PUNJAB NATIONAL BANK vs ARUN SINGH on 18 April 2026

**FINAL ORDER**

This original application has been filed by the applicant bank before DRT-III, Delhi and then transferred to DRT-I Delhi on 08.04.2015 under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants no.1 to 4 for recovery of Rs.40,38,271/- (Rupees Forty Lacs Thirty Eight Thousand Two Hundred Seventy One only) as on 15.03.2015 along with pendentelite and future interest @12.75% per annum with monthly rests from 15.03.2015 till the date of realization and costs.

2. The brief facts of the case are that on the request of the defendant no.1 engaged in trading business of readymade garments, the applicant bank sanctioned cash credit limit of Rs.30,00,000/- (Rupees Thirty lacs only) on 10.09.2012 @12.90% interest per annum subject to change as per bank's guidelines against hypothecation of stock of saris, ladies suit and receivables as well as mortgage of Entire first floor (without roof rights), built on Plot No.12, Block G, Pocket 16, Sector-15, Rohini, Delhi measuring 60 sa.meters. The defendant no.2 & 3 stood as guarantors for the credit facility sanctioned by the applicant bank. The defendants agreed to pay interest @12.90% p.a. with monthly rests in case of default in repayment of interest etc.

3. That in order to avail the credit facility, the defendant no.1 submitted loan application and executed Sole Proprietorship Letter (DC-21), Common Agreement (D-38), Agreement of Hypothecation of Assets on 10.09.2012. The defendant no.2 & 3 executed separate agreements of Sd/- continuing guarantee (Doc-21) each in favour of applicant bank.

4. That in order to secure the credit facility, the defendant No.1 created equitable mortgage of property of Entire First Floor (without roof rights), built on Plot No.12, Block G, Pocket-16, Sector-15, Rohini, Delhi by depositing original sale deed dated 04.09.2009 executed by Sh.Ram Avtar in favour of defendant no.1 along with chain of documents of the property towards applicant bank on 11.09.2012.

5. 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 deposit the interest in the account to regularization of the account with the applicant bank despite requests made.

6. During re-verification of conveyance deed of property, it was revealed that Conveyance Deed dated 25.03.2009 executed by DDA in favour of Sh.Ram Avtar is forged and fabricated which was actually in the name of Sh.Om Prakash Poddar and his wife Smt.Annapurna Poddar and DDA has already granted freehold rights of said plot vide Conveyance Deed dated 23.09.1998. The defendant no.1 also deposited forged and fabricated GPA, Agreement to Sell and Deed of Will, Receipt and Affidavit all dated 24.09.1998 executed by Sh.Om Prakash Poddar and Annapurna Poddar against which the applicant bank filed complaint with Police Station, Vikas Puri, New Delhi vide DD No.46B on 07.03.2015. The said property is also mortgaged with defendant no.5 at Badli Branch by defendant no.4, wife of defendant no.1 which has been put up Sd- for auction vide Sale Notice dated 15.12.2011 under sub-rule 6 of Rule 8 of Security Interest (Enforcement) Rules 2002. The applicant bank tried to contact the defendant no.1 to 3 but could not and came to know that defendant no.4, a housewife is actual owner in collusion with defendant no.1 has forged the documents of the property and mortgaged with the applicant bank. The applicant bank classified the account as NPA on 31.03.2013 as per RBI guidelines and has approached this Tribunal for recovery of their dues.

7. Further, defendant no.4 mortgaged the aforesaid property as owner to defendant no.5, has no independent income and property has been financed by defendant no.1 who diverted the funds borrowed from applicant bank, thus property de-facto belongs to defendant no.1.

8. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 26.04.2013 was issued to the defendant no.1 to 3 but they failed to clear the dues. The applicant bank issued possession notice on 22.11.2014 to defendant no.1.

9. Notices of this O.A. were issued to the defendants and despite proper service, the defendants have chosen to absent from the proceedings. As per order dated 08.11.2016, the defendant no.1 to 4 have been proceeded ex-parte as they have not appeared before the Tribunal and even written statement, evidence and affidavit of assets have not been filed by the defendants.

*Sd-*

10. The defendant no.5 denied the averments and submitted that defendant no.4 availed home loan of Rs.25.00 lacs on 16.02.2008 and executed agreement for housing loan against exclusive mortgage of property at First Floor without roof right of freehold built up property bearing no.12, admsg 60 sq.meters, Block and Pocket G-16, Sector-15, Rohini, Delhi as prime security. Further, defendant no.1 executed guarantee agreement for housing loan sanctioned to defendant no.4 and deposited title deeds as per Recital letter dated 11.03.2008. the defendant no.4 failed to adhere the terms of loan & maintain financial discipline, therefore the account was classified as NPA on 28.02.2010 as per RBI guidelines. The defendant no.5 issued notice u/s 13(2) on 24.09.2010 for Rs.30,98,833/- along with interest thereon at contractual rate and moved application u/s 14(2) and got appointed Court Receiver vide order dated 08.08.2011 and took physical possession of property on 20.10.2011. Further, an FIR no.239 dated 27.07.2012 was filed by Sh.Virender Chhikara s/o late Sh.Kartar Singh with Police Station, K.N.Katzu Marg, Rohini, Delhi against defendant no.1 & 4 for committing cheating, fraud, misrepresentation and extraction of money. It is submitted that defendant no.5 deposited original documents of housing loan sanctioned to defendant no.4 with Sh.Devender Singh, SI, Police Station, K.N.Katzu Marg, Delhi. The defendant no.4 filed SA before Hon'ble DRT-III, Delhi and during pendency of SA, defendant no.1 and 4 deposited Rs.30.00 lacs with defendant no.5.

11. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Sanjay Gupta, authorized representative of the applicant bank who has proved the documents such as General Power of Attorney, Loan *sd-*

Application, Sanction Letter, Sole Proprietorship Letter, Common Agreement, Agreement of Hypothecation of Assets, Agreements of Guarantee, Memorandum of Deposit of Title-Deeds, Allotment Letter, Possession Slip, Lease Deed dated 22.07.1993, Affidavit, Receipts etc., Conveyance Deed, Sale Deed, Police Complaint, Sale Notice, Demand Notice u/s 13(2), Possession Notice with Postal Receipts, Statement of Account marked as Ex.AW-1/1 to Ex.AW-1/20

12. 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.

13. 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.

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

ORDER

I, allow this OA and direct the defendant no.1 to 4 to pay to the applicant bank, jointly or severally, within a period of 30 days, a sum of Rs.40,38,271/- (Rupees Forty Lacs Thirty Eight Thousand Two Hundred Seventy One only) as on 15.03.2015 together with pendentelite and future interest @12.75% per annum with monthly rests from 15.03.2015 till the date of realization and costs; failing which the amount shall be *Sd-*

recovered from sale of Entire first floor (without roof rights), built on Plot No.12, Block G, Pocket 16, Sector-15, Rohini, Delhi measuring 60 sa.meters. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendant no.1 to 4.

(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 17.06.2026.

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

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

(Dictated and pronounced in open court) Dated: 18.04.2026