Allowed

Punjab National Bank v. Messrs Kaura and Co. and Others

DRT28 Aug 2025OA/210/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal admitted an original application filed by Punjab National Bank for recovery of an outstanding loan of Rs. 26,17,644.00p. The defendants appeared ex-parte. The Tribunal allowed the application, modifying the claimed interest rate to 8% p.a., and directed recovery from mortgaged and personal assets.

What did the court decide?

Allowed; ordered payment of Rs. 26,17,644.00p with interest at 8% p.a.; directed recovery from sale of mortgaged properties or attachment of personal assets; issued Recovery Certificate.

Punjab National Bank versus Messrs Kaura and Co. and Others — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.210/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.01.2024

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DATE OF DECISION: 28.08.2025

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Punjab National Bank, a body corporate constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with having its head office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and having its branch office at different places including one at Raikot, District Ludhiana (Pb.) through Sh. Sukhpal Grewal, Principal Officer and Attorney Holder presently posted at Circle Sastra Centre, Ludhiana.

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……..Applicant

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Versus

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M/s Kaura & Co. situated at Tajpur Road, Raikot, District Ludhiana through Legal Representatives of deceased Sole Proprietor Sh. Jatinder Kaura.

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Late Sh. Jatinder Kaura though its Legal Representatives:

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(i) Smt. Dimple Kaura Wd/o Late Sh. Jatinder Kaura (ii) Smt. Niyati Kaura D/o Late Sh. Jatinder Kaura

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(iii) Smt. Chaura D/o Late Sh. Jatinder Kaura

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All R/o House No. 338, Green City, Raikot, District Ludhiana.

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Smt. Saroj Kaura Wd/o Late Sh. Rajan Kaura R/o

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(i) House No. 338, Green City, Raikot, District Ludhiana

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(ii) House No. 2626, Mohalla Kaurian, Raikot, District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the applicant (through VC) Defendants already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under

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Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against

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OA NO. 210/2024 PUNJAB NATIONAL BANK VS MESSRS KAURA AND CO. AND OTHERS

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the defendants for recovery of Rs.26,17,644.00p (Rupees Twenty Six Lacs Seventeen Thousand Six Hundred Forty Four only). The Original Application has been filed through Sh. Sukhpal Grewal, Authorized Representative, o f the applicant, who is competent to institute the Original Application vide General Power of attorney dated 11.09.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 thorough its proprietor deceased defendant no. 2 had approached the applicant for the grant of CC Limit of Rs.20.00 Lacs vide Loan application dated 02.03.2012, which is Annexure A2 to this OA. The defendant no. 3 stood as guarantor.

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The applicant sanctioned the CC Limit of Rs.20.00 Lacs vide Sanction dated 07.03.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the deceased defendant no.2 and the defendant no. 3.

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Deceased Defendant no.2 and defendant no. 3 had mortgaged their immovable properties detail as under: -

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(i) land measuring 1Kanal 0Marla and 7½ Sarsai, in the name of deceased defendant no. 2, situated at Raikot-I, District Ludhiana through equitable mortgage of Title Deed bearing Vasika No. 3247, dated 22.11.2004.

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(ii) P roperty measuring 1Kanal 5Marla, in the name of defendant no. 3, situated at Tajpur Road, Raikot, District Ludhiana vide Equitable Mortgage of Title Deed bearing vasika no. 3180 dated 24.01.2002. Copy of equitable mortgage of register is Annexure A6 to this OA. Documents executed : - Hypothecation Agreement & Guarantee Agreement both dated 07.03.2012, which are Annexures A4 & A5 to this OA; Security Confirmation Letters dated 01.03.2015, 12.02.2018 & 01.02.2021, which are Annexures A7 to A9 to this OA; Statement of Account & Certificate by Officer in charge of the Computer System,

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OA NO. 210/2024 PUNJAB NATIONAL BANK VS MESSRS KAURA AND CO. AND OTHERS

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which are Annexures A10 & A11 to this OA and Demand Notice under section 13(2), which is Annexure A12 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.26,17,644.00p, 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 05.08.2025.

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In support of the OA, affidavit Sh. Sukhpal Grewal, Authorized Representative, Punjab National Bank, h as been filed. 8. Heard ex- parte arguments and perused record. 9. It was argued by learned counsel through Video Conferencing 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 facility which was 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, 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.26,17,644.00p (Rupees Twenty Six Lacs Seventeen Thousand Six Hundred Forty Four 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75% p.a. along

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OA NO. 210/2024 PUNJAB NATIONAL BANK VS MESSRS KAURA AND CO. AND OTHERS

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with 2% p.a. penal interest with monthly rests from 01.01.2024 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 @8.00%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.26,17,644.00p (Rupees Twenty Six Lacs Seventeen Thousand Six Hundred Forty Four only) jointly and severally, with costs, current and future simple interest @8.00%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

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on 24.09.2025.

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OA NO. 210/2024 PUNJAB NATIONAL BANK VS MESSRS KAURA AND CO. AND

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OTHERS

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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: 28.08.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Messrs Kaura and Co. and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Kaura and Co. and Others

Case brief

What is this about?

What did the court decide?

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