Allowed

Punjab National Bank v. Shri Chander Pal Singh

DRT27 Nov 2025OA/737/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for recovery of outstanding loan dues. Finding that the defendants failed to appear or contest, the court directed payment within two months and authorized the sale of secured and personal assets if dues remained unpaid, while granting a lower interest rate than claimed.

What did the court decide?

Issuance of Recovery Certificate for Rs. 22,73,369.54 plus 8% p.a. interest; direction to pay within 2 months; power to sell hypothecated and personal assets.

Punjab National Bank versus Shri Chander Pal Singh — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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l Office action
taken with
proceeding
date
O.A. No.737/2023
27.1 1.2025 The Judgment is signed and
pronounced on separate sheets. SeparateIY
attached in 06 sheets.
Order be uploaded on the Tribunal’s
website.
(Dictated)
,.„„;..hg.„,
Presiding Officer
(Mugish)

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IN THE DEBTS RECOVERY TRIBUNAL AT LUCKNOW

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Present: Pravas Kumar Singh, Presiding Officer

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Case No. Original Application No.737 of 2023

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Dated: 27. 11.2025

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Punjab National Bank, having Branch at 2-d Flo(.)rf KJ-13 Kavi Nagar Ghaziabad – 201002.

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........Applicant-bank

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Versus

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Shri Chander PaI Singh S/o Shri Aman Singh (Prop. Aman Enterprises), H. No.493, Delhi Meerut Road, Village – Duhai Ghaziabad 201001

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Smt. Savita W/o Shri Chander PaI Singh, H.No.-493, Delhi Meerut Road, Village – Duhai ......Defendants Ghaziabad – 201001.

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Ld. Counsel for Applicant-bank: Shri V. K. Gupta, Advocate

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Ld. Counsel for the Defendants: None.

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JUDGEIVIENT

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This Original Application has been filed by the Applicant-bank under

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Section 19(1) of the Recovery of Debts & Bankruptcy Act, 1993, against the defendants for the recovery of Rs.22,73,369.54/- (Rupees Twenty Two Lacs, Seventy Three Thousand, Three Hundred Sixty Nine and Paisa Fifty Four Only) together with pendent-lite and future interest, costs and other reliefs etc

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The brief facts of case are that the defendants No.1 had approached

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the Applicant-bank in the month of June, 2020 for a Loan Facility to the tune

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O.A. No.737 of 2023

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of Rs.44,13,200/- for purchase of Equipment Finance from Tata Hitachi Hydraulic Excavator Model ZX 220 LC-1 with GP Bucket, costing 55,00,000/with the co-origination arrangement with SREI Equipment Finance Ltd, accordingly, sanction of Term Loan of Rs.44,13,200/- by the applicant bank, out of total loan Rs.55,16,500/- in which bank share Rs.44,13,200/- (80%) and SREI Share 11,03,300/- (20%), Loan has already been sanctioned by SREI of Rs.55,16,500/- the applicant bank was sanctioned and disbursed the loan as per term & condition of sanction letter dated 17.06.2020.

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To secure aforesaid credit facility, defendants had executed and signed various security documents in favour of the Applicant-bank, a copy of which is being annexed as (Annexure No.-B to Annexure No.A-J) to this Original Application.

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To avail the aforesaid credit facilityJ the Applicant_bank had opened loan accounts in the name of defendant No.1 in order to maintain the credit facilities.

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After availing the aforesaid credit facility, the defendants failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreements consequently9 the loan account of the defendant no.1/firm was classified as NPA on 29.09.2022 by the bank as per RBI guidelines, thereafter the Applicant-bank issued Demand Notice dated 11.11.2022 under Section 13(2) of the SAEtFAESI Act> 2002 to the defendants, but, the defendants stated no-response and they failed to repay the same and the loan accounts of the defendants are still un_liquidated9 hence9 this Original Application has been instituted

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O.A. No.737 of 2023

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As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.22,73,369.54/- (Rupees Twenty Two Lacs, Seventy Three Thousand, Three Hundred Sixty Nine and Paisa Fifty Four Only) including interest upto 30.06.2023, were lying due for payment, for which the defendants are jointly and severally liable to repay the same, which they did not pay despite repeated requests and demand. The Applicant-bank filed the Statement of loan Accounts. (Annexure No-S) to this Original Application.

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The cause of action for filing the present application arose firstly on 17.06.2020 when the aforesaid credit facility were sanctioned by the Applicant-bank and the same were availed by the defendants and necessary documents were executed by the defendants on 18.06.2020. The cause of action further arose on when Recall Notice dated 30.06.2022/ 10.08.2022 23.09.2022 to defendant No.1 & 2 was sent to the defendants/ recalling the entire outstanding dues and they failed to pay the same.

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The summons were served upon the defendants through registered post, but the defendants did not appear before the Tribunal to contest their case, hence the matter proceeded ex- parte against the defendants.

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The summons were served upon the defendants through registered post, the defendant through counsel appeared before this Tribunal/ but no written statement has been filed hence/ the opportunity to file the written statement is closed. The case is proceeded against the defendants.

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IO' From the perusal of the record, it is evident that the defendants were provided with fair opportunities to contest the claim of the bank. As the

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\ /J

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O.A. No.737 of 2023

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defendants opted not to contest the case, so onIY point of consideration before this Tribunal is as to whether bank is legally entitled to the amount as claimed in Original Application on the basis of documents and pleading submitted by it.

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In support of the case Mr. R. P. Yadav, Authorized Officer of the Applicant-bank has filed an affidavit. 12. On a careful scrutiny of the evidence on affidavit and Exhibits marked as Annexure No.A to Annexure No-R, it is proved that defendants had availed the credit facilities from the Applicant-bank by executing loan and security documents detailed as above in favour of the Applicant-bank. A perusal of the application, evidence and documents relied upon clearly show that defendant had utilized the above loan facilities as granted to them. The Applicant-bank had maintained the Books of account in the ordinary course of banking business showing disbursal of the loan amount. The Bank had also charged interest from time to time and the entries are relevant u/s 4 of the Banker Books of Evidence Act. It is also proved that the Applicant-bank’s claim is within limitation against defendants, therefore/ the defendants are jointly and severally liable to pay the dues.

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Accordingly, the defendants are directed to pay the balance dues to the Applicant-bank within a period of 2 months from the date of judgement failing which the Applicant-bank will be entitled to sell the hypothecated assets and personal assets/ properties of the defendants.

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The Applicant-bank has claimed [email protected]% per annum with monthly rest w.e.f. 30.06.2023 till the date of realization and costs. On the

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, NCr

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O.A. No.737 of 2023

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basis of foregoing discussion/ interest of justice will be served if pendentlite and future interest is granted @8% per annum with monthly rest reducing balance from the date of filing of the O.A. till the date of realization with costs.

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1 find that the bank has proved the execution of loan documents and creation ofhypothecation in its favour. In the result, the Original Application succeeds as proceeded against the defendant with costs. The bank has proved the loan execution of loan documents in favour of the bank and availment of credit facility. The liability of the defendant No.1 & 2 are joint and several hypothecated asset as well as the personal properties are to be sold.

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It is, therefore , ordered

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(i) That the Original Application No.737 ,f 2023 ,f th, Appli„.t ba.k for issuance of Recovery Certificate to the tune of Rs.22/73/369.54/(Rupees Twenty Two Lacs, Seventy Three Thousand, Three Hundred SixtY Nine and Paisa FiftY Four Only) along with the interest @8% per annum with monthly rest from the date of filing of the Original Application i.e. 27.07.2023 till the loan is fully liquidated and costs succeeds as proceeded against the defendants.

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(ii) The defendants are directed to pay the dues within a period of two months from the date of judgement, failing which the Applicant-bank will be entitled to recover the same from the secured assets/ personal movables and immovable assets of the defendants

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O.A. No.737 of 2023

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(iii) The Applicant–bank is entitled to recover aforesaid amount by sale of hypothecated assets (if not sold earlier under the provision of the S.A.R.F.A.E.S.I. Act 2002). The amount, if any already recovered by sale of any hypothecated assets or otherwise shall be recoverable, if the dues of the Applicant-bank still remain unsatisfied, the same shall be recovered by attachment and sale of the personal movable assets of the defendant jointly and severally.

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(iV) The defendants are hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with their properties/estates without first paying the claim of the

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Applicant-bank.

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(V) Let Recovery Certificate be issued immediately u/s 19(22) of the RecoverY of Debts Due to Banks and Financial Institution Act, 1993 by fixing 30.01.2026 before R.C).) DRT> Lucknow.

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(Vi) The Applicant-bank is directed to file a memo of cost far preparing Recovery Certificate u/s 19(22) of the Recovery of Debts Bankruptcy Act, 1993 .

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Judgment is pronounced in the open court.

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Dated: 27.11.2025

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(Pravas Kumab ,lngh) Presiding Officer

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(MK)

Punjab National Bank v. Shri Chander Pal Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shri Chander Pal Singh

Case brief

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What did the court decide?

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