Allowed

Punjab National Bank v. Sh. Laxman Prasad Mandal

DRT15 Jun 2026OA/210/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs. 28,11,065.96 from the defendant. The court granted simple interest at 7.35% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 28,11,065.96 with costs and simple interest @ 7.35% p.a. from filing date; issuance of Recovery Certificate.

Punjab National Bank versus Sh. Laxman Prasad Mandal — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.210/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.01.2022

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DATE OF DECISION: 15.06.2026

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi110075 and erstwhile Oriental Bank of Commerce has recently been amalgamated with the applicant i.e. Punjab National Bank w.e.f. 01.04.2020 vide Gazette of India notification GSR 153 (E), GSR 154 (E) and GSR 156 (E) dated 04.03.2020 and amongst others one of its Branch Jamalpur Awana, District Ludhiana, Punjab through its Constituted Attorney, Sh. Dharam Pal Malik, Manager, Circle Sastra Centre, Ludhiana East, Circle Office, PNB Building, Site no. 5, Ferozepur Road, Ludhiana, Punjab

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……..Applicant

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Versus

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Sh. Laxman Prasad Mandal, sole Proprietor of M/S Ram Laxman Construction and Consultant, S/o Sh. Maheshwari Prasad Mandal, R/o Village Kanganwal, P.O. Jugiana, District Ludhiana, Punjab

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….……Defendant

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Advocates:

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Argued by Sh. R.K. Bansal, Advocate proxy for Sh. Harsh Garg, Advocate for applicant

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None for defendant (already ex-parte vide order dated 11.06.2026)

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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 defendant for recovery of Rs. 28,11,065.96 (Rupees Twenty Eight Lacs Eleven Thousand Sixty Five and Paise Ninety Six Only). The Original Application has been filed through Sh. Dharam Pal Malik, Senior Manager o f the applicant who is competent to institute

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2 OA/210/2022 PUNJAB NATIONAL BANK VS. LAXMAN PRASAD MANDAL

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the Original Application vide General Power of Attorney dated 28.02.2003, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant approached the applicant for the grant of OD Limit of Rs. 25.00 Lacs vide Loan Application dated 13.06.2013. 3. The applicant sanctioned OD Limit of Rs. 25.00 Lacs vide Sanction Letter dated 15.06.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant mortgaged his immovable property i.e. Land measuring 600 Sq. Yards situated at Village Kanganwal, Tehsil Ludhiana East, Punjab vide LTD dated 17.06.2013, Letter dated 27.06.2013 and Jamabandi for the year 2005-2006, which are Annexure A9 to A11 to this OA. Defendant hypothecated his book debts of the firm vide Agreement of Hypothecation dated 15.06.2013, which is Annexure A4 to this OA. Documents executed: Notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement of OD, Common Agreement, Sole Proprietorship Letter and Various Undertakings, all dated 15.06.2013, which are Annexure A5 to A8 to this OA; Balance and Security Confirmation Letters dated 29.12.2014, 28.12.2015, 12.12.2018 and 04.03.2020, which is Annexure A12 (Colly) to this OA; Demand Notice dated 10.05.2021, which is Annexure A13 to this OA; Statement of Account with certificate, which is Annexure A14 (Colly) to this OA and Valuations dated 28.01.2019, which is Annexure A15 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 a debit of Rs. 28,11,065.96 which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA/210/2022 PUNJAB NATIONAL BANK VS. LAXMAN PRASAD MANDAL

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The defendant was served summons to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex-parte vide order dated 11.06.2026. 7. In support of the OA, affidavit of Sh. Dharam Pal Malik, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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. From the perusal of all the Annexure A1 to A15 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. 28,11,065.96 (Rupees Twenty Eight Lacs Eleven Thousand Sixty Five and Paise Ninety Six Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the amount. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @7.35%p.a. from 01.01.2022 till realization. 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 defendant, 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 simple interest @07.35% p.a. in the loan account 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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OA/210/2022 PUNJAB NATIONAL BANK VS. LAXMAN PRASAD MANDAL

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,11,065.96 (Rupees Twenty Eight Lacs Eleven Thousand Sixty Five and Paise Ninety Six Only) with costs, current and future simple interest @07.35% p.a. in the loan account 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 assets and mortgaged property of the defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.06.2026.

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Copy of this order be given Dasti to the applicant and be sent to defendant 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: 15.06.2026

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Laxman Prasad Mandal

Case brief

What is this about?

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Punjab National Bank v. Sh. Laxman Prasad Mandal

Case brief

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