Debts Recovery Tribunals and Appellate Tribunals
PUNJAB NATIONAL BANK (UNITED BANK OF INDIA) vs Pragati Cloths Pvt Ltd And Ors on 15 May 2026
**IN THE DEBTS RECOVERY TRIBUNAL, SILIGURI**
**R.A. No.03/2026**
**arising out of R.C. No. 05/2023**
PUNJAB NATIONAL BANK, (Erstwhile United Bank of India), Raghunathganj Branch, Mackenzie Park, P.O. and P.S. Raghunathganj, Dist-Murshidabad, West Bengal, Pin-742225.
.....Review Applicant
Vs.
1. 1. PRAGATI CLOTHS PVT. LTD., Having its registered officer at 8/1D, Guru Das Dutta Garden Lane, Ultadanga, Kolkata-700067 and having its administrative office at 10, Chowringhee Lane, Kolkata-700016.
2. 2. MR. YOGESH MODI, DIRECTOR, PRAGATI CLOTHS PVT. LTD., Having its registered officer at 8/1D, Guru Das Dutta Garden Lane, Ultadanga, Kolkata-700067 and having its administrative office at 10, Chowringhee Lane, Kolkata-700016.
3. 3. MR. RAMAUTAR MODI, DIRECTOR, PRAGATI CLOTHS PVT. LTD., Having its registered officer at 8/1D, Guru Das Dutta Garden Lane, Ultadanga, Kolkata-700067 and having its administrative office at 10, Chowringhee Lane, Kolkata-700016.
4. 4. MR. SANTANU SEN, DIRECTOR, PRAGATI CLOTHS PVT. LTD., Having its registered officer at 8/1D, Guru Das Dutta Garden Lane, Ultadanga, Kolkata-700067 and having its administrative office at 10, Chowringhee Lane, Kolkata-700016.
.....Opposite Party (s)
<table border="0">
<tr>
<td>Counsel for the Applicant</td>
<td>: Mr. S. Sanyal.</td>
</tr>
<tr>
<td>Counsel for the opposite parties</td>
<td>: Mr. Amit Pachal.</td>
</tr>
</table>
**PRESIDING OFFICER: RAKESH PATI TIWARI**
**Date of Judgment -15.05.2026**
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**J U D G M E N T**
*Handwritten signature* 15.5.2026
Siliguri
1. 1. The instant R.A. has been filed by the review applicant/bank seeking restoration of R.C. No. 05 of 2023, for recovery of Rs. 41,53,542.58/- (Rupees Forty One lakhs Fifty Three Thousand Five Hundred Forty Two and Fifty Eight Paisa only) along with interest calculated upto 30.06.2011 and other reliefs against the opposite parties-defendants.
2. 2. Case of the review applicant/ bank in short is that applicant, namely Punjab National Bank, filed the present case for recovery of Rs. 41,53,542.58 along with interest calculated up to 30.06.2011 and further interest from 01.07.2011 @ 13.25% per annum with monthly rests till realization of the entire outstanding dues against the Defendants. It has been pleaded (contd/...)
that an ex-parte Judgment was passed on 09.12.2022, pursuant to which Recovery Certificate No. 05 of 2023 was issued and the matter was placed before the Ld. Recovery Officer, DRT Siliguri. During pendency of the recovery proceedings, the parties expressed willingness to settle the dispute and the matter was referred to the National Lok Adalat held on 14.02.2026 at Darjeeling, where a settlement was arrived at for Rs. 87,50,000/-, out of which the Defendants paid Rs. 47,50,000/- and agreed to pay the balance amount of Rs. 40,00,000/- on or before 28.02.2026. However, the Defendants failed to pay the remaining settlement amount within the stipulated period and thereby violated the terms and conditions of the compromise settlement. Hence, the Applicant Bank has prayed for restoration of the recovery proceedings in terms of Recovery Certificate No. 05 of 2023 along with consequential reliefs.
1. 3. Service has been effected upon the opposite party and although Ld. Counsel of the opposite party had appeared but did not file his written objection of the RA.
2. 4. Learned counsels of the both the sides have already been heard.
3. 5. From perusal of the record it transpires that the Original Application was filed for recovery of the outstanding dues payable by the defendants and on the basis of Ex-parte judgment dated 09.12.2022, R.C. No.05/2023 was issued for Rs. 41,53,542.58p along with interest and further interest thereof @ 13.25% per annum with monthly rests from 01.07.2011. During pendency of the R.C. proceedings, the matter was amicably settled before the Lok Adalat on 14.02.2026 for an amount of Rs. 87.50 lakhs and as per the terms of the settlement, Rs. 47.50 lakhs was already paid by the borrower in the bank and rest of the amount of Rs. 40.00 lakhs was to be paid positively by 28.02.2026. However, the defendants admittedly failed to adhere to the terms of settlement and did not pay the settled amount within the stipulated period, thereby rendering the compromise ineffective and frustrating the very object of settlement arrived at before the Lok Adalat.
4. 6. 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.
(contd/...)
*Lax* 15.5.2026
Siliguri
1. 7. It is also pertinent to mention here that on dated 12.05.2026 during the course of hearing Ld. Counsel representing the other side/defendant also submits that he has got no objection if the case is restored.
2. 8. It is also pertinent to mention here that the dues involved in the present proceedings pertain to public money advanced by the Applicant Bank in the ordinary course of banking business. Refusal to restore the matter would cause serious prejudice to the Applicant Bank and may result in miscarriage of justice, whereas no irreparable prejudice would be caused to the defendants if the matter is restored and decided on merits.
3. 9. Accordingly, this Tribunal is satisfied that sufficient cause has been shown by the Applicant Bank for restoration of the Original Application. Hence, the prayer for restoration of R.C. No. 05 of 2023 deserves to be allowed in the interest of justice.
4. 10. Under the aforesaid facts and circumstances, R.A. filed by the applicant is hereby allowed and the R.C. No. 05/2023 is restored in its original position and accordingly, CHB is entitled to recover the entire dues amount of Rs. 41,53,542.58p with further interest @ 13.25% per annum with monthly rests from 01.07.2011 till the realization of the amount.
5. 11. Registry is directed to send/serve copy of this order to both the parties free of cost.
6. 12. Let a copy of this order be communicated with the recovery bench and list the R.C. No. 03/2026 on dated 22.05.2026 before the Recovery Bench.
7. 13. Let the record be consigned to the record room after uploading the order on the website of the Tribunal.
The judgment is signed and pronounced in the open Tribunal on 15<sup>th</sup> day of May, 2026.
*Rakesh Pati Tiwari* (RAKESH PATI TIWARI) Presiding Officer 15.5.2026 DRT, Siliguri
Siliguri