Allowed

Punjab National Bank v. M/S Rajat Agro Products and Another

DRT23 Jun 2025OA/256/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Punjab National Bank for recovery of dues from M/s Rajat Agro Products. The Tribunal, exercising discretion, modified the claimed interest rate from floating rates to a uniform simple rate of 8.00% p.a. and ordered the defendant to pay the principal sum with interest and costs.

What did the court decide?

Defendants ordered to pay Rs. 25,89,671 with costs and interest @8.00%p.a. recovery certificate issued.

Punjab National Bank versus M/S Rajat Agro Products and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.256/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.02.2022

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DATE OF DECISION: 23.06.2025.

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Punjab National Bank, a body corporate constituted under the banking companies (Acquisition & Transfer of Undertakings) Act, 1970 having its head office at Plot No.4, Sector-10,Dwarka, New Delhi-110075 and the erstwhile Oriental Bank of Commerce has recently been amalgamated with the applicant bank i.e. Punjab national bank w.e.f. 01.04.2020 vide gazette of India Notification GSR 153(E), GSR (154) & GSR (156) E dated 04.03.2020 and amongst others one of its Branhc Jamalpur Awana, District Ludhiana through Sh. Dharam Pal Malik, Manager, Circle Sastra Centre (Ludhiana East) Circle Office PNB, Building, Site No.5, Ferozepur Road, Ludhiana Punjab.

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……..Applicant

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Versus

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M/s Rajat Agro Products a Proprietorship, concern having its office at Rahon Road, Machhiwara, District Ludhiana Punjab through its proprietor Sh. Rajat Kumar.

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Rajat Kumar Son of Sh. Gurwinder Pal Singh R/o House No.1419, Machhiwara, Tehsil Samrala, District Ludhiana.

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….……Defendants Advocates: Argued by, Ms. Lovedeep Kaur, Advocate proxy for Ms. Anuradha Gupta, Advocate for 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 Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.25,89,671.00p (Rupees Twenty Five Lacs Eighty Nine Thousand Six Hundred Seventy One only). The Original Application has been filed

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2 OA NO.256-2022 PUNJAB NATIONAL BANK VS M/S RAJAT AGRO PRODUCTS AND ANOTHER

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through Sh. Dharam Pal Malik, Manager, of the applicant, who is competent to institute the Original Application vide Notification of amalgamation & General Power of Attorney dated 28.02.2003, which are Annexures A1 & A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Cash Credit Limit of Rs.9.50 Lacs & Term Loan of Rs.14.25 Lacs.

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The applicant sanctioned the Cash Credit Limit of Rs.9.50 Lacs & Term Loan of Rs.14.25 Lacs both covered under CGTMSE Scheme vide Sanction Letter dated 06.02.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant had hypothecated its movable properties/assets i.e. stocks and machinery vide Agreement of hypothecation of assets dated 09.02.2015, which is Annexure A4 to this OA.

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Documents executed: - Agreement of Term Loan, Common agreement, Sole proprietor letter all dated 09.02.2015, which are Annexures A5 to A7 to this OA; Balance and confirmations letters dated 10.02.2016 & 31.12.2018, which is Annexure A8 to this OA; Demand notice dated 01.07.2016, which is Annexure A9 to this OA; Statement of account along with Certificate as per Banker books evidence, which is Annexure A10 to this OA and Copy of Order dated 10.01.2022, which is Annexure A11 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.25,89,671.00p, 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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3 OA NO.256-2022 PUNJAB NATIONAL BANK VS M/S RAJAT AGRO PRODUCTS AND ANOTHER

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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 16.06.2025.

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

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Heard 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 A11 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.25,89,671.00p (Rupees Twenty Five Lacs Eighty Nine Thousand Six Hundred Seventy One 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 @10.75%p.a. in term loan & interest @11.25%p.a. in CC Limit with monthly rests from 01.01.2022 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 loan and prevalent market rates of

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4 OA NO.256-2022 PUNJAB NATIONAL BANK VS M/S RAJAT AGRO PRODUCTS 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 @8.00%p.a. in both 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.25,89,671.00p (Rupees Twenty Five Lacs Eighty Nine Thousand Six Hundred Seventy One only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.07.2025. 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. Pronounced by me in the open Tribunal .

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Dated: 23.06.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

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OA NO.256-2022 PUNJAB NATIONAL BANK VS M/S RAJAT AGRO PRODUCTS AND ANOTHER

Punjab National Bank v. M/S Rajat Agro Products and Another

Case brief

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Punjab National Bank v. M/S Rajat Agro Products and Another

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