Allowed

Punjab National Bank v. Sh. Mohit Kumar and Another

DRT24 Jun 2026OA/708/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank against a borrower and a builder for recovery of a housing loan default. The tribunal issued a recovery certificate and enforced the builder's liability to refund the loan amount to the bank.

What did the court decide?

Issuance of Recovery Certificate declaring defendants liable to pay Rs.24,78,740.48 with costs and simple interest @08.00% p.a.

Punjab National Bank versus Sh. Mohit Kumar and… — Contract and Commercial Disputes | DRT (2026)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO. 708/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 30.05.2025

¶5

DATE OF DECISION: 24.06.2026

¶6

Punjab National Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and amongst other a Branch Office at Sector 32-A Chandigarh Road Ludhiana, District Ludhiana (Punjab), through its Constituted Attorney and Senior Manager, Sh. Sukhjeet Singh son of Sh. Gurcharan Singh, posted at Punjab National Bank, Asset Recovery Management Branch, Ludhiana, situated at First Floor, Site No. 5, Ferozepur Road, Ludhiana, Punjab.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Mohit Kumar S/o Sh. Rajinder Kumar R/o H. No. 149, New Sunder Nagar, Bhamian Kalan, Ludhiana District Ludhiana – 141015.

¶10

Second Address: Shop No. 2, 33ft Road, Near Garg Karyana Store, Laxman Nagar, Mundian Khurd, Ludhiana – 141015.

¶11

M/s Gaurav Land Developers and Colonizers Private Limited , with its Registered Office at Adjoining Garden City, Village Bholapur, Chandigarh-Road, Ludhiana, through its Managing Director /Director /Principal Officer /Authorized Person. (Developer/ Builder/Promoter and also the recipient of the loan amount from defendant no.1)

¶12

…….Defendants

¶13

Advocates:

¶14

Argued by Sh. P.S. Arora, Advocate proxy for Sh. Kanwar Harbir Singh Bath, Advocate for Applicant.

¶15

None for Defendants (already ex-parte vide order dated 22.06.2026)

¶16

¶17

OA/708/2025 PUNJAB NATIONAL BANK VS. SH. MOHIT KUMAR AND ANOTHER

¶18

FINAL ORDER

¶19

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.24,78,740.48 (Rupees Twenty Four Lac Seventy Eight Thousand Seven Hundred Forty and Paise Forty Eight Only). The Original Application has been filed through Sh. Sukhjeet Sing h, Senior Manager, of the Applicant, who is competent to institute the Original Application vide Power of Attorney dated 08.03.2024, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the Defendant no.1approached the applicant for grant of Housing Loan of Rs.25.50 lacs vide Loan Application dated 10.08.2020, which is Annexure A2 to this OA.

¶21

Defendant no.2, being the builder & promoter of the project, where the said flat is being developed and also provide permission to mortgage in favour of the applicant vide Letter of Permission to Mortgage of Flat dated 25.08.2020, which is Annexure A9 to this OA. 3. The applicant sanctioned the Housing Loan of Rs.25.50 lacs vide Sanction Letter dated 21.08.2020, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 mortgaged his property ie. Residential Flat measuring Carpet Area 645.50 SqFt, Built-up Area 840 SqFt & Super Area 1130 SqFt situated at Flat No. 404, Floor No. 4, Tower no. 10, The Eastern Park by Garv Basera, Adjoining Garden City, Village Bholapur, Chandigarh Road, Ludhiana, Punjab, vide Tripartite Agreement dated 25.08.2020, which is Annexure A8 to this OA; Agreement of Sale dated 20.08.2020, which is Annexure A10 to this OA; Provisional Allotment Letter dated 17.07.2020, which is Annexure A11 to this OA. As per OA, the defendant no.2 has not completed the project and has not delivered the physical possession of the said flat to the defendant no.1.

¶22

Documents executed: Demand Promissory Note dated 25.08.2020,

¶23

which is Annexure A4 to this OA; Housing Loan Agreement dated

¶24

¶25

OA/708/2025 PUNJAB NATIONAL BANK VS. SH. MOHIT KUMAR AND ANOTHER

¶26

25.08.2020, which is Annexure A5 to this OA; Supplementary Housing Loan Agreement dated 25.08.2020, which is Annexure A6 to this OA; Master Agreement dated 25.08.2020, which is Annexure A7 to this OA; CERSAI Search Report dated 15.01.2021, which is Annexure A12 to this OA; Balance and Security Confirmation Letter dated 18.08.2023, which is Annexure A13 to this OA; Recall Notice dated 30.09.2023, which is Annexure A14 to this OA; Demand Notice under Section 13(2) of the SARFAESI Act dated 01.03.2024, which is Annexure A15 to this OA; Loan Account Statement, which is Annexure A16 to this OA; Certificate under the Bankers' Books Evidence Act dated 19.05.2025, which is Annexure A17 to this OA.

¶27

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account, there was a debit of Rs.24,78,740.48 (Rupees Twenty Four Lac Seventy Eight Thousand Seven Hundred Forty and Paise Forty Eight 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. 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 22.06.2026. 7. In support of the OA, affidavit of Sh. Sukhjeet Singh , Senior Manager, Punjab National B ank, has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy counsel 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 A17 to this OA, it is proved that the defendant no.1 approached the applicant for availing of the loan facility, which was granted to him. Defendant no.2, the builder & promoter of the project, who received the loan amount from defendant no.1, against sale of the Flat. They had executed all the

¶28

¶29

OA/708/2025 PUNJAB NATIONAL BANK VS. SH. MOHIT KUMAR AND ANOTHER 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,78,740.48 (Rupees Twenty Four Lac Seventy Eight Thousand Seven Hundred Forty and Paise Forty Eight 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 @11.10% p.a. with monthly rests from 01.05.2025 till the realization.

¶31

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 mortgaged property, 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,78,740.48 (Rupees Twenty Four Lac Seventy Eight Thousand Seven Hundred Forty and Paise Forty Eight Only), jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount.

¶32

In this regard relevant clause 6 from Tripartite Agreement dated 25.08.2020 is reproduced below: “If the borrower/s withdraw/s from the scheme or fail/s to pay the balance amount representing the difference between the

¶33

¶34

OA/708/2025

¶35

PUNJAB NATIONAL BANK VS. SH. MOHIT KUMAR AND ANOTHER

¶36

housing loan allowed by the bank and the actual cost of the house/flat (including escalation) or die/s or allotment of the flat/house is otherwise cancelled, the entire amount standing to the credit of the borrower/s (including margin money and borrower’s contribution) will be refunded by the Builder to the bank. The bank shall refund to the borrower/s balance, if any, after adjusting the entire outstanding dues, including interest, costs and other amount recoverable by the bank from the borrower/s”

¶37

As such the defendant no.2 has also rendered itself liable to refund the entire amount received by it against flat in question to the applicant.

¶38

Accordingly, 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.

¶39

12. Any other application pending stands disposed of.

¶40

Issue Recovery Certificate accordingly.

¶41

Parties to appear before Learned Recovery Officer of this Tribunal on 09.07.2026

¶42

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: 24.06.2026.

¶43

(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Mohit Kumar and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Mohit Kumar 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

Kotak Mahindra Bank Limited versus Messrs Malik Transport Company and Others

Kotak Mahindra Bank Limited versus Sh. Gurmail Singh and Another

Icici Bank Limited versus Messrs Thind Builders and Another

State Bank of India versus Sh. Gurmeet Singh

Union Bank of India versus Sh. Ravinder Singh

Union Bank of India versus Sh. Bagecha Singh and Another