PUNJAB NATIONAL BANK vs M/S PURSHOTTAM CORRUGATION AND ORS on 18 March 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 06.08.2021 before DRT-II, Delhi and then transferred to DRT-1, Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendants for recovery of a sum of Rs.20,11,100.19 (Rupees Twenty Lacs Eleven Thousand One Hundred and paisa Nineteen only) as on 31.05.2021 along with pendentelite and future interest @8.80% per annum with monthly rests till the date of realization along with costs.

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2. The brief facts of the case are that on the request of the defendant no.1 being sole proprietorship concern of defendant no.2, the applicant bank sanctioned Cash Credit facility for a sum of Rs.55.00 lacs (Rupees Fifty Five lacs only) on 03.11.2010 @12.50% per annum for the business of manufacturing and trading of corrugated roll and boxes etc. under SSI scheme against hypothecation of goods, book debts, moveable assets and current assets covered under CGTMSE scheme.

3. In order to avail the credit facility, the defendant no.2 as sole proprietor of defendant no.1 submitted loan application and executed Hypothecation of Goods and Book Debts, Hypothecation of Moveable Assets, Agreement for Hypothecation of Current Assets on 03.11.2010 towards the applicant bank.

4. That in order to secure the credit facility, the defendant no.2 hypothecated the stock and undertaking to route their sales through current account only and deposit the proceed of monthly sales towards part payment of interest and principal due

5. The defendant 2 as proprietor of defendant no.1 executed Balance and Confirmation letter dated 17.06.2019 in favour of the applicant bank for Rs.55,66,312.78.

6. It has been submitted by the applicant bank that after availing the loan facility, the defendants failed to comply with the terms and conditions of sanction and failed to maintain financial discipline for regularization of the account with the applicant bank. Ultimately, the applicant bank classified the account as NPA on 21.10.2019 and issued a letter dated 23.10.2019 but defendants neglected the same. Hence, the Sd- applicant bank has approached this Tribunal for recovery of their dues.

7. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 01.11.2019 was issued to the defendants but the defendants did not clear the dues.

8. Notices of this O.A. were issued to the defendants and despite of proper service, the defendants have chosen to absent from the proceedings. As per order dated 10.11.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Mr. Akhourri Binay, authorized representative of the applicant bank who has proved the documents such as Power of Attorney, Loan Application Form, Proposal and Sanction Letter, Acceptance of Terms and Conditions, Hypothecation of Goods and Book Debts, Hypothecation of Moveable Assets, Agreement for Hypothecation of Current Assets, Balance & Security Confirmation Letter, Recall notice along with Postal Receipts, Notice u/s 13(2), Statement of Account duly certified as per Banker's Books Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/11.

10. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the applicant bank is based on the documents and the same have been duly approved.

11. The case filed by the applicant bank gone unrebutted and there is no question of disbelieving the case of the applicant bank and the applicant bank has proved its case beyond reasonable doubts.

12. In the light of the above discussions, the Original Application deserves to be allowed.

ORDER

I, allow this OA and direct the defendants to pay to the applicant bank within a period of 30 days, jointly or severally, a sum of Rs.20,11,100.19 (Rupees Twenty Lacs Eleven Thousand One Hundred and paisa Nineteen only) as on 31.05.2021 together with pendentelite and future interest @8.80% per annum with monthly rests from 01.06.2021 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts, current assets and movable assets. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before the Recovery Officer, DRT I, Delhi on 18.05.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

**(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court) Dated: 18.03.2026