PUNJAB AND SIND BANK vs MR KULDEEP GAUTAM AND ANR on 29 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 13.08.2021 before DRT-II, Delhi & then transferred to DRT-I Delhi through Ms Priyanka, 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.23,84,485.20 (Rupees Twenty Three Lacs Eighty Four Thousand Four Hundred Eighty Five & paisa Twenty only) as on 25.06.2021 together with pendentelite and future interest @10.40% per annum plus @2% penal interest from 25.06.2021 till its realization in full with costs.

2. The brief facts of the case are that at the request of defendant no.1 being proprietor of M/s Kalkaji Associates vide loan application dated 02.02.2017, the applicant bank sanctioned ODP loan facility for Rs.20.00 Lacs (Rupees Twenty Lacs only) @10.80% interest against mortgage of property at Shandara Delhi owned by defendant no.2 for the credit facility sanctioned by applicant bank on 01.03.2017 for business needs. In case of default in repayment of instalment/interest or irregularities in ODP account and non submission of stock statement etc. the defendant no.1 agreed to pay interest @2% penal interest over the agreed rate of interest. The defendant no.2 to 4 stood as guarantors for the credit facilities availed by defendant no.1.

3. That in order to avail the said loan facility, the defendant no.1 submitted loan application form under MSE scheme dated 02.02.2017 and executed Sanction Letter dated 01.03.2017, Form No.14(R), Form No.193, Form No.191(Revised) Letter of Hypothecation for Inland/Foreign Bills Purchased Advances 5d- against Bill, Form No.192(RR), Loan Agreement, Form No.199, Form No.200, Form No.216, Form No.106, Form No.103/291/412, Form No.122, Form No.126, Form No.159, Undertaking, Form No.255 (RR) and 256(RR) i.e. Guarantee Agreements by defendant no.2 to 4 on 01.03.2017.

4. That in order to secure the credit facility of defendant no.1, the defendant no.2 executed Form No.84-AA(R) on 01.03.2017 and deposited Sale Deed documents of property bearing no. H.No.70B, Old No.38/1, Out of Khasra No.550, land measuring 50 sq.yds., Chanderlok Colony, Illaqa Shandara, Delhi-110093 in order to create equitable mortgage in favour of applicant bank as primary security.

5. It has been submitted by the applicant bank that after availing the credit facility, the defendants failed to adhere to the financial discipline and terms and conditions of the sanction and regularize the account despite regular follow up. The applicant bank classified the account as NPA on 31.01.2019 but the defendants neglected to clear the overdue amount. Hence, the applicant bank has approached this Tribunal for recovery of their dues.

6. Notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 02.02.2019 was issued on the defendants but no efforts were made to regularize the account. The applicant bank obtained order under Section 14 from Ld. CMM Karkardooma Courts, Delhi and taken physical possession of property on 13.12.2019 through Court Receiver and also published in daily newspapers on 14.12.2019. Later on SA No.325/2019 was moved u/s 17(1) of SARFAESI Act 2002 by Smt.Reena Singh, declaring resident of second and third floor of the mortgaged property which was pending before Hon'ble DRT-III Delhi.

7. 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 28.11.2024, 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.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Ms Priyanka, authorized representative of the applicant bank who has submitted the documents such as GPA, Loan Application along with Other Relevant Papers, Certified Copy of Mortgaged Property, Sanction Letter under PSB MSE Loan, Form No.14(R), Form No.191(Revised), Form NO.192(RR), Form No.193, Form No.84-AA(R), Loan Agreement, Form No.199, Form No.200, Form No.216, Form No.106, Form No.103/291/412, Form No.122, Form. No.126, Form No.159, Undertaking, Form No.255(RR) & 256(RR), Form No.440, Certificate of NPA, Notice under Section 13(2), Postal Receipts, Possession Notice, Newspaper Publication, Sale Notice, Publication, Certificate u/s 65B of Indian Evidence Act, Certified Statement of Account under Banker's Books Evidence Act marked as Exhibit PW-1/1 to PW-1/33(Colly).

9. 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.

10. 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.

11. 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.23,84,485.20 (Rupees Twenty Three Lacs Eighty Four Thousand Four Hundred Eighty Five & paisa Twenty only) as on 25.06.2021 along with pendentelite and future interest @12.40% per annum with monthly rests from 25.06.2021 till the date of realization failing which the aforesaid amount shall be recovered from the sale of mortgaged property no. H.No.70B, Old No.38/1, Out of Khasra No.550, land measuring 50 sq.yds., Chanderlok Colony, Illaqa Shandara, Delhi-110093 owned by defendant no.2. 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 Recovery Officer, DRT I, Delhi on 01.09.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost. (GOVIND BALLAIN SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and pronounced in open court) Dated: 29.06.2026 7