Allowed

Punjab National Bank v. M/S Shree Krishna Corporation

DRT9 Feb 2026OA/203/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 40,36,033 with interest against the defendant and its legal heirs, permitting recourse to hypothecated assets and directing issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 40,36,033 with interest allowed; liability of heirs limited to inherited property; recovery certificate issued; assets to be sold.

Punjab National Bank versus M/S Shree Krishna Corporation — Succession and Inheritance | 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: 203 of 2024 Date of Institution: 24.01.2024 Date of Decision: 09.02.2026

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Punjab National Bank having its branches all over India and a branch at New Jawahar Nagar, Jalandhar, Punjab.

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……..Applicant

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Vs.

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M/s Shree Krishna Corporation, through its proprietorship Sh. Sanjeev Sharma since deceased through Legal heirs

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a. Sh. Ayushman Bhanot S/o late Sh. Sanjeev Sharma

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b. Smt. Renu Sharma W/o late Sh. Sanjeev Sharma

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c. Sh. Lavanya Bhanot late Sh. Sanjeev Sharma

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having office at 11-LR, Model Town, Mall Road, Jalandhar, Punjab.

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Address 2: H No. 22 Geeta Colony, Basti Sheikh, Kala Sanghia Road, Jalandhar, Punjab.

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……….Defendant

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Advocates

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Ms. Anuradha Gupta, Counsel for the applicant bank. Defendant - ex parte .

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OA for the Recovery of ₹40,36,033/- with interest @10.65% per annum with monthly rests from 24.01.2024.

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ORDER

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Punjab National Bank (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹40,36,033/- with interest against M/s Shree Krishna Corporation through its proprietor (defendant).

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Bank’s case is that on 21.11.2019, it had granted a loan of ₹9.90Lacs to defendant through its proprietor Sanjeev Kumar in the form of C.C Limit for business purpose. On 25.03.2021, the limit was enhanced from ₹9.90Lacs to ₹20.00Lacs. Again, on 14.02.2022, the limit

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was enhanced from ₹20.00Lacs to ₹50.00Lacs. To secure the loan, Defendant no.1 had hypothecated assets (fully detailed in para No.3A of the application). The loan was chargeable to interest @10.65% per annum with monthly rests. The defendant had acknowledged the liability towards the debt on 16.02.2022. On 31.12.2023, a sum of ₹40,36,033/was due from the defendant. Despite repeated requests, defendant did not make the repayment. Hence, this application.

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On 20.02.2024, summons was sent to the defendant by registered post, which was duly served. However, defendant did not put in appearance. Vide order dated 24.01.2025, he proceeded was ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Surender Kumar, Authorised Officer along with the loan and security documents and marked them as Exhibit A-1 to A-17.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of ₹50.00lacs and on 31.12.2023, a sum of ₹40,36,033/- was due.

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Accordingly, the application of the bank for the recovery of ₹40,36,033/- (Rupees Forty Lacs Thirty Six Thousand and Thirty Three Only) with interest @10.65% per annum with monthly rests from 24.01.2024, till the date of payment is hereby allowed with costs. The liability of the legal heirs of the proprietor Sanjeev Kumar would be limited to the extent of property inherited by them. Bank can recover its dues by the sale of hypothecated assets fully detailed in para No.3A of the application.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Party is directed to appear before Recovery Officer on 18.03.2026, who is directed to distribute the sale proceeds of the hypothecated assets as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the party.

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Pronounced in the open Court. (A S Narang) Dated: 09.02.2026 Presiding Officer DRT-1, Chandigarh Amanpreet (Law Researcher)

Punjab National Bank v. M/S Shree Krishna Corporation

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Shree Krishna Corporation

Case brief

What is this about?

What did the court decide?

What the court decided

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