Allowed

Punjab National Bank v. M/S M. v Enterprises

DRT24 Feb 2026TA/513/2023

Case brief

AI extract

What is this about?

In an original application filed under Section 19 of the RDB Act, 1993, the Debts Recovery Tribunal allowed the bank's petition for recovery of a claimed sum of Rs. 39,01,754.27 along with interest and costs against the defendant shareholders and proprietor after disproving the defense of non-return or partial payments.

What did the court decide?

Directing defendants to pay Rs.39,01,754.27 with interest at 4.25% from filing date and direct recovery from hypothecated or personal assets.

Punjab National Bank versus M/S M. v. Enterprises — Banking and Recovery | DRT (2026)

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Before SUSHIL^{KUMARRASTOGI, Presiding Officer} Debts RecoverY^{Tribunal-Il,Delhi}

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TA No'513^{OF 2023} PUNJAB^{NATIONAL BANKVS M/S M.V. ENTERPRISES}

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Reserued on z 29.0t,.2026 Pronounced^{on t 24,02.2O26}

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Punjab National^Bank Vs.

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-^{Applicant bank}

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M/s M.V.^EnterPrises

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Mr. Naresh^Kumar

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Defendants

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Present: Shri Prakhar^{Pushp,proxy counselappearsfor} applicant^bank. OefenOanS^{are ex-parte since 27'03'2025'}

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FINAL ORDER

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This original^{application has been filed by the} applicant^{bank, on 08.05.2017through Shri Gopal} Devnani, Chief^{Managerof the applicant bank' under} Section 19^{of the RDB Act, 1993 againstthe defendant} no.1 and^{2 for recovery of a sum of Rs'39,01,754'27with} further contractual^{rate of interest with monthlyrests} along with^{penal interestto the applicant bank along with} all cost, charges^{and expenses etc' of this OA and} pendentellite and^{future interestfrom 04'05'2017 till the} date of full^{and finalpaymentand/or realization'}

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The brief^{facts of the case are that Defendant no'1} is the^{proprietorship concern of Mr' Naresh Kumaris} engaged in^{business of manufacturingof wooden boxes} for^{packaging purpose.At the requestof the defendants'} the applicant^{bank sanctioned,on 03'02'2012'a Term} Loan Facility^{of Rs.4 lacs. The said loan secured by the}

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hypothecation^{of goodand book debts, after executing} requisite documents.^{In order to avail the said loan} facility the^{defendantno.2 being the sole proprietorof} the defendant^{no.l has executed loaningdocuments} dated 03.02.2012.^{In the month of April' 2009'} defendants^{approachedthe applicant bank for cash credit} facility of^{Rs'5 lacs to the defendant and the said limit} enhanced^{thrice presently at Rs'35 lacs' The applicant} bank, at^{the requestof the defendants' sanctionedand} lent credit^{facility of Rs.35 lacs vide sanction letter dated} 2l.t}.2}l4^{and the terms and conditions of the same} were duly^{accepted by the defendants'In respectof the} said facilities^{and also to secure the amountoutstanding} underthesaidfacilities,thedefendantno'2'beingthe sole^{proprietorof defendantno'1, in the nameand style} ofdefendantno.lexecutedtheloaningandsecurity documents^{on 21.10.2014'}

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It is further^{submitted that the defendants enjoyed} and utilized^{the Loanfacility, but failed to maintain the} financial^{discipline and failed to repay the due amounts'} The applicant^{bank requested the defendantsto} regularize^{the loan accountby visitsand letters' but there} was no^{response from the defendants, hencethe account} was classified^{as NPA on 15'10'2015' Therefore'the} applicant^{bank serveda recall notice dated 10'12'2016to} the defendants,^{demandingthe amount due as on that} date,butfailedtorecoverthesame'Thus'thepresent O.A. is^{preferredby the applicantbank to recoverits} dues.

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On^noticebY this Tribunal,^{defendants Put} counsel and^{filed the written} appearance^through <)

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statement^{and evidence'Thereafter' defendansfailed} to appear^{in the presentmatter despiteissuanceof the} default^{notice, therefore,the defendantswere proceeded} against^{ex-Pafteon 27'03'2025'}

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The^{applicantbankfiled its evidenceby way of the} affidavit of^{Shri Narendra Kumar'Managerof the} applicant^{bank as Annexure A-1 to Annexure A-11'} Defendants^{filed its evidence by way of the affidavitof} Shri Naresh^{Kumar as paper no'5 to paper no' 54'}

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In^{the written statementfiled by the defendants'it} is submitted^{that the present case is not maintainable'} since the^{defendant continuously making payments since} 01.01.2011^{due to that the applicant bank time to time} increased^{credit limit from Rs'5'71'600/- to} Rs.35,00,000/-^{by the applicantbank' It is submitted that} the applicant^{bank has after observing the performance} of the^{business of the respondentand continuous} payments of^{interestby the defendants the applicant} bank time^{to time not only increasethe limit but never} issued^{any notice for demandany time' It is submitted} that the^{defendantsagainst the said creditlimit' the} defendants^{hypothecated the goods of Rs'54'00'000/-} and same^{is being maintainedby the defendant but} surprisingly^{the manger in-chargeof the concerned} branch^{was changed and they have stopped the} transaction^{of the defendant incidenbllywithout notice} stopped^{the transactionand due to that the defendants} suffered^{huge loss' It is submittedthat the present} petition is not^{maintainablesince when the accountof the} defendant^{no'l was declared NPA whereas defendants} werecontinuouslymakingpaymenttotheapplicantbank s)

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till 30.05.2017^{and account was declaredNPA in} 2016 before^{that the bank had servednotice dated} 25.10.2016^{related some M/s Shree MinochaPlastic} Industries by^{which the applicantbank made illegal} demand and^{same was replied by the defendants and by} whichthedefendantsinformedtothehigherauthorities of the bank^{regarding illegal actiontaken by the manager} of the applicant^{bank. Itis submittedthat the} defendants^{havealready paid the process fee of renewal} of CC limit^{for the year of 2OL6-t7 of Rs'12'075/-on} 10.06.2016,^{for stock insuranceRs'29'9231-on} 2T,o6.2oL6andalsopaidforinsuranceofproprietorof Rs.zg,77Ol-^{+ 2,9081on 09'05'2016 against the said CC} limit to the^{applicant bank but the applicant bankblocked} the transaction^{of the defendants' It is submitted that the} applicant^{bank has intentionallyconcealedthe payments} made by^{the defendantfrom 30'01'2017 to 30'05'2017} and also^{received the amounts from insurance company} i.e. Rs.14,76,604/-.^{It is submitted that the branch} manager^{of the concerned branch has not only blocked} the account^{of the defendant but has atso blocked the} accounts^{of other personswhohave CC limit facilities and} also making^{pressure to reduce the CC limit as available} to the^{defendantsand other persons and due to illegal} act of the^{Branch Manager not only the defendantsbut} other^{has facedproblemsin doing businesswith bank' It} is submitted^{that the present application is not} maintainable^{since the account of the defendantsare} illegally declared^{NPA. It is submifted that applicantbank} has not^{supplied the completeset of statementof} accounts^{to the defendants' It is submitted that as per} the statements^{of account the defendantis liable to pay} only Rs'^{Lg,65,27g.27-whereas the demandhas been} 5)1

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made for^{Rs.39,01,754.27. Itis} submitted^{that the} defendantsnevermadedefaultinpaymentsofinterest and was^{continuing making the paymentseven after} blocking the^{accounts of the defendant no'1 till} 30.05.2017.^{It is submiftedthat as per statements of} account^{submifted by the plaintiff the defendants} continuously^{made the payments of interest and as per} statement^{of accountsdefendantis liable to pay only} Rs.19,65,279.27.^{Hencethe demand of Rs'39'01'7541- is} illegal and^{extoltionby a public sector bank' It is} submitted^{that the applicant bank dishonour all the terms} agreed^{with the defendant and without any rhyme and} reason^{blockedthe accountof the defendant due to that} defendant^{suffered a huge loss in terms of moneyand} good will' It^{is submitted that even the defendantshas} made the^{reply and also raisedthe objectionsregarding} illegal^{demand and closer of transactionfrom the account} but same^{was not heard by the applicant bank'} Accordingly,^{it is prayed that the present OMIAmaybe} dismissed^{with heavYcost'}

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T.HeardtheLd.Counselfortheapplicantbankand perused the^record.

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The^{main contention of the defendant is that the} account^{of the defendant has been wronglydeclared as} NPA. In^{this regard I have gone through the statement} of account.^{From perusal of the statement of accountit is} clear that^{the contentionof the defendantis against the} evidence.^{The account has been declaredNPA after} expiry of^{90 days of the overdue' Therefore'the} contention of the defendant^{has no force'} I

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The next^{contention of the defendantis that the} defendant^{is liable to pay only Rs.19,65,279'27and the} demand of^{Rs.39,01,7541-is illegal and extortion by a} public sector bank.^{In this regard I have gone through} the record.^{From perusal of the statement of accountit is} clear that there^{appears no discrepancyin the statement} of account.^{Therefore,the contention of the defendantis} vague and^{cannot be relieduPon'}

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From^{perusal of the entire evidence, it is clear that} the defendants^{have failed to prove their case as claimed} in the wriften^{statement. On the other hand' the} applicant^{bank has proved his case against the} defendants^{and therefore,the defendants are liable to} pay jointly and^{severally the amount claimed by the} applicant^{bank and the OA of the applicant bank is liable} to be allowed^{against the defendant no'1 & 2'}

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ORDER

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I^{hereby allow this O'A' of the ApplicantBank and} direct the^{defendant nos' 1 & 2 to pay jointly and} severally to^{the applicant bank within 30 days from today'} a sum of^{Rs.39,01,754.27along with cost' expenses and} interest @^{L4.25o/ofrom the date of filing of this O'A'} which^{has becomeT.A. till the date of realization'}

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In^{case of failure to deposit the above amount} within the^{stipulated period, the same shall be recovered} from the^{sale of the hypothecated assets' In case of short} fall, the same^{shall be recoveredfrom the sale of} personal movable^{and immov-ableassetsof the defendant} no. l and^2. q).

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Recovery Ceftificate be issued forthwith and be sent to Recovery Officer, Debts Recovery Tribunal-Il, Delhi.

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The registry of this Tribunal is hereby directed to issue free copy of the order and send the same to both the parties.

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Parties are directed to appear before the^Ld. Recovery Officer, DRT-II, Delhi on 24.04.2026. Pending IAs, if any, stand disposed of.

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File be consigned to records.

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sa (SUSHIL KUMAR nnsrcjcil PRESIDING OFFICER DRT-II, Delhi

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Date :24.02.2026

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This^judgement has been signed, dated and pronounced in open court.

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tsA

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(susHrL KUMAR RASTbGI) PRESIDING OFFICER DRT-II, Delhi

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Date :24.02.2026

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Punjab National Bank v. M/S M. v Enterprises

Case brief

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Punjab National Bank v. M/S M. v Enterprises

Case brief

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