Allowed

Punjab and Sind Bank v. M/S Goyal Trading Company and Another

DRT7 Jul 2026OA/60/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab & Sind Bank for recovery of Rs. 24,93,933.62 from M/s Goyal Trading Company and its legal heir. The tribunal proceeded ex-parte and granted an 8% per annum interest rate for the loan account.

What did the court decide?

Order for payment of principal amount of Rs. 24,93,933.62, costs, and simple interest at 8% per annum; issue of Recovery Certificate.

Punjab and Sind Bank versus M/S Goyal Trading Company and… — Specific Performance | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.60/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 17.01.2025

¶5

DATE OF DECISION: 07.07.2026

¶6

Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Act No. 40 of 1980) with its Head Office at 21, Rajindera Place, New Delhi and Branches amongst other places, one at Sunam, District Sangrur through its Constituted Attorney Sh. Arshpreet Singh, Chief Manager.

¶7

……..Applicant

¶8

Versus

¶9

M/s Goyal Trading Company, Seta Sar Road, Sunam, District Sangrur through its proprietor Sh. Ashu Goyal S/o Sh. Subash Kumar, R/o Kolia Muhala, Seta Sar Road, Chohatta Bazar Sunam, District Sangrur (Since deceased), represented through his legal heir Smt. Suman Gupta W/o Sh. Ashu Goyal, R/o Kolia Muhala, Seta Sar Road, Chohatta Bazar Sunam, District Sangrur 148028.

¶10

Sh. Ashu Goyal S/o Sh. Subhash Kumar, R/o Kolia Muhala, Seta Sar Road, Chohatta Bazar Sunam, District Sangur (Since deceased), represented through his legal heir Smt. Suman Gupta W/o Sh. Ashu Goyal, R/o Kolia Muhala, Seta Sar Road, Chohatta Bazar Sunam, District, Sangrur 148028.

¶11

……..Defendants

¶12

Advocates:

¶13

Argued by Sh. Ranvir S Chauhan, Advocate for the applicant (through

¶14

VC)

¶15

None for Defendants (Already ex-parte vide order dated 04.07.2026).

¶16

FINAL ORDER

¶17

Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act 1993, against the defendants for recovery of Rs.24,93,933.62 (Rupees Twenty Four Lacs Ninety Three Thousand Nine Hundred Thirty Three and Paise Sixty Two Only). The Original Application has been filed

¶18

2 OA NO.60/2025 PUNJAB AND SIND BANK VS M/S GOYAL TRADING COMPANY AND ANOTHER

¶19

through Sh. Arshpreet Singh, Chief Manager of the applicant bank, who is competent to institute the Original Application vide Letter of Authorization dated 08.08.2024 and Power of Attorney dated 01.04.2017, which are Annexures A1 & A2 to this OA.

¶20

The brief facts of the OA are that the defendant no. 1 through its proprietor Sh. Ashu Goyal (since deceased) and Sh. Ashu Goyal (since deceased) in his individual capacity approached the applicant for grant of Cash Credit Limit of Rs.25,00,000.00.

¶21

The applicant sanctioned the Cash Credit Limit of Rs.25,00,000.00 vide Sanction Letter dated 24.01.2023, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Sh. Ashu Goyal (since deceased) stood as guarantor.

¶22

Defendant no. 1 through its proprietor Sh. Ashu Goyal (since deceased) hypothecated its stocks and book debts vide Cash Credit (Hypothecation) & Book Debt Facility Agreement dated 06.02.2023, which is Annexure A4 to this OA.

¶23

Documents executed : Deed of Hypothecation, Agreement of Guarantee, Undertaking, Miscellaneous Undertaking, Certificate of Execution of Documents, all dated 06.02.2023, which are Annexures A5 to A9 to this OA; Promissory Notice, Letter of Undertaking (F-159), Letter of Continuous, Balance and Security Confirmation Letter, all dated 04.08.2023, which are Annexures A10 to A13 to this OA; Death Certificate 08.05.2023, which is Annexure A14 to this OA; Legal Notice dated 20.04.2024, along with postal receipt, which is Annexure A15 to this OA; Statement of account along with Interest Chart and certificate, which are Annexures A16 to A18 to this OA.

¶24

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account, there was a debit of Rs.24,93,933.62, 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.

¶25

3 OA NO.60/2025 PUNJAB AND SIND BANK VS M/S GOYAL TRADING COMPANY AND ANOTHER

¶26

The defendants were served summons to appear before this Tribunal, but no one appeared on behalf of the defendants. Thereafter, OA was dismissed for default of applicant on 29.05.2025. Again the OA was restored on its Original Number vide order dated 23.01.2026 passed in MA no. 84/2025. Thereafter, notices of restoration of OA were sent to defendants. After the service of notices upon defendants no one appeared on behalf of the defendants. Therefore, defendants were proceeded ex-parte vide order dated 04.07.2026.

¶27

In support of the OA, affidavit of Sh. Arshpreet Singh, Chief Manager, Punjab and Sind Bank h as been filed.

¶28

Heard ex-parte arguments and perused record.

¶29

It was argued by learned counsel for applicant through video conferencing that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendant no. 1 through its proprietor Sh. Ashu Goyal (since deceased) and Sh. Ashu Goyal (since deceased) in his individual capacity approached applicant for availing of the loan facility, which was granted to them, Sh. Ashu Goyal (since deceased) 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 loan as per terms and conditions of the agreement between the parties. Subsequently, loan account was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,93,933.62 (Rupees Twenty Four Lacs Ninety Three Thousand Nine Hundred Thirty Three and Paise Sixty 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.

¶30

In so far as pendente lite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.25%p.a. with monthly rests with penal interest @2.00% from 01.09.2024 till the realization.

¶31

4 OA NO.60/2025 PUNJAB AND SIND BANK VS M/S GOYAL TRADING COMPANY AND ANOTHER

¶32

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 loan 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 simple interest @08.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶33

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,93,933.62 (Rupees Twenty Four Lacs Ninety Three Thousand Nine Hundred Thirty Three and Paise Sixty Two Only), jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account 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 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.

¶34

12. Any other application pending stands disposed of.

¶35

Issue Recovery Certificate accordingly.

¶36

Parties to appear before Learned Recovery Officer of this Tribunal on 22.07.2026.

¶37

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.

¶38

Pronounced by me in the open Tribunal .

¶39

Dated: 07.07.2026

¶40

5 OA NO.60/2025 PUNJAB AND SIND BANK VS M/S GOYAL TRADING COMPANY AND ANOTHER

¶41

(MRIDULESH KUMAR SINGH)

¶42

Presiding Officer,

¶43

DRT-III, Chandigarh

Punjab and Sind Bank v. M/S Goyal Trading Company and Another

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. M/S Goyal Trading Company and Another

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

Coram

Case details

Similar cases

Indian Bank versus Sh. Amanpreet Singh and Another

Kotak Mahindra Bank Limited versus Sh. Harjit Trading Co. and Others

Canara Bank versus M/S Neha Enterprises and Another

State Bank of India versus Sh. Satpal Singh

State Bank of India versus Sh. Vijay Kumar

State Bank of India versus Sh. Kamaljeet Singh