Allowed

Punjab National Bank v. M/s Krishna Enterprises and Another

DRT28 Aug 2026OA/567/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte application filed by Punjab National Bank against M/s Krishna Enterprises for recovery of a defaulted loan amount of Rs.23,01,205.81. The court decreed payment with uniform interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Defendants declared liable to pay Rs.23,01,205.81 with costs and simple interest at 8% p.a.; Recovery Certificate issued.

Punjab National Bank versus M/s Krishna Enterprises and Another — Banking and Recovery | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.567/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.05.2025

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DATE OF DECISION: 28.08.2026

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi - 110075 and a branch amongst at Loha Bazar, Dhuri, District Sangrur, through General Power of Attorney Holder, Sh. Deepak Chhinwal, Senior Manager and Constituted Attorney presently posted at Circle SASTRA Centre, Patiala.

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……..Applicant

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Versus

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M/s Krishna Enterprises, situated at Green City, Sangrur Road, Dhuri, Sangrur -148024 through its proprietor Smt. Neha Gupta W/o Sh. Pankaj Gupta.

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Alternative Address:- H. No.309-8, Preet Vihar Colony, Sangrur Road, Dhuri, District Sangrur.

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Smt. Neha Gupta W/o, Sh. Pankaj Gupta, R/o H. No.309-8, Preet Vihar Colony, Sangrur Road, Dhuri, District Sangrur.

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……. .Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant

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None for defendants (Already ex-parte vide order dated 24.08.2026).

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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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.23,01,205.81 (Rupees Twenty Three Lacs One Thousand Two Hundred Five and Paise Eighty One Only). The Original Application has been filed through Sh. Deepak

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2 OA NO.567/2025 PUNJAB NATIONAL BANK VS M/S KRISHNA ENTERPRISES AND ANOTHER

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Chhinwal, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, dated 29.11.2024, 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 proprietor defendant no. 2 a pproached the applicant for grant of Cash Credit Limit of Rs.10,00,000.00 vide Application Form for Credit Facilities, dated 10.11.2020, which is Annexure A2 to this OA.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for grant of Working Capital Term Loan Facility of Rs.2,98,000.00 vide Application Form, dated 22.11.2021, which is Annexure A8 to this OA.

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Thereafter, the defendant no. 1 through its proprietor defendant no. 2 approached the applicant for enhancement of Cash Credit Limit from Rs.10,00,000.00 to Rs.20,00,000.00 vide Application Form for MSME Loan, dated 21.07.2024, which is Annexure A15 to this OA. 3. The applicant sanctioned the Cash Credit Limit of Rs.10,00,000.00 vide Sanction Letter, dated 13.11.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2 vide Credit Facility Sanctioned in our favour, dated 13.11.2020, which is Annexure A4 to this OA.

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Thereafter, t he applicant sanctioned the Working Capital Term Loan Facility of Rs.2,98,000.00 vide Sanction Letter, dated 23.11.2021, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Thereafter, the applicant enhanced the Cash Credit Limit from Rs.10,00,000.00 to Rs.20,00,000.00 vide Sanction Letter, dated 30.07.2024, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendant no. 1 through its proprietor defendant no. 2. Defendant no. 2 stood as guarantor.

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3 OA NO.567/2025 PUNJAB NATIONAL BANK VS M/S KRISHNA ENTERPRISES AND ANOTHER

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Defendant no. 1 through its proprietor defendant no. 2 hypothecated its stocks and book debts, vide Hypothecation of Goods and Book Debt to secure Cash Credit Facility, dated 13.11.2020, 02.08.2024, which are Annexures A5 & A17 to this OA. Documents executed: Undertaking, Master Agreement, both dated 13.11.2020, which are Annexures A6 & A7 to this OA; Agreement for Working Capital Term Loan, Master Agreement, Demand Promissory Note, Undertaking by the borrower, all dated 23.11.2021, which are Annexures A10 to A13 to this OA; Balance and Security Confirmation Letter, dated 29.05.2023, which is Annexure A14 to this OA; Agreement for Loan/Cash Credit/Overdraft, Supplementary Agreement, Master Agreement, Agreement of Guarantee, dated 02.08.2024, which are Annexures A18 to A21 to this OA; Recovery Notice, dated 26.11.2024, which is Annexure A22 to this OA; Notice u/s 13(2), dated 10.01.2025, along with postal receipts, which is Annexure A23 to this OA; Statement of Accounts along with certificate, which are Annexures A24 & A25 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in the loan accounts there was a debit of Rs.23,01,205.81, 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. 6. 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 24.08.2026. 7. In support of the OA, affidavit of Sh. Deepak Chhinwal, Senior Manager , Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel 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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4 OA NO.567/2025 PUNJAB NATIONAL BANK VS M/S KRISHNA ENTERPRISES AND ANOTHER

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From the perusal of all the Annexures A1 to A25 to this OA, it is proved that the defendant no. 1 through its proprietor defendant no. 2 a pproached applicant for availing of loan facilities which were granted to them, defendant no. 2 stood as guarantor and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, loan accounts were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,01,205.81 (Rupees Twenty Three Lacs One Thousand Two Hundred Five and Paise Eighty One 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 pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.35%p.a. in Cash Credit Limit and interest @9.25%p.a. in WCTL Facility, with monthly rests, with penal interest @2% 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 both 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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant sum Rs.23,01,205.81 (Rupees Twenty Three Lacs One Thousand Two Hundred Five and Paise Eighty One Only), jointly and severally, with costs, current and future

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5 OA NO.567/2025 PUNJAB NATIONAL BANK VS M/S KRISHNA ENTERPRISES AND ANOTHER

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simple interest @8.00%p.a. in both 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 stocks and book debts of defendant no. 1 i n 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 . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2026. 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: 28.08.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/s Krishna Enterprises and Another

Case brief

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Punjab National Bank v. M/s Krishna Enterprises and Another

Case brief

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