Allowed

Punjab National Bank v. M/S Vaishnavi Textiles

DRT27 May 2026OA/1274/2022

Case brief

AI extract

What is this about?

The debts recovery tribunal allowed an application filed by Punjab National Bank against a textile firm and guarantors for recovery of outstanding dues. The court fixed future interest at 8% per annum and directed the issue of a recovery certificate after ex-parte proceedings due to the defendants' absence.

What did the court decide?

Recovery of Rs. 33,10,716.14 with future simple interest at 8% p.a. and grant of Recovery Certificate.

Punjab National Bank versus M/S Vaishnavi Textiles — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1274/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.07.2022

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DATE OF DECISION: 27.05.2026

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Haibowal Kalan, Ludhiana, through General Power of Attorney Holder, Sh. Ravinder Kumar, Senior Manager and Constituent Attorney.

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……..Applicant Versus

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M/s. Vaishnavi Textiles situated at Plot No.1, Shop No.1 Ramandeep Colony, Mundian Kalan, Ludhiana, through its proprietor Sh. Balbir Singh.

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Sh. Balbir Singh S/o. Sh. Chandan Singh R/o. H.No. 14, St. No. 9, Ramandeep Colony, Gulab Valley, Mundian Kalan, Ludhiana.

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Smt. Navneet Kaur W/o. Sh. Balbir Singh R/o. H.No. 14, St. No. 9 Ramandeep Colony, Gulab Valley, Mundian Kalan, Ludhiana.

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…….Defendants

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Advocates:

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Argued by Sh. Ashok Kumar Verma Advocate proxy for Ms. Puja Sharma, Advocate for Applicant.

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None for Defendants (already ex-parte vide order dated 25.05.2026)

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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.33,10,716.14 (Rupees Thirty Three Lacs Ten Thousand Seven Hundred Sixteen and Paise Fourteen Only). The Original Application has been filed through Sh. Ravinder Kumar,

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OA/1274/2022 PUNJAB NATIONAL BANK VS. M/S VAISHNAVI TEXTILES AND OTHERS

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Senior Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1, through its proprietor defendant no.2, approached the applicant for sanction of CC Limit of Rs.20,00,000.00 vide Loan Application Form, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor. Thereafter, Defendant no.1, through its proprietor defendant no.2, approached the applicant for enhancement of CC Limit from Rs.20,00,000.00 to Rs.25,00,000.00 vide Loan Application, which is Annexure A13 to this OA . 3. The applicant sanctioned the CC Limit of Rs.20,00,000.00, vide Sanction Letter dated 02.05.2017, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the enhancement of CC Limit from Rs.20,00,000.00 to Rs.25,00,000.00, vide Sanction Letter dated 13.07.2018, which is Annexure A14 to this OA. 4. Defendant no. 3 mortgaged her property ie. Residential Plot measuring 102.50 SqYds situated at Plot No. 15, Street No. 9, Ramandeep Colony, Gulab Valley, Chota Bhamia Road, Mundian Kalan, Ludhiana, Punjab, vide Original Title Deed bearing Wasika No. 19130 dated 03.05.2017 along with English Translation, which are Annexure A11 and A11-T to this OA . Documents executed: PAN Card of Proprietor, which is Annexure A4 to this OA; Sole Proprietorship Letter dated 02.05.2017, which is Annexure A5 to this OA; Undertaking for Credit Facilities, which is Annexure A6 to this OA; Undertaking for Assignment of Receivables and Cash Flows dated 02.05.2017, which is Annexure A7 to this OA; Agreement of Hypothecation of Assets dated 02.05.2017, which is Annexure A8 to this OA; Common Agreement dated 02.05.2017, which is Annexure A9 to this OA; Agreement of Guarantee dated

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OA/1274/2022 PUNJAB NATIONAL BANK VS. M/S VAISHNAVI TEXTILES AND OTHERS

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02.05.2017, which is Annexure A10 to this OA; Letter dated 03.05.2017, which is Annexure A12 to this OA; Undertaking, which is Annexure A15 to this OA; Sole Proprietorship Letter dated 16.07.2018, which is Annexure A16 to this OA; Supplement Agreement dated 16.07.2018, which is Annexure A17 to this OA; Agreement of Guarantee dated 16.07.2018, which is Annexure A18 to this OA; Common Agreement dated 16.07.2018, which is Annexure A19 to this OA; Confirmation Letter and Equitable Mortgage Register, which are Annexures A20 and A20-A to this OA; Sanction Letter dated 13.03.2020, which is Annexure A21 to this OA; Balance and Security Confirmation Letter dated 13.03.2020, which is Annexure A22 to this OA; Recall Notices dated 16.09.2019 and 29.02.2020, which are Annexures A23 and A24 to this OA; Statement of Account, which is Annexure A25 to this OA; Demand Notice under Section 13(2) of the SARFAESI Act, 2002 dated 13.09.2021, which is Annexure A26 to this OA; Possession Notice under Section 13(4) dated 06.12.2021, which is Annexure A27 to this OA; Sale Notice dated 30.04.2022, which is Annexure A28 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.33,10,716.14 (Rupees Thirty Three Lacs Ten Thousand Seven Hundred Sixteen and Paise Fourteen Only), 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. 6. The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 25.05.2026. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank, has been filed. 8. Heard arguments and perused record.

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OA/1274/2022 PUNJAB NATIONAL BANK VS. M/S VAISHNAVI TEXTILES AND OTHERS

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

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From the perusal of all the Annexures A1 to A28 to this OA, it is proved that the defendant no.1, through its proprietor defendant no.2, approached the applicant for availing of the loan facility, which was granted to them. Defendant no.3 stood as guarantor. They had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.33,10,716.14 (Rupees Thirty Three Lacs Ten Thousand Seven Hundred Sixteen and Paise Fourteen Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.65% p.a. plus 2.00% p.a. penal interest with monthly rests from 01.06.2022 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 property, undertaking of the defendants, quantum of loan 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 @08.00% p.a. in the loan account from the date of filing of the OA till realization of the amount, ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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OA/1274/2022 PUNJAB NATIONAL BANK VS. M/S VAISHNAVI TEXTILES AND OTHERS

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Rs.33,10,716.14 (Rupees Thirty Three Lacs Ten Thousand Seven Hundred Sixteen and Paise Fourteen Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 mortgaged property of the defendant no. 3 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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Parties to appear before Learned Recovery Officer of this Tribunal on 18.06.2026

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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. Pronounced by me in the open Tribunal .

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Dated: 27.05.2026.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S Vaishnavi Textiles

Case brief

What is this about?

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Punjab National Bank v. M/S Vaishnavi Textiles

Case brief

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What did the court decide?

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