Allowed

Punjab National Bank v. M/S Bombay Catering and Others

DRT25 Jun 2025OA/600/2025

Case brief

AI extract

What is this about?

The Tribunal upheld an Original Application filed by Punjab National Bank for recovery of a loan debt of approximately Rs.45.97 Lakhs claimed as debit in an NPA account. Being ex-parte, the proceedings were conducted based on applicant's evidence. The Tribunal allowed the application, directed recovery from mortgaged/hypothecated assets, and noted pending applications as disposed of.

What did the court decide?

Recovery of Rs.45,96,963.09 plus interest at 08% p.a.; recovery from sale of mortgaged/hypothecated properties; Liability for costs confirmed. Pending applications dispersed.

Punjab National Bank versus M/S Bombay Catering and Others — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.600/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.05.2025

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DATE OF DECISION: 25.06.2025

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Punjab National Bank, a body corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 having its Head Office at Plot No.4, Sector10,Dwarka,New Delhi-110075 and the successor of Oriental bank of commerce dated 04.03.2020 passed by the central government under section 9 of the banking companies (Acquisition & Transfer of Undertakings) Act, 1980 having one of its branch office at Ghanaur, District Patiala Punjab through Sh. Vikramjeet Dehran, Senior manager, circle Sastra Centre, Patiala its principal Officer General power of attorney of the bank. (Erstwhile Oriental bank of commerce Branch office at Patiala, Punjab).

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……..Applicant

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Versus

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M/s Bombay Catering, at Main road, Near Police Station, Ghanaur, Tehsil Rajpura, District Patiala through its proprietor Sh. Surinder Kumar.

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Sh. Surinder Kumar S/o Sh. Krishan Singh R/o Main Road, Near Police Station, Ghanaur, Tehsil Rajpura, District Patiala (Proprietor of M/s Bombay Catering).

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Sh. Krishan Kumar S/o Sh. Hardwari Lal R/o Near Bus Stand, Ghanaur, Tehsil Rajpura, District Patiala.

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………. Defendants

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Advocates:

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Argued by Ms. Seerat Sharma, Advocate proxy for Sh. Amandeep Singh Sobti, Advocate for the applicant Defendants are ex-parte

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2 OA NO.600-2025 PUNJAB NATIONAL BANK VS M/S BOMBAY CATERING AND OTHERS

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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.45,96,963.09P (Rupees Forty Five Lacs Ninety Six Thousand Nine Hundred Sixty Three and Paise Nine Only). The Original Application has been filed through Sh. Vikramjeet Dehran, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.01.2007, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of OD Limit of Rs.5.00 Lacs and further from time to time defendant approached the applicant for several enhancements of CC Limit upto Rs.22.00 Lacs.

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The applicant sanctioned CC Limit of Rs.05.00 Lacs and further from time to time applicant sanctioned the enhancements of CC Limit upto Rs.22.00 Lacs vide Sanction Letter dated 06.06.2009, 28.07.2011, 25.01.2013 and 16.10.2013, Annexures A3, A12, A16 and A22 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had Mortgaged his immovable property i.e. Commercial Cum Residential Building measuring 340.50 Sq. Yards situated at Near Police Station, Ghanaur, Tehsil Rajpura District Patiala vide Equitable Mortgage Sale Deed No.1132 dated 17.10.2008 and Peritoneal Deed dated 26.05.2009 with their translations, which are Annexures A9, A9A, A10 and A10A to this OA. Documents executed:- Notification dated 04.03.2020 which is Annexure A1 to this OA, Sole Proprietorship Letter, DP Note, Agreement for hypothecation of assets, Common agreement, Agreement of guarantee all dated 06.06.2009, which are Annexures

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3 OA NO.600-2025 PUNJAB NATIONAL BANK VS M/S BOMBAY CATERING AND OTHERS

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A4 to A8 to this OA; Form No. LTD 21 dated 09.06.2009, which is Annexure A11 to this OA; Supplemental agreement, agreement of guarantee, Letter of LTR 22/18.2 all dated 28.07.2011, which are Annexures A13 to A15 to this OA; Sole Proprietorship Letter, DP Note, Supplemental agreement, Agreement of guarantee, Letter of LTR 22/18.2 all dated 25.01.2013, which are Annexures A17 to A21 to this OA; Supplemental agreement, common agreement, Agreement of guarantee, Letter of LTR 22/18.2 and EM Registration all dated 16.10.2013, which are Annexures A23 to A27 to this OA; Balance confirmation letters dated 25.01.2013, 30.03.2015, 29.03.2018, 05.03.2021 & 27.03.2023, which are Annexures A28 to A32 to this OA; Demand promissory note dated 06.10.2016, which is Annexure A33 to this OA; Possession notice dated 14.12.2016, which is Annexure A34 to this OA; Sale notice dated 23.08.2017, which is Annexure A35 to this OA and Copy of statement of account with certificate, which is Annexure A36 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 the loan account there was a debit of Rs.45,96,963.09P, 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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6.	The defendants were served notices to appear before this
Trib	unal but no one appeared on behalf of defendants and they were
proc	eeded ex-parte on 17.06.2025.
7.	In support of the OA, affidavit ofSh. Vikramjeet Dehran, Senior
Man	ager, Punjab National Bank,has been filed.
8.	Heard arguments and perused record.
9.	It was argued by learned proxy counsel that in view of the
docu	mentary evidence brought on record which had gone unrebutted,

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4 OA NO.600-2025 PUNJAB NATIONAL BANK VS M/S BOMBAY CATERING AND OTHERS

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the applicant had proved its case. From the perusal of all the Annexures A1 to A36 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. 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 Rs.45,96,963.09P (Rupees Forty Five Lacs Ninety Six Thousand Nine Hundred Sixty Three and Paise Nine 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.

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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 in CC Limit @11.75%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.04.2025 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 @08.00%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.45,96,963.09P (Rupees Forty Five Lacs Ninety Six Thousand Nine

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5 OA NO.600-2025 PUNJAB NATIONAL BANK VS M/S BOMBAY CATERING AND OTHERS

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Hundred Sixty Three and Paise Nine Only) jointly and severally, with costs, current and future simple interest @08.00%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

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.07.2025.

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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: 25.06.2025.

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

Punjab National Bank v. M/S Bombay Catering and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Bombay Catering and Others

Case brief

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What did the court decide?

What the court decided

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