Allowed

Punjab and Sind Bank v. Ms Neeraj Goyal and Company and Others

DRT20 May 2026OA/1045/2025

Case brief

AI extract

What is this about?

This order allows a recovery application under Section 19 of the RDB Act. The tribunal declared the respondents liable for principal amounts and fixed uniform simple interest at 7.50% per annum, rescinding higher penal claims. A Recovery Certificate was issued.

What did the court decide?

Declaration of liability for principal sums fixed at uniform interest rate of 7.50% p.a. Issuance of Recovery Certificate. Order to recover from sale of secured assets.

Punjab and Sind Bank versus Ms Neeraj Goyal and Company and… — Banking and Recovery | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1045/2025

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 24.07.2025

¶5

DATE OF DECISION: 20.05.2026

¶6

Punjab & Sind Bank, a Body Corporate and a Nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 with its Head Office at Rajendra Place, New Delhi-110024 and amongst others a branch at Gidderbaha, Tehsil and District Sri Muktsar Sahib, Punjab, through Sh. Harinder Singh son of Sh. Daljeet Singh, Branch Manager and General Attorney of applicant.

¶7

……..Applicant Versus

¶8

M/s Neeraj Goyal & Co., a Sole Proprietorship Concern situated at Old Grain Market, Loha Mandi, Gidderbaha, District Sri Muktsar Sahib through its Proprietor Sh. Neeraj Goyal son of Sh. Satish Goyal

¶9

Neeraj Goyal son of Sh. Satish Goyal, Resident of House No. 2660, Ward No. Bharu Gate, Gidderbaha, Sri Muktsar Sahib

¶10

Sh. Satish Goyal son of Sh. Desh Raj, Resident of House No. 2660, Ward No. Bharu Gate, Gidderbaha, Sri Muktsar Sahib

¶11

Smt. Ramesh Goyal wife of Sh. Satish Goyal, Resident of House No. 2660, Ward No. Bharu Gate, Gidderbaha, Sri Muktsar Sahib

¶12

Smt. Heena Goyal wife of Sh. Neeraj Goyal, Resident of House No. 2660, Ward No. Bharu Gate, Gidderbaha, Sri Muktsar Sahib

¶13

……. Defendants

¶14

Advocates:

¶15

Argued by Ms. Sukhdeep Kaur, Advocate for Applicant

¶16

Sh. Yogesh Kumar, Advocate proxy for Sh. Surinder Garg, Advocate for the defendants

¶17

FINAL ORDER

¶18

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.56,19,180.24 (Rupees Fifty Six Lacs Nineteen Thousand One Hundred Eight and Paise Twenty Four Only). The Original Application has been filed through Sh. Harinder

¶19

2 OA NO.1045/2025 PUNJAB & SIND BANK VS. MESSRS NEERAJ GOYAL & COMPANY AND OTHERS

¶20

Singh, Branch Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 07.11.2022, which is Annexure A1 to this OA.

¶21

The brief facts of the OA are that the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Cash Credit Limit of Rs.38 Lacs vide Loan Application dated 03.01.2018, which is Annexure A2 to this OA. Defendant nos. 3 to 5 stood as guarantors. Thereafter, defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Working Capital Term Loan (WCTL) under GECL of Rs.6 Lacs vide Letter dated 19.06.2020, which is Annexure A20 to this OA. Defendant nos. 3 to 5 stood as guarantors. Thereafter, defendant nos. 2 to 4 approached the applicant for grant of mortgage loan of Rs.10 Lacs vide loan application dated 24.12.2019, which is Annexure A25 to this OA. Defendant no. 5 stood as guarantor. 3. The applicant sanctioned Cash Credit Limit of Rs.38.00 Lacs to defendant no. 1 vide Sanction Letter dated 07.02.2018, which is Annexure A3 to this OA and the terms and conditions are duly accepted by defendants. Thereafter, the applicant sanctioned Working Capital Term Loan (WCTL) of Rs.6 Lacs under GECL to defendant no. 1 vide sanction letter dated 19.06.2020, which is Annexure A21 to this OA. Thereafter, the applicant sanctioned mortgage loan of Rs.10 Lacs to defendant nos. 2 to 4 vide sanction letter dated 27.12.2013 and terms and conditions were duly accepted by defendant nos.2 to 5. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated stocks and book debts and all other current assets vide Agreement of Hypothecation dated 07.02.2018, which is Annexure A7 to this OA; Deed of hypothecation dated 19.06.2020, which is Annexure A23 to this OA. Defendant nos.3 and 4 mortgaged their immovable property i.e. Residential Property 4Marla-7Sarsahi i.e. 1388.50 Sq. Ft. or 154.27 Sq. Yards (2Marla-2½Sarsahi in the name of defendant no. 4 and

¶22

3 OA NO.1045/2025 PUNJAB & SIND BANK VS. MESSRS NEERAJ GOYAL & COMPANY AND OTHERS

¶23

2½Marla in the name of defendant no.3) situated at Near Axis Bank, Chakki Wali Gali, Circular Road, Gidderbaha, District Sri Muktsar Sahib, Punjab through equitable mortgage of Title Deed bearing vasika no. 1256 dated 24.07.2012 and Title Deed bearing vasika no. 222 dated 09.05.2000, along with their translation, which are Annexures A17 and A18 to this OA; Letter of Evidencing for deposit of Title Deeds dated 08.02.2018, which is Annexure A16 to this OA; Valuation Report dated 26.05.2023, which is Annexure A19 to this OA; Memorandum of deposit of Title deeds dated 17.01.2020, which is Annexure A33 to this OA.

¶24

Documents Executed : Demand Promissory Note, Letter of Continuity, Letter of Waiver from presentment of DP Note, Undertaking to pay penal interest in the event of default, Undertaking, Revised Clause pertaining to rate of interest, Declaration regarding borrower being not an agriculturist, Undertaking to provide assistance in periodical inspection of the goods hypothecated, Right to Recall, Undertaking to the effect that borrower is not defaulter of any bank/FIs, Guarantee Agreement executed by defendant nos. 3 to 5, all dated 07.02.2018, which are Annexures A4 to A6 and A8 to A15 to this OA; Term Loan, Cash Credit Hypothecation and Book Debt Facility Agreement, both dated 19.06.2020, which are Annexure A22 and A24 to this OA; Term Loan Agreement, Undertaking to pay penal interest in the event of default, Agreement/Undertaking, Undertaking regarding payment of monthly installment, Undertaking (Right of Bank to Securitize/Assign etc.), Guarantee Agreement executed by defendant no. 5, all dated 27.12.2019, which are Annexures A27 to A32 to this OA; Revival Letter dated 01.02.2021, which is Annexure A34 to this OA; Balance Confirmation Letter dated 20.12.2022, which is Annexure A35 to this OA; Balance Confirmation Letter (GECL) dated 03.02.2023, which is Annexure A36 to this OA; Balance Confirmation Letter (CC Limit) dated 17.01.2024, which is Annexure A37 to this OA; Notice dated 13.10.2022, along with its translation and postal receipts, which is Annexure A38 to this OA; Notice dated 07.12.2022 u/s 13(2) of SARFAESI Act, along with postal receipts,

¶25

4 OA NO.1045/2025 PUNJAB & SIND BANK VS. MESSRS NEERAJ GOYAL & COMPANY AND OTHERS

¶26

which is Annexure A38 to this OA; Statement of Accounts, which are Annexures A40 to A42 to this OA.

¶27

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.56,19,180.24, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶28

The defendants were served summons to appear before this Tribunal and after service of summons upon defendants, Sh. Surinder Garg, Advocate appeared on behalf of defendants on 09.03.2026 and filed his Power of Attorney along with Power of Attorney of Sh. Lalit Chander Sharma, Advocate on behalf of defendants. Since, no WS was filed by defendants despite supply of complete set of paper book, their opportunity to file WS was closed and their defense struck off vide order dated 16.05.2026.

¶29

In support of the OA, affidavit Sh. Harinder Singh, Branch Manager, Punjab and Sind Bank, has been filed.

¶30

Heard arguments and perused record.

¶31

It was argued by learned counsel for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

¶32

The learned proxy counsel for defendants did not advance any arguments.

¶33

From the perusal of all the Annexures A1 to A42 to this OA, it is proved that the defendant no.1 through its proprietor defendant no. 2 approached applicant for availing of the CC Limit and Working Capital Term Loan in which defendant nos. 3 to 5 stood as guarantors. The defendant nos. 2 to 4 approached the applicant for availing Mortgage Loan in which defendant no. 5 stood as guarantor. The loan facilities were granted to defendants and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts were classified as NPA.

¶34

5 OA NO.1045/2025 PUNJAB & SIND BANK VS. MESSRS NEERAJ GOYAL & COMPANY AND OTHERS

¶35

From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.44,96,628.74 (Rupees Forty Four Lacs Ninety Six Thousand Six Hundred Twenty Eight and Paise Seventy Four Only), along with interest from the defendant nos. 1 to 5 and a sum of Rs.11,22,551.50 (Rupees Eleven Lacs Twenty Two Thousand Five Hundred Fifty One and Paise Fifty Only), along with interest from defendant nos. 2 to 5, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

¶36

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @ @8.90%p.a. with 2% penal interest and monthly rests in CC Limit, interest @7.50%p.a. with 2% penal interest and monthly rests in WCTL-GECL and interest @11.10%p.a. with 2% penal interest and monthly rests in Mortgage Loan from 01.05.2025 till the realization.

¶37

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property/ hypothecation assets , undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @07.50%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶38

In the result, the application is allowed declaring that the defendant nos. 1 to 5 are liable to pay to the applicant a total sum of Rs.44,96,628.74 (Rupees Forty Four Lacs Ninety Six Thousand Six Hundred Twenty Eight and Paise Seventy Four Only) and defendant nos. 2 to 5 are liable to pay to the applicant a total sum of Rs.11,22,551.50 (Rupees Eleven Lacs Twenty Two Thousand Five Hundred Fifty One and Paise Fifty Only), jointly and severally, with costs, current and future simple interest @07.50%p.a. in all the loan

¶39

6 OA NO.1045/2025

¶40

PUNJAB & SIND BANK VS. MESSRS NEERAJ GOYAL & COMPANY AND OTHERS

¶41

accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated assets/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

¶42

12. Any other application pending stands disposed of.

¶43

Issue Recovery Certificate accordingly.

¶44

Parties to appear before Learned Recovery Officer of this Tribunal on 11.06.2026.

¶45

Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶46

Pronounced by me in the open Tribunal .

¶47

Dated: 20.05.2026.

¶48

(MRIDULESH KUMAR SINGH)

¶49

Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Ms Neeraj Goyal and Company and Others

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Ms Neeraj Goyal and Company and Others

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

Icici Bank Limited versus Sh. Pargat Singh

Bank of Baroda versus M/s Max Solutions

Idbi Bank Ltd. versus Sh. Gursharan Singh

Punjab Gramin Bank versus Kuldeep Singh and Another

Union Bank of India versus Sh. Beant Singh and Another

State Bank of India versus M/S Design Point and Another