Allowed

Punjab National Bank v. M/S Global Traders and Others

DRT20 Mar 2026OA/129/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application under RDBA for recovery of a loan account classified as NPA, ordered payment of principal, costs, and fixed interest, and directed issuance of a Recovery Certificate.

What did the court decide?

Defendants ordered to pay Rs.4,14,86,560.00 with costs and simple interest at 8.00% p.a.; Recovery Certificate to be issued.

Punjab National Bank versus M/S Global Traders and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.129/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.01.2023

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DATE OF DECISION: 20.03.2026

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Punjab National Bank, a bank constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot no. 4, Sector 10, Dwarka, New Delhi-110075 and its branch offices throughout India, along with an office at Circle sastra Circle Office SAS Nagar, Punjab through Sh. Ravi Kumar Manager Chief Manager of the said office who is also one of the Principal Officers and General Attorney of the applicant.

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……..Applicant

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Versus

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M/s Global Traders (Partnership firm) through its partners Sh. Ashish Anand Son of Late Sh. Ashok Anand and Sh. Gaurav Son of Sh. Parveen Kumar, SCO 145-146 Madhya Marg, 2^nd floor, Cabin No.14, Sector 8-C, Chandigarh-160017.

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Sh. Ashish Anand Son of Late Sh. Ashok Anand, R/o House No. 5782, Sector 38-West, Chandigarh-160036.

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Sh. Gaurav Son of Sh. Parveen Kumar, House No.211, Gobind Nagar, Nada Road, Naya Gaon, District Mohali, Punjab-160103.

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….……Defendants

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Advocates:

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Argued by Sh. Rajindra Kumar Joshi, Advocate for Applicant None 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 & Bankruptcy Act, 1993, against the defendants for recovery of Rs.4,14,86,560.00 (Rupees Four Crore Fourteen Lacs Eighty Six Thousand Five Hundred Sixty Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager Chief Manager, of the applicant who is competent to institute the Original Application vide Power of attorney dated 17.11.2019, which is Annexure A2 to this OA.

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OA/ 129/2023 PUNJAB NATIONAL BANK VS. MESSRS GLOBAL TRADERS AND OTHERS

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The brief facts of the OA are that the defendant no. 1 through its partners defendant nos. 2 and 3 approached the applicant for grant of Cash Credit Limit of Rs.2.90 Crore vide loan application dated 27.02.2019, which is Annexure A5 to this OA. Defendant no. 2 stood as guarantor. Thereafter, defendant no. 1 through its partners defendant nos. 2 and 3 approached the applicant for grant of Loan of Rs.54.00 Lacs under GECL vide loan application dated 27.07.2020, which is Annexure A16 to this OA.

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The applicant sanctioned Cash Credit Limit of Rs.2.70 Crore (CCHypothecation of Rs.1.50 Crore and CC-Book Debts of Rs.1.50 Crore, within total limit of Rs.2.70 Crore) vide Sanction which is Annexure A6 to this OA and terms and conditions were duly accepted by the defendants vide letter dated 04.03.2019, which is Annexure A7 to this OA. Thereafter, the applicant sanctioned Working Capital Term Loan (WCTL) of Rs.54.00 Lacs under GECL vide sanction letter dated 31.07.2020, which is Annexure A17 to this OA and terms and conditions were duly accepted by the defendants vide letter dated 31.07.2020, which is Annexure A18 to this OA. 4. Defendant no. 1 through its partners hypothecated stock and book debts vide agreement of hypothecation of goods and books debts to secure cash credit dated 04.03.2019, which is Annexure A9 to this OA. Defendant no. 2 mortgaged his immovable properties detailed as under: (i) Residential Land/Plot measuring 5Kanal-15-5/6Marla (Plot no. 6 to 13, 28 to 31 and 68) situated at Village Bhattiyan, Hadbast no. 328, Green City, Opposite Kissan Enclave, Malerkotla Road, Tehsil Khanna, District Ludhiana, Punjab through equitable mortgage of sale deed bearing vasika no.4406 dated 08.12.2006, along with its translation, which are Annexures A14 and A14T to this OA. (ii) Commercial Plot measuring 6Marla-4Sarsahi (197.92 sq. yards) situated at Opposite Food Supply Office, Near Sham Nursing Home, Moga Mehla-III Area, Railway Road, Moga, Punjab through equitable

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OA/ 129/2023 PUNJAB NATIONAL BANK VS. MESSRS GLOBAL TRADERS AND OTHERS

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mortgage of transfer deed bearing no.2018-19/2/1077 dated 25.05.2018, along with its translation, which are Annexures A15 and A15T to this OA.

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Page of TDR creation equitable mortgage dated 17.10.2019, which is Annexure A11 to this OA; Letter of intent dated 18.10.2019, which is Annexure A12 to this OA; letter of acknowledgement of receipt of title deeds dated 19.10.2019, which is Annexure A13 to this OA. letter of Continuity dated 12.09.2020, which is Annexure A24 to this OA.

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Documents executed: Hon’ble Supreme Court order dated 10.01.2022, in respect of limitation, which is Annexure A1 to this OA; Partnership deed dated 22.02.2019, which is Annexure A3 to this OA; Change of address intimation dated 26.08.2019, which is Annexure A4 to this OA; Agreement of Loan/Cash Credit/Overdraft, undertaking, both dated 04.03.2019, which are Annexures A8 and A10 to this OA; Demand pronote, Agreement for WCTL, Master Agreement, all dated 31.07.2020, which are Annexures A19 to A21 to this OA; Undertaking for GECL and Undertaking dated 31.07.2020, which are Annexures A22 and A23 to this OA; Balance sheet as on 31.03.2020, which is Annexure A25 to this OA; Letters/Reminders/Notices dated 27.01.2021, 09.02.2021, 20.03.2021, 25.03.2021, which are Annexure A26(Colly) to this OA; Recall notice dated 25.06.2021, which is Annexure A27 to this OA; Statement of Accounts with memoranda and summary, which are Annexures A28 to A33 to this OA; Copy of CWP NO. 16893 of 2021, which is Annexure A34 to 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.4,14,86,560.00, 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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OA/ 129/2023 PUNJAB NATIONAL BANK VS. MESSRS GLOBAL TRADERS AND OTHERS

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The defendants were served notices to appear before this Tribunal. Sh. Sapan Dhir, Advocate appeared in the matter on behalf of defendants. However, WS was not filed by defendants, therefore their opportunity to file WS was closed and their defense was struck off vide order dated 29.05.2024. 7. In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank, has been filed. 8. Heard arguments and perused record. No one appeared on behalf of defendants for arguments. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A34 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.4,14,86,560.00 (Rupees Four Crore Fourteen Lacs Eighty Six Thousand Five Hundred Sixty Only), along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.10%p.a. in CC & interest @8.90%p.a. in GECL Loan (WCTL), with 2% penal interest and monthly rests in both accounts from 01.10.2022 till the realization. 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/hypothecated assets, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester

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OA/ 129/2023 PUNJAB NATIONAL BANK VS. MESSRS GLOBAL TRADERS AND OTHERS

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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 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.4,14,86,560.00 (Rupees Four Crore Fourteen Lacs Eighty Six Thousand Five Hundred Sixty 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/mortgaged properties of 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.04.2026. 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. Pronounced by me in the open Tribunal . Dated: 20.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S Global Traders and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Global Traders and Others

Case brief

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What did the court decide?

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