Allowed

Punjab and Sind Bank v. M/S Samta Knitwears and Others

DRT16 Mar 2026OA/1615/2025

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application under Section 19 of the RD&BA for recovery of Rs.30.04 Lacs and awarded a Recovery Certificate, overriding the claimed interest rates with a uniform 7.50% p.a. order.

What did the court decide?

Recovery Certificate issued for Rs.30,04,200.22 plus costs and uniform simple interest @7.50% p.a.; liberty to enforce claim through sale of assets under SARFAESI/CV proceedings.

Punjab and Sind Bank versus M/S Samta Knitwears… — Contract and Commercial Disputes | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1615/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.11.2025

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DATE OF DECISION: 16.03.2026

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Punjab & Sind Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its Head Office at Rajendra Palace, New Delhi and carrying on the business of banking all over India through Zonal Office and various offices situated at different places, interalia at branch office at Saban Bazar, Ludhiana through its Chief Manager/Branch Head/ Attorney Holder Sh. Hitesh Kumar of the Applicant.

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……..Applicant

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Versus

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M/s Samta Knitwears, Plot No.25, Street No.1, Noorwala Road, Sant Singh Nagar, Ludhiana through its Proprietor Smt. Samta Jain W/o Sh. Shubh Jain.

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Sh. Samta Jain W/o Sh. Shubh Jain, Plot No.25, Street No.1, Noorwala Road, Sant Singh Nagar, Ludhiana.

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Sh. Kimat Rai Jain S/o Gujjar Mal Jain, Plot No.25, Street No.1, Noorwala Road, Sant Singh Nagar, Ludhiana.

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Sh. Shubh Jain S/o Sh. Kimat Rai Jain, Plot No.25, Street No.1, Noorwala Road, Sant Singh Nagar, Ludhiana.

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Sh. Arun Jain, Plot No.25, Street No.1, Plot No.25, Noorwala Road, Sant Singh Nagar, Ludhiana.

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Defendant Nos.2 to 5, Residents of House No. M-109, Basant Vihar Colony, Ludhiana-141007.

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….……Defendants

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Advocates:

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Argued by Sh. Bhavya Sagar, Advocate for Applicant

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Defendants already ex parte vide order dated 07.01.2026

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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.30,04,200.22 (Rupees Thirty

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2 OA/1615/2025

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PUNJAB & SIND BANK VS. M/S SAMTA KNIT WEARS AND OTHERS

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Lacs Four Thousand Two Hundred and Paise Twenty Two Only). The Original Application has been filed through Sh. Hitesh Kumar, Chief Manager, of the applicant who is competent to institute the Original Application vide Power of Attorney dated 28.04.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its proprietor defendant no. 2 approached the applicant for grant Cash Credit Limit of Rs.25.00 Lacs. Defendant nos. 2 to 5 stood as guarantors. Thereafter, the defendant no.1 through its proprietor defendant no. 2 approached the applicant for grant of Working Capital Term Loan (WCTL) of Rs.5.21 Lacs under GECL vide Loan Application dated 04.06.2020, which is Annexure A29 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.25.00 Lacs vide Sanction Letter dated 05.09.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned Working Capital Term Loan (WCTL) of Rs.5.21 Lacs under GECL vide Letter of Sanction dated 04.06.2020, which is Annexure A30 to this OA. 4. Defendant no. 1 through its proprietor defendant no. 2 hypothecated stock, receivables and other current assets etc. vide agreement of hypothecation of book debts, agreement for hypothecation of debts and assets, agreement of hypothecation of goods to secure a demand Cash Credit, all dated 05.09.2014, which are Annexures A15 to A17 to this OA; Deed of hypothecation dated 04.06.2020, which is Annexure A33 to this OA. Defendant nos. 2 and 3 mortgaged their immovable property detailed as under: (i) Defendant no. 2 mortgaged Residential House Measuring 100 Sq. Yards situated at Village Kakowal, Hadbast no. 80, Abadi Bansnt Vihar Colony, Tehsil and District Ludhiana, Punjab through equitable mortgage of Sale deed bearing vasika no. 23733 dated 22.02.2013, along with it translation, which is Annexure A22 to this OA; Form no.

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3 OA/1615/2025

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PUNJAB & SIND BANK VS. M/S SAMTA KNIT WEARS AND OTHERS

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84-A dated 05.09.2014, regarding mortgage, which is Annexure A21 to this OA.

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(ii) Defendant no. 3 mortgaged Factory Measuring 207.70 Sq. Yards situated at Village Kakowal, Abadi Sant Nagar, Tehsil and District Ludhiana, Punjab through equitable mortgage of Sale deed bearing vasika no.116 dated 05.03.2000, along with it translation, which is Annexure A24 to this OA; Form no. 84-A dated 05.09.2014, regarding mortgage, which is Annexure A23 to this OA.

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Jamabandi for the year 2005-06, which is Annexure A26 to this OA.

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Documents Executed: Demand Promissory Note, Annexure-I, Annexure-II, Undertaking, Undertakings, Form No. 412, Letter (Form no. 216), Letter (Form no. 122), all dated 05.09.2014, which are Annexures A3 to A14 to this OA; Letter of Continuity, Form No.106, Form No.126, all dated 05.09.2014, which are Annexures A18 to A20 to this OA; Form no. 256 (RR), dated 05.09.2014, which is Annexure A25 to this OA; Balance and Security Confirmation Letter dated 22.05.2017, 30.12.2019, which are Annexures A27 and A28 to this OA; Demand Promissory Note, Term Loan Agreement, Undertaking, all dated 04.06.2020, which are Annexures A31, A32 and A34 to this OA; Revival Letters dated 24.11.2022, 01.05.2023, which are Annexures A35 and A36 to this OA; Legal Notice dated 25.11.2023, along with postal receipts, which is Annexure A37 to this OA; Demand Notices dated 14.06.2024 u/s 13(2) of SARFAESI Act along with postal receipts, which are Annexure A38(Colly) to this OA; Possession Notice dated 06.09.2024 along with postal receipts, which is Annexure A39 to this OA; Sale Notice dated 06.02.2025, which is Annexure A40 to this OA; Recall Notice dated 13.10.2025, along with postal receipts, which is Annexure A41 to this OA; Statement of accounts with certificates, which are Annexures A42 to A45 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.30,04,200.22 which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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4 OA/1615/2025

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PUNJAB & SIND BANK VS. M/S SAMTA KNIT WEARS AND OTHERS

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 07.01.2026. 7. In support of the OA, affidavit of Sh. Hitesh Kumar, Chief Manager, Punjab and Sind Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel 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 A45 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 applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,04,200.22 (Rupees Thirty Lacs Four Thousand Two Hundred and Paise Twenty Two 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 pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50%p.a. in CC Limit and @ 7.50% in GECL Loan, with 2% penal interest and monthly rests, in both accounts, from 01.11.2025 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/ 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

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5 OA/1615/2025

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PUNJAB & SIND BANK VS. M/S SAMTA KNIT WEARS AND OTHERS Tribunal deems it just and appropriate to grant uniform simple interest @7.50%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.30,04,200.22 (Rupees Thirty Lacs Four Thousand Two Hundred and Paise Twenty Two Only), jointly and severally, with costs, current and future simple interest @7.50%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/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 06.04.2026. 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: 16.03.2026. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. M/S Samta Knitwears and Others

Case brief

What is this about?

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Punjab and Sind Bank v. M/S Samta Knitwears and Others

Case brief

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