Debts Recovery Tribunal allowed an application filed by Punjab and Sind Bank for recovery of Rs.61,56,932.97 against non-appearing debtor-firm and guarantors. The court fixed simple interest at 8% per annum.
Recovery Certificate issued; ordered payment of Rs.61,56,932.97 plus costs and interest @ 8% p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 1617/2025
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 19.11.2025
DATE OF DECISION: 17.02.2026
Punjab and 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 is carrying on the business of banking all over India through Zonal Office and various offices, situated at different places, inter alia at branch office at Saban Bazar, Ludhiana through its Chief Manager/ Branch Head/ Attorney Holder Sh. Hitesh Kumar of the Applicant.
Versus
Resident of H. No. M-109, Basant Vihar Colony, Ludhiana141007.
2 OA.NO/1617/2025 PUNJAB AND SIND BANK VS. M/S R.K. SHUBH FABRICS AND OTHERS
Resident of H. No. M-109, Basant Vihar Colony, Ludhiana-
141007
….……Defendants
Advocates:
Argued by Sh. Bhavya Sagar, Advocate for the applicant Defendants already ex-parte vide order dated 07.01.2026
FINAL ORDER
3 OA.NO/1617/2025 PUNJAB AND SIND BANK VS. M/S R.K. SHUBH FABRICS AND OTHERS
Defendant nos. 3 and 4 mortgaged their immovable property detailed as under:
Documents executed : Demand Promissory Note, Form No.122, Form No.109, Form No. 126, Form No.291, Undertaking Form no.199, Letter of Continuity, Letter of Consent by the Borrower, Letter of Consent by the Guarantors, Form No.256(RR), all dated 03.11.2011, which are
4 OA.NO/1617/2025 PUNJAB AND SIND BANK VS. M/S R.K. SHUBH FABRICS AND OTHERS
Annexures A4 to A9, A12 to A14 & A17 to this OA; Demand Promissory Note, Form No.103, Form No. 106, Form No.122, Form No. 126, Form No.216, Form No.291, Form No.412, Letter of Continuity, Letter of Consent, Undertakings, Guarantee Agreement, Consent Clause, all dated 30.03.2013, which are Annexures A21 to A29, A32 to A36 and A40 to A43 to this OA; Balance and Security Confirmation Letter dated 14.10.2015, which is Annexure 44 to this OA; Balance and Security Confirmation Letter dated 22.05.2017, which is Annexure A45 to this OA; Balance and Security Confirmation Letter dated 30.12.2019, which is Annexure A46 to this OA; Revival Letters dated 24.11.2022, which is Annexure A47 to this OA; Legal Notice dated 25.11.2023 along with postal receipts, which is Annexure A48 to this OA; Demand Notice dated 14.06.2024 u/s 13(2) of SARFAESI Act, along with postal receipts, which is Annexures A49 to this OA; Possession Notice dated 06.09.2024 along with postal receipts, which is Annexure A50 to this OA; Sale Notice dated 06.02.2025, along with postal receipts, which is Annexure A51 to this OA; Recall Notice dated 13.10.2025, along with postal receipts, which is Annexure A52 to this OA; Statement of Account with certificate, which are Annexures A53 and A54 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was debit of Rs.61,56,932.97 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 07.01.2026 7. In support of the OA, affidavit of Sh. Hitesh Kumar, Chief Manager, Punjab and Sind Bank the applicant 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
5 OA.NO/1617/2025 PUNJAB AND SIND BANK VS. M/S R.K. SHUBH FABRICS AND OTHERS
Annexures A1 to A54 to this OA, it is proved that the defendants 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. 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 of Rs.61,56,932.97 (Rupees Sixty One Lacs Fifty Six Thousand Nine Hundred Thirty Two and Paise Ninety Seven 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.
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 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 uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amounts ordered vide this final order. It is ordered accordingly.
6 OA.NO/1617/2025 PUNJAB AND SIND BANK VS. M/S R.K. SHUBH FABRICS AND OTHERS
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 05.03.2026. 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: 17.02.2026.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant proved its case for recovery of the outstanding loan amount despite the defendants not appearing.
What rate of interest the Tribunal should order for the pending loan account considering market conditions.
2 provisions across 2 enactments
PUNJAB AND SIND BANK
M/s R.K. Shubh Fabrics
Sh. Shubh Jain
Sh. Kimat Rai Jain
Smt. Samta Jain
Sh. Chaman Lal
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
