Allowed

Punjab and Sind Bank v. M/S Vahe Guru International

DRT17 Oct 2025TA/394/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Recovery Application filed by Punjab & Sind Bank for recovery of loan dues against several borrowers and guarantors, adjudicating the interest rate at 12% per annum.

What did the court decide?

Application allowed; defendants to pay Rs.28,73,860 with 12% p.a. interest from filing of application and costs.

Punjab and Sind Bank versus M/S Vahe Guru… — Contract and Commercial Disputes | DRT (2025)

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T.A. No.394 of 2022

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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. 394 of 2022

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Punjab & Sind Bank 21, Rajendra Place 3rd Floor, New Delhi-110008 Applicant Versus 1. M/s Vahe Guru International 274, S Kumar Market, Naharpur Rohini, Sector-7, Delhi-110085 2. Sh.Hari Narain Singh s/o Anirudh Singh 274, S Kumar Market, Naharpur Rohini, Sector-7, Delhi-110085 3. Sh.Jaspal Singh Walia A-71, Lok Vihar, Pitampura Delhi-110034 Also at: 285, Kohat Enclave, Pitampura, Delhi-110034 4. Sh.Brij Bhushan Gupta (since deceased) (i) Smt.Sushma Singh w/o Brij Bhushan Gupta (ii) Sh.Rajiv Gupta s/o Brij Bhushan Gupta Both at: JP-65, Pitampura, Delhi-110034 5. Sh.Chokhey Singh (since deceased) (i) Smt.Kalavati w/o late Sh.Chokhey Singh (ii) Sh.Surender Singh s/o late Sh.Chokhey Singh (iii)Sh.Sushil Kumar s/o late Sh.Chokhey Singh (iv)Sh.Harendra Singh s/o late Sh.Chokhey Singh All at: Village & P.O. Rehampur, Shyabely Dist. Bulandshahar, UP Also at: sd 66, Alipur, Shiv Park, Delhi

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T.A. No.394 of 2022

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(v) Smt.Bala w/o Udham Singh D/o late Sh.Chokhey Singh Village & Post Office Haisal, Dist. Aligarh, UP

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Defendants

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Present: Shri Shadab Khan, Counsel for the applicant bank

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Date of Reserve: 06.10.2025

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Date of Pronouncement: 17.10.2025

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FINAL ORDER

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This original application has been filed by the applicant bank on 06.01.1998 through Mr.Balwinder Singh Sokhi, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.28,73,860/- (Rupees Twenty Eight Lacs Seventy Three Thousand Eight Hundred Sixty only) as on 31.12.1997 along with pendentelite and future interest @20.50% per annum with monthly rest from the date of institution of this application till its realization in full and costs.

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The brief facts of the case are that at the request of defendant no.1 through its proprietor being defendant no.2, the applicant bank sanctioned Packing Credit limit of Rs.10,00,000/- (Rupees Ten Lacs only) against L.C. and Rs.5.00 lacs against confirmed orders and FOBP/FOBLC limit of Rs.15.00 lacs vide sanction no.110/94 dated 30.11.1994 against hypothecation of stocks, personal guarantee of respondent no.3 to 5 and mortgage of property bearing no.150, Sector-21 Radha Park, kadipur, Delhi owned by defendant no.4 (since deceased). The defendants agreed to pay penal interest @2.50% per annum in case of default.

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T.A. No.394 of 2022

That in order to avail the loan facilities, the defendant no.2 as proprietor of defendant no.1 executed Demand Promissory Note, Letter of Waiver (Form No.106), Letter for Inspection of Goods held in Godown / elsewhere (Form No.122), Letter of Request to continue the Advance (Form No.126), Letter of Non Agriculturist (Form No.216), Letter of Penal Interest (Form No.291), Letter of Continuity (Form No.159), Loan of Hypothecation of Goods (Form No.192Revised), Packing Credit Agreement (F.Ex.21/66-New/ Revised) and Undertaking in favour of the applicant bank on 05.12.1994. The defendant no.1, 3 to 5 executed Letter of Guarantee (Form NO.255 -Revised) in favour of applicant bank.

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That in order to secure the credit facilities, the defendant no.4 executed Form No.84AA on 06.12.1994 for creating equitable mortgage of property no.150, out of Khasra No.654, Sector-21 Radha Park, Kadipur, Delhi measuring 233.33 sq.yds. by depositing title deed of the property duly registered with Sub-Registrar Delhi at No.12234, Addl. Book No.I, Vol. No.3337 on Pages 184 to 185 dated 30.06.1974.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, Two export bills of US$35066/47 and US$30000 drawn on Modern Wax Art Emporium, Sharjah were returned unpaid on 07.01.1995 and defendants failed to adjust the account under Packing Credit of Rs.11.00 lacs inspite of repeated demands. The applicant issued legal notice on 08.08.1995 to liquidate the outstanding but defendant failed to comply with the notice. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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T.A. No.394 of 2022

Notices of this O.A. were issued to the defendants and during the proceedings, defendant no.4 and 5 expired and their LRs have been impleaded. As per order dated 13.10.1998, the defendant no.1 to 3 and 5 were proceeded ex-parte and defendant no.4 appeared and filed Written Statement and objected about guarantee and mortgage of property with the applicant bank which was duly replied by applicant bank. As per order dated 22.12.2017, the defendant no.1 to 3 and 5 were again proceeded ex-parte. Further, vide order dated 08.05.2019, Legal Heirs of defendant no.5 declared ex-parte and vide order dated 06.10.2025, defendant no.4 and his legal heirs have been proceeded ex-parte as they failed to filed written statement, evidence and affidavit of assets before this Tribunal.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Ravinder Singh Sidana and Sh.Jasbir Singh Arora, authorized representative of the applicant bank who has proved the documents as Demand Promissory Note, Letter of Waiver, Letter for Inspection of Goods held in Godown or elsewhere, Letter of Request to Continue Advance, Letter of Non-Agriculturist, Letter of Penal Interest, Letter of Continuity, Letter of Hypothecation of Goods, Packing Credit Agreement, Undertaking, Letters of Guarantee, Memo of Confirmation of Mortgage, Export Bills Returned, Letter of Habib Bank AG Zurich and Emirates Bank International Limited, Legal Demand Notice, Statement of Accounts marked as Exhibits PW-1/1 to Exhibits PW-1/20. In Addition, Authorisation Letters of Authorized Officer Exhibits PW-1/21 & PW-1/22.

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

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T.A. No.394 of 2022

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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 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, 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 and documents on record, 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 within 30 days, jointly or severally, a sum of Rs.28,73,860/- (Rupees Twenty Eight Lacs Seventy Three Thousand Eight Hundred Sixty only) as on 31.12.1997 along with pendentelite and future interest @12.00% per annum with monthly rest from the filing of this application till its realization and costs, failing which the aforesaid amount shall be

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56/

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T.A. No.394 of 2022

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recovered from sale of hypothecated assets and mortgaged property being no.150, Sector-2, Radha Park, Kadipur, Delhi measuring 233.33 sq.yds. In case of shortfall / default the same shall be recovered from the sale of movable and immovable assets 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 the Recovery Officer, DRT I, Delhi on 16.12.2025.

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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: 17.10.2025

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