Allowed

Punjab National Bank v. Shri Balaji Literary and Charitable Society and Others

DRT27 Oct 2025OA/758/2025

Case brief

AI extract

What is this about?

In an ex-parte Original Application under the RDB Act, the Debt Recovery Tribunal allowed the bank's claim for recovery of outstanding dues including principal, costs, and interest from the defendants who failed to repay sanctioned term loans despite mortgaging properties.

What did the court decide?

Recovery of Rs.10,10,91,516.00 with simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce attachment or sale of assets in execution.

Punjab National Bank versus Shri Balaji Literary… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.758/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.04.2025

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DATE OF DECISION: 27.10.2025

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and one of its Branch Office at Circle SASTRA Centre, Opposite Improvement Trust Complex, Chotti Baradari, Patiala, Punjab, 147001

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……..Applicant

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Versus

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Shri Balaji Literary and Charitable Society, NH-64, PatialaSangrur National Highway, Village-Bhedpura, Tehsil and District- Patiala, Punjab 147201, a registered society under the Societies Registration Act 1860, through its President/Chairman/Secretary.

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Sh. Gurvinder Singh Bahra S/o Sh. Sagli Ram R/o House No. 202, Sector 21 A, Chandigarh.

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Smt. Manjit Kaur Bahra W/o Sh. Gurvinder Singh Bahra R/o House No. 202, Sector 21 A, Chandigarh.

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Rayat and Bahra Group of Institutes, Rayat Bahra Campus, Rupnagar, through its Chairman/ President/ Secretary.

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………. Defendants

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Advocates:

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Argued by Sh. D.K. Gupta, Advocate for the 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.10,10,91,516.00 (Rupees Ten Crores Ten Lacs Ninety One Thousand Five Hundred Sixteen Only). The Original Application has been filed through Sh. Suresh Kumar, Chief Manager o f the applicant, who is competent to institute the

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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Original Application vide General Power of Attorney dated 30.12.2013, which is Annexure 1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its Chairman had approached the applicant for grant of Term Loan of Rs. 14.92 Crore (Takeover of Term Loan of Rs.8.92 Crores from Allahabad Bank and Fresh Term Loan of Rs. 6.00 Crore). Thereafter, the defendant no. 1 through its Chairman approached the applicant for grant of another Term Loan of Rs. 1.00 Crore vide loan application dated 11.07.2013, which is Annexure A9 to this OA. Thereafter, the defendant no. 1 through its Chairman approached the applicant for grant of ODIP Facility of Rs. 2.00 Crore. Thereafter, the defendant no. 1 through its Chairman approached the applicant for enhancement of this Limit to Rs. 3.00 Crore. Thereafter, the defendant no. 1 through its Chairman again approached the applicant for grant of Fresh Term Loan of Rs. 4.00 Crore vide request letter dated 23.01.2016, which is Annexure A50 to this OA. Thereafter, the defendant no. 1 through its Chairman again approached the applicant for grant of another Fresh Term Loan of Rs. 7.00 Crore for setting up new school vide request letter dated 05.04.2016, 08.11.2016 and 22.12.2016, which is Annexure A57 to this OA. Thereafter, the defendant no. 1 through its Chairman approached the applicant for enhancement of the ODIP Limit to Rs.6.75 Crore. Defendant nos. 2 and 3 stood as personal guarantors whereas defendant no. 4 stood as Corporate guarantor. 3. The applicant sanctioned Term Loan of Rs. 14.92 Crore (Takeover of Term Loan of Rs.8.92 Crores from Allahabad Bank and Fresh Term Loan of Rs. 6.00 Crore) vide Sanction dated 17.02.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned another Term Loan of Rs. 1.00 Crore vide sanction letter dated 19.07.2013, which is Annexure A10 to this OA. Thereafter, the applicant sanctioned ODIP Limit of Rs. 2.00 Crore vide sanction letter

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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dated 14.12.2013, which is Annexure A15 to this OA. Thereafter, this limit was enhanced to Rs. 3.00 Crore vide sanction letter dated 01.05.2015, which is Annexure A27 to this OA. Thereafter, the applicant sanctioned Fresh Term Loan of Rs. 4.00 Crore vide sanction letter dated 12.02.2016, which is Annexure A51 to this OA. Thereafter, the applicant sanctioned another Term Loan of Rs. 4.00 Crore vide sanction letter dated 19.04.2016, which is Annexure A58 to this OA and terms and conditions were accepted by the defendant no. 1 vide letter dated 09.08.2016, which is Annexure A59 to this OA. Thereafter, the applicant enhanced the ODIP Limit to Rs. 6.75 Crore vide sanction letter dated 15.02.2018, which is Annexure A67 to this OA.

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As per the OA, the Term Loan of Rs. 14.92 Crore and Rs. 1.00 Crore sanctioned by the applicant as per sanction letter dated 17.02.2010 (Annexure A3) and 19.07.2013 (Annexure A10) stands adjusted by the defendants.

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Defendants had mortgaged their immovable properties and movable property i.e. i) Land measuring 17 Bigha 16 Biswa (in the name of defendant no. 1) situated at Village Bhedpura, Tehsil and District Patiala , Punjab, through equitable Mortgage of Title deed bearing vasika no. 12151 dated 29.12.2009, along with its translations, w hich are Annexures A4 and A4T to this OA. ii) L and measuring 39 Bigha 6 Biswa (in the name of defendant no. 1) situated at Village Bhedpura, Tehsil and District Patiala , Punjab, through equitable Mortgage of Title deed bearing vasika no. 6366 dated 29.08.2008, along with its translations, w hich are Annexures A5 and A5T to this OA. iii) L and measuring 38 Bigha 18 Biswa (in the name of defendant no. 1) situated at Village Bhedpura, Tehsil and District Patiala , Punjab, through equitable Mortgage of Title deed bearing vasika no. 9219

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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dated 17.11.2008, along with its translations, w hich are Annexures A6 and A6T to this OA.

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iv) L and measuring 0B-16 Biswa (in the name of defendant no. 4) situated at village Dau Majra, Hadbast 76, Tehsil Kharar District Mohal i, Punjab through equitable mortgage of Title Deed bearing vasika no. 3388 dated 20.11.2007, along with its translations, w hich are Annexures A24 and A24T to this OA.

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v) L and measuring 41 Bigha 18 Biswa (in the name of defendant no. 4) situated at village Dau Majra, Hadbast 76, Tehsil Kharar District Mohal i, Punjab, through equitable mortgage of Title Deed bearing vasika no. 3389 dated 20.11.2007, along with its translations, w hich are Annexures A25 and A25T to this OA.

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vi) L and measuring 06 Biswa (in the name of defendant no. 4) situated at village Dau Majra, Hadbast 76, Tehsil Kharar District Mohal i, Punjab, through equitable mortgage of Title Deed bearing vasika no. 3390 dated 20.11.2007, along with its translations, w hich are Annexures A26 and A26T to this OA.

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vii) L and and building (Hoshiarpur Campus land and building) measuring 394Kanal-13Marla-03½Sarsai situated at Chandigarh Road, Village Bohan and Village Boothgarh, Tehsil and District Hoshiarpur, Punjab, (Building consists of Dental College, Dental Hospital, Admin Block, Co-ed College of Engineering, College of Pharmacy, Women College of Nano Technology, College of Education, Workshop, Boys and Girls Hostel in the name of defendant no.4) detailed as under: -

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(a)	Land measuring 37Kanal-10Marla-7½Sarsai situated at
	Village Bohan/295, Tehsil and District Hoshiarpur, Punjab
	vide equitable mortgage of Title deed bearing vasika no. 908
	dated 08.05.2008, along with its translation, which is
	Annexure A36 and A36Tto this OA.
(b)	Land measuring 02Kanal-04Marla situated at Village
	Boothgarh/347, Tehsil and District Hoshiarpur, Punjab vide

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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equitable mortgage of Title deed bearing vasika no. 780 dated 02.05.2008, along with its translation, which is Annexure A37 and A37T to this OA.

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(c) Land measuring 69Kanal-17Marla situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 781 dated 02.05.2008, along with its translation, which is Annexure A38 and A38T to this OA.

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(d) Land measuring 07Kanal-10Marla-02Sarsai situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 2826 dated 29.07.2008, along with its translation, which is Annexure A39 and A39T to this OA.

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(e) Land measuring 15Kanal-07Marla situated at Village Boothgarh/347, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 4099 dated 29.09.2006, along with its translation, which is Annexure A40 and A40T to this OA.

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(f) Land measuring 08Kanal-08Marla situated at Village Boothgarh/347, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 4378 dated 13.10.2006, along with its translation, which is Annexure A41 and A41T to this OA.

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(g) Land measuring 185Kanal-00Marla situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 6500 dated 26.12.2007, along with its translation, which is Annexure A42 and A42T to this OA.

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(h) Land measuring 04Kanal-07Marla situated at Village Boothgarh/347, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 6501

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¶45

OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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dated 26.12.2007, along with its translation, which is Annexure A43 and A43T to this OA.

¶47

(i) Land measuring 15Kanal-12Marla situated at Village Boothgarh/347, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 5833 dated 15.12.2008, along with its translation, which is Annexure A44 and A44T to this OA.

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(j) Land measuring 16Kanal-13Marla-03Sarsai situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 6499 dated 26.12.2007, along with its translation, which is Annexure A45 and A45T to this OA.

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(k) Land measuring 06Kanal-10Marla situated at Village Boothgarh/347, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 4702 dated 31.10.2006, along with its translation, which is Annexure A46 and A46T to this OA.

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(l) Land measuring 13Kanal-10Marla situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 4536 dated 10.10.2007, along with its translation, which is Annexure A47 and A47T to this OA.

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(m) Land measuring 11Kanal-10Marla situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 5348 dated 28.11.2008, along with its translation, which is Annexure A48 and A48T to this OA.

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(n) Land measuring 00Kanal-14Marla situated at Village Bohan/295, Tehsil and District Hoshiarpur, Punjab vide equitable mortgage of Title deed bearing vasika no. 7981

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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dated 27.02.2008, along with its translation, which is Annexure A49 and A49T to this OA.

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Pages of Title deed registered, which is Annexure A7 to this OA.

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Documents executed:- Registration Certificate and MOA dated 16.07.2008, which is Annexure A2 to this OA; Resolution dated 08.07.2013, 23.07.2013, 03.01.2015, 01.03.2018 which are Annexures A8, A16, A21, A28 and A66 to this OA; Term Loan Agreement, Letter of Hypothecation, Agreement of Guarantee, Letter of Continuity, all dated 19.07.2013 which are Annexures A11 to A14 to this OA; Overdraft Agreement, Hypothecation Agreement, dated 17.12.2013, which are Annexure A17 and A18 , to this OA; Agreements of Guarantee, dated 02.01.2014, which are Annexure A19 and A20 to this OA; Letters of Continuity, dated 17.12.2013 and 25.01.2014, which are Annexure A22 and A23 to this OA; Overdraft Agreement, Hypothecation Agreement, Agreements of Guarantee, Letter of Continuity, all dated 09.05.2015, which are Annexure A29 to A31 and A33 and A34 , to this OA; Agreements of Guarantee dated 14.08.2015, which is Annexure A32 to this OA; Letter of Continuity dated 11.05.2015, which is Annexure A35 to this OA; Hypothecation Agreement, Hypothecation Agreement for movable assets, Agreements of Guarantee, all dated 20.02.2016, which are Annexure A52 to A55 , to this OA; Letter of Continuity 21.03.2016 and 12.09.2022, which is Annexure A56 to this OA; Hypothecation Agreement, Hypothecation Agreement for movable assets, Agreements of Guarantee, all dated 09.08.2016, which are Annexure A60 to A64 , to this OA; Letter of continuity dated 10.08.2016, which is Annexure A65 to this OA; Overdraft Agreement, Hypothecation Agreement of moveable assets, Agreement for authorization, Agreements of Guarantee, all dated 06.03.2018, which are Annexure A68 to A73 , to this OA; Letter of Continuity dated 15.02.2018, which is Annexure A74 to this OA; BC Letters, dated 07.12.2016, 29.09.2018,

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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07.09.2021, 11.05.2015, 28.03.2018, 07.09.2021, 20.04.2018, 13.01.2021 31.08.2024, which are Annexures A75 to A79 and A85 to A88 , to this OA; Notice dated 29.04.2021, u/s 13 (2) of SARFAESI Act, along with postal receipts, which is Annexure A80 to this OA; OTS Offer letter dated 15.07.2024, which is Annexure A81 to this OA; OTS Sanction dated 29.07.2024, which is Annexure A82 to this OA; Revocation letter, dated 31.12.2024, which is Annexure A83 to this OA; Recall Notice dated 15.04.2025, with postal receipts, which is Annexure A84 to this OA; Statement of Accounts, which are Annexures A89 to A91 to this OA; Computer Certificate as per Banker’s Book Evidence Act, which is Annexure A92 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.10,10,91,516.00, 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. 6. 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 08.08.2025.

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Later, Sh. Piyush Khanna and Sh. Karajveer Singh, Advocates filed an IA no. 1574/2025 on 01.10.2025, on behalf of defendants for recalling of order dated 08.08.2025. Sh. Karajveer Singh, Advocate appeared on behalf of defendants today. The above IA was heard and vide separate order, the IA was dismissed today.

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In support of the OA, affidavit of Sh. Suresh Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned counsel for applicant 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

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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the Annexures A1 to A92 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 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.10,10,91,516.00 (Rupees Ten Crores Ten Lacs Ninety One Thousand Five Hundred Sixteen 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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As per the OA, the defendant no. 1 submitted OTS offer dated 15.07.2024 of Rs. 11.82 Crore (Annexure A81) which was sanctioned by the applicant on 29.07.2024 (Annexure A82). However, the defendants failed to pay the OTS amount pursuant to terms and conditions of sanction dated 29.07.2024, thus the applicant revoked the OTS vide letter dated 31.12.2024 (Annexure A83).

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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 OD [email protected]%p.a., Term Loan II @14.00%pa and Term Loan III @14.90%p.a. with penal interest @2%p.a. in all the accounts 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

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instant case including nature of the mortgaged properties/hypothecated assets, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the

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OA/758/2025 PUNJAB NATIONAL BANK VS BALAJI LITERARY AND CHARITABLE SOCIETY AND OTHERS

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discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in all 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.10,10,91,516.00 (Rupees Ten Crores Ten Lacs Ninety One Thousand Five Hundred Sixteen Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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 mortgaged properties/hypothecated assets of 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.11.2025. 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 . Dated: 27.10.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Shri Balaji Literary and Charitable Society and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shri Balaji Literary and Charitable Society and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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