Allowed

Punjab National Bank v. M/s Surindra Saddles and Another

DRT30 May 2025OA/173/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of an outstanding loan of Rs. 1.39 crore from a firm and its proprietor. The Tribunal reduced the claimed interest rate to 8.00% per annum and ordered the issuance of a Recovery Certificate.

What did the court decide?

Decree for recovery of Rs. 1,39,88,286.35p with simple interest at 8% p.a.; Recovery Certificate issued; Applicant entitled to enforce via sale of hypothecated or personal assets.

Punjab National Bank versus M/s Surindra Saddles… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.173/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.10.2021

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DATE OF DECISION: 30.05.2025

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Punjab National Bank, (Erstwhile Known as Oriental Bank of Commerce), a body corporate Constituted under Banking Companies (Acquisition & 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 at Circle Sastra Centre Ludhiana West, Ferozepur Road, Ludhiana through its general power of attorney Holder Sh. Sugandha Sharma, Sr. Manager of the applicant.

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……..Applicant

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Versus

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M/s Surindra Saddles, Proprietor Firm, having its business place at F-18, Phase -7, Focal point, Ludhiana through its proprietor namely Sh. Surindra Singh S/o Sh. Jagdish Lal.

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Sh. Surindra Singh S/o Sh. Jagdish Lal, R/o House No.3, Extension, Sector-9, Basant Avenue, Ludhiana, Punjab.

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….……Defendants

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Advocates: Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Brijesh Sharma, 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.1,39,88,286.35p (Rupees One Crore Thirty Nine Lacs Eighty Eight Thousand Two Hundred Eighty Six and Thirty Five Paisa only). The Original Application has been filed through Sh. Sugandha Sharma, Senior Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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2 OA NO.173/2022 PUNJAB NATIONAL BANK VS M/S SURINDRA SADDLES AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for the grant of CC Limit of Rs.90.00 Lacs & Term Loan of Rs.40.00 Lacs and further for renewal of CC Limit of Rs.90.00 Lacs & Term Loan of Rs.40.00 Lacs.

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The applicant sanctioned the CC Limit of Rs.90.00 Lacs & Term Loan of Rs.40.00 Lacs vide Sanction letter dated 12.07.2017, which is Annexure A2 to this OA and further sanctioned the renewal of CC Limit of Rs.90.00 Lacs & Term Loan of Rs.40.00 Lacs vide Sanction letter dated 24.01.2019, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated its movable properties/assets i.e. Plant and Machineries, stocks and receivables vide Agreement of Hypothecation of assets dated 13.07.2017, which is Annexure A4 this OA.

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Documents executed: - Agreement of Term Loan, Common Agreement, undertaking for assignment of receivables and cash flows, Sole Proprietor letter all dated 13.07.2017, which are Annexures A3 & A5 to A7 to this OA; Balance and security confirmation letter dated 24.01.2019, which is Annexure A9 to this OA; Notice 13(2) dated 02.03.2020, which is Annexure A10 to this OA and Statement of accounts, which are Annexures A11 & A12 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.1,39,88,286.35p, 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 28.05.2025.

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3 OA NO.173/2022 PUNJAB NATIONAL BANK VS M/S SURINDRA SADDLES AND ANOTHER

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In support of the OA, affidavit of Sh. Sugandha Sharma, Senior Manager, Punjab National Bank, h as 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 Annexures A1 to A12 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.1,39,88,286.35p (Rupees One Crore Thirty Nine Lacs Eighty Eight Thousand Two Hundred Eighty Six and Thirty Five Paisa only) rest 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 @9.85%p.a. with monthly rests from 01.06.2021 till actual 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 @8.00%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.

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4 OA NO.173/2022 PUNJAB NATIONAL BANK VS M/S SURINDRA SADDLES AND ANOTHER

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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.1,39,88,286.35p (Rupees One Crore Thirty Nine Lacs Eighty Eight Thousand Two Hundred Eighty Six and Thirty Five Paisa only) jointly and severally, with costs, current and future simple interest @8.00%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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 16.06.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 30.05.2025.

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

Punjab National Bank v. M/s Surindra Saddles and Another

Case brief

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Punjab National Bank v. M/s Surindra Saddles and Another

Case brief

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