Allowed

Punjab National Bank v. M/S Shree Balaji Embroidery and Another

DRT8 May 2025OA/1474/2022

Case brief

AI extract

What is this about?

The Applicant (Bank) filed an Original Application for recovery of a sum of Rs.68,62,919.69p from Respondents who defaulted on a Consolidated Credit Limit. Defending ex-parte, the Tribunal allowed the application, held the Defendants liable to pay the amount with costs, and fixed interest at 8% p.a., authorizing recovery via sale of mortgaged properties under SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs.68,62,919.69p with costs and interest at 08% p.a.; enforcement allowed via sale of mortgaged properties.

Punjab National Bank versus M/S Shree Balaji Embroidery and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1474/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.07.2022

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DATE OF DECISION: 08.05.2025

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Punjab National Bank, a body corporate, constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and the successor of Oriental Bank of Commerce by scheme of Amalgamation of Oriental Bank of Commerce dated 04.03.2020, passed by Government under Section 9 of the Banking Companies(Acquisition and Transfer of Undertakings) act, 1980, having one of its Branch Office at Hambran Road, Ludhiana, Punjab, through Smt. Jasmeet Kaur, Branch Manager, Punjab National Bank, its Principal Officer, General Attorney of Applicant.

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(erstwhile Oriental Bank of Commerce, Branch Office at Hambran Road, Ludhiana, Punjab)

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……..Applicant

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Versus

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M/s Shree Bala Ji Embroidery, A2A Calibre Plaza, AC Market, Ludhiana through its proprietor Sh. Varun Sharma

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Sh. Varun Sharma S/o SH. Ashok Kumar, R/o H.No.117, Street No.0, Bawa Colony, Balloke Road, Haibowal Kalan, Ludhiana

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………. Defendants

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Advocates:

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Argued by Sh. P.S. Sobti, 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.68,62,919.69p (Rupees Sixty Eight Lacs Sixty Two Thousand Nine Hundred Nineteen Five and Sixty Nine Paise Only). The Original

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2 OA NO.1474/2022 PUNJAB NATIONAL BANK VS M/S SHREE BALA JI EMBROIDERY AND ANOTHER

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Application has been filed through Smt. Jasmeet Kaur, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.08.2020, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of CC Limit of Rs.30.00 Lacs and further for its enhancement to Rs.50.00 Lacs vide Loan Application dated 18.12.2018 and 12.12.2019, which are Annexures A3 and A11 to this OA.

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The applicant sanctioned CC Limit of Rs.30.00 Lacs and further sanctioned its enhancement to Rs.50.00 Lacs vide Sanction Letters dated 11.02.2019 and 20.12.2019, which are Annexures A4 and A12 to this OA and the terms and conditions were duly accepted by the defendants.

¶21

Defendant no.3 had mortgaged her immovable properties i.e. Plot No.117, measuring 128 Sq. Yards situated at Abadi Ajit Nagar, Near Bank Colony, Village Haibowal Kalan, Hadbast No.102, Ludhiana vide Equitable Mortgage of Transfer Deed bearing vasika no.14583 dated 16.12.2011, charge in respect of Mortgage and Fard Jamanbandi along with their translations, which are Annexures A8, A8/A, A10, A10/A, A18 and A18/A to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A1 to this OA; Proprietorship Letter, Agreement of Hypothecation, Common Agreement dated 15.02.2019, which are Annexures A5 to A7 to this OA; LTR/24 dated 16.02.2019 and 23.12.2019, which are Annexures A9 and A17 to this OA Proprietorship Letter, Agreement of Hypothecation, Common

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Agreement and Letter of Undertaking dated 20.12.2019, which are Annexures A13 to A16 to this OA; Notice dated 04.05.2021, which is Annexure A19 to this OA; Notice U/s 13(2) dated 15.09.2021, which is Annexure A20 to this OA; Letter for regularization of Loan dated

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3 OA NO.1474/2022 PUNJAB NATIONAL BANK VS M/S SHREE BALA JI EMBROIDERY AND ANOTHER

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22.11.2021, which is Annexure A21 to this OA; Possession Notice U/s 13(4) dated 15.01.2022, which is Annexure A22 to this OA and Statement of Account with certificate, which is Annexure A23 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 loan account there was a debit of Rs.68,62,919.69p, 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.

¶27

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 01.05.2025.

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In support of the OA, affidavit of Sh. Sunil Sharma, Deputy Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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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 A23 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 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 is entitled to recover a sum of Rs.68,62,919.69p (Rupees Sixty Eight Lacs Sixty Two Thousand Nine Hundred Nineteen Five and Sixty Nine 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 account.

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4 OA NO.1474/2022 PUNJAB NATIONAL BANK VS M/S SHREE BALA JI EMBROIDERY AND ANOTHER

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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 @12.00%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.06.2022 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 @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.68,62,919.69p (Rupees Sixty Eight Lacs Sixty Two Thousand Nine Hundred Nineteen Five and Sixty Nine Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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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12.	Any other application pending stands disposed of.
13.	Issue Recovery Certificate accordingly.

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5 OA NO.1474/2022 PUNJAB NATIONAL BANK VS M/S SHREE BALA JI EMBROIDERY AND ANOTHER

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Parties to appear before Learned Recovery Officer of this Tribunal on 27.05.2025.

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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: 08.05.2025

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

Punjab National Bank v. M/S Shree Balaji Embroidery and Another

Case brief

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Punjab National Bank v. M/S Shree Balaji Embroidery and Another

Case brief

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