PUNJAB NATIONAL BANK vs SUMIT SHARMA on 10 April 2026

FINAL ORDER

This original application has been filed by the applicant bank on 19.06.2019 before DRT-III Delhi & then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act, 1993 against the defendant for recovery of a sum of Rs.71,44,905/- (Rupees Seventy One Lacs Forty Four Thousand Nine Hundred Five only) as on 17.06.2019 along with pendentelite and future interest @12.75% per annum with monthly rests from 17.06.2019 till the date of its realization along with costs.

2. The brief facts of the case are that on the request of defendant being sole proprietor of M/s Batteries World, the applicant bank sanctioned Cash Credit facility for Rs.30,00,000/- (Rupees Thirty lacs only) as working capital and Term Loan facility of Rs.39,00,000/- (Rupees Thirty Nine lacs only) for purchase of machinery on 03.12.2015 @12.95% interest against hypothecation of stock of raw materials, stock in process, finished goods, stores / spares and receivables and machinery etc. covered under CGTMSE scheme. The applicant bank renewed the credit facilities on 30.06.2017 @11.50% rate of interest. In case of default in repayment of interest or installments, the defendant consented for penal interest @2% over and above normal rate on overdrawn portion.

3. That in order to avail both the credit facilities, the defendant as proprietor executed Sanction Letter with Terms and conditions dated 05.12.2015, Agreement of Term Loan, Agreement of Hypothecation of Assets, Common Agreement, Sole Proprietorship Letter and other documents etc. on 18.12.2015 in favour of applicant bank.

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4. The defendant acknowledged of debt as of 30.06.2018 and executed Balance & Security Confirmation on 04.07.2018 towards applicant bank.

5. It has been submitted by the applicant bank that after availing the aforesaid credit facilities, the defendant failed to maintain financial discipline and not routed their transactions thru the account and defaulted in repayment of loan despite various notices issued by the applicant bank. Ultimately, the applicant bank classified the accounts as NPA on 31.10.2018 as defendant failed to regularize the account as per RBI guidelines and issued recall notice on 12.11.2018 but defendant failed to deposit complete outstanding. Hence, the applicant bank has approached this tribunal for recovery of its dues from the defendant.

6. Notices of this O.A. were issued to the defendant and despite of proper service, the defendant has chosen to absent from the proceedings. As per order dated 23.09.2025, the defendant has 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 defendant.

7. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Rattan Chand, authorized representative of the applicant bank who has proved the Original documents such as Power of Attorney, Sanction Letter, Sole Proprietorship Letter, Agreement of Hypothecation of Assets, Agreement of Term Loan, Common Agreement, Renewal / Sanction Letter, Balance & Security Confirmation, NPA Certificate, Recall Notice, Statement of Account, Certificate under Bankers Book of Evidence Act & Certificate u/s 65B of Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/12.

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8. 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.

9. 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.

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

**ORDER**

I, allow this OA and direct the defendant to pay to the applicant bank within a period of 30 days, a sum of Rs.71,44,905/- (Rupees Seventy One Lacs Forty Four Thousand Nine Hundred Five only) as on 17.06.2019 together with pendentelite and future interest @12.75% per annum with monthly rests from 17.06.2019 till the date of realization and costs; failing which the aforesaid amount shall be recovered from the sale of stocks, machinery and receivables etc. In case of default / shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant.

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 09.06.2026.

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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: 10.04.2026