PUNJAB NATIONAL BANK vs M/S Aryan Rolling Flour Mills And Others on 28 March 2025

FINAL ORDER

1. Present Transfer Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

AND OTHERS

Thousand Six Hundred Fourteen and Paisa Forty Four only). The Transfer Application has been filed through Sh. Ankur Rawat, Senior Manager, who is competent to institute the Transfer Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this TA.

2. The brief facts of the OA are that the defendant No.1 through its partners had time to time approached the applicant for the grant of Term Loan of Rs.100.00 Lacs, CC Limit of Rs.70.00 Lacs enhanced upto Rs.150.00 Lacs, Term Loan-II of Rs.25.00 Lacs, Term Loan-III of Rs.9.98 Lacs and Term Loan-IV of Rs.12.50 Lacs vide Loan Application and Annexure of Loan application both dated 11.01.2018, which are Annexures A4 & A5 to this TA.

3. The applicant sanctioned Term Loan of Rs.100.00 Lacs, CC Limit of Rs.70.00 Lacs later which was enhanced upto Rs.150.00 Lacs, Term Loan-II of Rs.25.00 Lacs, Term Loan-III of Rs.9.98 Lacs and Term Loan-IV of Rs.12.50 Lacs vide Sanction Letters dated 01.02.2018, Sanction of enhancement dated 07.10.2020, Revised Sanction dated 15.10.2020, which are Annexures A7, A22 & A23 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendants had mortgaged their immovable properties i.e.

(i) Property measuring 450 sq. yards situated Plot no. E-6, Focal Point, Nawanshahar, Punjab vide equitable mortgage of lease Deed bearing vasika no. 1012 dated 12.07.2017, Supplementary lease deed dated 12.07.2017 and Letter by estate office to the bank dated 06.02.2018 along with their English Translation, which are Annexures A13, A14 & A14A to this TA.

(ii) Property measuring 450 sq. yards situated at Plot No. E-7, Focal Point, Nawanshahar, Punjab vide Equitable Mortgage of lease Deed bearing vasika no. 1013 dated 12.07.2017, Supplementary lease deed dated 12.07.2017 and Letter by estate office to the bank dated

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06.02.2018 along with their English Translation, which are Annexures A15, A16 & A16A to this TA.

(iii) Property measuring 450 sq. yards situated at Plot No. E-4, Focal Point, Nawanshahar E-4, Punjab vide Equitable Mortgage of lease Deed bearing vasika no. 2020-21/111/1/965 dated 11.09.2020 and A letter of Deposit dated 13.09.2020 along with their English Translation, which are Annexures A32 & A32A to this TA. Documents executed:- Registration of Firm, A Registration of Partners both dated 01.01.2018, which are Annexures A2 & A2A to this TA; Partnership Deed dated 25.04.2017, which is Annexure A3 to this TA; Proposal for the obtaining of facilities dated 11.01.2018, which is Annexure A6 to this TA; Undertaking, Agreement of Term Loan, Common Agreement, Hypothecation Agreement all dated 02.02.2018, which are Annexures A8 to A12 to this TA; Letters of deposited of E-6 & E-7 dated 15.02.2018, which are Annexures A17 to A19 and A19A to this OA; Master Agreement, Working Capital Term Loan both dated 23.07.2020, which are Annexures A20 & A21 to this TA; Master Agreement, Letter by Kamal Kumar, Letter by Nitin Madhar, Letter by Shushila, Hypothecation Agreement, Agreement of Guarantee by Kamal Kumar, Agreement of Guarantee by Shushila, Agreement of Gaurantee by Nitin Madhar all dated 12.10.2022, which are Annexures A24 to A31 to this TA; Supplemental Agreement Term Loan, Reschedulement of Term Loan, Master Agreement, Agreement of WCTL, Agreement of Guarantee by Kamal Kumar, Agreement of Guarantee by Nitin Madhar, Agreement of guarantee by Shushila all dated 30.09.2021, which are Annexures A33 to A39 to this TA; Legal Notices dated 16.12.2022 with Postal Receipts, which are Annexures A40 & A41 to this TA and Statement of Accounts with certificate, which are Annexures A42 to A46 to this TA.

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5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.2,59,11,614.44p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 07.03.2025.

7. In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed.

8. Heard arguments and perused record.

9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A46 to this TA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, all the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum

Thousand Six Hundred Fourteen and Paisa Forty Four only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of all the accounts.

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10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.30%p.a. from 20.05.2023 till the realization.

The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

Thousand Six Hundred Fourteen and Paisa Forty Four only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

12. Any other application pending stands disposed of.

13. Issue Recovery Certificate accordingly.

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14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.04.2025.

15. Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 28.03.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh