Allowed

Punjab National Bank (Oriental Bank of Commerce) v. Davinder Mann

DRT22 May 2026OA/508/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of dues totaling approximately Rs.27.90 lakhs. The defendant, having failed to appear and defend the claim despite notice, was proceeded against ex-parte. The court issued a final order directing payment and the sale of mortgaged properties.

What did the court decide?

Direction to pay Rs. 27,90,400.80 with interest and costs; failure to pay allows recovery via sale of mortgaged shops and other properties.

Punjab National Bank (Oriental Bank of Commerce) versus… — Banking and Recovery | DRT (2026)

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O.A. No. 508 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.508 of 2023

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Punjab National Bank

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(e-Oriental Bank of Commerce)

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

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Applicant

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Versus

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Sh.Davinder Mann s/o Samar Singh Mann Proprietor of M/s Advance Sales Corporation H.No.441, Baroda Road, Ward No.4 Gohana, Sonipat, Haryana-131301

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Also at:

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Sh.Davinder Mann s/o Samar Singh Mann Khasra No.145/1, Khera Kalan Delhi-110082

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Defendant

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Present: Sh.Puneet Pankaj, Counsel for the applicant bank

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Date of Reserve: 07.05.2016

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Date of Pronouncement: 22.05.2026

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FINAL ORDER

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This original application has been filed by the applicant bank on 01.05.2023 under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendant for recovery of Rs.27,90,400.80 (Rupees Twenty Seven Lacs Ninety Thousand Four Hundred & paisa Eighty only) as on 31.03.2023 along with pendentelite and future interest with monthly rests plus 2@ penal interest till the date of its realization and costs.

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O.A. No. 508 of 2023

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The brief facts of the case are that on the request of the defendant vide loan application dated 17.10.2015, the applicant bank sanctioned Cash Credit Hypothecation facility of Rs.20,00,000/- (Rupees Twenty lacs only) on 05.11.2015 @11.45% interest per annum against hypothecation of stock and mortgage of two adjoining shops at Sohana, Sonipat, Haryana owned by defendant. The applicant bank renewed the cash credit facility on 08.08.2017 and on 26.07.201.9 @10.65% interest per annum.

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That in order to avail the credit facility, the defendant submitted loan application dated 17.10.2015 and Sanction Letters with Terms and Conditions, executed Sole Proprietorship Letter, Agreement of Hypothecation of Assets and Affidavits on 06.11.2015, 08.08.2017 and 26.07.2019.

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That in order to secure the credit facility, the defendant created charge over the mortgaged property of Two adjoining shops with Old No.14 & 15, New No.90/7 and 91/7 on the Plot measuring 31 sq.yds situated at Old Bus Stand, Old Tehsil Road, Gohana, Sonipat, Haryana by depositing Gift Deed in favour of the applicant bank.

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It has been submitted by the applicant bank that after availing the loan facility, the defendant failed to comply with the terms and conditions of sanction and failed to deposit the interest in the account to regularization of the account with the applicant bank despite requests made. Due to financial indiscipline, the account of defendant was classified as NPA on 31.03.2021 by the applicant bank and requested for regularization of the account but defendant willfully neglected to pay the overdue amount.

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5C1—

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O.A. No. 508 of 2023

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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 15.06.2021 was issued to the defendant but failed to clear the dues. Hence, the applicant bank has approached this tribunal for recovery of its dues.

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The defendant acknowledged the debt towards applicant bank vide acknowledgement letter dated 25.03.2021.

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Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 28.05.2025, the defendant has 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 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 Letter, Affidavits, Sole Proprietorship Letter, Agreement of Hypothecation of Assets, Copy of Gift Deed, Sanction Letter dated 08.08.2017 and 26.07.2019, Acknowledgement Letter, Demand Notice u/s 13(2), Certified Statement of Account under Bankers' Books Evidence Act and Information Technology Act and Statement of Account with Calculation Sheet marked as Ex.AW1/1 to Ex.AW1/13 (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 approved.

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5d-

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O.A. No. 508 of 2023

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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 defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.27,90,400.80 (Rupees Twenty Seven Lacs Ninety Thousand Four Hundred & paisa Eighty only) as on 31.03.2023 together with pendentelite and future interest @12.65% per annum with monthly rests from 01.04.2023 till the date of realization and costs; failing which the amount shall be recovered from sale of Two adjoining shops with Old No.14 & 15, New No.90/7 and 91/7 on the Plot measuring 31 sq.yds situated at Old Bus Stand, Old Tehsil Road, Gohana, Sonipat, Haryana. 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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(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 21.07.2026.

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O.A. No. 508 of 2023

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

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)-0 ,6 (GOVIND BALIWL31- HARMA) PRESIDING OFFICER DRT-I, DELHI

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(Dictated and pronounced in open court) Dated: 22.05.2026

Punjab National Bank (Oriental Bank of Commerce) v. Davinder Mann

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. Davinder Mann

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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