Allowed

Punjab National Bank (Oriental Bank of Commerce) v. M/S Bhalla Khad Store

DRT27 Jul 2026OA/1781/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal adjudicated an application by Punjab National Bank for recovery of a loan. Relying on admitted documents where defendants failed to appear, the Tribunal allowed the recovery of debt plus interest.

What did the court decide?

Application for recovery of ₹41,42,636.53 plus interest at 9.75% with monthly rests from 26.08.2022 allowed with costs; Recovery Certificate issued.

Punjab National Bank (Oriental Bank of Commerce)… — Contract and Commercial Disputes | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 1781/2022 Date of Institution: 26.08.2022 Date of Decision: 27.07.2026

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Punjab National Bank (erstwhile Oriental Bank of Commerce) having its branches all over India and a branch at Roshan Road, Near Bus Stand, District Hoshiarpur, Punjab.

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……..Applicant

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Vs.

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M/S Bhalla Khad Store, through its proprietor Sh. Sanjeev Bhalla, r/o VPO Rajpur Bhawan, District Hoshiarpur, Punjab.

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Sh. Sanjeev Bhalla (Proprietor) M/S Bhalla Khad Store, s/o Sh. Jang Bahadur Bhalla, r/o H.No.320, Street 8, Kamalpur, District Hoshiarpur, Punjab.

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……….Defendants

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Advocates

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Sh. S.N. Sharma proxy for Sh. M.N. Sharma, Counsel for the applicant bank along with Sh. Gagandeep Singh, Senior Manager for the applicant bank.

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Defendants- ex parte vide order dated 24.01.2025 .

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OA for the Recovery of ₹41,42,636.53p with interest @9.75% per annum with monthly rests from 26.08.2022.

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ORDER

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Punjab National Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹41,42,636.53p with interest against M/S Bhalla Khad Store and another (defendants).

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Bank’s case is that on 27.05.2006, it had granted a loan of ₹20.00 Lacs to defendant No.1 through its proprietor defendant No.2 in the form of C.C Limit for Business purpose. To secure the loan, Defendant No.2 had mortgaged his property and hypothecated assets (fully detailed in para No.3A of the application). The loan was renewed from time to time.

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¶18

On 02.02.2011, at the request of the defendants, bank enhanced the existing C.C. Limit from ₹20.00 Lacs to ₹25.00 Lacs. On 20.12.2011, at the request of the defendants, bank enhanced the existing limit from ₹25.00 Lacs to ₹32.00 Lacs. Again on 29.08.2013, at the request of the defendants, bank enhanced the existing limit from ₹32.00 Lacs to ₹38.00Lacs. The limit was lastly renewed on 29.01.2015 at ₹38.00Lacs. The loan was chargeable to interest @9.75% per annum with monthly rests. Defendants had duly acknowledged their liability towards the debt on 29.08.2013, 29.01.2015, 12.01.2018, 24.07.2018 and 02.12.2019. On 31.07.2022, a sum of ₹41,42,636.53p was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 08.09.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 24.01.2025, they were proceeded ex parte .

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4. In order to prove its case, the Bank has placed on record the
affidavit of Sh. Gaurav Chaurasia, Senior Manager along with the loan
and security documents and marked them as Exhibit A-1 to A-47.
5. I have perused the evidence on the record. Sh. Gagandeep Singh,
Senior Manager is present with the original documents which have been
perused by me. The same have been returned to him after perusal. I am
of the considered view that the Bank has proved its case that it had
advanced the loan of ₹38.00 Lacs (enhanced from ₹20.00 Lacs) and on
31.07.2022, a sum of ₹41,42,636.53p was due.
6. Accordingly, the application of the bank for the recovery of
₹41,42,636.53p (Rupees Forty One Lacs Forty Two Thousand Six
Hundred Thirty Six and Paise Fifty Three Only) with interest @9.75%

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¶22

per annum with monthly rests from 26.08.2022, till the date of payment is hereby allowed with costs. The liability of both the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property and hypothecated assets fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 31.08.2026, who is directed to distribute the sale proceeds of the mortgaged property and hypothecated assets as per the provisions of Section 19(20-AB) of the Act .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties.

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Pronounced in the open Court. (A S Narang) Dated: 27.07.2026 Presiding Officer DRT-1, Chandigarh

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MANOJ KALRA

Punjab National Bank (Oriental Bank of Commerce) v. M/S Bhalla Khad Store

Case brief

What is this about?

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Punjab National Bank (Oriental Bank of Commerce) v. M/S Bhalla Khad Store

Case brief

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