Allowed

Punjab National Bank (E-Oriental Bank of Commerce) v. Mrs. Poonam Sharma

DRT6 Mar 2025OA/298/2023

Case brief

AI extract

What is this about?

In a debt recovery matter, the DRT allowed the bank's application seeking recovery of outstanding dues, interest, and costs from the defendant who failed to repay loan facilities despite demand notices and admitted liability.

What did the court decide?

Directs defendant to pay principal sum of Rs. 53,67,528.06 with interest within 30 days; directs issuance of recovery certificate; provides directions for recovery from hypothecated goods and assets.

Punjab National Bank (E-Oriental Bank of Commerce) versus Mrs… — Banking and Recovery | DRT (2025)

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O.A. No.298 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 298 of 2023

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Punjab National Bank (e-Oriental Bank o. Commerce) Circle Sastra North Delhi 2nd Floor, Vikrant Tower Rajendra Place, Delhi-110008

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Applicant

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Versus

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Mrs. Poonam Sharma w/o Naveen Sharma Proprietress of M/s J.K.Sports & Garments Shop No.4, ist Floor, Meer Singh Market Narela, Delhi-110040

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Also at:

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R/o H.No.270, Khatkad, Khatkar (46) Sonipat, Haryana-131028

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Defendant

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Present: Sh.Anshuman Srivastava, Counsel for applicant bank

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Date of Institution: 11.03.2023

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Date of Pronouncement: 06.03.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 11.03.2023 DRT-I Delhi through Shri Vivek Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 read with Rule 8 of Debt Recovery Tribunal (Procedure) Rules 1993 against the defendant for recovery of a sum of Rs.53,67,528.06

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O.A. No.298 of 2023

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(Rupees Fifty Three Lacs Sixty Seven Thousand Five Hundred Twenty Eight & paisa Six only) as on 28.02.2023 along with pendentelite and future interest @9.75% per annum plus appropriate penal interest till its realization in full and costs.

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The brief facts of the case are that at the request of defendant as proprietress of M/s J.K.Sports & Garments, the applicant bank sanctioned Cash Credit (Hyp.) / OD facility of Rs.40.00 lacs (Rupees Forty Lacs only) on 09.03.2020 as working capital to enhance the business of trading of garments and sports items under Stand Up India Scheme @9.75% interest against hypothecation of goods and book debts. Further, applicant bank sanctioned and disbursed Emergency Credit Facility Term Loan of Rs.3.00 lacs @9.20% interest per annum to be repayable in 36 EMIs on 27.05.2020 to n leet the operational liabilities and restart business during Covid-19 pandemic as per RBI / Govt. guidelines.

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That in order to avail the said loan facility, the defendant submitted application and executed sanction letter, Hypothecation of Goods and Book Debts facility dated 11.03.2020 in favor of the applicant bank. In addition, defendant executed Undertaking for Emergency Credit Facility and Appraisal Format for Limits under PNB Covid on 27.05.2020.

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It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendant failed to comply with the terms and conditions and failed to maintain financial discipline. Ultimately, the applicant bank calling upon the defendant to pay the entire outstanding dues to the applicant bank but the defendant did not clear the dues;

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cw-

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O.A. No.298 of 2023

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ultimately, the account was classified as NPA by the applicant bank on 31.03.2021 but no efforts made for regularization of the account, hence approached this Tribunal for recovery of their dues.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 30.07.2024, the defendant has been proceeded ex-parte & no affidavit of assets have been filed by the defendant.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 10.07.2021 was issued to the defendant calling upon them to pay the entire outstanding dues with the applicant bank but the defendant did not clear the dues.

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The defendant consequent to issue of Demand Notice sent by the applicant bank acknowledged the debt ana signed Balance and Security Confirmation Letter dated 21.12.2022 in favour of applicant bank.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Vivek Kumar, authorized representative of the applicant bank who has proved the documents as Power of Attorney Ex.AW-1/1, Application for Loan Ex.AW-1/2, Sanction Letter*AW-1/3, Hypothecation of Goods and Book Debts to secure Cash Credit Facility Ex.AW1/4, Loan Application for CECF limit Ex.AW-1/5, Undertaking for CECF Ex.AW-1/6, Appraisal Format Ex.AW-1/7, Demand Notice Ex.AW-1/8, Balance and Security Confirmation Letter Ex.AW-1/9, Certificate under section 2A of Bankers' Evidence

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O.A. No.298 of 2023

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Act Ex.AW-1/10, Statement of both the Accounts Ex.AW1/11(colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and applicant bank has proved its case beyond reasonable doubts

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.53,67,528.06 (Rupees Fifty Three Lacs Sixty Seven Thousand Five Hundred Twenty Eight & paisa Six only) as on 28.02.2023 together with pendentelite and future interest @9.75% per annum with monthly rest from 01.03.2023 till the date of realization, failing which the aforesaid amount shall be recovered from the sale of hypothecated goods & book debts. In case of shortfall / default, the same shall be recovered from the sale of movable and immovable property/assets of the defendant.

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O.A. No.298 of 2023

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 05.05.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING 07FICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 06.03.2025

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Punjab National Bank (E-Oriental Bank of Commerce) v. Mrs. Poonam Sharma

Case brief

What is this about?

What did the court decide?

Punjab National Bank (E-Oriental Bank of Commerce) v. Mrs. Poonam Sharma

Case brief

What is this about?

What did the court decide?

What the court decided

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