The Tribunal allowed the bank's application for recovery of dues. It directed the respondents to pay the principal amount with uniform simple interest at 7.50% p.a., permitting recovery via sale of secured or unsecured assets.
Debt of Rs 64,09,840.04 with interest at 7.50% p.a. to be recovered; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO. 930/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 18.05.2022
DATE OF DECISION: 11.06.2026
Punjab National Bank, a body corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110 075 and amongst others a Branch at Samrala, Ludhiana, Punjab, through Sh. Amit Thind, Deputy Manager and Attorney Holder presently posted at Circle Sastra Centre, Ludhiana East, Site No.5, Ferozepur Road, Ludhiana, Punjab.
……..Applicant
Versus
Advocates:
Argued by Sh. Aseem Kataria, Advocate proxy for Sh. Manish Singla, Advocate for applicant (through VC)
None for Defendants (already ex parte vide order dated 09.06.2026)
FINAL ORDER
2 OA/ 930/2022 PUNJAB NATIONAL BANK VS M/S R.M. SALES CORPORATION AND OTHERS
the defendants for recovery of Rs.64,09,840.04 (Rupees Sixty Four Lacs Nine Thousand Eight Hundred Forty and Paise Four Only). The Original Application has been filed through Sh. Amit Thind, Deputy Manager , of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 28.03.2017, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant nos. 1, through its proprietor defendant no. 2, approached the applicant for CC Limit of Rs. 45.00 lacs vide Loan Application Form, which is Annexure A2 to this OA. Defendant no.3 stood as guarantor. Thereafter, the defendant nos. 1, through its proprietor defendant no. 2, approached the applicant for GECL Loan of Rs. 9.00 lacs vide Loan Application Form dated 25.06.2020, which is Annexure A12 to this OA. 3. The applicant sanctioned the CC Limit of Rs. 45.00 lacs vide Acceptance of Terms and Conditions of Sanction dated 20.11.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned the GECL Loan of Rs. 9.00 lacs vide Sanction Letter dated 26.06.2020, which is Annexure A13 to this OA. Thereafter, as per RBI guidelines in the period of COVID pandemic, applicant sanctioned the FITL loan of Rs. 1.86 lacs to adjust the deferred interest by way of moratorium till 31.08.2020; FIT (Covid) Circular of Bank, which is Annexure A19 to this OA. 4. Defendant no. 1, through its proprietor defendant no. 2, hypothecated its stock and book debts vide Hypothecation of Goods and Book Debts to Secure Cash Credit Facility dated 20.11.2019, which is Annexure A6 to this OA. Defendant no. 2 mortgaged his property i.e. land measuring 2Kanal-4Marla (1331 SqYds.) situated at Village Bondli, Hadbast no. 107, Tehsil Samrala, District Ludhiana, Punjab, vide deposit of Registered Title Deed bearing Vasika No. 2018-19/108/1/646 dated 19.11.2018, which is Annexure A9 to this OA.
3 OA/ 930/2022 PUNJAB NATIONAL BANK VS M/S R.M. SALES CORPORATION AND OTHERS
Documents executed: Hypothecation of Current Assets dated 20.11.2019, which is Annexure A4 to this OA; Hypothecation of Movable Assets Forming Part of Fixed/Block Assets dated 20.11.2019, which is Annexure A5 to this OA; Master Agreement dated 20.11.2019, which is Annexure A7 to this OA; Agreement of Guarantee dated 20.11.2019, which is Annexure A8 to this OA; Annexure 2 evidencing Constructive Deposit of Title Deeds dated 21.11.2019, which is Annexure A10 to this OA; Valuation Report dated 14.02.2022, which is Annexure A11 to this OA; Master Agreement dated 26.06.2020, which is Annexure A14 to this OA; Demand Promissory Note dated 26.06.2020, which is Annexure A15 to this OA; Agreement for Working Capital Term Loan (WCTL) dated 26.06.2020, which is Annexure A16 to this OA; Hypothecation of Goods and Book Debts to Secure Cash Credit Facility dated 26.06.2020, which is Annexure A17 to this OA; Hypothecation of Current Assets dated 26.06.2020, which is Annexure A18 to this OA; Notice dated 12.03.2021, which is Annexure A20 to this OA; Statement of Accounts duly certified, which are Annexures A21 to A23 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.64,09,840.04 (Rupees Sixty Four Lacs Nine Thousand Eight Hundred Forty and Paise Four 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 09.06.2026. 7. In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager, Punjab National Bank, h as been filed. 8. Heard ex-parte arguments and perused record.
4 OA/ 930/2022 PUNJAB NATIONAL BANK VS M/S R.M. SALES CORPORATION AND OTHERS
From the perusal of all the Annexures A1 to A23 to this OA, it is proved that the defendant nos. 1, through its proprietor defendant no. 2, approached applicant for availing of the loan facilities, which were granted to them. Defendant no. 3 stood as guarantor. They had executed all the relevant documents in favour of the applicant. However, FITL loan was adjusted and closed by the defendants. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.64,09,840.04 (Rupees Sixty Four Lacs Nine Thousand Eight Hundred Forty and Paise Four 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant has claimed interest @8.75%p.a. in CC Limit and @7.50% p.a. in GECL Loan plus penal interest @2.00% p.a. with monthly rests from 13.04.2022 till the realization.
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 and mortgaged property, 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 @7.50% 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.
5 OA/ 930/2022 PUNJAB NATIONAL BANK VS M/S R.M. SALES CORPORATION AND OTHERS
3 issues framed by the court
Whether the applicant is entitled to recovery of outstanding loan dues from the respondents.
What rate of interest should be allowed on the outstanding amount from the date of filing.
Whether a Recovery Certificate should be issued for enforcement of the debt.
2 provisions across 2 enactments
PUNJAB NATIONAL BANK
MS R.M SALES CORPORATION
JASJIT SINGH RIAT
GURDEEP Kaur
MRIDULESH KUMAR SINGH
As recorded by the court registry
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