Allowed

Punjab National Bank v. Messrs Anish Enterprises and Others

DRT7 Sept 2026OA/1248/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs. 1.64 crore owed by a petitioner firm and its guarantors. The court granted simple interest at 8% p.a. instead of the claimed higher rate and directed issuance of a Recovery Certificate.

What did the court decide?

Order declared debt of Rs. 1,64,25,666.00 payable jointly and severally with simple interest @10.60% reduced to 8% p.a. Recovery Certificate issued.

Punjab National Bank versus Messrs Anish… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1248/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.11.2023

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DATE OF DECISION: 07.09.2026

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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 its Branch Offices throughout India including Branch Circle Sastra, Kapurthala, Punjab- 144601

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……..Applicant

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Versus

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M/S Anish Enterprises, 15, New Sabzi Mandi, Kapurthala, Punjab- 144601, a Proprietorship concern through its Proprietor, Sh. Anish Aggarwal, S/o Sh. Sham Sunder Aggarwal

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Sh. Anish Aggarwal, S/o Sh. Sham Sunder Aggarwal, S/o Sh. Krishan Lal Aggarwal, R/o House no. 27, Gopal Park, Kapurthala, Punjab- 144601

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Smt. Kavita Aggarwal, W/o Sh. Sham Sunder Aggarwal, R/o House no. 27, Gopal Park, Kapurthala, Punjab- 144601

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Ms. Himani Aggarwal, D/o Sh. Sham Sunder Aggarwal, S/o Sh. Krishan Lal Aggarwal, R/o House no. 27, Gopal Park, Kapurthala, Punjab- 144601

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Sh. Sham Sunder Aggarwal, S/o Sh. Krishan Lal Aggarwal, R/o House no. 27, Gopal Park, Kapurthala, Punjab- 144601

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2^nd Address of defendant nos. 2 to 5: C/o M/S Anish Enterprises, 1 5, New Sabzi Mandi, Kapurthala, Punjab- 144601

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…..Defendants

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Advocates:

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Argued by Sh. D.K. Gupta, Advocate for applicant

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Sh. K.P.S. Dhillon, Advocate for defendants

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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

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2 OA NO. 1248/2023 PUNJAB NATIONAL BANK VS. M/S ANISH ENTERPRISES AND OTHERS

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the defendants for recovery of Rs. 1,64,25,666.00 (Rupees One Crore Sixty Four Lacs Twenty Five Thousand Six Hundred Sixty Six Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, who is competent to institute the Original Application vide GBPA dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 70.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 100.00 Lacs vide Request Letter dated 28.11.2011, which is Annexure A5 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for renewal of CC Limit of Rs. 74.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 85.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 119.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for reduction of CC Limit to Rs. 88.00 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for enhancement of CC Limit to Rs. 120.00 Lacs vide Proposal dated 10.04.2019. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for restructuring of CC Limit into WCTL of Rs.1,19,98,878.00 and FITL of Rs. 16.00 Lacs vide Request Letter dated 20.02.2020, which is Annexure A26 to this OA. 3. The applicant sanctioned CC Limit of Rs. 70.00 Lacs vide Sanction, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 74.00 Lacs. Thereafter, the applicant sanctioned renewal of CC Limit of Rs. 74.00 Lacs vide Sanction dated 15.05.2013, which is Annexure A6 to this OA. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 85.00 Lacs vide Sanction dated 20.07.2013, which is Annexure

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3 OA NO. 1248/2023 PUNJAB NATIONAL BANK VS. M/S ANISH ENTERPRISES AND OTHERS

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A7 to this OA. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 119.00 Lacs vide Sanction dated 28.04.2014, which is Annexure A8 to this OA. Thereafter, the applicant sanctioned reduction of CC Limit to Rs. 88.00 Lacs. Thereafter, the applicant sanctioned enhancement of CC Limit to Rs. 120.00 Lacs vide Sanction, which is Annexure A18 to this OA. Thereafter, the applicant sanctioned restructuring of CC Limit into WCTL of Rs.1,19,98,878.00 and FITL of Rs. 16.00 Lacs vide Sanction dated 27.03.2020, which is Annexure A27 to this OA. Defendant nos. 3 to 5 stood as guarantors in both the loan accounts.

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4.	Defendant no. 5 mortgaged his immovable property i.e. Plot
mea	suring 15 ft. x 60 ft. situated at Plot no. 15, New Grain Market,
Kapu	rthala, Punjab vide RTD dated 20.11.1990 along with its
trans	lation, which areAnnexure A3 and A3Tto this OA.
Defe	ndant no. 3 mortgaged her immovable properties which are:
i.	Land measuring 00K 08M situated at Village Santpura, Hadbast no. 134, Kapurthala Sharki, Punjab vide RTD bearing vasika no.
	3221 dated 17.10.2012 along with its translation, which are
	Annexure A9 and A9Tto this OA;
ii.	Land measuring 00K 05M situated at Village Santpura, Hadbast no. 134, Kapurthala Sharki, Punjab vide RTD bearing vasika no.
	3226 dated 18.10.2012 along with its translation, which are Annexure A10 and A10Tto this OA;
iii.	Land measuring 00K 06M situated at Village Santpura, Hadbast no. 134, Kapurthala Sharki, Punjab vide RTD bearing vasika no.
	3267 dated 18.10.2012 along with its translation, which are
	Annexure A11 and A11Tto this OA;
iv.	Land measuring 00K 10 ½M situated at Village Santpura,
	Hadbast no. 134, Kapurthala Sharki, Punjab vide RTD bearing vasika no. 3331 dated 22.10.2012 along with its translation,
	which areAnnexure A12 and A12Tto this OA;
v.	Land measuring 00K 05M situated at Village Kadupur, Hadbast
	no. 143, Tehsil and District Kapurthala, Punjab vide RTD bearing

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4 OA NO. 1248/2023 PUNJAB NATIONAL BANK VS. M/S ANISH ENTERPRISES AND OTHERS

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vasika no. 3779 dated 30.03.2017 along with its translation, which areAnnexure 15 and A15Tto this OA.
Defendant no. 4 mortgaged her immovable properties which are: i. Land measuring 00K 05M situated at Village Kadupur, Hadbast no. 143, Tehsil and District Kapurthala, Punjab vide RTD bearing vasika no. 3778 dated 30.03.2017 along with its translation, which areAnnexure 14 and A14Tto this OA;
ii. Land measuring 02K 4.75M situated at Village Daburji, Tehsil and District Kapurthala, Punjab vide Transfer Deed dated 12.11.2018 along with its translation, which areAnnexure A23 and A23Tto this OA.
Defendant no. 1 through its Proprietor defendant no. 2
hypothecated their various raw materials and book debts etc. vide
Hypothecation Agreement dated 08.05.2019, which isAnnexure A19 to this OA.
Documents executed:Pages of Title Deed Register, which are
Annexure A4, A13, A17 and A25to this OA; Intent Letters dated 25.03.2019 and 08.05.2019, which areAnnexure A16 and A24to
this OA; Undertaking, Agreement of Guarantee and Letter of
Continuity, all dated 08.05.2019, which areAnnexure A20 to A22to
this OA; Agreement, Master Agreement and Letter of Continuity, all dated 27.03.2020, which areAnnexure A28, A29 and A30/1to this
OA; Agreement, which isAnnexure A30to this OA; BC Letters dated
19.06.2013, 05.05.2015, 08.01.2018 and 28.04.2021, which are
Annexure A31 to A34to this OA; Notice dated 10.06.2021, which is
Annexure A35to this OA and Statement of Accounts with certificate, which areAnnexure A36 to A38to this OA.
5. 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. 1,64,25,666.00, 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.

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5 OA NO. 1248/2023 PUNJAB NATIONAL BANK VS. M/S ANISH ENTERPRISES AND OTHERS

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The defendants were served summons to appear before this Tribunal and after service upon defendants, Sh. Nitish Vasudeva, Advocate appeared on behalf of defendant nos. 1 and 2 on 06.04.2024 and filed Memo of Appearance. Thereafter, Sh. Sham Sunder Aggarwal, defendant no. 5 appeared in person on 07.06.2024. Paper book was supplied to him. Sh. K.P.S. Dhillon, Advocate filed POA on behalf of defendant nos. 1, 2 and 5 and Ms. Neha Arora and Sh. K.P.S. Dhillon, Advocates filed Memo of Appearance on behalf of defendant nos. 3 and 4 on 07.08.2024. Paper book was supplied on 20.01.2025. WS was filed on 08.04.2025. Sh. D K Gupta, Advocate for applicant filed IA/257/2025 on 17.02.2025 for attachment. This IA was disposed of on 02.09.2026.

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In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel for applicant that in view of the documentary evidence brought on record, the applicant had proved its case and OA is not barred by limitation or any other law. Learned counsel for defendants submitted that final order may be passed in this OA and prayed that lenient view may be taken while granting interest. No other point was argued/ pressed.

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From the perusal of all the Annexure A1 to A38 to this OA, it is proved that 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 to 5 stood as guarantors in both the loan 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 is entitled to recover a sum of Rs. 1,64,25,666.00 (Rupees One Crore Sixty Four Lacs Twenty Five Thousand Six Hundred Sixty Six Only) along with interest from the defendants, jointly and

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6 OA NO. 1248/2023 PUNJAB NATIONAL BANK VS. M/S ANISH ENTERPRISES AND OTHERS

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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 @10.60%p.a. plus @2% p.a. penal interest with monthly rests from the date of filing of application 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 simple interest @8.00% p.a. in both 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.1,64,25,666.00 (Rupees One Crore Sixty Four Lacs Twenty Five Thousand Six Hundred Sixty Six Only) jointly and severally, with costs, current and future simple interest @8.00% p.a. in both 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 nos. 3, 4 and 5 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.

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12. Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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7 OA NO. 1248/2023 PUNJAB NATIONAL BANK VS. M/S ANISH ENTERPRISES AND OTHERS

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.09.2026. 15. 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: 07.09.2026

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

Punjab National Bank v. Messrs Anish Enterprises and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Anish Enterprises and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Case details

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