Allowed

Punjab National Bank v. M/S Ps Doaba Auto Industries

DRT27 Mar 2025OA/1507/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank applicant's claim for recovery of a disputed loan amount. The court directed payment of the principal sum with simple interest at 8% per annum, decreeing joint and several liability on the defendants based on mortgage and term loan agreements.

What did the court decide?

Recovery Certificate directed; payment of Rs.29,85,105.28 with 8% simple interest from filing date; rights to sell mortgaged/attach personal assets.

Punjab National Bank versus M/S Ps Doaba Auto Industries — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1507/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.08.2022

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DATE OF DECISION: 27.03.2025

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110-075 and amongst others a branch at G.T. Road, Dhandari Kalan, Ludhiana, Punjab through Sh. Amit Thind, Deputy Manager and Attorney holder presently posted at Circle SASTRA Centre, Ludhiana.

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……..Applicant Versus

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M/s PS Doaba Auto Industries, a sole proprietorship concern situated at 458/16-L, Street No.4, New Giaspura, Ludhiana 141010 through its sole proprietor Sh. Parkash Singh son of Sh. Sohan Singh.

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Sh. Parkash Singh son of Sh. Sohan Singh resident of 458/16-L, Street No.4, New Giaspura, Ludhiana 141010.

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Sh. Sarabjeet Singh son of Sh. Parkash Singh resident of 458/16-L, Street No.4, New Giaspura, Ludhiana 141010.

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………. Defendants

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Advocates:

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Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. Manish Singla, 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.29,85,105.28p (Rupees Twenty Nine Lacs Eighty Five Thousand One Hundred Five And Paise Twenty Eight Only). The Original

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2 OA NO.1507/2022

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PUNJAB NATIONAL BANK VS M/S PS DOABA AUTO INDUSTRIES

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Application has been filed through Sh. Amit Thind, Deputy Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.03.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for CC Limit of Rs.18.00 Lacs and further approached the applicant for enhancement of CC Limit of Rs.18.00 Lacs to Rs.25.00 Lacs and fresh Term Loan of Rs. 10.00 Lacs. 3. The applicant sanctioned CC Limit of Rs.18.00 Lacs and further sanctioned the applicant for enhancement of CC Limit of Rs.18.00 Lacs to Rs.25.00 Lacs and of fresh Term Loan of Rs. 10.00 Lacs vide Sanction Letter dated 10.10.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.3 had mortgaged his immovable property i.e. Equitable mortgage of immovable Residential house measuring 336.50 Sq. Yards (206 Sq Yards +130.50 Sq Yards) situated at MC No.B-XXIX458/16L Street No.4, Near Kamboj Factory, Village Giaspura, H.B. No.261, Tehsil & District Ludhiana vide Equitable Mortgage of Sale Deeds bearing vasika no. 26061 dated 04.03.1999 and vasika no. 5051 dated 01.06.1998 along with their translations, which are Annexures A10 & A11 to this OA. Documents executed:- Amalgamation Scheme/Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Sole Proprietorship Letter, Supplemental Agreement to Secure Credit/Loan Facilities, Common Agreement, Undertaking for Assignment of receivables and cash flows, Agreement of Term Loan & Agreement of Guarantee all dated 10.10.2016, which are Annexures A4 to A9 to this OA; Letter executed by defendant no.3 recording confirmation of deposit of title deed dated 02.08.2003, which is Annexure A12 to this OA; Letters executed by defendant no.3 evidencing extension of mortgage dated 02.08.2003, 10.09.2007, 23.05.2008, 11.10.2010,

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3 OA NO.1507/2022

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PUNJAB NATIONAL BANK VS M/S PS DOABA AUTO INDUSTRIES

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25.05.2011, 22.07.2014 & 10.10.2016, which are Annexures A13 to A18 to this OA; Valuation Report dated 09.10.2010, which is Annexure A19 to this OA; Balance Confirmation Letter dated 20.06.2006, 25.09.2007, 14.09.2010, 01.09.2012, 19.10.2013, 21.07.2014, 10.10.2016, 08.02.2018 & 14.08.2019, which are Annexures A20 to A28 to this OA; Notice u/s 13(2) dated 14.09.2021, which is Annexure A29 to this OA and Statements of Accounts duly certified, which are Annexures A30 & A31 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.29,85,105.28p, 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. Ms. Ayna Vasudeva, Advocate appeared on behalf of defendants and filed Memo of Appearance on 28.10.2024 but thereafter neither she filed Power of Attorney nor any one appeared, hence all defendants were proceeded ex-parte on 07.03.2025.

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In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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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

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Annexures A1 to A31 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as

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4 OA NO.1507/2022

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PUNJAB NATIONAL BANK VS M/S PS DOABA AUTO INDUSTRIES

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NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.29,85,105.28p (Rupees Twenty Nine Lacs Eighty Five Thousand One Hundred Five And Paise Twenty Eight 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 @9.50%p.a. along with penal interest of @2.00%p.a. with monthly rests from 01.08.2022 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 both the loan accounts 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.29,85,105.28p (Rupees Twenty Nine Lacs Eighty Five Thousand One Hundred Five And Paise Twenty Eight Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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/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

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5 OA NO.1507/2022

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PUNJAB NATIONAL BANK VS M/S PS DOABA AUTO INDUSTRIES

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attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.04.2025. 15. 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: 27.03.2025

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

Punjab National Bank v. M/S Ps Doaba Auto Industries

Case brief

What is this about?

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Punjab National Bank v. M/S Ps Doaba Auto Industries

Case brief

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What did the court decide?

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