Allowed

Punjab National Bank v. M/S Shri Chakreshwari Traders and Others

DRT28 Aug 2026OA/1925/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank to recover dues of Rs. 36,38,499.84 from the respondents. The Tribunal found the defendants liable to pay the principal sums with simple interest at 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Declared defendants liable to pay principal sums with 8% p.a. simple interest; issued Recovery Certificate; liberty to recover balance via attachment and sale of assets.

Punjab National Bank versus M/S Shri Chakreshwari Traders and… — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 1925/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.10.2022

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DATE OF DECISION: 28.08.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and a Branch amongst at Mata Rani Road, Ludhiana, Punjab through its duly Constituted Attorney, Sh. Daljit Singh, Manager

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……..Applicant

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Versus

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M/S Shri Chakreshwari Traders situated at MC no. B-XXV-133, St. no. 4 ½ F-3, Santokh Nagar, Back Side Satkartar Nagar School, New Shivpuri, Ludhiana through its Proprietor, Sh. Sanjay Jain

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Sh. Sanjay Jain , S/o Sh. Mahinder Pal Jain, Proprietor M/S Shri Chakreshwari Traders, R/o 133, St. no. 4 ½, Santokh Nagar, Back Side Satkartar Nagar School, New Shivpuri, Ludhiana

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Smt. Ramni Jain, W/o Sh. Sanjay Jain, R /o 133, St. no. 4 ½, Santokh Nagar, Back Side Satkartar Nagar School, New Shivpuri, Ludhiana

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…..Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for applicant

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None for defendants (already ex-parte vide order dated 24.08.2026)

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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. 36,38,499.84 (Rupees Thirty Six

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2 OA NO. 1925/2022 PUNJAB NATIONAL BANK VS. M/S SHRI CHAKRESHWARI TRADERS AND OTHERS

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Lacs Thirty Eight Thousand Four Hundred Ninety Nine and Paise Eighty Four Only). The Original Application has been filed through Sh. Daljit Singh, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of OD Limit of Rs. 26.40 Lacs. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECL Limit of Rs. 5.20 Lacs vide Loan Application dated 04.06.2020, which is Annexure A9 to this OA. Thereafter, in terms of RBI Guidelines, the applicant offered for restructuring of OD Limit into FITL of Rs. 3.88 Lacs.

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The applicant sanctioned OD Limit of Rs. 26.40 Lacs vide Sanction Letter dated 02.11.2019, which is Annexure A2 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned GECL Limit of Rs. 5.20 Lacs vide Sanction Letter dated 06.06.2020, which is Annexure A10 to this OA. Thereafter, defendant no. 2 accepted restructuring of OD Limit to FITL of Rs. 3.88 Lacs vide Offer cum Acceptance Letter dated 17.06.2021, which is Annexure A11 to this OA. Defendant no. 3 stood as guarantor in OD Limit Account.

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Defendant no. 2 mortgaged his immovable property i.e. Land measuring 100 Sq. Yards situated at Sekhowal, Hadbast no. 78, Santokh Nagar, Tehsil and District Ludhiana, Punjab vide Sale Deed dated 19.08.2011 along with its translation, which are Annexure A7 and A7T to this OA.

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Documents executed: PAN Card, which is Annexure A3 to this OA; Agreement, Letter of Hypothecation and Agreement of Guarantee, all dated 05.11.2019, which are Annexure A4 to A6 to this OA;

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3 OA NO. 1925/2022 PUNJAB NATIONAL BANK VS. M/S SHRI CHAKRESHWARI TRADERS AND OTHERS

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Register, which is Annexure A8 to this OA; Master Agreement dated 18.10.2021, which is Annexure A12 to this OA; Statement of Account, which are Annexure A13 to A15 to this OA and Legal Notice dated 11.05.2022, which is Annexure A16 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 the loan accounts there was a debit of Rs. 36,38,499.84, which is recoverable and the defendants were served recall notice but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served summons to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte vide order dated 24.08.2026.

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In support of the OA, affidavit of Sh. Daljit Singh, Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 Annexure A1 to A16 to this OA, it is proved that defendant no. 1 through its Proprietor defendant no. 2 approached applicant for availing of the loan facilities which were granted to them. Defendant no. 3 stood as guarantor in OD Limit Account. Thereafter, applicant offered for restructuring of OD Limit to FITL of Rs. 3.88 Lacs which was accepted by defendant no. 2. Defendants had executed all the relevant documents in favour of the bank. 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

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4 OA NO. 1925/2022 PUNJAB NATIONAL BANK VS. M/S SHRI CHAKRESHWARI TRADERS AND OTHERS

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entitled to recover a sum of Rs. 26,86,436.00 (Rupees Twenty Six Lacs Eighty Six Thousand Four Hundred Thirty Six Only) from defendants and Rs. 9,52,063.84 (Rupees Nine Lacs Fifty Two Thousand Sixty Three and Paise Eighty Four Only) from defendant nos. 1 and 2, along with interest, jointly and severally, from the date of filing of the present Original Application till realization of the amount.

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In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.30%p.a. in OD Limit Account and @9.40% p.a. in GECL Limit Account and @9.65% p.a. in FITL Account plus @2% p.a. penal interest with monthly rests from 30.09.2022 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 hypothecated assets/mortgaged property, 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 Tribunal deems it just and appropriate to grant uniform simple interest @8.00% p.a. in all 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,86,436.00 (Rupees Twenty Six Lacs Eighty Six Thousand Four Hundred Thirty Six Only) and defendant nos. 1 and 2 are liable to pay to the applicant a total sum of Rs. 9,52,063.84 (Rupees Nine Lacs Fifty Two Thousand Sixty Three and Paise Eighty Four Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in all 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 mortgaged property of

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5 OA NO. 1925/2022

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PUNJAB NATIONAL BANK VS. M/S SHRI CHAKRESHWARI TRADERS AND OTHERS

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defendant no. 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2026.

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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 .

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Dated: 28.08.2026

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

Punjab National Bank v. M/S Shri Chakreshwari Traders and Others

Case brief

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Punjab National Bank v. M/S Shri Chakreshwari Traders and Others

Case brief

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