PUNJAB NATIONAL BANK vs M/s Girdhar Gopal Trading Company on 16 May 2026

FINAL ORDER

This original application has been filed by the applicant bank on 22.09.2015 through Shri Praveen Kumar Sharma, authorized representative of the applicant bank 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.4,28,35,506.47 (Rupees Four Crores Twenty Eight Lacs Thirty Five Thousand Five Hundred Six and paisa Forty Seven only) as on 21.09.2015 together with pendentelite and future interest @12.15% per annum compounded with monthly rests till the date of actual realization with costs.

2. The brief facts of the case are that at the request of defendant no.1 through its proprietor being defendant no.2 vide their loan application dated 05.11.2014 along with documents for augmenting its trading business of Denim Fabric, the applicant bank sanctioned Cash Credit facility for a sum of Rs.4,00,00,000/- (Rupees Four Crores only) @12.50% interest per annum with monthly rests and agreed to pay @2% penal interest in case of default on 19.11.2014 against hypothecation of stock and mortgage of property. The defendant no.3 stood as guarantor for the credit facility sanctioned in favour of defendant no.1 and 2 by the applicant bank.

3. The defendant no.4 claiming that the mortgaged property bearing no.C-5/12, Krishna Nagar, Delhi has been mortgaged by defendant no.3 in its favour in the account of M/s Verma Trading Co. and has been proceeded against the property in the court of law for recovery of its dues. 5d-

4. Further, the defendant no.5 claiming that the mortgaged property bearing no.C-5/12, Krishna Nagar, Delhi has been mortgaged by defendant no.3 in its favour in the account of M/s Rock Hudson Clothing Co. and has been proceeded against the property in the court of law for recovery of its dues.

5. That in order to avail the credit facility, the defendant no.1 through its proprietor being defendant no.2 submitted Loan Application and executed Sanction Letter with Terms and Conditions, Sole Proprietorship Letter (Doc-21), Agreement of Hypothecation of Assets (Doc-5), Common Agreement (Doc- 38 in favour of the applicant bank on 26.11.2014. The defendant no.3 executed separate agreement of continuing guarantee each (Doc-11) towards applicant bank.

6. That in order to secure the credit facility, the defendant no.3 created equitable mortgage of her immovable property being Portion of Freehold Built up property bearing no.C-5/12, measuring 229.41 sq.yds (out of total plot area measuring 458 sq.yds) Krishna Nagar, Delhi by depositing Sale Deed dated 13.05.2013 registered with SR-VIII Shastri Nagar, Delhi along with chain of documents by executing Memorandum of Deposit of Original Title Deed (LTR-21) on 27.11.2014.

7. It has been submitted by the applicant bank that after availing the loan facility, the defendant no.1 to 3 failed to adhere to financial discipline and honor its commitments to make the payment of interest and failed to regularize the account despite letter dated 16.06.2015 issued. The defendant no.3 vide letter dated 23.06.2015 informed that defendant no.2 is in jail and is unable to pay the dues. The applicant bank classified the account as NPA on 30.06.2015 as per RBI guidelines and issued recall notice dated 01.07.2015 to pay the dues of Rs.4,16,78,611/- to the defendants but they failed to regularize the account. Hence, the applicant bank has approached this tribunal for recovery of their dues.

8. On enquiries, it was revealed that defendant no.3 mortgaged the property with defendant no.4 and 5 and said bank initiated Sarfaesi action for recovery of its dues, the applicant bank filed complaint with Police Station, Hauz Qazi, Delhi against defendants which is under investigation.

9. 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 10.02.2025, the defendants have been proceeded ex-parte as not appeared before the Tribunal and even no written statement, evidence and affidavit of assets have been filed by the defendants.

10. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Sh.Parmanand Prakash, authorized representative of the applicant bank who has proved dccuments such as General Power of Attorney, Loan Application, Sanction Letter, Undertaking/Confirmation, Sole Proprietorship Letter, Agreement of Hypothecation of Assets, Common Agreement, Agreement of Guarantee, Memorandum of Deposit of Original Title Deed, Various Sale Deeds, Letter for Regularization of Account, Letter by Defendant no.3, Recall Notice, Statement of Account duly Certified as per Section 2A of Bankers' Book of Evidence Act marked as Ex.AW-1/1 to Ex.AW-1/23.

11. 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.

12. 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.

13. 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, jointly or severally, within a period of 30 days, a sum of Rs.4,28,35,506.47 (Rupees Four Crores Twenty Eight Lacs Thirty Five Thousand Five Hundred Six and paisa Forty Seven only) as on 21.09.2015 together with pendentelite and future interest @12.15% per annum with monthly rests from 21.09.2015 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stock, book debts and immovable mortgage property being Portion of Freehold Built up property bearing no.C-5/12, measuring 229.41 sq.yds (out of total plot area measuring 458 sq.yds) Krishna Nagar, Delhi in the name of defendant no.3. In case of default / 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 Recovery Officer, DRT I, Delhi on 15.07.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. 5d (GOVIND BALLKIRMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 16.05.2026