Allowed

Punjab National Bank v. M/S the Lady Fashion and Another

DRT4 Sept 2025OA/923/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of a defaulted CC limit against the proprietorship firm. The defendants were served notices but did not appear, resulting in an ex-parte order granting recovery of the principal amount and adjusted interest.

What did the court decide?

Recovery of Rs. 31,07,204.46 with simple interest at 8% p.a. from the date of filing. Recovery to be effected by sale of hypothecated assets.

Punjab National Bank versus M/S the Lady Fashion… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.923/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.07.2023

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DATE OF DECISION: 04.09.2025

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Punjab National Bank (Erstwhile known as Oriental Bank of Commerce), a body corporate constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its head office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and Branch Offices, amongst others at Branch Office at Ferozepur Road, Ludhiana, Punjab through its 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 The Lady Fashion, a proprietorship firm, having its business at B-9-91/1, Chaura Bazaar, Ludhiana, Punjab through its proprietor namely Sh. Harpreet Kalra S/o Sh. Gulshan Kalra.

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Sh. Harpreet Kalra S/o Sh. Gulshan Kalra R/o B-34, H. No. 1881, Street No. 1, Chandan Nagar, Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Himanshu Sharma, Advocate for the Applicant (Through

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VC)

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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.31,07,204.46p (Rupees Thirty One Lacs Seven Thousand Two Hundred Four and Paise Forty Six Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant, who is competent to institute the Original

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2 OA NO. 923/2023 PUNJAB NATIONAL BANK VS M/S THE LADY FASHION AND ANOTHER

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Application vide Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 had approached the applicant for the grant of CC Limit of Rs.25.00 Lacs vide loan application dated 26.12.2019. 3. The applicant sanctioned the CC Limit of Rs.25.00 Lacs vide Sanction Letter dated 26.12.2019, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 through its proprietor defendant no. 2 had hypothecated its movable assets i.e. Stocks of ladies wear suits, sarees, other garments, receivables etc. vide Agreement of Hypothecation of Assets dated 26.12.2019, which is Annexure A3 to this OA. Documents executed : - Common Agreement dated 26.12.2019, which is Annexure A4 to this OA; Sole Proprietor Letter dated 26.12.2019, which is Annexure A5 to this OA; Request Letter by Proprietor dated 30.12.2020, which is Annexure A6 to this OA; Recall Notice dated 27.07.2021, which is Annexure A7 to this OA and Statement of Account which is Annexure A8 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.31,07,204.46p, 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 13.08.2025. 7. In support of the OA, affidavit Sh. Ravinder Kumar, Senior Manager, Punjab National Bank, h as been filed. 8. Heard arguments and perused record.

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3 OA NO. 923/2023 PUNJAB NATIONAL BANK VS M/S THE LADY FASHION AND ANOTHER

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It was argued by learned counsel through Video Conferencing 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 A8 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,07,204.46p (Rupees Thirty One Lacs Seven Thousand Two Hundred Four and Paise Forty Six 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 @9.20%p.a. with monthly rests from 30.11.2022 till the realization. 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 @8.00%p.a. in the loan account 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.31,07,204.46p (Rupees Thirty One Lacs Seven Thousand Two

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4 OA NO. 923/2023 PUNJAB NATIONAL BANK VS M/S THE LADY FASHION AND ANOTHER

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Hundred Four and Paise Forty Six Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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 assets 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 30.09.2025.

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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: 04.09.2025

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

Punjab National Bank v. M/S the Lady Fashion and Another

Case brief

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Punjab National Bank v. M/S the Lady Fashion and Another

Case brief

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