Allowed

Punjab National Bank v. M/S Eks Manufacturing Co. and Others

DRT7 Jul 2026OA/941/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed by Punjab National Bank. Based on documentary evidence, the defendants were held liable to jointly and severally repay Rs. 55,07,269.77, along with a uniform simple interest of 8% p.a. while each ing the Tribunal adjusted their claimed higher interest rates.

What did the court decide?

Recovery of Rs. 55,07,269.77 jointly and severally with costs and simple interest @ 8% p.a. until realization; Recovery Certificate issued.

Punjab National Bank versus M/S Eks Manufacturing Co. and… — Insolvency and Bankruptcy | DRT (2026)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 941/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.05.2022

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DATE OF DECISION: 07.07.2026

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Punjab National Bank, a Body Corporate and a Nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot no. 4, Sector 10, Dwarka, New Delhi- 110075 and amongst other 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

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……..Applicant

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Versus

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M/S EKS Manufacturing Co., a sole Proprietorship concern situated near Bondli Samrala, Tehsil Samrala, District Ludhiana, Punjab through its sole Proprietor, Sh. Jagpal Singh Riat, S/o Sh. Boor Singh

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2^nd Address: House no. 104, Ward no. 9, Chandigarh Road, Samrala, Ludhiana, Punjab

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Sh. Jagpal Singh Riat, S/o Sh. Boor Singh, R/o House no. 104, Ward no. 9, Chandigarh Road, Samrala, Ludhiana, Punjab

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Sh. Jasjit Singh Riat, S/o Sh. Jagpal Singh Riat, R/o House no. 104, Ward no. 9, Chandigarh Road, Samrala, Ludhiana, Punjab

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…..Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Manish Singla, Advocate for applicant

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None for defendants (already ex-parte vide order dated 04.07.2026)

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FINAL ORDER

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2 OA NO. 941/2022 PUNJAB NATIONAL BANK VS. M/S EKS MANUFACTURING CO. AND OTHERS

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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. 55,07,269.77 (Rupees Fifty Five Lacs Seven Thousand Two Hundred Sixty Nine and Paise Seventy Seven 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.

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The brief facts of the OA are that defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of CC Limit of Rs. 40.00 Lacs vide Loan Application Form dated 10.04.2019, which is Annexure A2 to this OA. Thereafter, defendant no. 1 through its Proprietor defendant no. 2 approached the applicant for grant of GECL Limit of Rs. 8.00 Lacs vide Loan Application dated 25.06.2020, which is Annexure A5 to this OA.

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The applicant sanctioned CC Limit of Rs. 40.00 Lacs vide Sanction Letter dated 15.04.2019, which is Annexure A3 to this OA and terms and conditions were duly accepted by the defendants. Thereafter, the applicant sanctioned GECL Limit of Rs. 8.00 Lacs vide Memorandum of Sanction dated 29.06.2020, which is Annexure A6 to this OA. Defendant no. 3 stood as mortgagor.

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Defendant no. 3 mortgaged his immovable property i.e. Land measuring 02K 04M situated at Bodli, Hadbast no. 107, Tehsil Samrala, District Ludhiana, Punjab vide Registered Transfer Deed dated 19.11.2018 along with its translation, which is Annexure A13 to this OA.

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Defendant no. 1 through its Proprietor defendant no. 2 hypothecated their stocks and book debts vide Hypothecation of Goods and Book Debts and Hypothecation of Current Assets dated

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3 OA NO. 941/2022 PUNJAB NATIONAL BANK VS. M/S EKS MANUFACTURING CO. AND OTHERS

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16.04.2019 and 29.06.2020, which are Annexure A4, A10 and A11 to this OA.

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Documents executed: Master Agreement, DP Note, Agreement for WCTL, all dated 29.06.2020, which are Annexure A7 to A9 to this OA; Undertaking, which is Annexure A12 to this OA; Letter of Continuity dated 17.06.2020, which is Annexure A14 to this OA; Valuation Report dated 14.02.2022, which is Annexure A15 to this OA; Balance Confirmation Letters dated 23.09.2014 and 16.09.2017, which are Annexure A16 and A17 to this OA; Notice dated 28.12.2020, which is Annexure A18 to this OA and Statement of Accounts, which are Annexure A19 and A20 to this OA.

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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. 55,07,269.77, 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 04.07.2026. 7. In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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 bank had proved its case.

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From the perusal of all the Annexure A1 to A20 to this OA, it is proved that the defendant no. 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 mortgagor. Defendants had

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4 OA NO. 941/2022 PUNJAB NATIONAL BANK VS. M/S EKS MANUFACTURING CO. AND OTHERS

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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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 55,07,269.77 (Rupees Fifty Five Lacs Seven Thousand Two Hundred Sixty Nine and Paise Seventy Seven 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 @11.30%p.a. in CC Limit Account and @9.50% p.a. in GECL Limit besides @2% penal interest p.a. with monthly rests w.e.f. 13.04.2022 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/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 @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 a total sum of Rs.55,07,269.77 (Rupees Fifty Five Lacs Seven Thousand Two Hundred Sixty Nine and Paise Seventy Seven Only) jointly and severally, with

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5 OA NO. 941/2022 PUNJAB NATIONAL BANK VS. M/S EKS MANUFACTURING CO. AND OTHERS

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costs, current and future 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 assets of defendant nos. 1 and 2 and mortgaged property of defendant no. 3 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.

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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 22.07.2026. 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.

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Pronounced by me in the open Tribunal . Dated: 07.07.2026 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S Eks Manufacturing Co. and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Eks Manufacturing Co. and Others

Case brief

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What did the court decide?

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