Allowed

Punjab National Bank v. M/s. Jiya Collection and Another

DRT4 Sept 2025OA/1422/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Punjab National Bank against a loan proprietor and a guarantor. It declared the defendants liable to repay the outstanding dues of Rs. 38,16,165.58 with costs and uniform simple interest at 8% p.a., directing the issuance of a Recovery Certificate.

What did the court decide?

Directed defendants to pay Rs. 38,16,165.58 jointly and severally with costs and uniform simple interest @8% p.a.; issued Recovery Certificate.

Punjab National Bank versus M/s. Jiya Collection and… — Insolvency and Bankruptcy | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1422/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.12.2024

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DATE OF DECISION: 04.09.2025

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075, and a Branch Office amongst at Sunder Nagar, District Ludhiana, Punjab through General Power of Attorney Holder Sh. Debabrata Padhan, Senior Manager and Constituted Attorney presently posted at Circle SASTRA Centre, Ludhiana.

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……..Applicant

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Versus

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M/s. Jiya Collection, situated at Plot no. 54, Nehru Vihar, Azad Nagar, Gobind Hosiery Complex, Near Lal Mata Mandir Chowk, Kali Sadak, District Ludhiana, Punjab, through its Proprietor Smt. Deepika Aneja W/o Sh. Harvinder Aneja Residential Address: - House No. 94, Central Town behind Keys Hotel, Pakhowal Road, Ludhiana, Punjab.

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Smt. Charanjit Aneja W/o Sh. Dwarka Nath Aneja R/o House No. 94, Central Town behind Keys Hotel, Pakhowal Road, Ludhiana, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

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Defendants already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under

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Section 19 of the Recovery of Debts Due to Banks and Bankruptcy Act,

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1993, against the defendants for recovery of Rs. 38,16,165.58p (Rupees

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2 OA/1422/2024 PUNJAB NATIONAL BANK VS M/S JIYA COLLECTION AND ANOTHER

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Thirty Eight Lacs Sixteen Thousand One Hundred Sixty Five and Fifty Eight Paise Only). The Original Application has been filed through Sh. Debabrata Padhan, Senior Manager and P ower of Attorney holder of the applicant, who is competent to institute the Original Application, vide Power of Attorney dated 25.10.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 through its Proprietor had approached the applicant for grant of Cash Credit limit of Rs. 18.00 Lacs, dated 03.04.2017, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. Thereafter, the defendant no. 1 through its proprietor approached the applicant for Enhancement of Cash Credit limit to Rs. 35.00 Lacs, vide loan application, which is Annexure A8 to this OA. Thereafter, the defendant no. 1 through its proprietor approached the applicant for Loan of Rs. 6.11 Lacs under GECL, vide loan Application dated 10.06.2020, which is Annexure A13 to this OA. Thereafter, the defendant no. 1 through its proprietor approached the applicant for Enhancement of Cash Credit limit to Rs. 45.00 Lacs, vide loan application dated 27.08.2020, which is Annexure A19 to this OA. Thereafter, the defendant no. 1 through its proprietor approached the applicant for fresh Term loan of Rs. 27.00 Lacs, vide loan application dated 05.06.2021, which is Annexure A22 to this OA. Thereafter, the defendant no. 1 through its proprietor approached the applicant for grant of another loan of Rs. 7.20 Lacs, under GECL 1.0 Extension.

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The applicant sanctioned Cash Credit limit of Rs. 18.00 Lacs, vide Sanction Letter dated 11.04.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 vide letter dated 13.04.2017, which is Annexure A4 to this OA. Thereafter, the applicant sanctioned enhancement of limit to Rs. 35.00 Lacs vide sanction, which is Annexure A8A to this OA. Thereafter, the applicant sanctioned a loan of Rs. 6.11 Lacs under GECL, vide sanction dated 11.05.2020, which is Annexure A14 to this OA. Thereafter, the

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3 OA/1422/2024 PUNJAB NATIONAL BANK VS M/S JIYA COLLECTION AND ANOTHER

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applicant sanctioned enhancement of limit to Rs. 45.00 Lacs vide sanction letter dated 28.09.2020, which is Annexure A19A to this OA. Thereafter, the applicant sanctioned fresh Term loan of Rs. 27.00 Lacs vide sanction letter dated 17.06.2021, which is Annexure A23 to this OA and its terms and conditions were accepted by defendant no. 1 vide letter, which is Annexure A23A to this OA. Thereafter, the applicant sanctioned another loan of Rs. 7.20 Lacs under GECL 1.0 Extension vide sanction letter dated 16.11.2021, which is Annexure A28 to this OA. 4. Defendant no.1 through its proprietor had Hypothecated its movable Assets i.e. Stocks of Raw Material, Book Debts, Bills, Stores and Spares, Finished Goods, stock of ladies cardigans and kurtis, Shawls, Hosiery goods and yarns, etc. vide agreement of Hypothecation of Goods and Book Debts dated 13.04.2017, 18.07.2019, which are Annexures A5 and A10 to this OA and further, hypothecated knitting machine for hosiery vide agreement of Hypothecation of assets to secure term loan 22.06.2021, which is Annexure A25 to this OA

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The immovable property mortgaged in the account is already sold by the applicant under SARFAESI Act, and sale certificate of immovable property dated 24.06.2025, which is Annexure A33 to this OA.

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Documents executed:- Supplementary Agreement, Agreement of Guarantee, both dated 13.04.2017, which are Annexures A6 and A7 to this OA; Letter, Supplementary Agreement, Agreement of Guarantee, all dated 18.07.2019, which are Annexures A9, A11 and A12 to this OA; D.P. Note, Agreement, Master Agreement, Agreement of Guarantee all dated 11.06.2020, which are Annexures A15 to A18 to this OA; Master Agreement, Agreement of Guarantee, both dated 28.09.2020, which are Annexures A20 and A21 to this OA; D.P. Note, Term Loan Agreement, Master Agreement, all dated 22.06.2021, which are Annexures A23A, A24, A26 and A27 to this OA; Undertaking, which is Annexure A29 to this OA; Agreement for WCTL, Master Agreement, Acknowledgement of debt, all dated 07.12.2021, which are

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4 OA/1422/2024 PUNJAB NATIONAL BANK VS M/S JIYA COLLECTION AND ANOTHER

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Annexures A30 to A32 to this OA; Statement of Accounts, which are Annexures A34 to A37 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 38,16,165.58p, 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.

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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 13.08.2025.

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In support of the OA, affidavit of Sh. Debabrata Padhan, Senior Manager, Punjab National Bank has been filed.

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Heard ex-parte 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 had proved its case. From the perusal of all the Annexures A1 to A37 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs. 38,16,165.58p (Rupees Thirty Eight Lacs Sixteen Thousand One Hundred Sixty Five and Fifty Eight Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 in CC Account

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5 OA/1422/2024 PUNJAB NATIONAL BANK VS M/S JIYA COLLECTION AND ANOTHER

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@10.90%p.a., in Term Loan @09.25%pa and in GECL @09.25%pa with penal interest @2%p.a. with monthly rests, from 01.11.2024 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/hypothecated assets, 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 @08.00%p.a. in all 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. 38,16,165.58p (Rupees Thirty Eight Lacs Sixteen Thousand One Hundred Sixty Five and Fifty Eight Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts from the date of 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 assets 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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12. 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

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on 30.09.2025.

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6 OA/1422/2024 PUNJAB NATIONAL BANK VS M/S JIYA COLLECTION AND ANOTHER

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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: 04.09.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. M/s. Jiya Collection and Another

Case brief

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Punjab National Bank v. M/s. Jiya Collection and Another

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