 - & kruptcy	4 Applic+n- &Act,1:	4 +-bankunder agaIr ^stthe
defendantsf	or the recovery ofRs.91,43,49164	9,43,49.64(Ru	pees Nil	One Lacs,

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2 O.A. No.117 of 2022

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Forty Three thousand, Four Hundred Ninety qne and, Paisa sfx b Four Only) Id othe 1liefs etc together with pendent-lite and future interest] costs 2 The brief facts:- the defendant No.1 is 'm of which proprjbtorshi & & 5 are the defendant nb.2 is the sole proprietor and the defendant Nos, guarantors . The defendant no.2 on behalf + defendant nd.ljapproached the ApplicaNt-bank for grant of Cash Credit jimit of Rs.20.40 llacs vide its sanction 11 r dated 24.07.2015 on certain teAs and 4onditio is :xhibit No

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A-2/3) to thi+ O,iginal Application

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To sejure aforesaid credit facility, d4fendanFs had e+ecuted and signed vari cIus security documents in favouF of th+ Appli4a+t-bank. The defendant lo.3 signed and executed larantqe Agr4ebent dated

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24.07.2015 (lxhibit No. A-4/5)

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lent of the rl dues, the In or+er to further secure the repa: defendant lo.2 created equitable mortgage in re#pect o: lroperty I.e C,m„„„ial Shops be„ing Mu„i,ipal No.46, , it„+t,d ,t qabari Ba,a, Sardhana, P4rgana & Tehsil Sardhana, Distr+t Mee{ut adm4^{;uring 52.67} square mae 4 in the name of Abdult Vali S/o lshri Ni kIdd[nl in favour of .6 to Exhibit the bank by +eposit of title deed dated 24.07.2415 (Ex+ibit Not No.A-8) to S Original Application.

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5 That the defendant No.2 on behalf of t] le defel[dant N had further approached le applicant bank and applied for le enhhncemeAt k Sanction of the Cash CrJdit Limit of Rs.20.00 la„ to Rs.3p.oo laqb (Exhi+bIN,.A- 10) to this Original Application.

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That consideration the econ,mic ,ia+Uity add secur+ti4s offered by Defendant ,1, applicant bank enhanced / sa4ctioned the Ca4hlCredit Limit fbI\J/

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O.A. No.117 of 2022

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;urn-sanctron

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from Rs.30.00 lacs to Rs.39 Laos, a copy ol Letter propos: ;urn-sanctron letter dated 09.09.2016 is enclosed (Exhibi+ No. A-11) t( }his Original Application.

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on behalf of 7. That iF respect of the said credit facilitiqs, defendant Nc do ments in the defendadt No.1 had executed and signed karious:securit1 favour of tHe Applicant-bank on 09.09.20164 The d+fenda1 lo.3, 4 & 5 signed and eXecuted Guarantee Agreement daRed 09.49.2016 :h bit A-13). 8. That Ihe defendant No.2 had furt4er exjended equitable Cash Credit mortgage orjginally created on 24.07.2015 to cover the presl Limit of Rs.39.00 lacs by executing dra4 letteri of c01 t ihui dated 09.09.2016, {Exhibit No. A-14) to this Original 4pplica+jon. 9. Subsehuentty, at the request of the de+endant: No.2 Of Behalf of the defendant No.1 had again approached the abplicanl: bank a nd applied for the enhanc4ment / sanction of the Cash Crbdit Lig}it from} 9.00 lacs to to this Rs.76.00 lac; vide its Sanction Letter dated (Exhibi+ No. A- +/16) Original Appjication. 10. To secbre the aforesaid cash credit facitjities, dgfendan1 lo.1 through defendant No.2 signed & executed the following loanin! Ind security documents. +he defendant No.3 & 4 execute+ AgreeFnent of Gyarantee on 21.03.2017 (+xhibit No. A-17/18) to this Origin;I Applidation. 11. That +he defendant No.2 had furtHer ext8nded equitable ( ash Credit mortgage orjginally created on 24.07.2015 to hover tt+e pres1 Limit of Rs476.oo lacs by executing draft letterF of co ltihl ity dated 21.03.2017, dExhibit No. A-19) to this Origina1 Application. :\ _jJ

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O.A. No.117 of 2022

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Th,t th, d,fendants had signed any execqted th+ balance and security con+irmation letter dated 20.07.2014 & 22.43.2021 kqnfirming the b,I,„„ ,f their Cash Credit Account. (Exhibi+ No. A420/21) +olthis Original Application .

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That 4n the request of Defendant No.+ appliJbnt bank had sanction the WCTL Adcount of Rs.9.00 lacs and also disbursed +reditedoh 26.09.2020 which is reflected in the account statemen+ of Well Accbuht and Cash

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Credit Account.

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To avRil the aforesaid credit facility, t4e App+cant-b4d had opened loan accoun{s in the name of defendant No.1 in orde} to maiht kin the credit facilities.

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After availing the aforesaid credit fa,hHty, td+ d,fenb+t, f,iled to maintain finbnciat discipline and also failed lo coml£ly with tIe terms and LII conditions qf the loan aweement, conseque+tly, th# loan +c+ount of the defendant nd. 1/n,m w,s classin,d „ NPA o„01.05.421 by +h+ ba,k as pe, RBI guidel bes (Exhibit No. A-22), thereaR+ the 4ppli,,bt4ba,nk issued Legal Notic+ dated 17.01.2022 to the defend,+t, (Ext{ibit No.423), but, the defendants sbted no-response and th,y failed +o ,epag the sade jand the loan accounts of the defendants are still „n-liq+id,tedJ hen„,} #is Original Application has been instituted.

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As pen books of the bank maintained in the usqbl and drdinary course of banking business, an outstanding of Rs.91,43,491.94 (Rup4e4 Ninety One

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Lacs, Forty Three Thousand, Four Hundred Nihety O He and Phi+a Sixty Four

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Only) including interest UPto 31.12.2021, weFe lying due foI 4ayment, for

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which the d+fendants are jointly and severqlly liable to rehab the same,

f f \A

O.A. No.117 of 2022

which q Appli- thisO 17. 24.07 appli	they q cant-ba riginal The c4 4.2015 cantba	did not pay despite repeatedl q -nkfiled the Statement of loan 4 Application. 4use of action forfilingthe pres4 4hhen theaforesaidcreditfacij bk and the same were availedby	reques 4ccount 4ntappli jitywe he def+j	qtsand 4b.(Exhi cation hesanc 4 ndantsj	dEmand 4itlNo.A-24)to Ir&sefirstly on idned bythe jahd necessary The
docu 09.096,	ments 99.2016,	wereexecutedby thedefe 996,21.03.2017. The cause ofaction	hdants„ again	„on24 oseO	4.op.2015and b.07.2018
22.03 confi furth q ofRs9 caus 17.01 dues 18	3.2021 rmatio er appr q .9.00laj G eofac: .2022 and thd That	3when the defendant No.2 si Nletter. The cause of actionagain bached and requested the applic js under GuaranteedEmergencyd :tionfurther aroseonwhenR4q ras sent to the defendants, red y failed topaythe same as pervaluationreportdated	gneda arose q +nt ban reditLi 4gistereq alling b4.05.2	exe& :ainst d4 q k forsa ke(GECI 4qLegal leentij j 4b15ob	x&u+edbalance : h4 defendants ionofWCTL GI)bcheme.The loticedated je joutstanding led by the
appli	cant b	ank through Bank’s Approved	raluer	by	echMech
lnter x - 19 post, conte q befo , oppo	nationa x - Thes , butth ,3,4 st thei q re this , rtunity	i Pvt. Ltd. (Exhibit No. A-25) tothig ammonswere serveduponthed + defendant Nos.1,3,4& 5didnot [ case. The defendant No.2 th q Tribunal, but no written stat to file the written statementha4	Origina efendal appear +ough q , bment 4alread	l Applic thro before qbunsel lasbd Vbeen	btjon bdhregistered +h+ Tribunal to hdappeared filed,the e ;l&sed vide its fr

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O.A. No.117 of 2022

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order dated 01.08.2025. The case is proceed qd ex- parte ag+iNst the other defendants.

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From the perusal of the record, it is e,idbnt that the de+ebdants were provided With fair opportunities to contest t4e clairT+ of the1 bbnk. As the defendants obted not to contest the case, sd only Joint of Ldnsideration before this Tr+bunal is as to whether bank is legblly entitled to Ad amount as claimed in O}iginal Application on the basis bf doc4ments Hdd pleading submitted by Rt.

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In suppbrt of the case Shri, Om Prakashl BhalotbLa, Chie+ #anager of 1 the Applicant- 8ank has filed an affidavit. == . ;.,.... „ .„. .„:..„.J .. ;+,~;„:. Lh =*„:.:. marked as ExHibit No.A-1 to Exhibit No.A-25, iI is proted thaI ]efendants had availed th+ credit facilities from the Applicbnt-badLk by exbcbting loan and security ddcuments detailed as above in fav+ur of tHe Appli+aLt-bank. A perusal of the\ application, evidence and docqments Lrelied dp+n clearly shows that thedefendant had utilized the abovejloan faQilities ab granted to them. The Applicant-bank had maintained thel Booksl,of accduht in the ordinary course of banking business showing disbursal Jf the loUd amount. The Bank had also charged interest from time tb time 4nd the \e4tries are relevant u/s 4 of the Banker Books of Evidence A4. It is aILhso provEd that the

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A„Ii„n'”n''+ .”'„, ” „''"'. ”„„””.„ ,,„„„P.'..'#„.,, ,"q,+.,., ,".

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defendants are jbintly and severally liable to pay t6e duesi

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Accordingly, the defendants Nos.1 to 5 bre dirlpcted tb Ipay the balance dues to \the Applicant-bank within a peribd of 2 mo„th4 4om the

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r r

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;““'"=$""“''''=""“"'".„„''„'+';'* w'.''..IA.-....,.„ “' "'";t' '’"'"„’ "„„„.„'.. ;;+.' ,=1 p.,,IJ,I properties of the defendants. jlb \ 1 2 4 • T h e A P P f i c a n t = b a n k h a s c 1 a i rT1 e d i n t e rest b 12875 k per jn Lum with "'""'Y’“'""f'31-12'2021“"th'd'„„ „b''=;„.A.-d'hJ.Onthe ';;'““"=''b““'“''„ ';„„„.„'„.-k„.„ J,.„, .L„,.., ;'“'“"'"'''''"'"''''.„„„,'.„'.„\„„„;I'*=-„Lb@==„ "’;"'""''""'''"„„„„„'=';';.„„.b.„..L...,.h.L.,.„.

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O'A' till the date of realization with costs

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25' Inndthatthebankhasp;ovedthe executioX of loi d.cuILs and creation of mortgage in its favour. In the result the OrigInal ApLliLation succeeds as againstlthe defendants with costs. The bJnk has broved 4h4 loan execution of loan documents in favour of the bank and avaijment o} dredit

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facility. The liability .f th, d,f„d„t N„.1 t, 5 are joint abd seve}a{ and „.„„*.'„„'„„„'„„'„„';;;„;;„"';;*n„'"";"''V+:';

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are to be sold.

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It isI therefore I ordered

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(i) Th;t=h'0„g'';'APP„';-„N„117“ 2022tf =h' APP'“:_':_b,’::

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gainstthedefendants' succeeds ex-parte a

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8 O.A. No.117 of 2022

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(ii) The defend”t N”.1 t. 5 „, di„,t,d\ t, p,y the dbel within a

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period df two months from the date ofj+dgemeLbt, failidg bhich the 1\

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Applicant-bank will be entitled to recover the sade from lhb secured

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assets/ p+rsonal movables and immovable +ssets Jf the dekbdants

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(iii) TheApplidant–bankisentitledtorecoverafbresaid'Lrr'ounAblsale,f

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mortgage propertY & hypothecated assets (if not ;old ear\iel under t h e P r 1:11111) v i S \ 1c) n 1c) f t h e S s A B R e F B A BEe Sale Act 20 b 2 ) eTh + a moujt /\ if any already re+vered by sale of any hypothecaked assLts or othErwise

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shall be recoverable, if the dues of the ApAlicant-bnk Still &main unsatisfied, the same shall be recovered by +ttachm'ent and sble of 1\

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the personal movable assets of the defendant jointly and seveFajIY.

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(i,) Th, defend,nt, a„ he„by restrained by means of injunctiob [rom depleting, transferring, encumberingl alienatin+ or in apy way feeling od the w i t h t h e i r P r o P e r t i e s / e s t a t e s w i t h o u t f i rst paying the claim

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Applicant'bank' the " =„::::===::'==='„'iT„::':':: :: ::':

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„„:'='.::''',';’.:'.':::

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BankNPKy Act’ 1993' heoPer.':')LJrt' JUdgment iS pronOUnCea 111 '' ' '’“':”"='=”; \„-„I.:::=i~i;e’'

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(MK)

Punjab National Bank v. New Welcome Saree Showroom

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. New Welcome Saree Showroom

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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