Allowed

Punjab National Bank v. Shri Ram Traders Gupta

DRT1 Oct 2025TA/1307/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of approximately Rs. 33.45 lacs along with interest and costs against a borrower who failed to regularize an account, leading to an ex-parte order.

What did the court decide?

Directing defendants to pay Rs. 33,45,248.30 with interest at 8.90% p.a. and costs within 30 days; issuing a recovery certificate.

Punjab National Bank versus Shri Ram Traders Gupta — Banking and Recovery | DRT (2025)

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T.A. No. 1307 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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T.A. No.1307 of 2023

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Punjab National Bank (e-Oriental Bank of Commerce) Circle Sastra East Delhi, 1st Floor, Pocket E, Mayur Vihar Phase II Delhi-110091

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Applicant

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Versus

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1. M/s Shri Ram Traders Proprietorship firm E-16/1264, Padam Singh Road Bapa Nagar, Karol Bagh New Delhi-110005

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Also at: BG-6/157A, Paschim Vihar West Delhi, New Delhi-110063.

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2. Sh.Kapil Gupta Proprietor of Shri Ram Traders BG-6/81B, Paschim Vihar Near Royal, West Delhi, New Delhi-110063.

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Defendants

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Present: Sh.G.P.S.Verma, Counsel for the applicant bank

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Date of Institution: 15.09.2022

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Date of Pronouncement: 01.10.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 15.09.2022 before DRT-II, Delhi & then transferred to DRT-I, Delhi by the applicant bank through Sh.Rajiv Agarwal, authorized representative of the applicant bank under Section

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T.A. No. 1307 of 2023

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19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.33,45,248.30 (Rupees Thirty Three Lacs Forty Five Thousand Two Hundred Forty Eight & paisa Thirty only) as on 31.08.2022 along with pendentelite and future interest @8.90% per annum from 01.09.2022 till the date of realization along with costs.

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2. The brief facts of the case are that on the request of defendant no.1 through its proprietor being defendant no.2, the applicant bank sanctioned Cash Credit facility under Oriental Tatkal scheme of Rs.25.00 lacs (Rupees Twenty Five Lacs only) on 18.01.2020 @8.45% interest per annum for trading of textiles products against hypothecation of stock of raw material & finished goods of defendant no.1 covered under CGTSME scheme. Further, on the request of defendant no.1, the applicant bank sanctioned WCTL under GECL scheme for Covid 19 Emergency Credit Facility (CECF) of Rs.4.79 lacs on 29.06.2020.

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3. That in order to avail the loan facilities, the defendant no.1 through defendant no.2 as proprietor executed Sole Proprietorship Letter (Doc-21), Common Agreement (Doc-38), Agreement of Hypothecation of Assets and Undertaking from Borrower (Doc-1) and Affidavit on 07.03.2020. Further, defendant no.1 executed PNB-1252 for Existing Borrowers, PNB-2057 Master Agreement, PNB-728 Demand Promissory Note, Memorandum for WCTL under GECL-Annexure III and Undertakings for GECL facility on 29.06.2020.

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4. The defendant no.1 is duly registered with CERSAI vide Transaction ID QRF no. 200122071193 dated 27.01.2020.

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T.A. No. 1307 of 2023

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5. It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the account maintained by defendants becoming irregular and failed to comply with the terms and conditions of sanction. Despite of several requests and reminders, defendants neither regularize the account nor liquidated the loan with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 10.01.2022 as per RBI guidelines. Hence, the applicant bank has approached this tribunal for recovery of their dues.

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6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 07.03.2022 but defendants failed to regularize the account.

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7. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 05.12.2023, the defendants have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Rajiv Agarwal, authorized representative of the applicant bank who has proved the documents such as Power of Attorney Exhibit A1/1, Sanction Letter Ex-AW1/2, Sole Proprietorship Letter Ex-AW1/3, Common Agreement Ex-AW1/4, Agreement of Hypothecation of Assets Ex-AW1/5(Colly), Affidavit Ex-AW1/6, Line of Credit Ex-AW1/7, PNB-1252 Ex-AW1/8, Master Agreement Ex-AW1/9, Demand Promissory Note Ex-AW1/10, Memorandum for WCTL under GECL Ex-AW1/11, Undertaking Ex-AW1/12, Cersai

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T.A. No. 1307 of 2023

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Registration Ex-AW1/13„ Notice u/s 13(2) Ex-AW1/14„ Certified Statement of Account u/s 4 of Bankers' book of Evidence Act Ex-AW1/15.

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9. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

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10. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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11. In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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(I) I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.33,45,248.30 (Rupees Thirty Three Lacs Forty Five Thousand Two Hundred Forty Eight & paisa Thirty only) as on 31.08.2022 together with pendentelite and future interest @8.90% per annum from 01.09.2022 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock & book debts etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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T.A. No. 1307 of 2023

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 28.11.2025.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 01.10.2025

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Punjab National Bank v. Shri Ram Traders Gupta

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shri Ram Traders Gupta

Case brief

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What did the court decide?

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