PUNJAB NATIONAL BANK vs HARGUN KAUR GULATI AND ORS on 7 August 2026

FINAL ORDER

This original application has been filed by the applicant ank on 02.11.2022 before DRT-III Delhi and then transferred DRT-I Delhi under Section 19 of Recovery of Debts and ankruptcy Act, 1993 read with Rule 8 of the Debt Recovery ribunal (Procedure) Rules 1993 against the defendants for ecovery of a sum of Rs.1,14,02,700/- (Rupees One Crore ourteen Lacs Two Hundred Seven Hundred only) as on 1.08.2022 together with pendentelite and future interest 11.10% per annum from 01.09.2022 till its realization in full nd costs. The brief facts of the case are that at the request of efendant no.1 being sole proprietress of M/s Imperial Fashion ngaged in the business of manufacturing and trading of rousers, shirts and other allied products vide their loan pplication under MSME loan facility, the applicant bank anctioned Cash Credit facility for a sum of Rs.80,00,000/- Rupees Eighty Lacs only) ©11.10% interest per annum for orking capital requirements against hypothecation of stocks, urrent assets, book debts and mortgage of property at Than ingh Nagar, Anand Parbat New Delhi owned by defendant 0.2 who stood as guarantor for the credit facilities sanctioned in favour of defendant no.1 on 31.08.2016. Further, on the equest of defendant no.1, the applicant bank sanctioned ehicle loan facility of Rs.1,35,000/- (Rupees One lacs Thirty ive Thousand only) @10.10% interest to be repaid in 60 EMIs (11 f Rs.2875/- favour of defendant no.1 on 11.05.2017 for 5d- purchasing Royal Enfield Classic 350 CC Bike. In case of default, the defendant agreed to pay additional interest @2% per annum on overdue amount and other irregularities.

3. That in order to avail the credit facilities, the defendant no.1 as proprietor of M/s Imperial Fashion submitted loan applications and executed Agreement of Hypothecation of Goods and Book Debts to Secure Cash Credit Facility and Agreement of Guarantee by defendant no.2 on 01.09.2016 as well as Agreement of Hypothecation of Vehicle on 11.05.2017 towards the applicant bank.

4. That in order to secure the credit facilities, the defendant no.2 created equitable mortgage of his property bearing Entire first floor (with terrace/roof rights) of Northern Portion of Property bearing No.242/3, Than Singh Nagar, Anand Parbat, New Delhi and deposited complete chain of title deeds with applicant bank on 01.09.2016, duly acknowledged by applicant

5. It has been submitted by the applicant bank that after availing the credit facilities, the defendants miserably failed and neglected to pay the interest or instalments in the account and failed to maintain financial discipline as per sanction. The applicant bank classified both the accounts as NPA on 16.04.2018 as per RBI guidelines and issued demand notice u/s 13(2) of SARFAEIS Act 2002 dated 04.05.2018 to the defendants. The defendants paid some amount and regularized their accounts but temporarily. It is submitted by applicant bank that due to irregular instalments/interest in the accounts, the accounts were became irregular and applicant bank classified the account as NPA again on 31.03.2021 but the defendants failed to comply the notice nor replied. Hence, the Sd- applicant bank has approached this tribunal for recovery of its dues.

6. Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 17.06.2021 was issued by the applicant bank but defendants failed to clear the dues or give sufficient securities against the dues as promised.

7. 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 23.04.2026, the defendants have been proceeded ex-parte as not appeared before the Tribunal nor written statement, evidence and affidavit of assets have been filed.

8. In order to prove its case, the applicant bank has filed its evidence by way of affidavit of Shri R.S. Rawat, authorized representative of the applicant who has proved the documents such as General Power of Attorney, Loan Applications, Sanction Letters, Agreement for Hypothecation of Goods and Book Debts, Agreement of Guarantee, Complete Chain of Mortgage property documents, Agreement of Hypothecation, Letter for renewal to defendant no.1, Notice under Section 13(2) dated 04.05.2018 with Postal Receipts & Returned Envelopes, Recall Notice, Demand Notice dated 17.06.2021, Certified Statement of Accounts along with Calculation Sheet and Certificate u/s 2A of Banker's Book Evidence Act marked as Ex.AW-1/1 to Ex.AW- 1/18.

9. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the sl)

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 within 30 days, jointly or severally, a sum of Rs.1,14,02,700/- (Rupees One Crore Fourteen Lacs Two Hundred Seven Hundred only) as on 31.08.2022 together with pendentelite and future interest @11.10% per annum with monthly rests from 01.09.2022 till the date of realization along with costs failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts, Royal Enfield 350CC bike and mortgaged property bearing Entire first floor (with terrace/roof rights) of Northern Portion of Property bearing •No.242/3, Than Singh Nagar, Anand Parbat, New Delhi 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. 5c1-

(III) Parties are directed to appear before Recovery!, Officer, DRT I, Delhi on 06.10.2026., (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 pronounced in open court) Dated: 07.08.2026