Allowed

Punjab National Bank v. M/S Royal Jewellers

DRT18 Sept 2025OA/1852/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Punjab National Bank's application for recovery of Rs.42,22,436.39 with interest against defendants, who were in an overdraft. The court held that the bank proved its case via affidavit evidence and directed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.42,22,436.39 with interest; Recovery Certificate issued; Parties to appear before Recovery Officer for sale proceeds distribution.

Punjab National Bank versus M/S Royal Jewellers — Contract and Commercial Disputes | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-II, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1852/2022 Date of Institution: 07.10.2022 Date of Decision: 18.09.2025

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Punjab National Bank at Sadar Bazar, Ambala Cantt. Haryana

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……..Applicant Vs.

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M/s Royal Jewellers, 1032/5230A,1033/5231 and 1034/5232 and B- 3, Sarafa Bazar, Ambala City, Ambala, Haryana-134003 through its Partners (Defendants No.1 and 2)

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Sh. Vaibhav Aggarwal S/o Sh. Raj Kumar Aggarwal 172, Sector9, Urban Estate Ambala City, Haryana

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Smt. Loveleen Kaur Seth W/o Sh. Jagmohan Singh Seth, r/o 94A, Shivaji Marg, Near SBI Mall Road, Ambala Cantt., Ambala, Haryana-134003

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Sh. Jagmohan Singh Seth S/o Sh. Lakhbir Singh Seth, r/o 94- A, Shivaji Marg, Near SBI Mall Road, Ambala Cantt., Ambala, Haryana-134003 …….Defendants

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Advocates Sh. Iqbal Mohammad, Counsel for the applicant bank Defendants- ex parte

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OA for the Recovery of Rs.42,22,436.39p with interest @10.65% per annum with monthly rests from 07.10.2022. ORDER

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Punjab National Bank (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993

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(RDB Act) for the recovery of Rs.42,22,436.39p with interest against M/s Royal Jewellers and Others (defendants).

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Defendant No.1 is a Partnership firm and defendant Nos. 2 and 3 are its Partners. Bank’s case is that on 01.03.2019, it had granted a loan of Rs.100.00 Lacs to defendant No. 1 in the form of Overdraft Facility for business purpose. Defendant Nos. 2 to 4 stood as guarantors. To secure the loan, defendant Nos. 2 and 4 had mortgaged their property (fully detailed in para No.3A of the application). The loan was chargeable to interest @11% per annum with monthly rests. Defendants had acknowledged and admitted their liability for debt on 20.10.2020. On 31.08.2022, a sum of Rs.42,22,436.39p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application. 3. On 04.03.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 18.11.2023, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Madan Lal Arora, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-30. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.100.00 Lacs and on 31.08.2022, a sum of Rs.42,22,436.39p was due. 6. Accordingly, the application of the bank for the recovery of Rs.42,22,436.39p (Rupees Forty Two Lacs Twenty Two Thousand Four Hundred Thirty Six and Thirty Nine Paisa Only) with interest @10.65% per annum with monthly rests from 07.10.2022, till the date of payment

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is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property(ies) fully detailed in para No.3A of the application as well as from the hypothecated/personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 30.10.2025 , who is directed to distribute the sale proceeds of the mortgage property(ies) as per the provisions of Section 19(20-AB) of the Act . 10. A copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court (A S Narang) Dated: 18.09.2025 Presiding Officer DRT-2, Chandigarh

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(Additional charge)

Punjab National Bank v. M/S Royal Jewellers

Case brief

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Punjab National Bank v. M/S Royal Jewellers

Case brief

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