The Debts Recovery Tribunal allowed an application by Punjab & Sind Bank for recovery of approximately 69.77 lakhs from defaulting borrowers and guarantors. The court granted a recovery certificate and fixed interest at 8% p.a.
Recovery of Rs.69,76,714.29 with interest @8% p.a. declared and Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.806/2024
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 06.06.2024
DATE OF DECISION: 11.07.2025
Punjab & Sind Bank, a Banking Company, constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 1980 with its Head Office at 21 Rajindra Palace, New Delhi and branches amongst others a branch at Nawanshahr, through its Principal Officer and Power of Attorney Holder Sh. Mandeep Singh, Chief Manager.
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Sh. Parunjeet Singh, Advocate for the Applicant Defendants are ex parte
FINAL ORDER
Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against
the defendants for recovery of Rs.69,76,714.29p (Rupees Sixty Nine Lacs Seventy Six Thousand Seven Hundred Fourteen and Paisa Twenty
2 OA 806/2024 PUNJAB AND SIND BANK V/S M/S A K AUTOS AND OTHERS
Nine Only). The Original Application has been filed through Sh. Mandeep Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 11.08.2016, which is Annexure A1 to this OA.
Documents executed:-CC (Hypothecation) and Book Debt Facility Agreement, Hypothecation Deed, Guarantee Agreement by Defendant 2 and 3, Demand Promissory Note all dated 01.01.2020, which are Annexures A4 to A8 to this OA; Term Loan Agreement, Hypothecation of Goods to secure a demand cash credit, Agreement for Hypothecation of Book Debts, D.P. Note all dated 05.06.2020, which are Annexures A10 to A13 to this OA; Term Agreement for GECL Loan, Undertaking,
3 OA 806/2024 PUNJAB AND SIND BANK V/S M/S A K AUTOS AND OTHERS
Copy of D.P. Note, all dated 25.06.2021, which are Annexures A15 to A17 to this OA; Balance & Security Confirmation Letters dated 12.02.2022 and 25.05.2023, which are Annexures A20 (Colly) to this OA; Notice dated 16.11.2021 u/s 13(2) of SARFAESI Act and Possession Notice dated 16.04.2022, which are Annexure A21(Colly) to this OA; Statement of Loan Accounts, which are Annexure A22 (Colly) to this OA.
4 OA 806/2024 PUNJAB AND SIND BANK V/S M/S A K AUTOS AND OTHERS
Seven Hundred Fourteen and Paisa Twenty 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 accounts.
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 defendant, 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 accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
5
OA 806/2024
PUNJAB AND SIND BANK V/S M/S A K AUTOS AND OTHERS
(MRIDULESH KUMAR SINGH)
Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount against the defendants under the Bombay Debt Recovery Act.
Whether interest at a rate lower than claimed by the applicant is granted considering current market rates.
1 provisions across 1 enactments
Punjab & Sind Bank
M/s A K Autos
Smt. Asha Devi
Sh. Kulwinder Singh
Sh. Palwinder Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
