Allowed

Punjab National Bank v. M/S I.S Construction

DRT29 Jul 2025TA/824/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of dues worth approximately Rs. 57.21 Lakhs against the defendants for default on a cash credit facility, directing recovery from attached properties and issuing a recovery certificate.

What did the court decide?

Directed defendants to pay Rs. 57,21,940.50 plus interest and costs within 30 days; authorized recovery from sale of secured properties; issued recovery certificate.

Punjab National Bank versus M/S I.S Construction — Execution and Attachment | DRT (2025)

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T.A. No.824 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. 824 of 2023

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P njab National Bank, Pot No.4, Sector-10
D arka, New Delhi
A so at:
B 6, Gamma Shopping Complex,
B ock- E, Gamma-I, ereater Noida, U.P.- 201308	Applicant
ersus
M/s I.S. Construction
round Floor I.S. 1400,
rbtech, Sector- 132,
oida- 201305, .P.
Iso at:
-196, Lane No.1, Gautam Puri,
pp. Jag Parvesh Chander Hospital, hastri Park, New Delhi- 110053
2 Sh. Sartaj Khan
/o Sh. Mohd. Islam
-81, Gali No. 11/6, Near Bilal Masjid, hauhan Bangur, Garhi Mendu,Delhi- 110053 I I
3 Mohd. Islam
-81, Gali No. 11/6,
ear Bilal Masjid, hauhan Bangur, Garhi Mendu, Delhi- 110053
Smt. Nuzhat Kamal /o Sh. Choudhary Rizwan Khan enthouse No. 2403, Platinum Amrapali,
ower- G, Sector- 119, Noida,
autam Budh Nagar- 201301, U.P.	Defendants

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T.A. No.824 of 2023

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resent: Mr. Naman Shukla, Counsel for the applicant bank

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Date of Institution: 20.08.2020 Date of Pronouncement: 29.07.2025

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FINAL ORDER

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This original application has been filed by the applicant •ank before DRT-III, Delhi on 20.08.2020 and then transferred tip DRT-I Delhi through Shri Anil Kumar, authorized presentative of the applicant bank under Section 19 of ecovery of Debts and Bankruptcy Act, 1993 against the d fendant for recovery of a sum of Rs.57,21,940.50 (Rupees F fty Seven Lacs Twenty One Thousand Nine Hundred Forty a d Paisa Fifty only) as on 15.07.2020 along with pendentelite a d future interest ©10.05°/0 per annum with monthly rests a ong with penal interest @2% per annum from the date of fi ing this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 through its partners being defendant no. 2 and 3, the applicant bank sanctioned Cash Credit Limit of Rs.50,00,000/- (Rupees Fifty Lacs only) on interest ©10.05% per annum with monthly rests against hypothecation of stocks and assets. Further defendant no. 4 stood as guarantor to the loan facility sanctioned in favor of defendant no.1 by mortgaging her immovable property bearing no. 1027, Village Chandrawali Alias Shandara, Near GT Road Abadi, Tehsil Vivek Vihar, Shandara, Delhi land measuring 250.83 Sq. Mtrs. i.e. 300 Sq. Yards. Defendants also agreed to pay penal interest @2% per annum in case of default or delay.

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T.A. No.824 of 2023

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In order to avail the loan facilities, the defendants submitted loan application dated 02.07.2018 and executed Loan Agreement dated 04.08.2018 accepting the terms and conditions of the cash credit loan. Further, the defendants executed Hypothecation of Goods and Book Debts dated 03.08.2018 and Sale Deed dated 20.10.2015.

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That in order to secure the loan facility, the defendants created equitable mortgage of the property bearing no. 1027, Village Chandrawali Alias Shandara, Near GT Road Abadi, Tehsil Vivek Vihar, Shandara, Delhi land measuring 250.83 Sq. Mtrs. i.e. 300 Sq. Yards by depositing title deeds of the property in favour of the applicant bank on 20.10.2015.

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It has been submitted by the applicant bank that after availing both the loan facilities, the defendants failed to maintain financial discipline and comply with the terms and conditions of loan despite several requests and reminders and defaulted in payment of monthly installments in time to the applicant bank. Ultimately, the applicant bank classified accounts as NPA on 29.10.2019 in terms of RBI guidelines but defendants failed to regularize the accounts, hence the applicant bank has approached this tribunal for recovery of its dues.

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111 Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 02.11.2019 was issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank but the defendants did not clear the dues. Further final recall notice

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T.A. No.824 of 2023

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dated 06.08.2020 was issued to invoke the guarantee of the guarantor.

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Notices of this O.A. were issued to the defendants and despite proper service the defendants have chosen to remain absent from the proceedings. As per order dated 06.05.2025, defendants have been proceeded ex-parte as they have not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh. Anil Kumar, authorized representative of the applicant bank, who have proved the documents as General Power of Attorney, Loan Application, Sanction Letter, Hypothecation Agreement, Sale Deed, Notice of Demand under Section 13(2), Recall Notice, Statement of Accounts, Certificate under Section 65B-2 of Indian Evidence Act and Certificate under section 2A of the Banker's Book Evidence Act as Ex.AW- 1 / 1 to Ex.AW-1/10.

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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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In the light of the above discussions, the Original

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Application deserves to be allowed.

T.A. No.824 of 2023

ORDER

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.57,21,940.50 (Rupees Fifty Seven Lacs Twenty • ne Thousand Nine Hundred Forty and Paisa Fifty only) as on 15.07.2020 along with pendent lite and future interest CI 10.05% per annum with monthly rests along with penal i terest P2% per annum from the date of filing this application till the date of realization along with costs, failing which the a oresaid amount shall be recovered from the sale of h pothec:ated stocks and mortgaged property bearing no. 1127, Village Chandrawali Alias Shandara, Near GT Road Abadi, -hsil Vivek Vihar, Shandara, Delhi land measuring 250.83 Sq. trs. i.e. 300 Sq. Yards. In case of shortfall, the same shall be r covered from the sale of movable and immovable properties o the defendants.

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