PUNJAB NATIONAL BANK vs MD ENAMUL KABIR AND ORS on 3 February 2026

**J U D G M E N T**

*M* 03.02.2026

Siliguri

1. 1. The instant M.A. Dy. No. has been filed by the M.A. applicant (Bank) for restoration of O.A/42/2024 and for issuance of Recovery Certificate for an amount of Rs. 27,49,463.27p as on 30.11.2023 with further interest thereon @10.70% with monthly rests from 01.12.2023 till full realization of the entire dues amount.

2. 2. The case of the M.A. applicants in short is that the applicant bank filed OA case being No. 42/2024 before this Tribunal for recovery of Rs. 27,49,463.27 (Rupees Twenty seven Lakh Forty-nine Thousand Four Hundred Sixty three and Twenty seven paisa) only in the account of 0699306722502, 0699210032300, 0699306726623 and 162410NC00000089 with interest calculated upto 30.11.2023 and further interest from 01.12.2023 @10.70% per annum with monthly rests till full realization of the entire balance and subsequently the said O.A. has been settled before National Lok Adalat held on 13.09.2025, at this Hon'ble (contd/...2)

Tribunal at Rs. 17,00,000/- ( Seventeen Lakhs) only. That a cheque dated 13.09.2025 of Rs. 1,75,000/- was submitted by the defendant as upfront amount on the same day and the rest of the settlement amount of Rs. 15.25 lakhs had to be paid within three months positively by 12.12.2025. That the abovementioned cheque was deposited for encashment on 19.09.2025 but it was dishonoured due to insufficient funds and moreover the defendants did not make the payments of the settlement amount within the time as scheduled by the award of the Lok Adalat and as such the settlement becomes infructuous. That as per said Order of National Lok Adalat held on 13.09.2025 at Siliguri of this Hon'ble DRT, Siliguri in case of non-payment of the instalment amount on its due date, as per the settlement, the award of the Lok Adalat shall be treated as Recovery certificate and directly recovery proceeding shall be initiated by the applicant bank for the recovery of original claim amount Rs. 27,49,463.27p (Rupees Twenty seven Lakh Forty-nine Thousand Four Hundred Sixty three and Twenty seven paisa) as on 30.11.2023 along with further interest @10.70% per annum with monthly rests from 01.12.2023 without referring the matter before the bench of Debts Recovery Tribunal for adjudication of the claim amount and accordingly, the applicant bank prays for issuance of Recovery Certificate against the defendants jointly and severally.

3. The defendant/borrower filed the written statement wherein it is stated inter-alia that on the date of National Lok Adalat the defendant specifically requested the bank officer to deposit the cheque on 22.09.2025 but suddenly the cheque was deposited by the officials of the bank on 19.09.2025 and resultantly the cheque was bounced and subsequently the defendant received one letter from the bank through Whatsapp that the settlement between the parties has been rejected by them. That thereafter on 25.09.2025 the defendant No.1 approached the applicant bank and deposited the upfront amount of Rs. 1.75 lakhs to the NPA account and the Bank officer explicitly agreed that the OTS is still under consideration. It is submitted by the defendant/borrower that the settlement amount of Rs. 17.00 lakhs as awarded by the National Lok Adalat was arrived at after due deliberation and mutual consent of the parties and the defendants cannot be deprived of the benefit of the said compromise merely on account of a minor and bonafide delay in payment cause due to unavoidable circumstances and therefore the applicant bank's contention seeking to revive the original claim of Rs. 27,49,463.27 along with interest is arbitrary, harsh and contrary to the spirit of the Lok Adalat settlement.

(contd/...3)

Wp 22.09.2025

Siliguri

4. Having heard the Ld. Counsel of both the parties and perused the record it transpires that O.A. case No. 42/2024 was filed by the applicant bank for the recovery of dues amount of Rs. 27,49,463.27p along with interest calculated upto 30.11.2023 with further interest thereon @10.70% p.a. with monthly rests. It also transpires that the O.A. case was settled before the National Lok Adalat held on 13.09.2025 in between the parties for an amount of Rs. 17.00 lakhs out of which a cheque of Rs. 1.75 lakhs was deposited on the date of Lok Adalat i.e. 13.09.2025 and rest of the amount was to be paid by 12.12.2025 and to this effect a joint compromise petition was filed and on the basis of the consent of both the parties and considering the joint compromise petition award was prepared on dated 13.09.2025 and the O.A. case was disposed of.

5. Case of the applicant is that when the cheque dated 13.09.2025 was presented before the Bank it was dishonoured due to insufficient fund on dated 20.09.2025.

6. Objection of the borrower is not convincing that all of a sudden cheque was deposited without informing the borrower/defendant. When the cheque was submitted by the borrower before the Bench of National Lok Adalat as an upfront amount, sufficient amount in the bank account must have been ensured and there would be no question of informing the borrower before the presentation of cheque by the applicant bank. If a cheque was dishonoured on dated 20.09.2025 the term of the settlement was broken and consequently the settlement had become void and it is immaterial that later on any cash deposit was made by the borrower/defendant. However, even till the date of passing of order the entire settlement amount has not been deposited.

7. From perusal of joint compromise petition of the parties filed before the Bench of National Lok Adalat it transpires that it is specifically mentioned in para No.3 that in case of non-payment of settlement amount the award of Lok Adalat would be treated as Recovery Certificate and the bank would be entitled to recover Rs. 27,49,463.27p as on 30.11.2023 along with further interest @10.70% per annum with monthly rests from 01.12.2023.

8. Para 3 of the compromise petition is extracted here-in-below :- "3. In case of non-payment of the instalment amount on its due date, as per the settlement, the award of the Lok Adalat shall be treated as "Recovery Certificate" and directly recovery proceeding shall be initiated by the applicant bank for the recovery of original claim amount i.e. **Rs.27,49,463.27 as on 30.11.2023 along with further interest @10.70% per annum with monthly rests from 01.12.2023** without referring the matter before the bench of Debts Recovery Tribunal for adjudication of the claim amount."

(contd/...4)

Handwritten signature and stamp: @3.1.25 9:57 AM

Siliguri

1. 9. In case of **Navratan Lal Sharma Vs Radha Mohan Sharma & Ors.** [CIVIL APPEAL NO. 14328/2024 @ SLP (CIVIL) NO. 27723 OF 2024 decided on dated 12.12.2024], the Hon'ble Apex Court had held that in case of non-compliance of the term of settlement, the compromise will be considered void. It is pertinent to mention here that in the aforesaid case also (supra) the Hon'ble Supreme Court had noticed that in para 4 of the Compromise Deed it was mentioned that in case of non compliance the appeal would be restored.

2. 10. Under the aforesaid facts and circumstances, M.A. filed by the applicant is hereby **allowed** by condoning the delay and the O.A. No. 42/2024 is restored in view of para No. 3 of the joint compromise petition.

3. 11. Let a Recovery Certificate be issued in favour of the applicant bank for Rs. 27,49,463.27p along with interest as on 30.11.2023 with further interest thereon @10.70% per annum with monthly rests from 01.12.2023 till realization of the entire dues amount.

4. 12. A cost of Rs. 50,000/- (Rupees fifty thousand) only has to be paid by the defendant/borrower to the applicant bank.

5. 13. The Registry is directed to serve/send copy of this order to both the parties free of cost.

6. 14. Let the order be uploaded on the website of the Tribunal.

The judgment is signed and pronounced in the open Tribunal on 03^rd day of February, 2026.

*Rakesh Pati Tiwari* (RAKESH PATI TIWARI) Presiding Officer 03.02.2026 DRT, Siliguri

Siliguri