Allowed

Punjab National Bank v. M/S Sahyog International and Others

DRT29 Jul 2026OA/1133/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank for recovery of dues. Several defendants failed to repay loan amounts, accounts were classified as NPA, and the Tribunal ordered recovery with a uniform interest rate.

What did the court decide?

Defendants ordered to pay Rs. 2,50,90,622.89 and Rs. 12,23,709.28 jointly and severally with simple interest at 8% p.a. Recovery Certificate issued and order remitted to Recovery Officer.

Punjab National Bank versus M/S Sahyog International and… — Execution and Attachment | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1133/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.08.2025

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DATE OF DECISION: 29.07.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi110075 and the successor of Oriental Bank of Commerce/United Bank of India by scheme of amalgamation of Oriental Bank of Commerce/United Bank of India passed by the Central Government u/s 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 through one of its Branch/Department/Division having Offices, one at Dhandari Kalan, Ludhiana, Punjab through Sh. Navin Kumar Bansal, General Attorney and Principal Officer of Asset Recovery Management Branch, Ludhiana, Punjab situated at 1^st Floor, Site no. 5, Ferozepur Road, Ludhiana, Punjab

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……..Applicant

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Versus

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M/S Sahyog International, Plot no. F 3, Phase 7, Focal Point, Near Rolta Dharam Kanta, Ludhiana, Punjab- 141010 through its Proprietor, Sh. Rajeev Malhotra

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Sh. Rajeev Malhotra, S/o Sh. Sardari Lal Malhotra, R/o 617/618, Friends Colony, Chandigarh Road, Ludhiana, Punjab

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Smt. Rita Malhotra, W/o Sh. Rajeev Malhotra, S/o Sh. Sardari Lal Malhotra, R/o 617/618, Friends Colony, Chandigarh Road, Ludhiana, Punjab

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…..Defendants

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Advocates:

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Argued by Sh. Pratham, Advocate proxy for Sh. Rajan Chawla, Advocate for applicant (through VC)

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None for defendants

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2 OA NO. 1133/2025 PUNJAB NATIONAL BANK VS. M/S SAHYOG INTERNATIONAL AND OTHERS

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FINAL ORDER

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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. 2,63,14,332.17 (Rupees Two Crores Sixty Three Lacs Fourteen Thousand Three Hundred Thirty Two and Paise Seventeen Only). The Original Application has been filed through Sh. Navin Kumar Bansal, Principal Officer of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit from Rs. 200.00 Lacs to Rs. 240.00 Lacs vide Loan Application dated 21.01.2014, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 264.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of Vehicle Loan of Rs. 14.00 Lacs vide Loan Application dated 11.12.2017, which is Annexure A11 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECL Limit of Rs. 40.00 Lacs vide Loan Application, which is Annexure A16 to this OA. 3. The applicant sanctioned enhancement of CC Limit from Rs.200.00 Lacs to Rs. 240.00 Lacs vide Sanction Letter dated 16.04.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 264.00 Lacs. Thereafter, the applicant sanctioned Vehicle Loan of Rs. 14.00 Lacs vide Sanction Letter dated 13.12.2017, which is Annexure A12 to this OA. Thereafter, the applicant sanctioned GECL Limit of Rs. 40.00 Lacs vide Sanction dated 23.09.2020, which is Annexure A17 to this OA.

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3 OA NO. 1133/2025 PUNJAB NATIONAL BANK VS. M/S SAHYOG INTERNATIONAL AND OTHERS

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Defendant no. 3 stood as guarantor in CC Limit and GECL Limit Accounts.

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Defendant no. 2 mortgaged his immovable properties which are:

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i. Plot measuring 579 Sq. Yards situated at Plot no. F 3, Phase VII, Focal Point, Ludhiana, Punjab vide Lease Deed bearing vasika no. 13574 dated 13.09.2005;

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ii. Plot measuring 400 Sq. Yards situated at Mundia Khurd, Hadbast no. 240, Tehsil and District Ludhiana, Punjab vide Sale Deed bearing vasika no, 8355 dated 07.08.2006

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along with their translations, which is Annexure A10 (Colly) to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their movable asset namely Hexa XTA 4X2 bearing Registration no. PB10GR8423, Chassis no. MAT614761GRN01222 and Engine no. VAR1COR07NTYJ17721 vide RC, which is Annexure A15 (Colly) to this OA.

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Documents executed: Supplemental Agreements, Common Agreements and Guarantee Deeds, all dated 23.04.2014 and 18.11.2014, which are Annexure A4 to A9 to this OA; Agreements dated 15.12.2017, which are Annexure A13 and A14 to this OA; Balance Confirmation Letters dated 20.03.2017, 30.03.2019, 01.12.2020, 10.02.2022, 21.03.2022 and 08.06.2023, which are Annexure A18 to A23 to this OA; Legal Notice dated 01.05.2025 along with postal receipts, which is Annexure A24 (Colly) to this OA and Statement of Accounts, which are Annexure A25 to A27 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs. 2,63,14,332.17, which is recoverable and the defendants were served recall notice but they did not repay the

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4 OA NO. 1133/2025 PUNJAB NATIONAL BANK VS. M/S SAHYOG INTERNATIONAL AND OTHERS

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Himmat Singh, Advocate appeared on behalf of the defendants on 29.09.2025 and filed Memo of Appearance. POA was filed on 15.10.2025. Paper book was supplied to him on 20.12.2025 but no WS was filed. Therefore, opportunity to file WS by defendants was closed and defence was struck off vide order dated 27.07.2026.

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In support of the OA, affidavit of Sh. Navin Kumar Bansal, Principal Officer, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel (through VC) that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case.

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None was present on behalf of defendants for arguments.

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From the perusal of all the Annexure A1 to A27 to this OA, it is proved that the defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3 stood as guarantor in CC Limit and GECL Limit Accounts. Defendants 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 of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 2,50,90,622.89 (Rupees Two Crores Fifty Lacs Ninety Thousand Six Hundred Twenty Two and Paise Eighty Nine Only) along with interest from the defendants and Rs. 12,23,709.28 (Rupees Twelve Lacs Twenty Three Thousand Seven Hundred Nine and Paise Twenty Eight Only) from

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5 OA NO. 1133/2025 PUNJAB NATIONAL BANK VS. M/S SAHYOG INTERNATIONAL AND OTHERS

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defendant nos. 1 and 2, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.45%p.a. in CC Limit Account and @9.00% p.a. in Vehicle Loan Account and GECL Limit Account from 01.07.2025 till the realization.

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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 hypothecated assets/mortgaged properties, 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 @8.00% 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.2,50,90,622.89 (Rupees Two Crores Fifty Lacs Ninety Thousand Six Hundred Twenty Two and Paise Eighty Nine Only) and defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs.12,23,709.28 (Rupees Twelve Lacs Twenty Three Thousand Seven Hundred Nine and Paise Twenty Eight Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in all the loan 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 of defendant nos. 1 and 2 and mortgaged properties of defendant no. 2 in execution proceedings if not sold earlier under the provisions of the SARFAESI

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6 OA NO. 1133/2025 PUNJAB NATIONAL BANK VS. M/S SAHYOG INTERNATIONAL AND OTHERS

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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.

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.08.2026.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 29.07.2026

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S Sahyog International and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Sahyog International and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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