Allowed

Punjab National Bank v. Northern Sales Corporation

DRT7 Mar 2026OA/452/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an ex-parte originating application filed by Punjab National Bank against Northern Sales Corporation and partners for recovery of outstanding dues. The bank failed to produce evidence of defendants' default in regularizing the account, leading to NPA status and notice issuance. The court found the case unrebutted.

What did the court decide?

Directed defendants to pay Rs.24,15,774.26 with interest @10.45% per annum and costs within 30 days; directed issuance of recovery certificate.

Punjab National Bank versus Northern Sales Corporation — Banking and Recovery | DRT (2026)

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O.A. No. 452 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.452 of 2023

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Punjab National Bank

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(e-Oriental Bank of Commerce)

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Circle Sastra Center, North Delhi, Vikrant Tower, 2nd Floor, Rajendra Place, New Delhi-110008

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Applicant

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Versus

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Northern Sales Corporation 33-B, Ground Floor and Basement Nagali Razapur, Nizamuddin East Delhi-110013

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Also at: Northern Sales Corporation C-524, Paper Market, Ghazipur Delhi-110096

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Sh. Ved Nivas Upadhyay s/o Sh. Ganga Prasad S-2/121, Sector-2A

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Vaishali, Ghaziabad, UP-201010

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Sh. Laxman Singh s/o Sh. J.S. Kurya S-2/59, Vaishali Ghaziabad, UP-201010 Defendants

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Present: Shri Akshay Goel, Counsel for the applicant bank

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Date of Reserve: 13.02.2026

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Date of Pronouncement: 07.03.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 31.03.2023 through Mr. Vivek Kumar, authorized representative of the applicant bank under Section 19 of

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O.A. No. 452 of 2023

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Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.24,15,774.26 (Rupees Twenty Four Lacs Fifteen Thousand Seven Hundred Seventy Four and paisa Twenty Six only) as on 28.02.2023 @contractual interest from the date of filing this application till the date of realization along with costs.

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The brief facts of the case are that on the request of the defendant no.1 being partnership firm of defendant no.2 and 3 as partners, the applicant bank sanctioned Cash Credit facility of Rs.10,00,000/- (Rupees Ten Lacs only) on 28.06.2016 which was enhanced to Rs.30,00,000/- (Rupees Thirty lacs only) on 17.07.2017 @10.45% interest per annum with monthly rests under MSME Plus scheme against hypothecation of stocks and receivables. Further, on the request of the defendant no.1, the applicant bank sanctioned WCTL under Guaranteed Emergency Credit Line Facility (GECL) for Rs.5,50,000/- on 21.10.2020.

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That in order to avail the loan facilities, the defendants submitted loan application and executed Sanction Letters, Common Agreement, Partnership Letter, Undertaking, Declaration and Agreement of Hypothecation of Stocks, Supplemental Agreement, Agreement for WCTL in favour of the applicant bank on 02.07.2016, 19.07.2017 and 21.10.2020.

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The defendant no.1 through its partners executed a Balance and Confirmation letter on 28.02.2023 in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing the aforesaid loan facilities, the defendant failed to comply with the terms and conditions of sanction and failed to maintain financial discipline for regularization of the account

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O.A. No. 452 of 2023

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with the applicant bank by depositing overdue interest / instalments. The applicant bank classified the account as NPA on 29.12.2021 and issued recall notice dated 01.01.2022 but defendants failed to regularize the accounts. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

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Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 29.11.2022 was issued to the defendants but the defendants not reply to the notice nor clear the dues.

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Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 12.12.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

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In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Mr. Vivek Kumar, authorize representative off the applicant bank who has proved documents such as General Power of Attorney, Loan Applications, Sanction Letters, Common Agreement, Partnership Letter, Undertaking & Declaration Document, Agreement of Hypothecation of Stocks, Supplemental Agreement, Agreement for WCTL, Recall Notice, Notice u/s 13(2) of SARFAESI Act, Balance & Confirmation Letter, Statement of Account duly Certified under Banker's Book of Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/16.

IMP

O.A. No. 452 of 2023

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 approved.

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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 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 defendants to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.24,15,774.26 (Rupees Twenty Four Lacs Fifteen Thousand Seven Hundred Seventy Four and paisa Twenty Six only) together with pendentelite and future interest @10.45% per annum with monthly rests from the date of filing this application till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts etc. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

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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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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 06.05.2026.

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O.A. No. 452 of 2023

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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: 07.03.2026

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Punjab National Bank v. Northern Sales Corporation

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Northern Sales Corporation

Case brief

What is this about?

What did the court decide?

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