Allowed

Punjab National Bank v. Sar Construction

DRT29 Jun 2026OA/304/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of dues against an absent proprietor of M/s SAR Construction, directing payment within 30 days and initiating recovery proceedings.

What did the court decide?

Defendant directed to pay Rs.33,47,086.85 with interest within 30 days; recovery certificate to be issued; Recovery Officer to direct sale of assets if not paid.

Punjab National Bank versus Sar Construction — Banking and Recovery | DRT (2026)

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O.A. No.304 of 2023

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Debts Recovery Tribunal-I, Delhi 4th floor, Jeevan Tara Building, Parliament Street, New Delhi

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Presiding Officer: Shri Govind Ballabh Sharma

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O.A. No. 304 of 2023

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Punjab National Bank Circle Shastra North Delhi 2nd Floor, Vikrant Tower, Rajendra Palace, New Delhi-110008 Applicant

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Versus

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M/s SAR Construction

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Through its Proprietress of Smt.Sunil Devi Office: C-16, Shaheed Pyare Lal Colony Ghaziabad, UP-201007

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Smt.Sunil Devi w/o Sh.Rajesh Kumar R/o H.No.12, Near Govt. School Kadma (57) Bhiwani, Haryana-127308 Defendant

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Present: Sh.Anshuman Srivastava, Counsel for the applicant bank

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Date of Reserve: 08.06.2026

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Date of Pronouncement: 29.06.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 23.03.2023 through Shri Vivek Kumar, authorized representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act,1993 against the defendant for recovery of Rs.33,47,086.85 (Rupees Thirty Three Lacs Forty Seven Thousand Eighty Six & paisa Eighty Five only) as on 28.09.2021 together with pendentelite and

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O.A. No.304 of 2023

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future interest @9.75% per annum with monthly rests plus @2% penal interest from 28.09.2021 with costs.

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The brief facts of the case are that at the request of defendant as proprietress of M/s SAR Construction vide loan application along with IDs & necessary documents etc., the applicant bank sanctioned Cash Credit facility for Rs.22,00,000/- (Rupees Twenty-Two lacs only) on 14.10.2019 @10.10% interest per annum under SME category against hypothecation of stocks and current assets for enhancement of civil construction items and material business. Further, the defendant also availed GECL loan of Rs.4.00 lacs and CECF Loan of Rs.1.50 lacs on 12.06.2020 and 29.07.2020 respectively as per RBI guidelines due to Covid-19 pandemic from the applicant bank. The defendant agreed to pay penal interest @2% in case of default in repayment of interest etc.

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That in order to avail the credit facilities, the defendant submitted loan application along with necessary documents and No Objection Letter dated 10.10.2019 from husband of defendant and executed Sanction Letters with Terms and Conditions and Hypothecation of Goods, Stocks and Book Debts Agreement together with Loan Agreement on 14.10.2019.

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That in order to secure the credit facilities, the defendant created charge over stocks and book debts by hypothecation agreement in favour of applicant bank.

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It has been submitted by the applicant bank that after availing the loan facility, the defendant failed to honor its commitments to make the payment of overdue interest/installments as per terms and conditions of the sanction. The defendant willfully neglected and failed to clear the overdue despite vigorous follow up and persuasion but no sd-

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O.A. No.304 of 2023

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response. The applicant bank classified the accounts as NPA on 28.09.2021 and now, the applicant bank has approached this tribunal for recovery of their dues.

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The defendant acknowledged and signed Balance and Security Confirmation on 30.09.2022 of debt towards the applicant bank.

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Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 29.01.2025, the defendant has been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendant.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Vivek Kumar, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Loan Application Form, Sanction Letters, No Objection Letter from Husband of Borrower, Hypothecation of Goods, Stocks and Book Debts, Balance & Security Confirmation Letter, Certificate by the Officer/Manager in charge of the Computer System, Certified Bank Statement of Accounts marked as Ex.AW-1/1 to Ex.AW1/8 (Colly).

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The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly proved.

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The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant

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O.A. No.304 of 2023

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bank and the applicant bank has proved its case beyond reasonable doubts.

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In the light of the above discussions, the Original Application deserves to be allowed.

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ORDER

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I, allow this OA and direct the defendant, to pay to the applicant bank within a period of 30 days, a sum of Rs.33,47,086.85 (Rupees Thirty Three Lacs Forty Seven Thousand Eighty Six & paisa Eighty Five only) as on 28.09.2021 together with pendentelite and future interest @11.75% per annum with monthly rests from 28.09.2021 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and current assets etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

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(Ill) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 01.09.2026.

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(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost,

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(GOVIND BALLABH SHARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 29.06.2026

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Punjab National Bank v. Sar Construction

Case brief

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What did the court decide?

Punjab National Bank v. Sar Construction

Case brief

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What did the court decide?

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