Allowed

Punjab National Bank v. Sh. Rakesh Kumar Alias Rakesh Kumar Aggarwal and Another

DRT23 Jan 2026OA/1334/2023

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed the applicant bank's recovery application against two defaulting borrowers. The tribunal ordered recovery of the principal amount with interest at 8% pa and authorized sale of properties under SARFAESI Act.

What did the court decide?

Recovery Certificate issued; respondents liable to pay Rs.41,64,584.20 with 8% p.a. interest; recovery via sale of properties or attachment of assets authorized.

Punjab National Bank versus Sh. Rakesh Kumar Alias Rakesh… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1334/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.10.2023

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DATE OF DECISION: 23.01.2026

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Punjab National Bank, a Body Corporate, constituted under the Bnaking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its Head Office at Plot No. 04, Sector 10, Dwarka, New Delhi-110075 and amongst others a Branch Office at MOHIE, District Ludhiana, Punjab through Sh. Navin Kumar Bansal, posted at Circle SASTRA Centre, Ludhiana, Senior Manager and Attorney Holder of the Applicant

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……..Applicant Versus

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Sh. Rakesh Kumar @ Rakesh Kumar Aggarwal S/o Sh. Jawaharlal, R/o House No. 86, Aggarwal Street, Raikot, District Ludhiana, Punjab Also at : Main Road Sudhal, VPO Sudhar, Tehsil Raikot, District Ludhiana, Punjab-141004.

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Sh. Harvinder Singh S/o Sh. Ajaib Singh R/o VPO Sahauli, Tehsil and District Ludhiana, Punjab-141105

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……….Defendants

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Advocates:

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Argued by Sh. Kamal, Advocate for the applicant (through VC)

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Defendants ex-parte vide order dated 17.12.2025

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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.41,64,584.20 (Rupees Forty One Lacs Sixty Four Thousand Five Hundred Eighty Four and Paise Twenty Only). The Original Application has been filed through Sh. Navin Kumar Bansal, Senior Manager and Attorney Holder of the applicant vide General Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

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OA/1334/2023 PUNJAB NATIONAL BANK VS RAKESH KUMAR ALIAS RAKESH KUMAR AGGARWAL AND ANOTHER

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The brief facts of the OA are that the defendant No. 1 approached the applicant for grant of KCC Limit of Rs. 25.00 Lacs vide Loan application dated 02.05.2011, which is Annexure A3 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned KCC Limit of Rs. 25.00 Lacs vide Sanction Letter dated 04.05.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 mortgaged his immovable properties i.e. Land measuring 20K-7M situated at Village Halwara, Tehsil Raikot, District Ludhiana, Punjab vide Mortgage Deed bearing vasika no.479 dated 04.05.2011 along with its translation, which are Annexures A9 & A10 to this OA. Non-Encumbrance Certificate dated 05.05.2011 along with its translation, which are Annexures A6 & A7 to this OA. Documents executed : Amalgamation Scheme Dated 28.03.2020, which is Annexure A2 to this OA; Agreement for Hypothecation and Agreement of Guarantee, both dated 05.05.2011, which are Annexures A5 and A8 to this OA; Balance and Confirmation Letter dated 26.02.2014, 30.12.2016, 07.12.2018 and 12.10.2020, which is Annexure A11 to this OA; Account Statement which is Annexure A12 to this OA; Legal Notice issued by Advocate dated 07.10.2023, which is Annexure A13 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.41,64,584.20, 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 17.12.2025

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OA/1334/2023
PUNJAB NATIONAL BANK VS RAKESH KUMAR ALIAS
RAKESH KUMAR AGGARWAL AND ANOTHER

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In support of the OA, affidavit of Sh. Navin Kumar Bansal, Senior Manager and Attorney Holder, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing, that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A13 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 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 Rs.41,64,584.20 (Rupees Forty One Lacs Sixty Four Thousand Five Hundred Eighty Four and Paise Twenty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest in @11.50%pa. with penal interest @2%p.a. with monthly rests from 07.10.2023 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 years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account from the date of filing of the OA till

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OA/1334/2023 PUNJAB NATIONAL BANK VS RAKESH KUMAR ALIAS RAKESH KUMAR AGGARWAL AND ANOTHER

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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 defendant is liable to pay to the applicant a total sum of Rs.41,64,584.20 (Rupees Forty One Lacs Sixty Four Thousand Five Hundred Eighty Four and Paise Twenty 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 hypothecated/mortgaged properties of the 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 05.02.2026. 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 . Dated: 23.01.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Rakesh Kumar Alias Rakesh Kumar Aggarwal and Another

Case brief

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Punjab National Bank v. Sh. Rakesh Kumar Alias Rakesh Kumar Aggarwal and Another

Case brief

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