PUNJAB NATIONAL BANK vs H D TRADING COMPANY on 8 May 2026

FINAL ORDER

This original application has been filed by the applicant bank on 30.11.2021 through Shri Akhouri Binay, authorized Sci representative of the applicant bank under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a sum of Rs.78,13,388.70 (Rupees Seventy Eight lacs Thirteen Thousand Three Hundred Eighty Eight and paisa Seventy only) as on 15.11.2021 together with pendentelite and future interest @13.40% per annum with monthly rests from the date of filing of this application till the date of realization and costs.

2. The brief facts of the case are that at the request of defendant through its proprietor vide his loan application dated 07.05.2016 along with KYC documents, the applicant bank sanctioned Cash Credit limit of Rs.50,00,000/- (Rupees Fifty Lacs only) on 07.05.2016 @11.40% interest per annum against hypothecation of stock, book debts and mortgage of property. As per agreement, the defendant agreed to pay penal interest @2% over the agreed rate of interest in case of default in payment of interest.

3. That in order to avail the credit facility, the defendant submitted loan application dated 07.05.2016 and executed Sanction Letter, Hypothecation cum CC Limit Agreement with Terms and Conditions, Letter of Undertaking and Agreement of Guarantees on 07.05.2016 in favour of the applicant bank.

4. That in order to secure the credit facility, the proprietor of defendant created equitable mortgage of property and deposited title deed along with chain documents i.e. certified photocopy of Sale Deed dated 28.02.2015 of property bearing 3rd Floor with roof / terrace rights towards front/northern side of built up property bearing Plot No.97, admeasuring 100

sq.yds out of Khasra No.9, Village Bindapur, Delhi area abadi known as Block-T, Uttam Nagar, New Delhi on 07.05.2016

5. The defendant executed Balance and Security Confirmation Letter dated 31.10.2018 and 05.07.2021 acknowledging its liability towards the applicant bank.

6. It has been submitted by the applicant bank that after availing the loan facility, the defendant miserably failed to pay the interest in the account and maintain financial discipline as per sanction terms and conditions. The applicant bank issued letters/notices dated 13.06.2018, 02.07.2018 but defendants not responded. The applicant bank classified the account of defendant as NPA on 11.07.2018 as per RBI guidelines but no action taken by the defendant, hence, the applicant bank has approached this tribunal for recovery of its dues.

7. Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 10.07.2018 was issued by the applicant bank and possession notice u/s 13(4) dated 02.01.2019. the applicant filed application u/s 14 of SARFAESI Act and obtained order dated 25.03.2019 for possession of mortgaged property through Court Receiver which issued notice dated 07.12.2019 for taking possession of property on 31.12.2019. After taking possession, the property put up for auction on 20.02.2020 for reserve price of Rs.50.25 lacs.

8. Notices of this O.A. were issued to the defendant and despite proper service, the defendant has chosen to absent from the proceedings. As per order dated 30.10.2025, the defendant has been proceeded ex-parte as not appeared Sc(- before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

9. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri Akhouri Binay, authorized representative of the applicant who has proved the documents such as Power of Attorney, Loan Application with KYC documents, Sanction cum Acknowledgement Letter, Hypothecation Agreement, Letter of Undertaking, Agreements of Guarantees, Photocopy of Sale Deed, Letters/Notices, Balance and Security Confirmations, Auction Sale Notice, Legal Demand Notice, Statement of accrued Account & Penal Interest marked as Exhibit AW-1/1 to Ex.AW-1/14(colly).

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 proved.

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 defendant to pay to the applicant bank, within 30 days, a sum of Rs.78,13,388.70 (Rupees Seventy Eight lacs Thirteen Thousand Three Hundred Eighty Eight and paisa Seventy only) as on 15.11.2021 together with pendentelite and future interest @13.40% per annum with monthly rests from the date of filing of this application till its realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged property bearing Plot No.97, admeasuring 100 sq.yds out of Khasra No.9, Village Bindapur, Delhi area abadi known as Block-T, Uttam Nagar, New Delhi. In case of 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 Recovery Officer, DRT I, Delhi on 07.07.2026. (IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. sd (GOVIND BALLABI-RMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 08.05.2026