Allowed

Punjab National Bank v. M/S Grewal Sweets and Others

DRT10 Jun 2025OA/232/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Punjab National Bank for recovery of dues from M/s Grewal Sweets and individuals. The Court approved a uniform simple interest rate of 7.50% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 35,18,629.92p plus simple interest at 7.50% p.a.; Issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.232/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2022

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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 Plot No.4, Sector-10, Dwarka, New Delhi110075 and a Branch amongst others Samrala, Ludhiana through its recovery vertical i.e., Circle Sastra (East), Circle Office, Site No.5, Ferozepur Road, Ludhiana (Punjab)- 141012 through Sh. Dharam Pal Malik, Senior Manager, Principal Officer & duly constituted Attorney of the Applicant.

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……..Applicant Versus

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M/s Grewal Sweets Office Malerkotla Road, Khanna, Distt. Ludhiana 148023 Being Applicant through its Partners.

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Sh. Dhanwant Singh S/o Sh. Dalwara Singh R/o H. No.158, Ward No. 02 Mohalla Kanupeer, Samrala District Ludhiana 141114

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Sh. Jaswant Singh S/o Sh. Dalwara Singh R/o H. No. 194, Ward No.02, Mohalla Kanupeer, Samrala, District Ludhiana 141114

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………. Defendants

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Advocates:

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Argued by Sh. R.K. Bansal, Advocate proxy for Sh. Rajesh Gupta, Advocate for Applicant Defendant Nos. 1 & 2 are ex parte None for Defendant No.3

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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.35,18,629.92p (Rupees Thirty Five Lacs Eighteen Thousand Six Hundred Twenty Nine And Paise Ninety Two Only). The Original Application has been filed through Sh. Dharam Pal Malik, Senior

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Manager of the applicant, who is competent to institute the Original

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2 OA NO.232-2022

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PUNJAB NATIONAL BANK VS GREWAL SWEETS AND ANOTHER

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Application vide General Power of Attorney dated 28.02.2003, 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 Term Loan Rs.19.00 Lacs and CC Limit of Rs.15.00 Lacs further for GECL Term Loan of Rs.5.00 Lacs vide application dated 24.05.2017 and 19.06.2020, which are Annexures A3 and A16 to this OA.

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The applicant sanctioned Term Loan Rs.19.00 Lacs and CC Limit of Rs.15.00 Lacs further sanctioned GECL Term Loan of Rs.5.00 Lacs vide Sanction Letters dated 22.06.2017 and 19.06.2020, which are Annexures A4 and A17 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.2 had mortgaged his immovable properties i.e. A) Workshop measuring 0k-6½M situated at Revenue estate of Samrala, Hadbast no.127, Tehsil Samrala Distt. Ludhiana vide Equitable Mortgaged of Transfer Deed bearing vasika no. 2464 dated 10.03.2017, with its translation, Annexures A12 & A12T to this OA B) Residential House measuring 0K-19-5/6M situated at Revenue Estate of Samrala, Hadbast No.127, District Ludhiana vide Equitable Mortgaged of Transfer Deed bearing vasika no. 2466 dated 10.03.2017, with its translation, Annexures A13 & A13T to this OA C) Residential Plot measuring 0K-8½Marla situated at Revenue Estate of Samrala, Hadbast no.127, Distt. Ludhiana vide Equitable Mortgaged of Transfer Deed bearing vasika no. 2467 d ated 10.03.2017 with its translation, Annexures A10 & A10T to this OA D) Workshop property measuring 0K-12-2/3Marla Situated at Revenue Estate of Samrala, Hadbast No.127, Distt. Ludhiana vide Equitable Mortgaged of Sale Deed bearing vasika no. 2465 d ated 10.03.2017, with its translation, Annexures A11 & A11T to this OA E) Property Measuring 0K-7M situated at H. No.127, Tehsil Samrala, Distt Ludhiana vide Equitable Mortgaged of Transfer Deed bearing

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3 OA NO.232-2022

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PUNJAB NATIONAL BANK VS GREWAL SWEETS AND ANOTHER

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vasika no.57 d ated 07.04.2016 along with its translation, which are Annexures A15 & A15T to this OA.

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Documents executed:- Partnership Deed dated 23.03.2017, which is Annexures A2 to this OA; Hypothecation of Assets to secure term and Hypothecation of Goods & Book Debts both dated 23.06.2017, which are Annexure A5 & A6 to this OA: Affidavit Reg ownership and Affidavit both dated 21.06.2017, which are Annexure A7 & A8 to this OA; Letters of Deposit of Title Deeds and Letter of continuity both dated 23.06.2017, which are Annexure A9 & A14 to this OA;, Promissory Note, Hypothecation of Current Assets, Agreement, Hypothecation of Goods & Debts, Master Agreement, Letter of Continuities and Agreement of Guarantee all dated 20.06.2020, which are Annexures A18 & A26 to this OA; Balance & Security Confirmation Letters both dated 28.05.2020, which are Annexures A27 & A28 to this OA; Recall Notice dated 08.09.2021, which is Annexure A29 to this OA; Demand Notice dated 11.10.2021 with postal receipts, which are Annexure A30 to this OA and Statement of Account with certificate, which is Annexure A31 to this OA.

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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.35,18,629.92p, 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 defendant nos.1 and 2 and they were proceeded ex-parte on 12.02.2025. Sh. G.S. Gill, Advocate appeared on behalf of defendant no.3 and filed his power of attorney. He has filed WS beyond stipulated period, which was ordered to be taken on record subject to the payment of cost, which was not paid by

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4 OA NO.232-2022 PUNJAB NATIONAL BANK VS GREWAL SWEETS AND ANOTHER

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defendants. Therefore, WS filed beyond stipulated period was not taken on record and his defense was struck of on 04.06.2025

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In support of the OA, affidavit of Sh. Dharam Pal Malik, Senior Manager, Punjab National Bank has been filed.

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Heard arguments of Ld. counsel for applicant. None appeared for defendants for 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 A31 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.35,18,629.92p (Rupees Thirty Five Lacs Eighteen Thousand Six Hundred Twenty Nine And Paise Ninety 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 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 @9.00%p.a. in Term Loan, interest @12.60%p.a. in CC Limit and interest @7.50%p.a. GECL Term Loan along with penal interest @2.00%p.a. with monthly rests from 01.02.2021 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

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5 OA NO.232-2022 PUNJAB NATIONAL BANK VS GREWAL SWEETS AND ANOTHER

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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 @07.50%p.a. in all 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.35,18,629.92p (Rupees Thirty Five Lacs Eighteen Thousand Six Hundred Twenty Nine And Paise Ninety Two Only) jointly and severally, with costs, current and future simple interest @07.50%p.a. in all 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 02.07.2025. 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 .

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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 Grewal Sweets and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Grewal Sweets and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

Parties & counsel

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