Allowed

Punjab National Bank v. Sh. Sham Sunder Aggarwal and Others

DRT28 Jul 2025OA/690/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Applicant Bank's application to recover Rs. 40,36,248.26p from defendants who failed to repay housing loan and overdraft, granting uniform 8% p.a. interest and ordering issuance of recovery certificate.

What did the court decide?

Recovery of Rs. 40,36,248.26p with 8% simple interest; issuance of Recovery Certificate; liberty to enforce claim via sale of properties.

Punjab National Bank versus Sh. Sham Sunder Aggarwal and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.690/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.03.2024.

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DATE OF DECISION: 28.07.2025

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Punjab National Bank, (a body corporate, constituted under the Banking Acquisition and Transfer of Undertakings Act, 1970), having its head office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and having its branch office at different places including one at Jalandhar Road, Kapurthala (Pb.) through its Authorized Representative Sh. Ankur Rawat.

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……..Applicant

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Versus

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Sh. Sham Sunder Aggarwal S/o Sh. Krishan Lal Aggarwal

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Sh. Anish Aggarwal S/o Sh. Sham Sunder Aggarwal

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Smt. Kavita Aggarwal W/o Sh. Sham Sunder Aggarwal

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All Resident of

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#27, Gopal Park Kapurthala and

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#403, HIG, Guru Arjan Dev Nagar, Kartarpur, District Jalandhar (Pb.)

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….……Defendants

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the Applicant

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Defendants already 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.40,36,248.26p (Rupees Forty Lacs Thirty Six Thousand Two Hundred Forty Eight & Twenty Six Paise Only). The Original Application has been filed through Sh. Ankur Rawat, Authorized Representative of the applicant, who is competent

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2 OA/690/2024 PUNJAB NATIONAL BANK VS SH. SHAM SUNDER AGGARWAL AND OTHERS

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to institute the Original Application vide General Power of Attorney dated 04.11.2016, 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 the grant of Housing Loan of Rs.29.00 Lacs vide loan application dated 24.06.2013 which is Annexure A2 to this OA. Defendant no. 3 steed as guarantor and thereafter, for grant of an Overdraft Limit of Rs.23.00 Lacs vide Loan Application dated 15.02.2019, which are Annexures A2 & A3 to this OA. 3. The applicant sanctioned Housing Loan of Rs.29.00 Lacs vide sanction letter dated 28.06.2013 which is Annexure A4 to this OA and thereafter sanctioned OD Limit of Rs. 23.00 Lacs under OD facility to existing HL borrowers vide Sanction dated 15.02.2019, which are Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. Flat no.403, measuring 1915 Sq. feet situated on 4^th Floor at Shri Guru Arjan Dev Nagar, Kartarpur, District Jalandhar vide equitable mortgage of Title Deed bearing vasika no. 2018-19/185/1/335 dated 04.01.2015, which is Annexure A20 to this OA filed on 13.05.2025 vide diary no. 7223 in compliance to order dated 20.03.2025. Documents relating to equitable mortgage are Annexure A10 (Colly) to this OA. Documents executed:-Agreement for housing loan dated 28.06.2013 & agreement for over draft limit dated 15.02.2019, which are Annexures A6 & A7 to this OA; Guarantee agreement dated 28.06.2013 & 15.02.2019, which are Annexures A8 & A9 to this OA; Statements of accounts along with certificate by officer In charge of the computer system, which are Annexures A11 to A13 to this OA; Security Confirmation letters dated 28.03.2016, 05.03.2019, 29.03.2021, which are Annexures A14 to A17 to this OA; Notice u/s

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3 OA/690/2024 PUNJAB NATIONAL BANK VS SH. SHAM SUNDER AGGARWAL AND OTHERS

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13(2) dated 24.05.2021, which is Annexure A18 to this OA and Possession Notice dated 15.03.2022, which is Annexure A19 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 the loan accounts there was a debit of Rs.40,36,248.26p, 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 defendants and they were proceeded ex parte on 18.02.2025.

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In support of the OA, affidavit of Sh. Ankur Rawat, Authorized Representative, 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 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 Annexure A1 to A20 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 bank. The defendants failed to pay back the loans 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.40,36,248.26p (Rupees Forty Lacs Thirty Six Thousand Two Hundred Forty Eight & Twenty Six Paise 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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4 OA/690/2024 PUNJAB NATIONAL BANK VS SH. SHAM SUNDER AGGARWAL AND OTHERS

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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 @10.40% p.a. in Term Loan (Housing) and @13.75% in OD Limit along with penal interest @2%p.a. from 01.02.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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 loans 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 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.

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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.40,36,248.26p (Rupees Forty Lacs Thirty Six Thousand Two Hundred Forty Eight & Twenty Six Paise 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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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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5 OA/690/2024 PUNJAB NATIONAL BANK VS SH. SHAM SUNDER AGGARWAL AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.09.2025

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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: 28.07.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Sham Sunder Aggarwal and Others

Case brief

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Punjab National Bank v. Sh. Sham Sunder Aggarwal and Others

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