Allowed

Punjab National Bank v. Mrs Reetu Garg

DRT4 Nov 2025OA/937/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank against a borrower for recovery of loan dues including housing and overdraft amounts. The Tribunal directed the defendant to pay dues, granted interest, permitted sale of mortgaged property, and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.46,94,876.10/- with 8% pendent-lite interest; defendant directed to pay dues within two months; mortgage and personal assets liable to be sold.

Punjab National Bank versus Mrs Reetu Garg — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL LUCKNOW

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Date oforder or lroceeding	Orderwithsignatureofcourt
o.A.No.937/2022 04.11.2025	Judgment is signed pronounced onseparate sheets. Separately attachedin06 she Order be uploaded on Tribunal’swebsite.	and ets. the
	r	\Lb
	(PravasKumar Presiding Offi	Sihdh) cer

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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.937 of 2022

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Dated: 04.11.2025

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Punjab National Bank, having Branch at SH. 12, lst Floor, Jagat Shopping Complex Gamma 1, Greater Noida, District Gautam Budh Nagar, Uttar Pradesh.

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. . Applicant Bank

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Versus

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Mrs. Reetu Oarg, D/o Sh. Manish Garg, R/o Flat NBo.43 1 st Floor, Sector- 1 6, Vasundhara, District Ghaziabad, Uttar Pradesh-201012.

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. . . . . . . . .defendant

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Ld. Counsel for the applicant-bank: Mr. Ashish Kumar Sharma, Advocate. Ld. Counsel for the defendant: Mr. Ashish Kumar, Advocate.

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JUDGMENT

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This Original Application has been filed by the applicant Bank under Section 19 of the Recovery of Debts & Bankruptcy Act, 1993, against the defendant for the recovery of Rs.46,94,876.10/- (Rupees Forty Six Lac, Ninety Four Thousand, Eight Hundred Seventy Six and Paisa Ten Only) (Rs.15,26,388/- in Housing Loan Account) & (Rs.31,68,487.78/- in Overdraft Loan Account) together with pendent-lite and future interest, costs and other reliefs etc.

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The brief facts of case being that the defendant is the borrower. The defendant approached the applicant-bank for grant of credit facility of Rs.16,25,230/-, which was duly considered and sanctioned by the applicant-

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2 O.A. No.1201 of 2023

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bank on 07.02.2017 on certain terms and conditions (Annexure No. A-1/2 &Annexure No. A-1/3) to this original application.

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In order to secure the aforesaid credit facility, the defendant had executed and signed Agreement of Housing Loan, Mortgage Deed and Affidavit in favour of the applicant-bank on 09.12.2017(Annexure No. A- 1/4 to Annexure No. A- 1/6) to this original application.

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Further, the defendant had created mortgage of her immovable property i.e. Flat No.43, 1st Floor, Sector 16, Vasundhara, Ghaziabad, UP on 34.23 Sq Mtr., in favour of the applicant-bank as detailed in the petition (Annexure No. A- 1/7) to this original application.

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5 . Again, at the request of the defendant, the applicant-bank sanctioned Overdraft Facility of Rs.25 lac, for which, the said defendant had further executed and signed various security documents in favour of the applicantbank on 23.3.2017 and also extended the creation of mortgage (Arulexure No. A-1/8 &Annexure No. A-1/9) to this original application.

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To avail the aforesaid credit facilities, the applicant-bank had opened two loan accounts in the name of defendant in order to maintain the credit facilities.

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The defendant had also executed and signed Balance and Security Confirmation Letter dated 06.02.2020 confirming the balance in the loan account (Annexure No. A- 1/10) to this original application.

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After availing the aforesaid credit facilities, the defendant failed to maintain financial discipline and also failed to comply with the terms and conditions of the loan agreement, consequently, the loan accounts of the defendant were classified as NPA on 31.3.2021 by the bank as per RBI guidelines (Annexure No. A- 1/1 1), therefore9 the applicant_bank issued

O.A. No.1201 of 2023

Demand Notice dated 22.9.2019 under Section 13(2) of the SARFAESI Act 2002 (AnnexureNo. A-1/12), but, the defendant stated no-response and he failed to repay the same and the loan accounts of the defendant are still unliquidated, hence, this Original Application has been instituted.

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As per books of the bank maintained in the usual and ordinary course of banking business, an outstanding of Rs.46,94,876.10/- (Rupees Forty Six Lac, Ninety Four Thousand, Eight Hundred Seventy Six and Paisa Ten Only) (Rs.15,26,388/- in Housing Loan Account) & (Rs.31,68,487.78/- in Overdraft Loan Account) including interest upto 30.6.2022 were lying due for payment, which she did not pay despite repeated requests and demands. The applicant Bank has filed the copy of Statement of Accounts (AnnexureNo. A- 1/13 &Annexure No. A- 1/14) to this original application.

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The cause of action for filing the present application arose firstly on 07.02.2017 when the abovementioned credit facility was sanctioned by the applicant-bank and necessary documents were executed by the defendant. The cause of action further arose on 22.9.2019 when the applicant-bank had issued demand notice under Section 13(2) of the SAIWAESI Act 2002 recalling the defendants for repayment of dues, but, the defendant failed to pay the same.

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The summons was served upon the defendant through registered post. The defendant appeared through his counsel and filed WS, the grievances raised by the defendant being (i) the property has been undervalued and proper stamps not affixed on agreement filed as Ext 4A (ii) document for declaration of the account as NPA not filed(iii) sale notice was noticed while putting the property on sale. Jr

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O.A. No.1201 of 2023

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1 find that any specific pleading or proof has not been filed for its contention raised in objection(i) document for NPA is filed and (iii) is not to be decided in this OA

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1 am required to examine as to whether, the applicant 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 Shri Darshan Lal Bhalla, Authorized Representative of the applicant Bank has supported its case on affidavit. 15. On a careful scrutiny of the evidence on affidavit and Annexure marked as (Annexure No. A-1/1 to AnnexureNo.A-1/14to this original application),it stands proved that the defendant 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 establishes that defendant had utilized the above loan facilities as granted to her. The applicant bank has maintained the Books of accounts in the ordinary course of banking business showing disbursal of the loan amount. It further shows that bank had regularly credited the amount paid by the defendant in the books of accounts. The Bank had also charged interest from time to time and the entries is relevant u/s 4 of the Bankers Book Evidence Act. It is also proved that the applicant bank’s claim is within limitation against the defendant, therefore, the defendant is liable to pay the dues.

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Accordingly, the defendant is directed to pay the balance dues to the applicant bank within a period of two months from the date of judgment failing which the applicant bank will be entitled to sell the mortgage property and personal properties of the defendant. r

O.A. No.1201 of 2023

The applicant-bank has claimed interest @8.70% per annum in Housing Loan Account and interest @9.85% per annum in Overdraft Loan Account together with pendent lite and future interest till the actual date of its realization and costs. On the basis of the foregoing discussion, I am of view that the cause for interest of justice will be served if pendent-lite and future interest is granted @8.00% in both the above loan accounts per annum with monthly rate on 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 of mortgage in its favour. In the result, the Original Application succeeds against the defendant with costs. The defendant is liable to pay the dues of the applicant-bank and the mortgage property as well as the personal properties are liable to be sold.

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19.It is, therefore, ordered

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(i) That the Original Application No.937 of 2022 of the applicant bank for issuance of Recovery Certificate to the tune of Rs.46,94,876.10/- (Rupees Forty Six Lac, Ninety Four Thousand, Eight Hundred Seventy Six and Paisa Ten Only) (Rs. 15,26,388/- in Housing Loan Account) & (Rs.31,68,487.78/in Overdraft Loan Account) together with the interest @8.00% per annum together with pendent-lite and future interest in the loan accounts from the date of filing of the Original Application i.e. 08.8.2022 till the loan is fully liquidated and costs succeeds and is hereby allowed against the defendant.

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(ii) The defendant is directed to pay the dues within a period of two months from the date of judgment, failing which the applicant JI

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6 O.A. No.1201 of 2023

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bank will be entitled to recover the same from the secured assets, personal movables and immovable assets of the defendant.

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(iii) The applicant-bank is entitled to recover aforesaid amount by sale of mortgage property (if not sold earlier under the provisions of the S.A.R.F. A.E.S.I. Act 2002). The amount, if any, already recovered by sale of mortgage property or otherwise shall be adjusted towards the debt and only the balance amount 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 and immovable assets of the defendant.

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(iv) The defendant is hereby restrained by means of injunction from depleting, transferring, encumbering, alienating or in any way dealing with her properties/estates without first paying the claim of the 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 04.12.2025 before R.O., DRT, Lucknow.

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Judgment is pronounced in the open court.

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Dated: 04.11.2025

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in LA / (Pravas Kun}afSihgh) Presiding Officer

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(Veeresh)

Punjab National Bank v. Mrs Reetu Garg

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mrs Reetu Garg

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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