Allowed

Punjab National Bank v. Ashfaque Mukhtar Shaikkh

DRT19 Aug 2026OA/520/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of Rs. 39,69,031/- along with future interest. The court upheld the bank's claim, directed payment with interest at 8% per annum, and granted power to sell the mortgaged property.

What did the court decide?

Defendants directed to pay Rs. 39,69,031/- with future interest @ 8% p.a.; recovery certificate issued; power to sell mortgaged property granted.

Punjab National Bank versus Ashfaque Mukhtar Shaikkh — Contract and Commercial Disputes | DRT (2026)

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Presented on: 19.07.2025 Registered on: 20.08.2025 Decided on: 19.08.2026 Duration: Y M D 01 01 00

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IN THE DEBTS RECOVERY TRIBUNAL AT AURANGABAD (Before Dr. J. R. Chauhan Presiding Officer) ORIGINAL APPLICATION No. 520/2025

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TOTAL CLAIM AMOUNT – Rs. 39,69,031/-

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Punjab National Bank,

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A Body Corporate constituted under the Banking companies (Acquisition & Transfer of Undertakings) Act 1970, having its Head Office at Plot No. 4, Sector10, Dwarka, New Delhi-110075, and one of its Samarth Nagar Branch at Aurangabad, through its Authorized Signatory Mr. Anoop Kumar Jaiswar.

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… Applicant

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Versus

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1. Ashfaque Mukhtar Shaikh, Age: Major, Occ.: Business, R/o.: House No. 5-3-62, Near Ismail Kirana Store, Peer Bazar Road, Osmanpura, Aurangabad.

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2. Sameena Begum Ashfaque Shaikh, Age: Major, Occ.: Business, R/o.: House No. 5-3-62, Near Ismail Kirana Store, Peer Bazar Road, Osmanpura, Aurangabad.

(OA No.520/2025)

Page 1 of 7

[AMBADAS]

…Defendants

APPEARANCES

For the Applicant For Defendants

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Mr. Sameer J. Pande -Advocate Ex-parte

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JUDGMENT

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Delivered on 19.08.2026

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The Applicant Bank has filed the present application for the recovery of a sum of Rs. 39,69,031/- (Rupees Thirty Nine Lacs, Sixty Nine Thousand, and Thirty One only), along with future interest from the date of filing of the Original Application, i.e., 19.07.2025, until the date of realization of the entire outstanding dues from the Defendants.

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Brief facts of the application are as under:

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The Applicant Bank states that the Defendant No. 1 had approached and requested the Applicant Bank for Housing Term Loan. Upon considering the request and financial needs of the Defendant, the Applicant Bank sanctioned Housing Term Loan of

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Rs. 28,00,000/- vide sanction letter dated 13.12.2019 on certain

(OA No.520/2025)

Page 2 of 7

[AMBADAS]

terms and condition. The agreed rate of interest was @8.25% p.a.

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The Defendant also agreed to pay additional interest @2% by way

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of liquidated damages in the event of any default in repayment.

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In order to secure the aforesaid loan facility, the Defendant executed various loan documents in favour of the Applicant Bank. These included sanction letter, housing loan agreement, letter of undertaking, deposited of title deed dated 17.12.2019. Additionally defendant No. 2 & 3 stood as guarantors for defendant No. 1 and executed deed of guarantee in favour of the Applicant Bank

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The Applicant Bank further contends that, in order to secure the aforesaid loan facility, the Defendants deposited title deed dated 17.12.2019 in order to create equitable mortgage of immovable property in favour of the Applicant Bank. The mortgage was created in respect of the following property:

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All that piece and parcel of the residential Flat No. A-15 admeasuring 81.78 Sq. Meters, A Wing, ‘Narhari Ghrushneshwar’

(OA No.520/2025)

Page 3 of 7

[AMBADAS]

Apartment, Gut No. 154, Devgiri Valley, Mitmitha, Aurangabad, which is bounded as under:

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North: Balcony, South: Staircase & Flat No. A-14, East: Staircase, West: Wing B.

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The applicant bank contended that the defendants have failed to keep their promise and commitments agreed by them with regard to due repayment of the loan amount. The defendants failed to operate the loan account properly and failed to pay the agreed rate of interest as per terms and conditions of the sanction letter. Thereafter, the applicant bank repeatedly made demand of loan amount and called upon the defendants to pay with the agreed rate of interest thereon, but the defendants failed and neglected to pay the same. The loan account of the defendants became irregular and classified as NPA. Therefore, on 18.03.2025 the applicant bank issued legal notice to the defendants through their advocate. Despite service of Notices, the defendants failed and neglected to repay the outstanding dues of the applicant Bank. Hence, this application is filed.

(OA No.520/2025)

Page 4 of 7

[AMBADAS]

The defendants failed to appear in matter though they were served through RPAD. Hence, the defendants were proceeded exparte as per Order dated 04.05.2026.

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The applicant Bank has filed Evidence Affidavit at Exhibit-4 of Anoop Kumar S/o. Basanta Jaiswar, Senior Manager of the applicant Bank, and has produced on record the original loan transaction documents as Annexure A-1 to A-18 along with list of documents Exh.5 which corroborates the case of the applicant Bank.

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I have heard arguments of the learned Advocate for the applicant Bank.

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Since the defendants failed to appear and did not contest the application, I find no reason to disbelieve the unrebutted evidence of the applicant Bank. Therefore, the applicant Bank is entitled for the reliefs as claimed.

(OA No.520/2025)

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[AMBADAS]

The applicant Bank has claimed charge over immovable property of the borrowers which is mortgaged in favour of the applicant bank.

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The applicant Bank has claimed future interest @15% p. a. from the date of filing i.e. 19.07.2025 of this application till realization of the claim amount. However, considering the facts of the case, I am of the opinion that if future interest is granted @ 8% per annum (simple), it would be just and reasonable rate of interest.

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ORDER

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(A) Original Application No. 520/2025 is allowed with costs.

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(B) The defendants shall pay jointly and severally to the applicant Bank a sum of Rs. 39,69,031/- (Rupees Thirty Nine Lacs, Sixty Nine Thousand, and Thirty One only), along with future interest @ 8% per annum (simple) from the date of filing of the O.A. i.e. 19.07.2025 till full payment/realization of the amount mentioned in this operative order.

(OA No.520/2025)

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[AMBADAS]

(C) The aforesaid adjudicated amount is secured by the mortgage of the following vide document at Annexure A-9 in list of documents Exh. 5.

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All that piece and parcel of the residential Flat No. A-15 admeasuring 81.78 Sq. Meters, A Wing, ‘Narhari Ghrushneshwar’ Apartment, Gut No. 154, Devgiri Valley, Mitmitha, Aurangabad, which is bounded as under:

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North: Balcony, South: Staircase & Flat No. A-14, East: Staircase, West: Wing B.

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(D) The applicant Bank is entitled to sell the mortgaged immovable property, to recover its dues.

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(E) Issue Recovery Certificate accordingly.

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(F) The Registrar is directed to send the copy of the Judgment and Recovery Certificate to the applicant and defendants.

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(G)

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(G) File be consigned to the record room.

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Sd/-

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Pronounced in open court. Place: Aurangabad Date:.19.08.2026

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(Dr. J. R. Chauhan) Presiding Officer Debts Recovery Tribunal, Aurangabad.

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(OA No.520/2025)

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Page 7 of 7

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[AMBADAS]

Punjab National Bank v. Ashfaque Mukhtar Shaikkh

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Punjab National Bank v. Ashfaque Mukhtar Shaikkh

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