Allowed

Punjab National Bank v. M/s Supreme Import Export Limited

DRT8 May 2025OA/1657/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of Rs.23.23 crore from various respondents. The Tribunal approved a uniform simple interest rate of 7.85% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.23,23,04,132.00 plus costs and simple interest @07.85%p.a. till realization.

Punjab National Bank versus M/s Supreme Import Export Limited — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1657/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.09.2022

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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 one of its Branch Offices at Circle SASTRA Centre, Patiala, 147001

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……..Applicant

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Versus

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M/s Supreme Import Export Limited, Registered Office House No.728, Sector 15, Modern Apartment, Rohini, Delhi-110085.

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Works : Bagrain Road, Dhuri, District Sangrur, Punjab 148201

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Sh. Sanjeev Kumar Goyal S/o Sh. Mehar Chand, R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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Sh. Rajiv Kumar S/o Sh. Mehar Chand, R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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Smt. Shelly Goyal W/o Sh. Sanjeev Kumar, R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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Sh. Sham Lal S/o Sh. Dev Raj, R/o House No.299, Near Oriental Bank of Commerce (Now PNB), Ward No.16B, Dhuri, DIsrict Sangrur, Punjab

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Sh. Mehar Chand S/o Sh. Chela Ram now deceased and being represented through his following Class I Legal Heirs:-

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2 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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a. Ms. Priyanka Gupta D/o Sh. Mehar Chand C/o Sh. Sanjeev Kumar Goyal R/o R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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b. Ms. Shama Gupta D/o Late Sh. Mehar Chand C/o Sh. Sanjeev Kumar Goyal, R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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c. Ms. Rajni Mittal D/o Late Sh. Mehar Chand C/o Sh. Sanjeev Kumar Goyal, R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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Smt. Puja Goyal W/o Sh. Rajiv Goyal, R/o House No.278, Ward No.16B, Dhuri Pind Road, Near SBOP, Dhuri, District Sangrur, Punjab

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Sh. Ramesh Kumar S/o Sh. Madho Ram, R/o House No.80, Ward No.7A, Pathshala Road, Dhuri, District Sangrur, Punjab

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M/s Supreme Polytubes Private Limited, Bagrain Road, Dhuri, District Sangrur, Punjab 148201

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M/s Rajiv Plastics, Malerkotla Road, Dhuri, District Sangrur, Punjab through its partners

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………. Defendants

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. D.K. Gupta, Advocate for the applicant Defendant No.1 to 9 & 11 are ex parte None for defendant no.10

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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.23,23,04,132.00 (Rupees Twenty Three Crore Twenty Three Lakh

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3 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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Four Thousands One Thousand Thirty Two Only). The Original Application has been filed through Sh. Abhinandan Modi, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 30.12.2013, which is Annexure A1 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.4.00 Crore and FLC of Rs.1.00 Crore and further for enhancement of CC Limit to Rs.5.00 Core and NFB Limit to Rs.10.00 Crore. Later Defendant again approached the applicant for reduction of NFB Limit to Rs.87.00 Lacs and WCTL of Rs.913.00 Lacs. Later defendants approached the applicant for grant of GECL Term Loan of Rs.5.80 Crore vide Loan Application, which is Annexure A47 to this OA and further for Car Loan of Rs.66.00 Lacs and Rs.5.30 Lacs vide Loan Applications dated 15.06.2017 and 04.05.2017, which are Annexures A55 and A63 to this OA.

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The applicant sanctioned CC Limit of Rs.4.00 Crore and FLC of Rs.1.00 Crore and further Sanctioned the enhancement of CC Limit to Rs.5.00 Core and NFB Limit to Rs.10.00 Crore vide Sanction Letters dated 30.03.2017 and 11.04.2018, which are Annexures A5 and A7 to this OA. Later applicant sanctioned reduction of NFB Limit to Rs.87.00 Lacs and WCTL of Rs.913.00 Lacs vide Sanction Letter dated 26.06.2019 and Letter of Sanction dated 28.06.2019, which are Annexures A9 and A10 to this OA. Later defendants approached the applicant for grant of GECL Term Loan of Rs.5.80 Crore vide Proposal dated 18.06.2020 and Sanction Letters dated 22.06.2020 and 23.06.2020, which are Annexures A48 and A49 to this OA and further Sanctioned Car Loans of Rs.66.00 Lacs and Rs.5.30 Lacs vide Sanction Letter dated 16.06.2017 and Letter of Acceptance dated 04.05.2017, which are Annexures A56 and A64 to this OA and the terms and conditions were duly accepted by the defendants.

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4 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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Defendants had mortgaged their immovable properties i.e. i. Factory land and building measuring 9150 Sq. Yards situated at Bagrian Road, Rakba Baradwal, Tehsil Dhuri, District Sangrur, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika no.2889 dated 25.11.2002, vasika no.4339 dated 28.03.2003 and vasika no.915 dated 23.05.2003 along with their translations, which are Annexures

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A28 to A30 to this OA.

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ii. Double Storey residential House No.291 built on land measuring 1890 Sq. Yards situated at Ward No.10B, near National Playway School, Bus Stand Wali Gali, Mohalla Shivpuri (Back Side Bus Stand), Dhuri, District Sangrur, Punjab vide Equitable Mortgage of Sale Deed bearing vasika No.294 dated 28.04.1994 with its translation, which is

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Annexure A31 to this OA

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iii. Factory land and building measuring 400 Sq. Yards situated at Malerkotla Road, Nehru Market, Near Mahavir Mandir, Tehsil Dhuri, District Sangrur, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika no.3708 dated 24.01.1996 along with its translations, which is

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Annexure A32 to this OA

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iv. Factory land and building measuring 407 Sq. Yards (8Biswa15Biswasi) situated at M/s R.K. Industries, Near Vishkarma Mandir, Sugar Mill Colony, Malerkotla Road, Tehsil Dhuri, District Sangrur, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika no.1779 dated 16.10.1998 along with its translations, which is Annexure A33 to this OA

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v. Factory land and building and adjoining Shed of M/s Ranta Resorts measuring 3500 Sq. Yards situated at Malerkotla Road, Tehsil Dhuri, District Sangrur, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika no.2542 dated 31.10.2001, Vasika no.174 dated 22.04.2005, vasika no.2345 dated 10.09.2003, vasika no.2795 dated 25.02.1997, vasika no.2357 dated 11.09.2003 and vasika no.3363

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5 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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date 21.12.2012 along with their translations, which are Annexures A34 to A39 to this OA

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vi. Residential Plot measuring 100 Sq. Yards situated at Bahamian Khurd, Hadbast No.180, Tehsil and District Ludhiana, Punjab vide Equitable Mortgage of Sale Deed bearing vasika No.11837 dated 10.11.2009 with its translation, which is Annexure A40 to this OA vii. Residential vacant plot measuring 1050 Sq. Yards situated at Mohalla Sangatpura, MLK Byepass Road, Near Old Charanjit Rice Mill, Hadbast No.94, Dhuri, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika No.733 and 734 both dated 27.05.2010 with their translations, which are Annexures A41 and A42 to this OA viii. Residential House No.643, measuring 300 Sq. Yards situated at Sector 12, Panchkula vide Equitable Mortgage of Sale Deeds bearing vasika No.1379 dated 26.08.2016 and vasika no.2565 dated 29.11.2011, which are Annexures A43 and A46 to this OA. ix. Land measuring 2Bigha-17Biswa-16Biswasi (2890 Sq. yards) situated at Opposite Sunrey Plywood Pvt. Limited, backside M/s Supreme Polytubes Limited, Bagrian Road, Baradwal, Hadbast No.92, Dhuri District Sangrur, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika No.3128 dated 04.01.2017 with its translation, which are Annexure A44 to this OA

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x. Land measuring 2Bigha situated at Mr. H.L. Sharma House, Near Ashoka Farm House, Totapuri Road, Dhuri District Sangrur, Punjab vide Equitable Mortgage of Sale Deeds bearing vasika No.3400 dated 15.12.2004 and vasika no.2565 dated 29.11.2011 with its translation, which is Annexure A45 to this OA Defendant no.1 had hypothecated its movable assets i.e.

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a. Vehicle namely SKODA Audi Q7 45 TDI BSIV, bearing chassis No. WAUZAH4M3HY000388, Engine No.CVM012523 and Registration No.PB-13AW-0999 vide Sale Certificate dated

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6 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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15.06.2017 and Registration Certificate dated 24.07.2017, which are Annexures A60 and A61 to this OA

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b. Vehicle Namely KUV100K2+M Falcon D75 6 STR bearing Registration No. PB-13AX-6199 vide Registration Certificate, which is Annexure A68 to this OA

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Documents executed:- Certificate of Incorporation dated 25.11.2013, which is Annexure A2 to this OA; Certificate of Commencement dated 01.12.2013, which is Annexure A3 to this OA; Memorandum And Articles dated 11.11.2013, which is Annexure A4 to this OA: Resolutions dated 17.03.2017 and 04.04.2018, which are Annexures A6 and A8 to this OA; Hypothecation Agreement for Moveable Assets, Hypothecation Agreement for Current Assets, Deed of Hypothecation, WCTL Agreements, Supplementary Agreement, Agreements of Guarantee, which are Annexures A11 to A24 to this OA; Intent Letters dated 09.05.2002, 07.03.2003, 15.03.2004, 28.03.2013, 23.06.2014, 02.03.2015, 25.02.2016, 08.11.2018 and 29.06.2019, which is Annexure A25 to this OA; Letters of Continuities dated 29.06.2019, which is Annexure A26 to this OA; Pages of Title Deed Register dated 28.06.2019 and 24.06.2020, which is Annexure A27 to this OA; Master Agreement, WCTL Agreement, Demand Promissory Note all dated 24.06.2020, which are Annexures A50 to A52 to this OA; Resolution dated 17.06.2020, which is Annexure A53 to this OA; Letters of Continuity dated 25.06.2020, which is Annexure A54 to this OA; Letter of Hypothecation, Agreement of Guarantee, Invoice both dated 15.06.2017, which are Annexures A57 to A59 to this OA; BC Letter dated 09.07.2019, which is Annexure A62 to this OA; Letter of Hypothecation, Agreement of Guarantee and credit/Debit Voucher dated 05.05.2017, which are Annexures A65 to A67 this OA; BC Letter dated 09.07.2019 and 21.11.2020, which are Annexures A69 to A71 to this OA; Notice U/s 13(2) dated 17.04.2021, which is Annexure A72 to this OA and Statements of

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7 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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Accounts with certificate, which are Annexures A73 to A78 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 all the loan accounts there was a debit of Rs.23,23,04,132.00, 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant Nos.1 to 9 & 11 and they were proceeded ex-parte on 27.03.2025. On 24.07.2024 Ld. counsel for applicant has submitted the case against defendant no.10 is pending before Hon’ble NCLT and filed a copy of order dated 18.08.2023 passed by Hon’ble NCLT vide diary no.11319 dated 24.07.2024, therefore, the proceedings against defendant no.10 were kept in abeyance in the present OA vide order dated 27.03.2025. 7. In support of the OA, affidavit of Sh. Abhinandan Modi, Senior Manager, Punjab National Bank has been filed. 8. 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 Annexures A1 to A78 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 applicant. 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 NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,23,04,132.00 (Rupees Twenty Three Crore Twenty Three Lakh

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8 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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Four Thousands One Thousand Thirty Two 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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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest detailed as: a. Interest @11.95%p.a. in CC Limit b. Interest @8.40%p.a. in GECL Term Loan c. Interest @12.40%p.a. in WCTL d. Interest @7.85%p.a. in Car Loan I e. Interest @8.00%p.a. in Car Loan II along with penal interest @2.00%p.a. with monthly rests in all from 01.07.2022 till the realization. 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 @07.85%p.a. in all 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.23,23,04,132.00 (Rupees Twenty Three Crore Twenty Three Lakh Four Thousands One Thousand Thirty Two Only) jointly and severally, with costs, current and future simple interest @07.85%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/mortgaged properties

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9 OA NO.1657/2022 PUNJAB NATIONAL BANK VS M/S SUPREME IMPORT EXPORT PVT. LIMITED AND OTHERS

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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.

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Issue Recovery Certificate accordingly.

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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 Supreme Import Export Limited

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Supreme Import Export Limited

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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