Allowed

Punjab National Bank v. M/S Groove Hospitality and Others

DRT8 Jul 2026OA/485/2026

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of outstanding dues of approximately Rs. 2.34 crore. The tribunal standardized the interest rate to 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; liability for Rs.2.34 crore with 8% p.a. interest decreed; liberty to enforce via SARFAESI Act or asset attachment.

Punjab National Bank versus M/S Groove Hospitality and Others — Company and Corporate | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 485/2026

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.03.2026

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DATE OF DECISION: 08.07.2026

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Punjab National Bank (A body corporate, constituted under the Banking Companies (Acquisition & Transfer of undertakings) Act of 1970) Having Its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi, 110075. And Its Branch Office At Punjab National Bank, ARMB, First Floor, Site No. 5, 1st Floor, Ferozepur Road, District Ludhiana-141003 Through Its Authorized Representative Sh. Neeraj Sharma, Senior Manager, Punjab National Bank, ARMB, First Floor, Site No. 5, 1st Floor, Ferozepur Road, District Ludhiana-141003.

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……..Applicant

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Versus

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M/s The Groove Hospitality, SCO. 62, Central Plaza, Sector 105, EMAAR MGF, Mohali, SAS Nagar-140307.

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Also at: Prism (Night Club & Bar) 6th Floor, Mohali Walks Mall, Sector 62, Mohali, SAS Nagar-160062.

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Represented though its partners.

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Sh. Akul Bajaj S/o Sh. Ravi Kant Bajaj R/o B-14, 401, Nirmal Chhaya Tower, VIP Road, Tehsil Zirakpur, District SAS Nagar140603.

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Sh. Abhinav Bajaj S/o Sh. Rajnish Kant Bajaj R/o 1600, 2nd Floor, Connaught Residency, Sector 74-A, Mohali, SAS Nagar160055.

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Sh. Sukhtarandeep Singh S/o Sh. Atwinder Singh, H.No.19, Palm City, Sector 127, Mohali, SAS Nagar-140301.

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.……Defendants

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate for applicant (through VC) None for Defendants (already ex parte vide order dated 06.07.2026)

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2 OA/ 485/2026 PUNJAB NATIONAL BANK VS M/S GROOVE HOSPITALITY AND OTHERS

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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.2,34,82,493.72 (Rupees Two Crore Thirty Four Lac Eighty Two Thousand Four Hundred Ninety Three and Paise Seventy Two Only). The Original Application has been filed through Sh. Neeraj Sharma, Senior Manager , of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 26.12.2019 executed by the Applicant Bank in favour of Mr. Neeraj Sharma, 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 partners defendant nos. 2 to 4, approached the applicant for grant of Term Loan of Rs.180.00 lacs and CC Limit of Rs.20.00 lacs under CGTMSE Scheme.

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Thereafter, the defendant no.1, through its partners defendant nos. 2 to 4, again approached the applicant for grant of additional Term Loan of Rs.60.00 lacs.

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The applicant sanctioned Term Loan of Rs.180.00 lacs and CC Limit of Rs.20.00 lacs vide Sanction Letter dated 02.03.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Thereafter, the applicant sanctioned additional Term Loan of Rs.60.00 lacs vide Sanction Letter dated 21.09.2023, which is Annexure A10 to this OA.

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Thereafter, the applicant sanctioned the renewal of CC Limit of Rs.20.00 lacs and reviewed the Term Loans of Rs.180.00 lacs & Rs.60.00 lacs vide Sanction Letter dated 28.06.2024, which is Annexure A15 to this OA.

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Defendant no.1 hypothecated its entire current assets, fixed assets purchased out of bank finance, present & future stocks, receivables – present & future, arising out of genuine sale transactions

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3 OA/ 485/2026 PUNJAB NATIONAL BANK VS M/S GROOVE HOSPITALITY AND OTHERS

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vide Agreement of Hypothecation of Assets to Secure Term Loan dated 07.03.2023, which is Annexure A5 to this OA; Agreement of Hypothecation of Assets to Secure Term Loan dated 07.03.2023, which is Annexure A6 to this OA; Agreement of Loan/Cash Credit/Overdraft dated 07.03.2023, which is Annexure A7 to this OA;

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Documents executed: Partnership Deed dated 18.10.2022, which is Annexure A2 to this OA; Term Loan Agreement dated 07.03.2023, which is Annexure A4 to this OA; Master Agreement dated 07.03.2023, which is Annexure A8 to this OA; Copies of Agreement of Guarantee dated 07.03.2023, which are Annexure A9 to this OA; Term Loan Agreement dated 21.09.2023, which is Annexure A11 to this OA; Agreement of Hypothecation of Assets to Secure Term Loan dated 21.09.2023, which is Annexure A12 to this OA; Master Agreement dated 21.09.2023, which is Annexure A13 to this OA; Copies of Agreement of Guarantee dated 21.09.2023, which are Annexure A14 to this OA; Legal Notice dated 13.02.2026 along with Postal Receipts, which are Annexure A16 to this OA; Statement of Accounts, which is

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Annexure A17 to this OA

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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.2,34,82,493.72 (Rupees Two Crore Thirty Four Lac Eighty Two Thousand Four Hundred Ninety Three and Paise Seventy 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.

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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 06.07.2026.

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In support of the OA, affidavit of Sh. Neeraj Sharma, Senior Manager , Punjab National Bank, h as been filed.

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4 OA/ 485/2026 PUNJAB NATIONAL BANK VS M/S GROOVE HOSPITALITY AND OTHERS

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Heard ex-parte arguments and perused record.

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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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From the perusal of all the Annexures A1 to A17 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities, which were granted to them. 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, all 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.2,34,82,493.72 (Rupees Two Crore Thirty Four Lac Eighty Two Thousand Four Hundred Ninety Three and Paise Seventy 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 @9.00%p.a. plus 2% penal interest, with monthly rests from 01.02.2026 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 all 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.

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5 OA/ 485/2026 PUNJAB NATIONAL BANK VS M/S GROOVE HOSPITALITY AND OTHERS

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.2,34,82,493.72 (Rupees Two Crore Thirty Four Lac Eighty Two Thousand Four Hundred Ninety Three and Paise Seventy Two Only), jointly and severally, with costs, current and future simple interest @8.00% p.a. in all the loan accounts 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.07.2026 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: 08.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S Groove Hospitality and Others

Case brief

What is this about?

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Punjab National Bank v. M/S Groove Hospitality and Others

Case brief

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