Allowed

Punjab National Bank v. M/S S.F. Enterprises

DRT21 Feb 2026OA/131/2023

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an original application filed by Punjab National Bank for the recovery of outstanding dues amounting to over Rs. 1.74 crore along with interest from three defendants, who failed to appear in the proceedings.

What did the court decide?

Directing the defendants to pay Rs. 1,74,50,843.20 plus interest within 30 days, failing which the amount shall be recovered from the sale of mortgaged and other properties.

Punjab National Bank versus M/S S.F. Enterprises — Contract and Commercial Disputes | DRT (2026)

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O.A. No.131 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 131 of 2023

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Punjab National Bank

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(e-Oriental Bank of Commerce) Circle SASTRA, North Delhi, Vikrant tower 2nd Floor, Rajendra Place New Delhi-110008

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Applicant

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Versus

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M/s S.F. Enterprises Through its sole proprietor

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Sh. Falak Jain

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IX/6236, Gali no.1, Subhash Mohalla Nehru Gali, Gandhi Nagar, Delhi-110031

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Sh. Falak Jain s/o Sh. Sunil Kumar Jain IX/6236, Gali no.1, Subhash Mohalla Nehru Gali, Gandhi Nagar, Delhi-110031

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Also at:

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Sh. Falak Jain s/o Sh. Sunil Kumar Jain 122/19E, Gali no.7, Shanker Nagar, Krishna Nagar, Delhi-110051

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Sh. Sanjeev Kumar Jain s/o Sh. Devender Kumar Jain IX, 5949, Khasra no.190, Gali no.12 Raghubar Pura no.2 Gandhi Nagar, Delhi-110031

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Also at:

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Sh. Sanjeev Kumar Jain 122/19E, Gali no.7, Shanker Nagar, Krishna Nagar, Delhi-110051 Defendants

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Present: Sh.Santosh Kumar Rout, Counsel for applicant Bank

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Date of Reserve: 28.01.2026

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Date of Pronouncement: 21.02.2026

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O.A. No.131 of 2023

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FINAL ORDER

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This original application has been filed by the applicant bank on 21.01.2023 through Shri Vivek Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act,1993 against the defendants for recovery of a sum of Rs.1,74,50,843.20 (Rupees One Crore Seventy Four Lacs Fifty Thousand Eight Hundred Forty Three and paisa Twenty only) as on 31.12.2022 together with pendentelite and future interest at @11.90% per annum with monthly rests from the date of filing of this application with costs. The defendants also agreed to pay penal interest @2% per annum in case of default or delay in repayment of interest and instalments.

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The brief facts of the case are that at the request of defendant no.1 through its proprietor being defendant no.2 engaged in the various business activities, the applicant bank sanctioned Cash Credit facilities for a sum of Rs.125.00 Lacs on 08.02.2016 @11.95% per annum with monthly rests which was renewed on 03.11.2017 against hypothecation of stocks, book debts and mortgage of property. Further, the applicant bank converted overdue interest to CFITL on 29.09.2020 due to Covid-19 pandemic. The defendant no.3 stood as guarantor for the loan facilities sanctioned in favour of the defendant no.1 by the applicant bank. The defendants also agreed to pay penal interest @2% per annum in case of default or delay in repayment of interest and instalments.

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That in order to avail the loan facilities, the defendants submitted loan application and executed Sanction LetterS, Agreement of Hypothecation of Assets (DOC-1), Common Agreement (Doc-38), Sole Proprietorship Letter (Doc-21), Undertakings, Affidavits and Agreements of Guarantee (Doc11) with the applicant bank on 08.02.2016.

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O.A. No.131 of 2023

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That in order to secure the loan facilities, the defendant no.2 and 3 mortgaged their property bearing no.IX/5949 (Part) area measuring 27 sq. yards out of Khasra no.190, Gali no.12, Subhash Mohalla, Raghuburpura-2, Gandhi Nagar, Delhi with the applicant bank by depositing title deeds of property and executed DOC No.LTR-21 in favour of applicant bank on 09.02.2016.

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The defendant no.2 as proprietor of defendant no.1 and defendant no.3 as guarantor confirmed the liability towards the applicant bank by executing Balance and Security Confirmation Letter (Doc-20) and (Doc-28) dated 23.11.2017.

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It has been submitted by the applicant bank that after availing the loan facilities, the defendants failed to adhere to the terms and conditions of sanction and maintain financial discipline despite several reminders dated 23.09.2020, 26.10.2020, 02.03.2021 and 24.03.2021 and visits by officials of applicant bank. The applicant bank classified the account as NPA on 31.03.2021 but defendants neglected to clear the dues, hence, the applicant bank has approached this tribunal for recovery of their dues.

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Notice under Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 07.05.2021 but defendants failed to regularize the accounts. The defendants gave representation dated 19.07.2021 u/s 13(3A) of the SARFAESI Act but the same was rejected vide letter dated 03.08.2021. Ultimately, the applicant bank took symbolic possession of the mortgaged property vide notice dated 21.10.2021 u/s 13(4) of SARFAESI Act r/w Rule 8 of the Security Interest Enforcement Rules 2002.

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O.A. No.131 of 2023

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 19.05.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

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In order to prove its case, the applicant bank has filed evidence by way of affidavit of Sh. Vivek Kumar, authorized representative of the applicant bank who has proved documents such as General Power of Attorney, Amalgamation Scheme, Sanction Letter, Agreement of Hypothecation of Assets, Common Agreement, Sole Proprietorship Letter, Undertaking, Affidavits, Agreement of Guarantee, Title Deeds, Balance & Security Confirmation Letters, Notices alongwith Postal Receipts, Representations by Defendants u/s 13(3A), Reply by the Applicant Bank, Certificate u/s 2A of the Banker's Books Evidence Act, Certified Statement of Account, Certificate of Outstanding account marked as Ex.AW-1/1 to Ex.AW-1/27.

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed. 0-

O.A. No.131 of 2023

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.1,74,50,843.20 (Rupees One Crore Seventy Four Lacs Fifty Thousand Eight Hundred Forty Three and paisa Twenty only) as on 31.12.2022 together with pendentelite and future interest @11.90% per annum with monthly rests from the date of filing of this application till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged property bearing no. IX/5949 (Part) Khasra no.190, Gali no.12, Subhash Mohalla, Raghubarpura-2, Gandhi Nagar, Delhi-110031. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 22.04.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 21.02.2026

Punjab National Bank v. M/S S.F. Enterprises

Case brief

What is this about?

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Punjab National Bank v. M/S S.F. Enterprises

Case brief

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