Allowed

Punjab National Bank v. Messrs Sant Kabir Timber and Plywood Store and Others

DRT24 Jul 2025OA/1872/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an overdue overdraft. It upheld the liability of borrowers and guarantor, modified the interest rate to 8% p.a., directed issuance of a recovery certificate, and authorized further recovery proceedings under SARFAESI. Two respons

What did the court decide?

Recovery Order, Recovery Certificate issuance, and 8% p.a. simple interest from the date of filing the application.

Punjab National Bank versus Messrs Sant Kabir… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1872/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.09.2022

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DATE OF DECISION: 24.07.2025

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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 Plot No.4, Sector-10, Dwarka, New Delhi - 110075 and i.e. 01.04.2020 being the successor to Oriental Bank of Commerce Punjab National Bank (e-OBC), Boha, Tehsil Budhlada, District Mansa (Punjab). Later on, the account has been maintained by Punjab National Bank, Circle SASTRA Bathinda through its General Power of Attorney Holder Sh. Gian Murti Bansal Branch Manager of the Applicant.

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……..Applicant

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Versus

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M/s Sant Kabir Timber and Plywood Store, Opposite Ziri Yard, Bhikhi Road, Budhlada, District Mansa(Punjab) through its Proprietor Sh. Ankush Singla.

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Sh. Ankush Singla S/o Sh. Surinder Pal, Opposite Ziri Yard, Bhikhi Road, Budhlada, District Mansa(Punjab) Proprietor of M/s Sant Kabir Timber and Plywood Store.

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2^nd Address: Ward no. 9, Churi Gali, Near Naveen School, Budhlada, District Mansa, Punjab.

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Smt. Veena Rani W/o Sh. Surinder Pal, Ward no. 9, Churi Gali, Near Naveen School, Budhlada, District Mansa, Punjab (Now Deceased) through her legal heirs.

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(a) Sh. Surinder Pal S/o Sh. Amar Nath (Husband), R/o Ward no. 9, Churi Gali, Near Naveen School, Budhlada, District Mansa, Punjab.

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(b) Sh. Ankush Singla S/o Sh. Surinder Pal (Son) R/o Ward no. 9, Churi Gali, Near Naveen School, Budhlada, District Mansa, Punjab.

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OA NO. 1872/2022 PUNJAB NATIONAL BANK VS M/s SANT KABIR TIMBER AND PLYWOOD STORE AND OTHERS

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(c) Smt. Rinkal Rani D/o Sh. Surinder Pal, (Daughter) R/o Ward no. 9, Churi Gali, Near Naveen School, Budhlada, District Mansa, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Pinky Rai, Advocate proxy for Ms. Dipti Toni, 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 Recovery Procedure Rules, 1993 against the defendants for recovery of Rs. 29,25,634.02p (Rupees Twenty Nine Lacs Twenty Five Thousand Six Hundred Thirty Four and Paise Two Only). The Original Application has been filed through Sh. Gian Murti Bansal Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 12.02.2015, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 had approached the applicant for Overdraft Limit of Rs. 15.00 Lacs vide Loan Application (LF-2) dated 19.02.2015, which is Annexure A2 to this OA. Deceased defendant no. 3 stood as guarantor.

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The applicant sanctioned Overdraft Limit of Rs. 15.00 Lacs vide Sanction Letter dated 19.02.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Deceased Defendant no. 3 had mortgaged her immovable property i.e. all that part and parcel of Property measuring 01K-13M situated at Village Jakhal Road, Budhlada, District Mansa, Punjab vide equitable mortgage of sale deed bearing vasika no. 738 d ated 23.05.2011, along with its translation, which is Annexure A4 to this OA.

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OA NO. 1872/2022 PUNJAB NATIONAL BANK VS M/s SANT KABIR TIMBER AND PLYWOOD STORE AND OTHERS

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Documents executed:- Gazette Notification dated 0403.2020, which is Annexure A to this OA; Title Investigation Report (TIR) dated 04.03.2015, which is Annexure A5 to this OA; Agreement of Overdraft, Sole proprietorship letter, Agreement of Hypothecation of assets, Agreement of Guarantee executed by deceased defendant no. 3 for and on behalf of defendant no. 1, Common Agreement executed by defendant no. 2 for and on behalf of defendant no. 1 and Common Agreement executed by deceased defendant no. 3 for and on behalf of defendant no. 1 all dated 05.03.2015, which are Annexures A6 to A11 to this OA; Confirmation Letter for depositing of Sale Deed dated 07.03.2015, which is Annexure A12 to this OA; Notice dated 07.10.2016 under section 13(2) and along with Registered postal receipt, which is Annexure A13 to this OA; Physical Possession notice dated 29.03.2017 under rule 8(1) along with Registered Postal Receipts dated 30.03.2017 and Newspaper cutting dated 29.03.2017, which is Annexure A14 to this OA; E-Auction Sale Notices dated 23.11.2017, 29.01.2018, 30.01.2018 and 25.04.2018, which are Annexures A15 to A17 to this OA; Sale Notice dated 03.10.2019, which is Annexure A18 to this OA; Balance & Security Confirmation Letters dated 20.02.2018 and 31.03.2020, which are Annexures A19 to A22 to this OA and Statement of Account which is Annexure A23 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. 29,25,634.02p, 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 defendants and they were proceeded ex-parte on 19.07.2025.

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OA NO. 1872/2022 PUNJAB NATIONAL BANK VS M/s SANT KABIR TIMBER AND PLYWOOD STORE AND OTHERS

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In support of the OA, affidavit of Sh. Sh. Gian Murti Bansal, Branch Manager, Punjab National Bank h as been filed.

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Heard ex-parte 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 A23 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. 29,25,634.02p (Rupees Twenty Nine Lacs Twenty Five Thousand Six Hundred Thirty Four and Paise 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 @13.15%p.a. with monthly rests from 01.05.2022 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 loans 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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OA NO. 1872/2022 PUNJAB NATIONAL BANK VS M/s SANT KABIR TIMBER AND PLYWOOD STORE AND OTHERS

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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. 29,25,634.02p (Rupees Twenty Nine Lacs Twenty Five Thousand Six Hundred Thirty Four and Paise Two 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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12. 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 29.08.2025.

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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: 24.07.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Messrs Sant Kabir Timber and Plywood Store and Others

Case brief

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What did the court decide?

Punjab National Bank v. Messrs Sant Kabir Timber and Plywood Store and Others

Case brief

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