Allowed

Punjab National Bank (Oriental Bank of Commerce) v. M/S Hoshiarpur Steel

DRT15 Apr 2026OA/712/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of approximately Rs. 295 lakhs with interest from M/s Hoshiarpur Steel and individual respondents. The court held that the defendants were liable for dues which would be recoverable via mortgaged land or other properties.

What did the court decide?

Recovery of Rs.2,95,27,597/- with interest @11.40% p.a., issuance of Recovery Certificate, and direction to distribute sale proceeds of mortgaged land.

Punjab National Bank (Oriental Bank of Commerce) versus M/S… — Company and Corporate | DRT (2026)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 712/2023 Date of Institution: 31.03.2023 Date of Decision: 15.04.2026

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Punjab National Bank (erstwhile Oriental Bank of Commerce) having its branches all over India and a branch at Mid Corporate Centre, Chandigarh road, Hoshiarpur, Punjab.

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……..Applicant

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Vs.

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M/s Hoshiarpur Steel, 248, Labh Nagar, Dagana Road, Hoshiarpur, Punjab, through its partners Smt. Kulwinder Kaur & Smt. Bhupinder Kaur (defendant Nos.2 & 3 herein).

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Factory/Godown Address: Plot No.20-21, Village Dhadda, Industrial Area, Jalandhar City, Punjab.

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Smt. Kulwinder Kaur w/o Sh. Simerjit Singh, r/o H.No.248, Dagana Road, Labh Nagar, Hoshiarpur, Punjab.

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Smt. Bhupinder Kaur w/o Sh. Amarjit Singh, r/o H.No.248, Dagana Road, Labh Nagar, Hoshiarpur, Punjab.

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Simerjit Singh s/o Sh. Kehar Singh, r/o H.No.248, Dagana Road, Labh Nagar, Hoshiarpur, Punjab.

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Amarjit Singh s/o Sh. Kehar Singh, r/o H.No.248, Dagana Road, Labh Nagar, Hoshiarpur, Punjab.

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Smt. Harjit Kaur w/o Sh. Kehar Singh, r/o H.No.248, Dagana Road, Labh Nagar, Hoshiarpur, Punjab.

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……….Defendants

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Advocates

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Sh. Karan Dev Ray proxy counsel for Sh. DK Gupta, Counsel for the applicant bank.

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Defendants - ex parte vide order dated 15.03.2024 .

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OA for the Recovery of Rs.2,95,27,597/- with interest @11.40% per annum with monthly rests from 31.03.2023.

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ORDER

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Punjab National Bank has filed this application under Section 19

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of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the

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recovery of Rs.2,95,27,597/- with interest against M/s Hoshiarpur Steel and others (defendants).

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Bank’s case is that on 24.07.2017, it had granted a loan of Rs.90.00 Lacs to defendant No.1 through its partners i.e. defendant Nos.2 and 3 in the form of C.C Limit under MSME Plus Scheme for Business purpose. Again on 19.07.2019, at the request of the defendants, applicant bank enhanced the existing C.C. Limit of Rs.90.00 Lacs to Rs.140.00 Lacs vide Sanction Letter (Exhibit A-12). Again on 25.07.2019, at the request of defendants, applicant bank granted a Term Loan of Rs.56.50 Lacs under OBC MSME Plus Scheme to defendant No.1 through its partners i.e. defendant Nos.2 and 3 for Business Purpose. To secure the loan facilities, Defendant Nos.2 to 5 had mortgaged their land (fully detailed in para No.3A of the application). Defendant Nos.4 to 6 stood as guarantors for C.C. Limit of Rs.140.00 Lacs and Term Loan of Rs.56.50 Lacs vide guarantee agreements dated 25.07.2019, (Exhibits A-18 to A-20). Again on 04.06.2020, applicant bank granted a fresh WCTL of Rs.38.00 Lacs vide Sanction Letter (Exhibit A-23). Again on 21.08.2020, at the request of the defendants, applicant bank enhanced the existing C.C. Limit of Rs.140.00 Lacs to Rs.275.00 Lacs vide Sanction Letter (Exhibit A-29). Defendant Nos.2 to 6 stood as guarantors for the enhanced C.C. Limit of Rs.275.00 Lacs vide guarantee agreement dated 25.08.2020, (Exhibits A-31 to A-35). Again on 30.10.2021, at the request of the defendants, applicant bank granted a Term Loan of Rs.19.00 Lacs under Guaranteed Emergency Credit Line (GECL) Scheme to defendant No.1 through its partners i.e. defendant Nos.2 and 3 for business purpose. All the loan facilities were chargeable at different rates of interest. Defendants had duly acknowledged their liability towards the debt on 24.02.2022, 23.06.2022. On 28.02.2023, a sum of Rs.2,95,27,597/- was due from the defendants.

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Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 10.05.2023, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 15.03.2024, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Ms. Swati Chauhan, Manager along with the loan and security documents and marked them as Exhibit A-1 to A-54. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loans under various schemes and on 28.02.2023, a sum of Rs.2,95,27,597/(Rs. 2,05,93,397.94p in Cash Credit, Rs. 46,07,160.20p in Term Loan, Rs. 23,18,438 in G.E.C.L. and Rs.20,08,601/- in G.E.C.L. Extension) was due.

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Accordingly, the application of the bank for the recovery of Rs.2,95,27,597/- (Rupees Two Crores Ninety Five Lacs Twenty Seven Thousand Five Hundred Ninety Seven Only) with interest @11.40% per annum with monthly rests from 31.03.2023, till the date of payment is hereby allowed with costs. The liability of defendant Nos.4 to 6 would be limited to clear the dues of C.C. Limit of Rs.275.00 Lacs and Term Loan of Rs.56.50 Lacs, whereas liability of defendant Nos.1 to 3 would be joint and several. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendant accordingly.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 18.05.2026, who is directed to distribute the sale proceeds of the mortgaged land as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open Court. (A S Narang) Dated: 15.04.2026 Presiding Officer DRT-1, Chandigarh MANOJ KALRA

Punjab National Bank (Oriental Bank of Commerce) v. M/S Hoshiarpur Steel

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. M/S Hoshiarpur Steel

Case brief

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What did the court decide?

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