Allowed

Punjab National Bank v. Kunal Ramchandani

DRT9 Dec 2025TA/3411/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of Rs.19.84 crore and interest. The court awarded interest at 12% per annum and directed recovery from hypothecated/mortgaged properties and movable assets.

What did the court decide?

Directed defendants to pay Rs.19.84 crore with interest at 12% p.a. from 16.05.2018 until realization; directed issuance of recovery certificate and appearance before Recovery Officer.

Punjab National Bank versus Kunal Ramchandani — Contract and Commercial Disputes | DRT (2025)

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T.A. No.3411 of 2022

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Debts Recovery Tribunal-I, Delhi 4 th 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. 3411 of 2022

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Punjab National Bank (e-Oriental Bank of Commerce) Zonal Sastra Centre, Rajendra Bhawan Rajendra Place, New Delhi-110050

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Applicant

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Versus

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Sh.Kunal Ramchandani Sole prop. M/s Kaizen Auto F-1/9, Ground floor Okhla Industrial area Phase-I, New Delhi

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Smt. Meghna Choksey Ramchandani w/o Sh. Kunal Ramchandani R/o E-182, Greater Kailash Part-II, New Delhi-110048

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Sh. Bhupendra Sharma H.No.17/2, Chattarpur Village New Delhi-110074 Defendants

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Present: Shri S.K. Garg, Counsel for the applicant bank

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Date of Reserve: 12.11.2025

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Date of Pronouncement: 09.12.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 18.05.2018 before �Delhi and then transferred to DRT-I Delhi through Sh.Nem Kumar, authorized representative of the applicant bank under Section 19 of

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T.A. No.3411 of 2022

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Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.19,84,46,268/- (Rupees N33ineteen Crore Eighty Four Lacs Forty Six Thousand Two Hundred Sixty Eight only) (out of which Rs.18,84,81,105.71 in CC account and Rs.99,65,162.45 in Term loan account) as on 15.05.2018 along with pendentelite and future interest @13.45% per annum with monthly rests in CC account and 13.95% per annum with monthly rests in Term Loan account from 16.05.2018 till the date of its realization and costs. Further, the name of Ms.K.Meera Bai was substituted as authorized representative in place of Sh.Nem Kumar, erstwhile AR for the applicant bank

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The brief facts of the case are that on the request of the defendant no.1 as sole proprietor of M/s Kaizen Auto, the applicant bank sanctioned Cash Credit (Hypothecation) limit for a sum of Rs.350.00 Lacs on 24.10.2013 which was enhanced to Rs.550.00 lacs, Term Loan for Rs.150.00 Lacs to be repayable in 60 Equated Monthly Installment of Rs.2.50 Lacs, @15.75% interest per annum with monthly rests. The applicant further sanction of enhancement of Cash Credit (Hyp.) limit to Rs.1800.00 lacs on 21.11.2015 @13.70% interest per annum. In addition, applicant bank sanctioned Adhoc Cash Credit (Hyp.) limit for Rs.110.00 Lacs on 26.02.2015 @15.25% per annum with monthly rests. The applicant bank sanctioned the aforesaid limits against hypothecation stocks of Cars, Stores, spares, trade receivable and mortgage of property. The defendants also agreed to pay penal interest @2% per annum in case of default or delay. The defendant no.2 & 3 stood as guarantors for the credit facilities sanctioned by applicant bank in favour of defendant no.1.

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T.A. No.3411 of 2022

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That in order to avail the credit facilities, the defendant no.1 submitted loan application and executed Sole Proprietorship Letter, Agreement of Hypothecation of Assets, Common Agreement, Undertaking along with defendant no.2 and 3 executed Agreement of Guarantee towards applicant bank on 25.10.2013, 01.09.2014 & 05.12.2015. Further, defendant no.1 executed Agreement of Term Loan, Supplemental Agreement to secure Credit / Loan Facilities, Common Agreement on 01.09.2014 & 26.02.2015.

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That in order to secure the credit facilities, the defendants created mortgage of following properties and continued on every enhancement / sanctions:

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i) Unit no.4, Second floor, forming part to the property bearing No.C-197, Greater Kailash Part-I, New Delhi admeasuring total area 300 sq. yards together with undivided proportionate share of land underneath owned by defendant no.1 on 25.10.2013;

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ii) Entire third floor with terrace over and above the third floor forming part of the property bearing No.TA-93-B, admeasuring 200 sq. yards comprised in Khasra no.422, Main Road Guru Ravi Dass Marg, Tughlakabad Extn., New Delhi owned by defendant no.3 on 25.08.2014;

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iii) Entire first floor with two car parking spaces and servant quarter alongwith 20% undivided proportionate share of land underneath admeasuring total area 250 sq. yards forming part of property bearing no.E-14, Greater Kailash Part II, New Delhi on 05.12.2015.

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The defendant no.1 acknowledged and executed Balance and Security Confirmation vide letter dated 01.09.2014 and

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T.A. No.3411 of 2022

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05.12.2015 with the applicant bank along with defendant no.2 and 3.

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It has been submitted by the applicant bank that after availing the loan facilities, the defendants failed to maintain financial discipline and serve the interest and statement of stock etc. and failed to pay the installments of term loan leaving no option to applicant bank time and again. The defendants failed to comply with the terms and conditions of sanction and regularize the account with applicant bank. Ultimately, the applicant bank classified the account as NPA on 19.04.2017 as per RBI guidelines. Hence, the applicant bank approached this tribunal for recovery of their dues.

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Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 06.07.2017 was issued to the defendants due to non-adherence to financial discipline which was replied vide letter dated 04.09.2017 from the defendants but defendants failed to clear the outstanding dues.

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Notices of this O.A. were issued to the defendants and despite proper service the defendants have chosen to absent from the proceedings. As per orders dated 13.12.2019, the defendant no.2 has been proceeded ex-parte due to failure in filing written statement and right of defendant no.1 shall stand closed as written statement filed after prescribed time. Vide order dated 16.07.2019, the defendant no.3 has been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

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T.A. No.3411 of 2022

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Nem Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Sanction Letters, Sole Proprietorship Letters, Agreement of Hypothecation of Assets, Common Agreement, Undertaking Letters, Sale Deeds, Letter of Confirmation of Mortgage, Agreement of Term Loan, Supplemental Agreements, Balance & Security Confirmation Letters, Letters of Continuity, Letter of Confirmation of Deposit of Title Deeds, Agreement of Guarantee, Statement of Account, Notice u/s 13(2) of SARFAESI Act marked as Ex.AW-1/1 to Ex.AW-1/42 (Colly).

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It has been further submitted that the defendant no.1 has filed written statement wherein it has been stated that the applicant bank has sold property being E-14, Greater Kailash, Part II, New Delhi for Rs.2,85,78,000/- in auction vide sale certificate dated 22.01.2019.

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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 proved.

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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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As per the provision of Section 19(20) of the Recovery of Debts Due to Banks and Financial Institution Act, 1993 which is analogous to Section 34 of CPC, on filing of the suit/claim,

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T.A. No.3411 of 2022

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the contract between the parties comes to an end and the Court/Tribunal has a discretion to award the same depending upon the circumstances of each case. Same principle has been laid down by the Hon'ble Apex Court in the case of Central Bank of India Vs. Ravindra & Others. Taking stock of all the circumstances and keeping in view that there is a drastic fall in rates of interest globally and domestically, I am of the opinion that interest of justice will be served if the interest at the rate of 12% p.a. is awarded.

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

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ORDER

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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.19,84,46,268/- (Rupees Nineteen Crores Eighty Four Lacs Forty Six Thousand Two Hundred Sixty Eight only) as on 15.05.2018 together with interest @12% per annum with monthly rests from 16.05.2018 till the date of realization alongwith costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, and mortgaged properties:

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i. Unit no.4, ad measuring 600 sq. ft. on the Second floor, forming part to the property bearing No.C-197, Greater Kailash Part-I, New Delhi ad measuring total area 300 sq. yards together with undivided proportionate share of land underneath;

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ii. Entire third floor with terrace over and above the third floor forming part of the property bearing No.TA-93-B, admeasuring 1800 sq. ft. i.e. 200 sq. yards comprised in

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T.A. No.3411 of 2022

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Khasra no.422, situated at Main road Guru Ravi Dass Marg, Tughlakabad Extn, New Delhi together with undivided proportionate share of land underneath

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The applicant bank auctioned the Entire First Floor of Property bearing no.E-14, Greater Kailash Part II, New Delhi under Sarfaesi action for Rs.285.78 lacs and amount be credited in the account.

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In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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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 Recovery Officer, DRT I, Delhi on 06.02.2026.

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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 SHA MA) PRESIDING OFFICER DRY-I, DELHI

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(Dictated and pronounced in open court) Dated: 09.12.2025