Allowed

Punjab National Bank v. Messrs Sudiksha Manufacturing and Online Service and Another

DRT11 Sept 2025OA/769/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of dues. It ordered the defendants to pay the principal along with 7.65% simple interest, granting a uniform rate despite varied loan account claims.

What did the court decide?

Declarations jointly and severally ordering payment of Rs. 76,28,121.00 with costs and simple interest at 7.65% p.a. from the date of filing; direction to issue Recovery Certificate.

Punjab National Bank versus Messrs Sudiksha Manufacturing and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH ORIGINAL APPLICATION NO.769/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.04.2022

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DATE OF DECISION: 11.09.2025

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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 a Branch Office amongst others at Branch Office Dhandari Kalan, District Ludhiana, Punjab through General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager of the Applicant.

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……..Applicant

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Versus

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M/s. Sudiksha Manufacturing and Online Services, House No. 163, Near PSEB Office, Ambedkar Nagar, Model Town Extension, Block-C, District Ludhiana, Punjab, 141002 through its Sole Proprietor Smt. Lakhwinder Kaur.

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Sh. Dinesh Mahajan S/O Sh. Narinder Nath Mahajan, R/o 32B, Near Police Post, Raghunath Enclave, Rajguru Nagar, Ludhiana, Punjab.

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………. Defendants

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Advocates:

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Argued by Sh. Banni Thomas, 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 Due to Banks and Bankruptcy Act, 1993, against the defendants for recovery of Rs. 76,28,121.00 (Rupees Seventy Six Lacs Twenty Eight Thousand One Hundred Twenty One Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager, who is competent to institute the Original Application, vide Power of Attorney, dated 05.06.1997, which is Annexure A1 to this OA.

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OA/769/2022 PUNJAB NATIONAL BANK VS M/S SUDIKSHA MANUFACTURING AND ONLINE SERVICES AND ANOTHER

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The brief facts of the OA are that the defendant No.1 through its Proprietor had approached the applicant for grant of Cash Credit limit of Rs. 50.00 Lacs and Term Loan of Rs. 10.00 Lacs, vide request letter dated 02.02.2018 and loan Application dated 01.03.2018, which is Annexure A2 to this OA and thereafter, for a Working Capital Term Loan (WCTL) loan of Rs. 9.90 Lacs under GECL.

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The applicant Cash Credit limit of Rs. 50.00 Lacs and Term Loan of Rs. 10.00 Lacs, vide Appraisal Memorandum dated 19.02.2018, which is Annexure A3 to this OA and thereafter sanctioned Working Capital Term Loan (WCTL) loan of Rs. 9.90 Lacs under GECL vide memorandum of sanction dated 08.02.2021 and sanction letter dated 11.02.2021, which are Annexures A9 and A10 to this OA and terms and conditions were duly accepted by defendants.

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Defendant No. 2 mortgaged his immovable property i.e. Vacant Plot measuring 441.7 Sq. Yards situated at Ganpati Commercials, Ganpati Enclave, Near Nirankari Bhawan, Dehlon Road, Sahnewal, Village Dhroad, Hadbast no. 232, District Ludhiana, Punjab vide equitable mortgage of Sale Deed Bearing Vasika no. 2280 dated 24.08.2012, along with its translations, Title investigation report dated 05.03.2018 and 17.03.2021, mutation dated 02.03.2021 and valuation report dated 06.03.2021, which are Annexures A4 to this OA. Defendant no.1 through its proprietor defendant no. 2 also hypothecated moveable assets i.e. stock all types of raw material, stock in process, finish goods, semi-finished goods etc. and book debts vide Agreement of hypothecation of goods and book debts dated 16.02.2018, which is Annexure A5 to this OA and Agreement of hypothecation of moveable assets dated 16.02.2018, which is Annexure A6 to this OA and Agreement of hypothecation of current assets, which is Annexure A12 to this OA. Further, Defendant no.1 through its proprietor defendant no. 2 hypothecated readymade garments machines vide agreement of

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OA/769/2022 PUNJAB NATIONAL BANK VS M/S SUDIKSHA MANUFACTURING AND ONLINE SERVICES AND ANOTHER

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Hypothecation of assets to secure Term Loan dated 16.02.2018, which is Annexure A7 to this OA.

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Documents executed:- Agreement of Guarantee and Term Loan Agreement, dated 16.02.2018, which are Annexures A8 and A8A to this OA; Agreement for WCTL, Master Agreement, D.P. Note, Format for Authorization all dated 12.02.2021, which are Annexures A11, A13 to A14A to this OA; Letter/ Communications and Legal Notices, dated 31.05.2021, 01.06.2021, 29.06.2021, 30.12.2020 and 31.05.2021 which is Annexure A15(Colly) to this OA; Notice dated 29.06.2021 under section 13(2) and Registered Postal Receipts, which is Annexure A16 to this OA; Balance and Security Confirmation Letter, dated 22.12.2020 and 02.01.2021, which is Annexure A17 to this OA; Statement of Account Certified under Banker’s Books Evidence Act, 1891, which is Annexure A18 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs. 76,28,121.00, 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 the behalf of defendants and they were proceeded ex-parte on 14.11.2023. Thereafter, Sh. Sachin Sharma, Advocate filed his Power of Attorney on behalf of Defendant no. 2 on 13.12.2023 and also filed an IA no. 1152/2023 on behalf of defendant no. 2 for setting aside ex-parte order. This IA was dismissed on 25.08.2025. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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OA/769/2022 PUNJAB NATIONAL BANK VS M/S SUDIKSHA MANUFACTURING AND ONLINE SERVICES AND ANOTHER

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It was argued by learned proxy 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 Annexures A1 to A18 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 Rs. 76,28,121.00 (Rupees Seventy Six Lacs Twenty Eight Thousand One Hundred Twenty One 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.75%p.a. in CC Account and Term Loan and interest @7.65%p.a. in GECL account, from 01.04.2022 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/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 discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7.65%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.

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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.

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OA/769/2022 PUNJAB NATIONAL BANK VS M/S SUDIKSHA MANUFACTURING AND ONLINE SERVICES AND ANOTHER

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76,28,121.00 (Rupees Seventy Six Lacs Twenty Eight Thousand One Hundred Twenty One Only) jointly and severally, with costs, current and future simple interest @7.65%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 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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Parties to appear before Learned Recovery Officer of this Tribunal on 03.10.2025.

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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. Pronounced by me in the open Tribunal . Dated: 11.09.2025

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

Punjab National Bank v. Messrs Sudiksha Manufacturing and Online Service and Another

Case brief

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Punjab National Bank v. Messrs Sudiksha Manufacturing and Online Service and Another

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