Allowed

Punjab National Bank v. M/S Anurag Textiles and Others

DRT15 May 2025OA/1345/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application directed against the defendants for the recovery of an outstanding loan amount of Rs.30 lakhs along with interest since the filing date as the defendants failed to repay the sanctioned facility.

What did the court decide?

Allowed the application, declared the defendants liable to pay Rs.30,24,976.00 with costs and interest, and issued a Recovery Certificate.

Punjab National Bank versus M/S Anurag Textiles and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1345/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.04.2022

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DATE OF DECISION: 15.05.2025

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Punjab National Bank, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No-4, Sector- 10, Dwarka, New Delhi-110075 and Branch Offices, amongst others, at Branch Office Civil Lines, Ludhiana (Punjab). Later on the account has been transferred to Punjab National Bank, Circle SASTRA Centre (West), Site No.5, PNB House, Ferozepur Road, Ludhiana (Punjab) through its General Power of Attorney holder Sh. Ramesh Kumar Aggarwal posted as Deputy Manager of the Applicant.

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……..Applicant

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Versus

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M/S Anurag Textiles, B-XXIV, 4131/5/2, Street No. 4½, Gaushala Road, New Madhopuri, Ludhiana (Punjab)- 141014 through its Proprietor Sh. Ajay Kumar Gupta;

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Sh. Ajay Kumar Gupta S/o Sh. Ram Gopal, House No. 5522, Street No. 1, Raghubir Park, Haibowal kalan, Tehsil Ludhiana West, Ludhiana (Punjab)-141001

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2^nd address : House No.B-IX-1388, Baag Wali Gali, Ward No. 49, Near Haridev Mandir, Ludhiana (Punjab)-141008

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3^rd address : House No. 6992, B-34, Sunil Park, Haibowal Kalan, Ludhiana (Punjab)-141001

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Sh. Sameer Gupta S/o Sh. Ram Gopal, R/o House No. 5522, Street No. 1, Raghubir Park, Haibowal Kalan, Tehsil Ludhiana West, Ludhiana (Punjab)-141001

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Sh. Ram Gopal S/o Sh. Gujar Mal, House No. 5522, Street No. 1, Raghubir Park, Haibowal Kalan, Tehsil Ludhiana West, Ludhiana (Punjab)-141001

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2 OA NO.1345/2022

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PUNJAB NATIONAL BANK VS M/S ANURAG TEXTILES AND OTHERS

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2^nd address : House No.B-IX-1388, Baag Wali Gali, Ward No. 49, Near Haridev Mandir, Ludhiana (Punjab)-141008.

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………Defendants

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Advocates:

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Argued by Sh. P.K. khurana, Advocate for 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.30,24,976.00 (Rupees Thirty Lacs Twenty Four Thousand Nine Hundred Seventy Six only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, Manager Legal of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 24.09.2013, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants no. 1 was already availing CC Limit Rs.7.00 Lacs had approached the applicant for enhancement CC Limit to Rs. 20.00 Lacs vide Loan Application dated 03.12.2013, which is Annexure A2 to this OA and further for its Renewal/Conversion into ODIP of Rs.20.00 Lacs. 3. The applicant sanctioned the CC Limit of Rs.20.00 Lacs vide Sanction Letter dated 04.12.2013, which is Annexures A3 to this OA and further sanctioned its Renewal/Conversion into ODIP of Rs.20.00 lacs vide Sanction Letter dated 08.09.2015, which is Annexures A9 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant nos.1 and 4 had mortgage their immovable property i.e. two plots measuring 133.33 square yards each, aggregating 266.66 square yards situated at Village Haibowal Kalan, Hadbast No. 102, also known as Abadi Durga Puri, Street No. 12, Opposite Mandir, Tehsil & District Ludhiana (Punjab) vide Equitable Mortgage of Sale Deed bearing vasika no.11208, vasika no.11212 both dated 14.10.2011 with their

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3 OA NO.1345/2022 PUNJAB NATIONAL BANK VS M/S ANURAG TEXTILES AND OTHERS

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translations and valuation report dated 16.10.2020, which is Annexures A8 to this OA

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Documents executed:- Hypothecation of Goods and Book Debts, Agreement of Guarantee, Letter for Various Undertaking, Letter of Undertaking for availment of credit under PNBLUCC all dated 17.12.2013, which are Annexures A4 to A7 to this OA; Overdraft Agreement, Agreement of Guarantee, Letters of Hypothecation all dated 15.09.2015, which are Annexures A10 to A13 to this OA; Balance and Security Confirmation Letters10.03.2013, 17.12.2013 and 26.08.2019, which is Annexures A14 to this OA; Letters/Communications for regularizing the Account dated 07.12.2016, 06.03.2017, 14.12.2017, 27.12.2017 and 21.07.2018, which is Annexures A15 (colly) to this OA Recall notice U/s 13(2) dated 07.09.2019, 11.09.2019 and 17.09.2019 along with withdrawal of Notice and Postal Receipts, which is Annexure A16 to this OA; Recall notice U/s 13(2) dated 17.09.2019 along with Postal Receipts, which is Annexure A17 to this OA; Final Legal Notice dated 22.02.2022, which is Annexure A18(colly) to this OA and Statements of Accounts with certificate, which is Annexure A19 (colly) to this OA.

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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.30,24,976.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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 08.05.2025. 7. In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Manager Legal, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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4 OA NO.1345/2022

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PUNJAB NATIONAL BANK VS M/S ANURAG TEXTILES AND OTHERS

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.30,24,976.00 (Rupees Thirty Lacs Twenty Four Thousand Nine Hundred Seventy Six 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.95%p.a. from 01.04.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate 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 defendants, 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 @7.95%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,24,976.00 (Rupees Thirty Lacs Twenty Four Thousand Nine Hundred Seventy Six only) jointly and severally, with costs, current and future simple interest @7.95%p.a. in the loan account from the date of

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OA NO.1345/2022

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PUNJAB NATIONAL BANK VS M/S ANURAG TEXTILES AND OTHERS

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filing of OA till the date of realization of the amount. Accordingly, the applicant 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 applicant 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 . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.05.2025.

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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. Pronounced by me in the open Tribunal .

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Dated: 15.05.2025

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

Punjab National Bank v. M/S Anurag Textiles and Others

Case brief

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Punjab National Bank v. M/S Anurag Textiles and Others

Case brief

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