Allowed

Punjab National Bank v. M/S S. B. Sales and Another

DRT8 Sept 2026OA/33/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank against two borrowers for recovery of an outstanding debt of Rs.25,71,900.02. The Tribunal approved the principal amount and granted uniform simple interest at 8% p.a. instead of the claimed rates. It directed the issuance of a Recovery Certificate and authorized enforcement via execution proceedings.

What did the court decide?

Recovery of Rs.25,71,900.02 plus costs and simple interest at 8% p.a. from the date of filing; issuance of Recovery Certificate.

Punjab National Bank versus M/S S. B. Sales and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 33/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.01.2025

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DATE OF DECISION: 08.09.2026

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Punjab National Bank (Transferee Bank of erstwhile Oriental Bank of Commerce), 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 others one at Punjab National Bank, Branch Office Sarabha Nagar, situated at Kipps Market, District Ludhiana (141001), represented through duly constituted Attorney of the Applicant BankSh. Sukhpal Grewal, Son of Sh. Jagwinder Singh, Deputy Manager, presently posted at Branch office at Circle Sastra Center Ludhiana, 1st Floor, Site No-5, situated at Ferozepur Road, Near Wave Mall Ludhiana, District Ludhiana.

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……..Applicant

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Versus

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M/s S.B. Sales through its sole Proprietor Smt. Satwinder Kaur wife of Sh. Jasjit Singh and daughter of Sh. Gurmeet Singh, registered address at:

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1^st Address: Ground Floor-1, Indermehal Market, Gill Road, Near Vishavkarma Chowk, Ludhiana, Punjab-141003.

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2^nd Address: B-16, 1283/1, Street no 8, Muradpura, New Cycle Market, Ludhiana, Punjab-141003.

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Smt. Satwinder Kaur wife of Sh. Jasjit Singh and daughter of Sh. Gurmeet Singh, resident of House no. 84, Punjabi Bagh, Jawaddi, Ludhiana, Punjab-141013.

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.……Defendants

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Advocates:

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Argued by Sh. Kamal, Advocate for applicant (through VC)

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None for Defendants (already ex parte vide order dated 02.09.2026)

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2 OA/ 33/2025 PUNJAB NATIONAL BANK VS M/S S.B. SALES AND ANOTHER

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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.25,71,900.02 (Rupees Twenty Five Lac Seventy One Thousand Nine Hundred and Paise Two Only). The Original Application has been filed through Sh. Sukhpal Grewal, Deputy Manager of the applicant , who is competent to institute the Original Application vide Power of Attorney dated 11.09.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of CC Limit of Rs.10.00 lacs vide Loan Application dated 29.04.2019, which is Annexure A2 to this OA. Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for grant of GECL Loan of Rs.2.00 lacs during period of COVID-19 pandemic vide Application GECL dated 17.06.2020, which is Annexure A6 to this OA. Thereafter, the defendant no. 1, through its proprietor defendant no. 2, approached the applicant for enhancement of CC Limit from Rs.10.00 lacs to Rs.20.00 lacs vide Loan Application for Enhancement dated 29.10.2021, which is Annexure A11 to this OA. 3. The applicant sanctioned the CC Limit of Rs.10.00 lacs vide Sanction Letter dated 30.04.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the GECL Loan of Rs.2.00 lacs during the period of COVID-19 pandemic vide Sanction Letter GECL dated 18.06.2020, which is Annexure A8 to this OA. Thereafter, the applicant sanctioned the enhancement of CC Limit from Rs.10.00 lacs to Rs.20.00 lacs vide Sanction Letter dated 21.12.2021, which is Annexure A12 to this OA. 4. Defendant no. 1, through its proprietor defendant no. 2, hypothecated stock and book debts vide Hypothecation Agreement

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3 OA/ 33/2025

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PUNJAB NATIONAL BANK VS M/S S.B. SALES AND ANOTHER

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dated 30.04.2019, which is Annexure A4 to this OA; Hypothecation Deed dated 18.06.2020, which is Annexure A10 to this OA; Hypothecation Deed dated 23.12.2021, which is Annexure A14 to this OA;

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Documents executed: Common Agreement dated 30.04.2019, which is Annexure A5 to this OA; Undertaking dated 18.06.2020, which is Annexure A7 to this OA; Agreement for WCTL dated 18.06.2020, which is Annexure A9 to this OA; Master Agreement dated 18.06.2020, which is Annexure A9-A to this OA; Loan Agreement dated 23.12.2021, which is Annexure A13 to this OA; Master Agreement dated 23.12.2021, which is Annexure A15 to this OA; Balance and Confirmation Letters (Colly.) dated 31.05.2023 and 22.09.2023, which is Annexure A16 to this OA; Account Statement up to 31.10.2024, which is Annexure A17 to this OA; Banker’s Certificate dated 31.10.2024, which is Annexure A18 to this OA; Demand Notice & Postal Receipts dated 02.12.2024, which is Annexure A19 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.25,71,900.02 (Rupees Twenty Five Lac Seventy One Thousand Nine Hundred and Paise Two Only), which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 02.09.2026. 7. In support of the OA, affidavit of Sh. Sukhpal Grewal, Deputy Manager , Punjab National Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel, through video conferencing, for applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case.

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4 OA/ 33/2025

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PUNJAB NATIONAL BANK VS M/S S.B. SALES AND ANOTHER

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From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the Defendant no. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. The defendants had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,71,900.02 (Rupees Twenty Five Lac Seventy One Thousand Nine Hundred and Paise Two Only), along with interest from the defendants, 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 pendent elite and future rate of interest is concerned, the applicant has claimed interest @11.05% p.a. in CC Limit and @9.25% p.a. in GECL Loan, plus 2.00% p.a. penal interest with monthly rests from 01.11.2024 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, 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 both 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,71,900.02 (Rupees Twenty Five Lac Seventy One Thousand Nine Hundred and Paise Two Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in both the loan accounts from

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OA/ 33/2025

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PUNJAB NATIONAL BANK VS M/S S.B. SALES AND ANOTHER

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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 of the defendant no. 1 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.

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12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.09.2026 15. 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. Pronounced by me in the open Tribunal . Dated: 08.09.2026

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

Punjab National Bank v. M/S S. B. Sales and Another

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Punjab National Bank v. M/S S. B. Sales and Another

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