Allowed

Punjab National Bank v. M/S India Agro Service Centre

DRT15 Apr 2026OA/351/2022

Case brief

AI extract

What is this about?

The DRT allowed the DRT application filed by Punjab National Bank for recovery of ₹26,26,739/- with interest against the respondents who failed to honour a term loan and security. The debt was acknowledged by respondents earlier but remained unpaid.

What did the court decide?

Recovery of ₹26,26,739/- with interest allowed. Sale of mortgaged hypothecated assets directed to recover dues. Recovery Certificate issued.

Punjab National Bank versus M/S India Agro Service Centre — Banking and Recovery | 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: 351/2022 Date of Institution: 17.02.2022 Date of Decision: 15.04.2026

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Punjab National Bank having its branches all over India and a branch at Bassi Pathana, District Fatehgarh Sahib, Punjab.

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……..Applicant

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Vs.

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M/s India Agro Service Centre, Old Anaj Mandi, Bassi Pathana, Tehsil Bassi Pathana, District Fatehgarh Sahib, Punjab, through its partners;

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Sh. Raj Kumar s/o Sh. Krishan Lal, r/o Mohalla Gilizian, Bassi Pathana, District Fatehgarh Sahib, Punjab, partner of M/s India Agro Service Centre.

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Sh. Gulshan Kumar s/o Sh. Nand Lal, r/o H.No.34, Ward No.9, r/o Mohalla Gilizian, Bassi Pathana, District Fatehgarh Sahib, Punjab, partner of M/s India Agro Service Centre.

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……….Defendants

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Advocates

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Sh. Karan Dev Ray proxy counsel for Sh. Arun Sharma, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 16.11.2023 .

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OA for the Recovery of ₹26,26,739/- with interest @11.35% per annum with monthly rests from 17.02.2022.

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ORDER

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Punjab National Bank has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of ₹26,26,739/- with interest against M/s India Agro Service Centre and others (defendants).

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Bank’s case is that on 26.08.2008, it had granted a loan of ₹9.00 Lacs to defendant No.1 through its partners i.e. defendant Nos. 2 & 3 in the form of C.C Limit for Business purpose. Defendant Nos.2 and 3

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stood as guarantors for the above said C.C. Limit of ₹9.00 Lacs vide guarantee agreements dated 26.08.2008, (Annexure A-05, A-06). The above mentioned C.C. Limit was enhanced from ₹9.00 Lacs to ₹14.00 Lacs vide Sanction/enhancement Letter dated 29.05.2014. To secure the loan, Defendant Nos.2 and 3 had mortgaged their property(ies) (fully detailed in para No.3A of the application). Defendant Nos. 2 and 3 also stood as guarantors for the enhanced limit of ₹14.00 Lacs vide deed of guarantee dated 29.05.2014, (Annexures A-13, A-14). The loan was chargeable to interest @11.35% per annum with monthly rests. On 31.01.2022, a sum of ₹26,26,739/- was due from the defendants. The defendants had duly acknowledged their liability towards the debt on 25.07.2011 & 14.10.2013 & 02.01.2019 18.02.2019. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 28.03.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 16.11.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Sh. Ram Karan Ghavri, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-21. 5. 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 ₹14.00 Lacs (enhanced from ₹9.00 Lacs) and on 31.01.2022, a sum of ₹26,26,739/- was due. 6. Accordingly, the application of the bank for the recovery of ₹26,26,739/- (Rupees Twenty Six Lacs Twenty Six Thousand Seven Hundred Thirty Nine Only) with interest @11.35% per annum with

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monthly rests from 17.02.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged property fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of. 8. Recovery Certificate be issued accordingly. 9. Parties are directed to appear before Recovery Officer on 18.05.2026, who is directed to distribute the sale proceeds of the mortgaged property and 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 parties.

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Pronounced in the open Court. (A S Narang) Dated: 15.04.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Punjab National Bank v. M/S India Agro Service Centre

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S India Agro Service Centre

Case brief

What is this about?

What did the court decide?

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