Allowed

Punjab National Bank v. M/S P.S. Handicraft

DRT25 Jul 2025OA/250/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application under Section 19 of the RDB Act for recovery of Rs.79,40,298/- with interest. The court accepted the bank's claim against the mortgagor and guarantor, directed ex parte recovery, and ordered the issuance of a Recovery Certificate for enforcement.

What did the court decide?

Recovery of Rs.79,40,298/- with interest @8.90% p.a. from 28.01.2022 was allowed jointly and severally against all respondents along with costs.

Punjab National Bank versus M/S P.S. Handicraft — Banking and Recovery | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 250/2022 Date of Institution: 28.01.2022 Date of Decision: 25.07.2025

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Punjab National Bank having its branches all over India and a branch at Pension Branch, Hoshiarpur, Punjab.

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……..Applicant Vs.

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M/s P.S. Handicraft, Village Chauni Kalan, Ram Colony Camp, Hoshiarpur, Punjab, through its proprietor Sh. Parminder Singh.

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Sh. Parminder Singh s/o Sh. Darshan Singh, proprietor of M/s P.S. Handicraft, Village Chauni Kalan, Ram Colony Camp, Hoshiarpur, Punjab.

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Sh. Darshan Singh s/o Sh. Narian Singh, r/o Village Chauni Kalan, Ram Colony Camp, Hoshiarpur, Punjab. ……….Defendants

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Advocates

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Sh. Sunpreet Singh proxy counsel for Sh. AS Sobti, Counsel for the applicant bank.

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Defendants- ex parte vide order dated 02.02.2023 .

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OA for the Recovery of Rs.79,40,298/- with interest @8.90% per annum with monthly rests from 28.01.2022.

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ORDER

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Punjab National Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.79,40,298/- with interest against M/s P.S. Handicraft and others (defendants).

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Bank’s case is that on 16.10.2017, it had granted a loan of Rs.53.62 Lacs to defendant No.1 through its proprietor i.e. defendant No.2 in the form of Overdraft Limit for Business purpose. The above mentioned limit

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was enhanced on 05.12.2018, from Rs.53.62 Lacs to Rs.70.00 Lacs. To secure the loan, Defendant No.2 had mortgaged his land (fully detailed in para No.3A of the application). Defendant No.3 stood as guarantor. The loan was chargeable to interest @8.90% per annum with monthly rests. On 30.11.2021, a sum of Rs.79,40,298/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 17.03.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 02.02.2023, they were proceeded ex parte . 4. In order to prove its case, the Bank has placed on record the affidavit of Sh. Rajan Thapa, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-20. 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.70.00 Lacs and on 30.11.2021, a sum of Rs.79,40,298/- was due. 6. Accordingly, the application of the bank for the recovery of Rs.79,40,298/- (Rupees Seventy Nine Lacs Forty Thousand Two Hundred Ninety Eight Only) with interest @8.90% per annum with monthly rests from 28.01.2022, till the date of payment 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 land fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants. 7. Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 02.09.2025, who is directed to distribute the sale proceeds of the mortgaged land 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.

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Pronounced in the open Court. (A S Narang) Dated: 25.07.2025 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Punjab National Bank v. M/S P.S. Handicraft

Case brief

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Punjab National Bank v. M/S P.S. Handicraft

Case brief

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