Allowed

Punjab National Bank v. Sh. Abhishek Sharma and Others

DRT7 Aug 2026OA/1408/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 20.87 lakhs outstanding against borrowers who defaulted on a housing loan. Order directed joint and several liability, interest at 7.10% p.a., and recovery via execution.

What did the court decide?

Declared respondents jointly and severally liable to pay Rs. 20,87,951.87 with future interest @7.10p.a.; directed issue of Recovery Certificate.

Punjab National Bank versus Sh. Abhishek Sharma and Others — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1408/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2022

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DATE OF DECISION: 07.08.2026

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Punjab National Bank, a Body Corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and amongst others a Branch at Zirakpur, Mohali, Punjab through Sh. Ravi Kumar, Chief Manager and Attorney Holder, presently posted at Circle SASTRA Centre, SAS Nagar, Mohali, Punjab (Transferee Bank from erstwhile United Bank of India)

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… …..Applicant

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Versus

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Sh. Abhishek Sharma, S/o Sh. Pawan Kumar, R/o House no. 11294/1, Haqiqat Nagar, Haibowal Kalan, Ludhiana, Punjab141001

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Also at: Village Pragpur, Tehsil Dehra Pragpur, Kangra, Himachal Pradesh

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Also at: M/S Lupin Limited, Plot no. 108, Industrial Area, Phase I, Panchkula, Haryana

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Smt. Ravi Bala Sharma, W/o Sh. Pawan Kumar, R/o House no. 11294/1, Haqiqat Nagar, Haibowal Kalan, Ludhiana, Punjab141001

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Also at: Village Pragpur, Tehsil Dehra Pragpur, Kangra, Himachal Pradesh

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M/S Gupta Builders and Promoters Pvt. Ltd. with its Corporate Office at SCO no. 196-197, Sector 34A, Chandigarh- 160022 through its Managing Director/Director/Principal Officer

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M/S Bajwa Developers Limited with its Registered Office at Sunny Enclave, Desu Majra, Kharar, District Mohali, Punjab140301 through its Managing Director/Principal Officer

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M/S Reliance Home Finance Ltd. having its Office at the Ruby, 11^th Floor, North West Wing, Plot no. 29, Senapati Bapat Marg, Dadar West, Mumbai, Maharashtra

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…Defendants

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2 OA/1408/2022 PUNJAB NATIONAL BANK VS. ABHISHEK SHARMA AND OTHERS

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Advocates:

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Argued by Ms. Rajni Narula, Advocate for applicant (through VC) None for defendant nos. 1, 2, 4 and 5 (already ex-parte vide order dated 05.08.2026) None for defendant no. 3

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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. 20,87,951.87 (Rupees Twenty Lacs Eighty Seven Thousand Nine Hundred Fifty One and Paise Eighty Seven Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 02.08.2010, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant nos. 1 and 2 approached the applicant for grant of Housing Loan of Rs. 26.10 Lacs vide Loan Application dated 17.12.2018, which is Annexure A3 to this OA.

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The applicant sanctioned Housing Loan of Rs. 26,09,274.00 vide Sanction Letter dated 20.12.2018, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. Defendant no. 3 is impleaded in the array of parties being Developer/Builder/Promoter and also the recipient of the loan amount from defendant nos. 1 and 2. Defendant no. 4 is impleaded in the array of parties being owner of the entire project upon which the flat purchased is situated and also the recipient of the loan amount through defendant no. 3. Defendant no. 5 is impleaded in the array of parties as defendant no. 5 apparently has financed the entire project upon which flat in question is situated. However, as per the OA, no relief has been claimed against defendant no. 5. 4. Defendant nos. 1 and 2 mortgaged their immovable property i.e. Flat measuring 1142.56 Sq. Ft. situated at Flat no. 4058FF, GBP Camellia, Village Aujla, Hadbast no. 181, Tehsil Kharar, District SAS

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3 OA/1408/2022 PUNJAB NATIONAL BANK VS. ABHISHEK SHARMA AND OTHERS

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Nagar, Punjab vide Permission to Mortgage and Memorandum evidencing Deposit of Title Deeds, both dated 07.01.2019, which are Annexure A11 and A14 to this OA.

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Documents executed: Amalgamation Scheme dated 17.12.2018, which is Annexure A2 to this OA; DP Note, Agreement, Letter of Lien and Tripartite Agreement, all dated 07.01.2019, which are Annexure A5, A7, A8 and A13 to this OA; Undertaking cum Declaration and Power of Attorney, both dated 15.02.2019, which are Annexure A6 and A15 to this OA; Allotment Letter, Agreement for Sale and Letter, all dated 30.10.2018, which are Annexure A9, A10 and A16 to this OA; No Objection dated 25.02.2019, which is Annexure A12 to this OA; Demand Notice dated 30.10.2019 along with receipts, which is Annexure A17 to this OA; Balance Confirmation Letter dated 21.12.2021, which is Annexure A18 to this OA; Notice dated 20.06.2022, which is Annexure A19 to this OA and Statement of Account, which is Annexure A20 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 20,87,951.87 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. Therefore, defendant nos. 1, 2, 4 and 5 were proceeded ex-parte vide order dated 05.08.2026. On 05.08.2026, learned counsel for applicant (through VC) submitted that defendant no. 3 is before Hon’ble NCLT, Chandigarh. Therefore, the proceedings against defendant no. 3 were kept in abeyance in the present OA vide order dated 05.08.2026. 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.

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4 OA/1408/2022 PUNJAB NATIONAL BANK VS. ABHISHEK SHARMA AND OTHERS

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It was argued by learned counsel (through VC) 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 A20 to this OA, it is proved that the defendant nos. 1 and 2 approached applicant for availing of the loan facility, which was granted to them and for that they had executed all the relevant documents in favour of the applicant. Defendant no. 3 is impleaded in the array of parties being Developer/Builder/Promoter and also the recipient of the loan amount from defendant nos. 1 and 2. Defendant no. 4 is impleaded in the array of parties being owner of the entire project upon which the flat purchased is situated and also the recipient of the loan amount through defendant no. 3. Defendant no. 5 is impleaded in the array of parties as defendant no. 5 apparently has financed the entire project upon which flat in question is situated. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, the 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. 20,87,951.87 (Rupees Twenty Lacs Eighty Seven Thousand Nine Hundred Fifty One and Paise Eighty Seven Only) along with interest from defendant nos. 1, 2 and 4, jointly and severally, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @07.10%p.a. plus 2% penal interest with monthly rests w.e.f. 01.07.2022 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 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 @7.10% p.a. in the loan

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5 OA/1408/2022

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PUNJAB NATIONAL BANK VS. ABHISHEK SHARMA AND OTHERS

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account 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 defendant nos. 1, 2 and 4 are liable to pay to the applicant a total sum of Rs.20,87,951.87 (Rupees Twenty Lacs Eighty Seven Thousand Nine Hundred Fifty One and Paise Eighty Seven Only) jointly and severally, with costs, current and future simple interest @7.10% p.a. in 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 defendant nos. 1 and 2 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 defendant nos. 1, 2 and 4. 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.08.2026. 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: 07.08.2026

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

Punjab National Bank v. Sh. Abhishek Sharma and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Abhishek Sharma and Others

Case brief

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What did the court decide?

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