Allowed

Punjab National Bank v. M/S Szf Exports Pvt. Ltd.

DRT16 May 2026OA/154/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Canara Bank for recovery of dues. The defendant borrower, who did not appear, was proceeded ex-parte. The bank was directed to recover a principal sum of Rs. 68,04,485.55 along with interest.

What did the court decide?

Direction to pay Rs. 68,04,485.55 as on 31.12.2020 with interest at 11.75% p.a. and costs within 30 days; recovery from hypothecated assets or properties in default.

Punjab National Bank versus M/S Szf Exports Pvt. Ltd. — Banking and Recovery | DRT (2026)

¶1

O.A. No. 154 of 2021

¶2

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

¶3

Presiding Officer: Shri Govind Ballabh Sharma

¶4

O.A. No. 154 of 2021

¶5

Canara Bank

¶6

(e-Syndicate Bank) East Patel Nagar, 7, First Floor Sethi Bhawan, Rajendra Place, New Delhi-110008

¶7

Applicant

¶8

Versus

¶9

Sh. Ganesh Card Proprietress - Mrs.Sheela Singh R/o 662, Pandit Park, Opposite Geeta Colony Thana Krishna Nagar, Delhi-110051

¶10

Also at: 1/11147, (Old No.36) Gali No.12, Subhash Park, Shandara Delhi-110032 Defendant

¶11

Present: Sh.R.K.Sinha, Counsel for the applicant bank

¶12

Date of Reserve: 04.05.2026

¶13

Date of Pronouncement: 16.05.2026

¶14

FINAL ORDER

¶15

This original application has been filed by the applicant bank on 10.02.2021 through Sh.Rajiv Sethi, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of a sum of Rs.68,04,485.55 (Rupees Sixty Eight Lacs Four Thousand Four Hundred Eighty Five and paisa Fifty Five only) as on 31.12.2020 together with

¶16

¶17

O.A. No. 154 of 2021

¶18

pendentelite and future interest @9.75% per annum along with penal interest @2% per annum with monthly rests from the date of filing this application till the date of its realization and costs.

¶19

The brief facts of the case are that at the request of defendant being proprietorship concern in the business of manufacturing of wedding/invitation card etc., the applicant bank sanctioned SODH/Cash Credit facility of Rs.60,00,000/(Rupees Sixty Lacs only) for working capital requirements on 29.09.2017 @9.75% interest per annum with monthly rests against hypothecation of chargeable stocks and book debts covered under CGTMSE scheme.

¶20

That in order to avail the loan facility, the defendant submitted loan application executed Sanction Letter, Composite Hypothecation Agreement, Guarantee Agreement, Authority Letter, Letter of Proprietorship, Undertaking, Letter from Borrower/Guarantor, Annexure VI, Power of Attorney for Collection of Bills, book debts & other receivables, Letter of Indemnity, Statement of Assets & Liabilities and Consent Letter etc. in favour of the applicant bank on 29.09.2017.

¶21

The defendant executed Acknowledgement of Debt thereby acknowledging the debt towards the applicant bank on 29.09.2017.

¶22

It has been submitted by the applicant bank that after availing the aforesaid loan facility, the defendant miserably failed and neglected to pay the interest and installments in the account and maintain financial discipline as per terms and conditions despite various notices and reminders. The applicant

¶23

snd

¶24

O.A. No. 154 of 2021

¶25

bank classified the account as NPA on 28.06.2020 as per RBI guidelines and issued legal demand notice dated 29.12.2020 for Rs.67,46,329.88 but the defendant failed to regularize the account, hence, the applicant bank has approached this tribunal for recovery of its dues.

¶26

Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 20.02.2026, the defendant has been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

¶27

In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Rajiv Sethi, authorized representative of the applicant who has proved the documents such as Affidavit, Gazetted Power of Attorney, Loan Application and Proposal Form, Copies of Documents qua Cash credit Facility, Sanction Letter, Composite Hypothecation Agreement, Guarantee Agreement, Authority Letter, Letter of Proprietorship, Acknowledgement of Debt and Security, Undertaking Letter, Letter from Borrower/Guarantor, Collection of Bills, Book Debts & Other Receivables, Consent Letter, Statement of Assets & Liabilities, Other Related Documents, Legal Notices, Postal Receipts, Statements of Account, Certificate u/s 2A r/w 65B and Accrued Interest Certificate marked as Exhibit PW-1/A to Exhibit PW-1/U.

¶28

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.

¶29

¶30

O.A. No. 154 of 2021

¶31

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.

¶32

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

¶33

ORDER

¶34

I, allow this OA and direct the defendant to pay to the applicant bank within 30 days, a sum of Rs.68,04,485.55 (Rupees Sixty Eight Lacs Four Thousand Four Hundred Eighty Five and paisa Fifty Five only) as on 31.12.2020 together with pendentelite and future interest @11.75% per annum with monthly rests from the date of filing of this application till the date of realization along with costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks and book debts etc. In case of shortfall / default, the same shall be recovered from the sale of movable and immovable properties of the defendant.

¶35

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

¶36

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 15.07.2026.

¶37

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

¶38

"2„0 -) 6 (GOVIND BALLABH \SiiARMA) PRESIDING OFFICER DRT-I, DELHI

¶39

(Dictated and pronounced in open court) Dated: 16.05.2026

Punjab National Bank v. M/S Szf Exports Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Szf Exports Pvt. Ltd.

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

State Bank of India versus Sri Kamal Dey

State Bank of India versus Sri Ranadip Das And Anr.

Bank of India versus Sumana Nanda Ghosh and Anr.

Idfc First Bank Ltd. versus Pawanputra Oil Technologies Pvt. Ltd.

Punjab and Sind Bank versus M/S Maa Durga Trading Company

Hdfc Bank versus Ankush Rao