PUNJAB NATIONAL BANK vs M/s Goyal Impex on 29 June 2026

FINAL ORDER

This original application has been filed by the applicant bank on 19.04.2016 before DRT-III Delhi and then transferred to DRT-I Delhi under Section 19 of Recovery of Debts Due to Banks and Financial Institutions Act,1993 against the defendants for recovery of Rs.3,32,05,822/- (Rupees Three Crore Thirty Two Lacs Five Thousand Eight Hundred Twenty Two only) as on 18.04.2016 together with pendentelite and future interest at @14.00% per annum with monthly rests from 18.04.2016 till the date of its realization with costs.

2. The brief facts of the case are that at the request of defendant no.2 being proprietor of M/s Goyal Impex, defendant no.1, engaged in the business of trading and manufacturing of fabric etc., vide their loan application dated NIL with relevant documents, the applicant bank sanctioned Cash Credit (Hypothecation) facility of Rs.300.00 Lacs (Rupees Three lacs only) on 05.07.2014 which was renewed on 14.07.2015 @12.00% interest per annum with monthly rests against hypothecation of stock, book debts and mortgage of properties owned by defendant no.2 & 4. On the request of defendant no.1, the applicant bank permitted to operate sub-limit of Rs.20.00 lacs out of sanctioned limit of Rs.300.00 lacs from Azadpur, Delhi branch. The defendants also liable to pay penal interest @2% per annum in case of default in repayment of interest and instalments. 5d-

3. That in order to avail the credit facility, the defendant no.1 through defendant no.2 as proprietor submitted loan application and executed Sanction Letters, Agreements of Hypothecation of Goods & Book Debts and Agreements of Guarantee by defendant no.3 and 4 with the applicant bank on 05.07.2014.

4. That in order to secure the credit facility, the defendant no.1 hypothecated the stock and book debts in favour of applicant bank. Further, defendant no.2 and 4 created equitable mortgage of their immovable properties by depositing Sale Deeds along with other relevant documents in favour of applicant bank on 05.07.2014 viz.: Freehold Residential House bearing No.1-A, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.4; Freehold Residential House bearing No.1-B, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.4; Freehold Residential House bearing No.1/1A, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.4; Freehold Residential House bearing No.1/1B, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.2. The applicant bank recorded its mortgage with Central Registry of Securitization Asset Reconstruction & Security 5d-

Interest on 20.08.2014. The defendant no.2 & 4 executed and delivered Letter of Confirmation of creating mortgage on 05.07.2014. The applicant bank vide letter dated 21.08.2014 and 29.12.2014 acknowledged creation of mortgage by defendant no.2 and 4.

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendants miserably failed to operate the account neither deposited sale proceeds nor serviced the interest regularly in accordance with terms and conditions of sanction and lacked financial discipline despite reminders in breach of loan documents. The applicant bank issued legal notice . on 02.09.2015 and 08.09.2015 for adjustment of overdue amount but defendants failed to honor their commitments despite subsequent reminders via E-mails. The applicant bank classified the account as NPA on 18.01.2016 as per RBI guidelines but defendants neglected to make the payment, hence, the applicant bank has approached this tribunal for recovery of their dues.

6. Notice under Section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 19.01.2016 was issued on the defendants but they failed to comply the notice.

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 18.01.2017, the defendants have been proceeded ex-parte as not appeared before the Tribunal. The defendants filed their written statement on 04.05.2017 but this Tribunal already proceed ex- parte vide order dated 18.01.2017. The defendants filed I.A No.631-632 of 2017 and vide order dated 13.12.2017, the court allowed the defendants to exhibit their documents on next date of hearing subject to payment of Rs.10,000/- to the other side and in response, defendant no.1 to 3 filed their written statement by paying the cost but defendants did not exhibited their documents and also failed to file the affidavit of assets.

8. In order to prove its case, the applicant bank has filed evidence by way of affidavit of Sh. Apoorva Jain, authorized representative of the applicant bank who has proved documents such as Power of Attorney, Loan Application with other relevant documents, Sanction Letters, Agreements for Hypothecation of Goods and Book Debts, Agreements of Guarantee, Letters of Confirmation of Creating Mortgage, Title Documents of Properties, Letters of Acknowledgement, Legal Notices with Postal Receipts, Various Communications to Defendants by Email etc., Demand Notice along with Postal Receipts, Audited Balance Sheet, Statement of Account along with Certificate of Indian Evidence Act and u/s 2A of Bankers' Books Evidence Act marked as Exh.AW-1/1 to Exh.AW-1/33.

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. 5d

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.3,32,05,822/- (Rupees Three Crore Thirty Two Lacs Five Thousand Eight Hundred Twenty Two only) as on 18.04.2016 together with pendentelite and future interest @14.00% interest per annum with monthly rests from 19.04.2016 till the date of realization failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged properties i.e. Freehold Residential House bearing No.1-A, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.4; Freehold Residential House bearing No.1-B, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.4; Freehold Residential House bearing No.1/1A, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, owned by defendant no.4; Freehold Residential House bearing No.1/1B, area measuring 100 sq.yds i.e. 83.61 sq.metres, out of Khasra No.405, Village Jagola, Pargana Loni, Tehsil & District Ghaziabad, 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. ti

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi. (Ill) 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 BALLABH-SHARMA) PRESIDING OFFICER DRT-I, DELHI (Dictated and and pronounced in open court) Dated: 29.06.2026