Allowed

Punjab National Bank v. M/S Bansal Foods

DRT25 Nov 2025TA/311/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for recovery of dues and future interest against the borrowers and guarantor who failed to repay credits sanctioned under an SME scheme. The debt was classified as NPA and auctions were conducted.

What did the court decide?

Directors/Defendants to pay Rs. 3,76,91,317.59 with interest at 12% p.a. from filing date till realization; issuance of Recovery Certificate.

Punjab National Bank versus M/S Bansal Foods — Contract and Commercial Disputes | DRT (2025)

¶1

T.A. No.311 of 2023

¶2

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

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

T.A. No. 311 of 2023

¶5

P njab National Bank Circle Sastra East Delhi, First floor C•C, E-Block, Mayur Vihar Phase II, New Delhi-110091 Applicant

¶6

ersus

¶7

1 M/s Bansal Foods P oprietorship firm T rough its Sole Proprietor Smt. Shalini 2i 05/5, Nai Basti, Bawana Road Narela, Delhi-110040

¶8

2 Smt. Shalini w/o Sh.Shiv Charan P oprietress - Bansal Foods G-512, G-Block, Gali no.10 N ar Rajdhani Public School P njabi Colony, Narela, Delhi-110040 3 Mr. Shiv Charan uarantor) -512, Punjabi Colony rela, Delhi-110040 Defendants P esent: Mr. Vinayak Saini, Counsel for the applicant bank Date of Reserve: 15.10.2025 Date of Pronouncement: 25.11.2025 FINAL ORDER

¶9

This original application has been filed by the applicant b nk on 13.06.2018 before DRT-III, Delhi & then transferred DRT-I, Delhi through Sh. Anil Kumar Jain, authorized

¶10

T.A. No.311 of 2023

¶11

epresentative of the applicant bank under Section 19 of ecovery of Debts Due to Banks and Financial Institutions Act, 993 against the defendants for recovery of a sum of .3,76,91,317.59 (Rupees Three Crores Seventy Six Lacs inety One Thousand Three Hundred Seventeen and paisa ifty Nine only) as on 31.05.2018 together with pendentelite nd future interest @13.25% per annum with monthly rests om the date of filing of this application till the date of alization and costs. Further, the name of Shri Narender Singh isht was substituted as authorized representative in place of h.Anil Kumar Jain & Sh. Sanjeev Kumar Gupta, erstwhile ARs r the applicant bank.

¶12

The brief facts of the case are that at the request of the efendant no.1 through defendant no.2 as proprietress, the pplicant bank sanctioned Cash Credit (Pledge) limit of s.400.00 lacs & Cash Credit (Hyp.) of Rs.30.00 lacs under SME scheme on 12.11.2013 @11.75% & @15.75% interest er annum respectively with monthly rests against warehouse r ceipts of NBHC (National Bulk Holding Corporation) against ypothecation of stock of rice & paddy and warehouse receipts sued by NBHC. Further, on the request of the defendants, the applicant bank enhanced the Cash Credit (Pledge) limit to s.900.00 lacs on 25.03.2014 @12.25% interest per annum ith monthly rests and renewed Cash Credit (Hyp.) upto Rs.30 I cs. The defendant no.3 stood as guarantor for the credit f cilities sanctioned in favour of the defendant no.1 by the applicant bank.

¶13

3 In order to avail the credit facilities, the defendant no.1 t rough defendant no.2 submitted loan application with n cessary documents on 18.12.2013 and executed Sanction

¶14

T.A. No.311 of 2023

¶15

etters, Original Hypothecation of Goods and Book Debts, ypothecation of Current Assets, Supplementary Agreements, dvance Against Warehouse Receipts, Master Undertaking, upplementary Agreement in favour of the applicant bank on 2.11.2013 & 26.03.2014.

¶16

That in order to secure the credit facilities, the defendant

¶17

0.1 through defendant no.2 hypothecated the stock of rice nd paddy and pledge the warehouse receipt towards applicant a nk.

¶18

The defendant no.1 executed Balance and Security

¶19

onfirmation letter dated 14.12.2015 and 01.12.2016 in favour f the applicant bank.

¶20

It has been submitted by the applicant bank that after

¶21

.vailing the aforesaid loan facilities, the defendants miserably failed and neglected to pay the interest and instalment and f iled to maintain financial discipline as per terms and SO nditions despite various notices and reminders. The applicant •ank classified the account as NPA in the year 2015 as per xtant RBI guidelines and issued recall notice dated 12.05.2015

¶22

is clear the outstanding dues but neglected by the defendants.

¶23

The applicant bank put up the commodities for auction

¶24

r suiting the defendants regularize the limits and upgraded the a count to Standard but failed again to clear dues despite v rious letters and reminder last dated 24.05.2017. The applicant bank again classified the account as NPA on 03.04.2017 and issued recall notice on 05.06.2017. The a•plicant bank auctioned the commodities on 08.09.2017 2:.09.2017 and 09.10.2017 for Rs.3,91,98,242/- and propriated the auctioned amount in the accounts and hence,

¶25

T.A. No.311 of 2023

¶26

he applicant bank has approached this tribunal for recovery of s remaining dues.

¶27

Notices of this O.A. were issued to the defendants and

¶28

espite of proper service the defendants have chosen to absent

¶29

rom the proceedings. As per order dated 26.03.2025, the efendants have been proceeded ex-parte as they have not ppeared before the Tribunal and written statement filed but ot appeared thereafter, evidence and affidavit of assets have ot been filed by the defendant. Vide order dated 03.02.2020,

¶30

ight to file written statement have been closed for the efendants.

¶31

In order to prove its case, the applicant bank has filed its

¶32

vidence by way of affidavit of Shri Sanjeev Kumar Gupta as uthorized representative of the applicant who has proved the ocuments as Power of Attorney, Sanction Letters, Acceptance etters, Hypothecation of Goods and Book Debts, ypothecation of Current Assets, Supplementary Agreement, dvance against Warehouse Receipts, Master Undertaking, greement of Guarantee, Recall Notice, Reminder Letters, NPA ertificate, Recall Notice, Details of Commodities Sold, tatement of Accounts and Certificate as per Banker's Books vidence Act 1891, Breakup Sheet, Balance & Security onfirmation Letters marked as Ex.AW-1/1 to Ex.AW-1/25.

¶33

• The applicant bank has fully corroborated the averments ade in the O.A. Even otherwise the whole case of the

¶34

applicant bank is based on the documents and the same have •een duly proved.

¶35

The case filed by the applicant bank gone unrebutted and t ere is no question of disbelieving the case of the applicant

¶36

scl-

¶37

T.A. No.311 of 2023

¶38

b nk and the applicant bank has proved its case beyond r asonable doubts.

¶39

As per the provision of Section 19(20) of the Recovery of

¶40

D bts Due to Banks and Financial Institution Act, 1993 which analogous to Section 34 of CPC, on filing of the suit/claim,

¶41

t e contract between the parties comes to an end and the C•urt/Tribunal has a discretion to award the same depending on the circumstances of each case. Same principle has been

¶42

I. id down by the Hon'ble Apex Court in the case of Central Bank

¶43

India Vs. Ravindra & Others. Taking stock of all the

¶44

c rcumstances and keeping in view that there is a drastic fall in tes of interest globally and domestically, I am of the opinion

¶45

t at interest of justice will be served if the interest at the rate o 12% p.a. is awarded.

¶46

In the light of the above discussions, the Original

¶47

plication deserves to be allowed.

¶48

ORDER

¶49

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.3,76,91,317.59 (Rupees Three Crores Seventy Six Lacs Ninety One Thousand Three Hundred Seventeen and P isa Fifty Nine only) together with pendentelite and future i terest @12% per annum with monthly rests from the date of fi ing of this application till the date of realization, failing which t e aforesaid amount shall be recovered from the sale of h pothecated stocks and movable and immovable properties of

t e defendants.

.5 c H

T.A. No.311 of 2023

( I) The recovery certificate be issued forthwith and be sent t the Recovery Officer, Debt Recovery Tribunal-I, Delhi. II) Parties are directed to appear before the Recovery fficer, DRT I, Delhi on 27.01.2026. V) Copies of final order as well as Recovery Certificate are t be sent to all concerned free of cost. e �v - 1- - (GOVIND BALLABH'SHARMA) PRESIDING OFFICER DRT-I, DELHI Dictated and pronounced in open court) ated: 25.11.2025

Punjab National Bank v. M/S Bansal Foods

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Bansal Foods

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Basil Co. versus Kerala Gramin Bank

Uco Bank versus Sh. Bachchan Kumar Singh

Kotak Mahindra Bank Limited versus Bhagwant Singh

Indu Kumari Pandey versus Union Bank of India

Bank of Baroda versus M/S K. K. Enterprises

State Bank of India versus Mr. Praveen