Allowed

Punjab National Bank v. M/S Bholenath Industries and Others

DRT10 Jun 2025OA/178/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application claiming recovery of Rs. 28,21,363.48 from borrowers who defaulted on a credit card limit. The court adjusted the interest rate and ordered the issuance of a recovery certificate.

What did the court decide?

Issuance of recovery certificate; recovery of Rs. 28,21,363.48 with costs and simple interest at 8% p.a. from the sale of mortgaged and personal property.

Punjab National Bank versus M/S Bholenath Industries and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.178/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.01.2024

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DATE OF DECISION: 10.06.2025

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at 7, Bikhaji Cama Place, New Delhi-110607, Branch Office at Ropar and a Branch Office at Circle Sastra, SAS Nagar (Mohali) through its General Power of Attorney holder/ Authorized Signatory Sh. Subhash Chandra, Sr. Manager.

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……..Applicant Versus

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M/S Bholenath Industries, through its Proprietor Sh. Ashwani Kumar S/o Kishori Lal situated at Village Bara Salore, Morinda Road, Rupnagar, 140101.

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2^nd Address : House no. 228, Giani Zail Singh Nagar, Ropar, Punjab-140101.

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Sh. Ashwani Kumar S/o Sh. Kishori Lal, House no. 228, Giani Zail Singh Nagar, Ropar, Punjab- 140101.

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Sh. Kishori Lal S/o Sh. Tala Ram, House no. 228, Giani Zail Singh Nagar, Ropar, Punjab- 140101.

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………. Defendants

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Advocates:

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Argued by Sh. Rahul Garg, Advocate proxy for Sh. Navdeep Kalair, Advocate for Applicant Present Sh. Tejinder Singh, Advocate proxy for Sh. Varun Verma, Advocate for Defendants

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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

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Institutions Act, 1993, against the defendants for recovery of Rs.28,21,363.48p (Rupees Twenty Eight Lacs Twenty One Thousand

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2 OA No.178-2024 PUNJAB NATIONAL BANK VS M/S BHOLENATH INDUSTRIES AND OTHERS

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Three Hundred Sixty Three And Paise Forty Eight Only). The Original Application has been filed through Sh. Subhash Chandra, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.07.2011, 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.10.00 Lacs and further approached the applicant for its enhancement upto Rs.20.00 Lacs vide Loan Application dated 10.06.2013, which is Annexure A2 to this OA.

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The applicant sanctioned CC Limit of Rs.10.00 Lacs vide Sanction Letter and further sanctioned its enhancement upto Rs.20.00 Lacs vide Sanction Letter dated 05.09.2014, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.3 had mortgaged his immovable properties i.e. Building measuring 01 Kanal 03 Marla, H.B. No.44 situated in municipal Limits of Rupnagar, Tehsil & District Rupnagar vide Equitable Mortgage of T itle deed bearing vasika no. 1319 dated 27.06.1979 with its Translation, which are Annexure A7 & A7A to this OA.

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Documents executed:- Hypothecation Assets dated 10.06.2013, which is Annexures A3 to this OA; Copy pf Letter undertaking and Demand Promissory Note, Supplementary Agreement, Letter of Continuity and Copy of Guarantee deed all dated 14.06.2013, which are Annexures A4, A5, A6 & A9 to this OA;; Legal Search Report dated 06.04.2013, which is Annexure A8 to this OA; Hypothecation Assets and Copy of Guarantee Deed both dated 05.09.2014, which are Annexure A11 & A12 to this OA; Letter of Continuity dated 06.09.2014, which is Annexure A13 to this OA; Balance & Security Confirmation Letters dated 04.04.2016, 02.01.2017, 02.12.2019 and 30.01.2021, which is Annexures A14 (colly) to this OA; Recall Notice with postal receipts

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3 OA No.178-2024 PUNJAB NATIONAL BANK VS M/S BHOLENATH INDUSTRIES AND OTHERS

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dated 25.03.2022, which is Annexures A15(colly) to this OA; Loan A/C Statements dated 31.08.2017, which are Annexures A16(colly) to this OA; Certificate under Bankers Books Evidence Act and Pan Card, Voter Card which is Annexure A17 & A18 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. 28,21,363.48, 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. Sh. Varun Verma, Advocate appeared on behalf of defendants and filed his Power of Attorney but did not filed WS within stipulated period. Therefore, opportunity to file WS by defendants was closed and their defense was struck of on 04.06.2025.

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In support of the OA, affidavit of Sh. Subhash Chandra, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments of Ld. counsel for applicant. Ld. proxy counsel for defendants appeared has not advanced any arguments. 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 A18 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. 28,21,363.48 (Rupees

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4 OA No.178-2024

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PUNJAB NATIONAL BANK VS M/S BHOLENATH INDUSTRIES AND OTHERS

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Twenty Eight Lacs Twenty One Thousand Three Hundred Sixty Three And Paise Forty 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 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 @11.65%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.12.2023 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. 28,21,363.48 (Rupees Twenty Eight Lacs Twenty One Thousand Three Hundred Sixty Three And Paise Forty Eight 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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5 OA No.178-2024 PUNJAB NATIONAL BANK VS M/S BHOLENATH INDUSTRIES AND OTHERS

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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 02.07.2025.

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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: 10.06.2025

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

Punjab National Bank v. M/S Bholenath Industries and Others

Case brief

What is this about?

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Punjab National Bank v. M/S Bholenath Industries and Others

Case brief

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What did the court decide?

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