PUNJAB NATIONAL BANK vs M/S BOMBAY SALES CORPORATION on 22 July 2025

**Date: 22.07.2025**

Item No.26

Present: Sh. S. M. Joshi, Counsel for Applicant Bank None for the defendants Called out, Ld. Counsel for Applicant Bank present. None present for the defendants.

The applicant was directed by order dated 24.04.2025 for submitting whole of the documents in relation to settlement in question since proposal for settlement till the approval/grant of settlement in detail with the name and designation of the officers those have made report and approved the settlement and a period of 15 days was provided as the huge amount is involved in this matter. The settlement has taken place between the applicant bank and borrowers at the amount of Rs.20.10Crores against Rs.44.25Crores the date was fixed 20.05.2025 and again opportunity was provided to the applicant bank by order dated 20.05.2025.

In absence of compliance of the order passed by this Tribunal, the Tribunal has passed order for sending letter to Ld. Executive Director and Ld. Manager Director for compliance of order dated 24.04.2025 and 20.05.2025. But the bank authorities from top to bottom and bottom to top are not ready to comply order passed by this Tribunal.

The Applicant Bank/Punjab National Bank(Public Sector Bank) has not complied order passed by this Tribunal for showing fairness and reasonableness in relation to settlement and are trying again and again to avoid the said orders even though no any stay order has been passed by Hon'ble Debts Recovery Appellate Tribunal.

As per order dated 18.06.2025, the Appeal has already been filed by the applicant bank and now Ld. Counsel for Applicant bank has stated that the Hon'ble Debts Recovery Appellate Tribunal was pleased to issue notice and fixed 28.08.2025 with the direction that the stay application shall be considered on the next date of hearing.

It is very surprising no any adverse order passed by this Tribunal or any order against the interest of the applicant bank, only expected from the bank authorities that the bank authorities shall show fairness and reasonableness in relation to settlement in question. In case of other party benefitting by any act of bank authorities the judicial/semi judicial authorities are duty bound to take extra precautionary measures in relation to said action as the public money and interest of public at large is involved. But the applicant bank has filed appeal.

The conduct of the applicant bank authorities itself clarify each and everything. "A man can tell a lie, but circumstances cannot tell a lie". Hon'ble Supreme Court has also expressed opinion in **Civil Appeal No.5542-5543 of 2023 CELIR LLP Vs. BAFNA Motors (Mumbai Pvt. Ltd)** decided on 21.09.2023, Bank is duty bound to follow the provisions of law as any other litigant again expressed opinion that the law treats everyone equally and that includes Banks and its officers.

Where any enactment has been enacted by the Parliament for speedy recovery and for benefitting the public at large, does not give any license to the bank officers to act dehors the scheme of law or the binding verdicts. The opinion again expressed by the Hon'ble Supreme Court mentioned in the order dated 24.04.2025, reason best known to the bank authorities from top to bottom and bottom to top as they do not want to submit any document on record for showing fairness and reasonableness in relation to settlement in question. That the said settlement had done in genuine manner and trying to run away from their duty as they are duty bound to prove prima facie that the said settlement had done for the protection of interest of the financial institution being a public sector bank & public money is involved.

The applicant bank has also came on settlement in another matter listed today before the Tribunal S.A. No. 62 of 2024 M/s Aarna Health Care & Ors. Vs. Punjab National Bank & Anr. even though bank has also filed an Original Application against M/s Aarna Health Care & Ors. on 26.12.2024 in the Tribunal but not come forward for curing the defect indicated by the registry.

Even though before the Tribunal as per order dated 27.03.2025 in S.A. No. 62 of 2024, the applicant of Securitization Application has moved OTS settlement of Rs.18.25Crores but the bank has informed about possibility of settlement at the amount of Rs.21.20Crores, but again on 27.03.2025 the Ld. Authorized Officer appeared before the Tribunal in Chamber at the time of reconciliation in relation to settlement stated that:

"इनको अब Rs.50.00लाख रुपए और अतिरिक्त देने पड़ेंगे यानी Rs.21.70Crores रुपए देने पर ही OTS हो सकता है"

It is not possible for responsible employee/officer of any institution to state in absence of directions of the higher authorities as the amount is so high, but bank authorities(Punjab National Bank) have settled the matter at the amount of Rs.20.50Crores within hours after statement made by Ld. Chief Manager concerned in Tribunal.

In the light of above, the bank authorities are duty bound to show fairness and reasonableness with genuineness in relation to settlement in this matter also. As none is entitled to deviate from statement or version if made before judicial or semi judicial authority without reasonable cause. In the said circumstances, the said reasonable cause should come on record.

The said Securitization Application shall also be put up with this matter and this ordersheet be placed on the file of S.A. No. 62 of 2024 M/s Aarna Health Care Vs. Punjab National Bank & Anr.

The adjournment application on the part of applicant filed by diary no.3967 dated 22.07.2025 has no worth, but in the light of circumstances of this case including S.A. No. 62 of 2024, once more opportunity is provided to the applicant bank for showing fairness and reasonableness with genuineness in relation to settlement as every authority is duty bound to act in fair manner, who has hold post so high. None is entitled to say he is above the law but bound to follow the law even though not feel pleasure.

The applicant bank has also submitted affidavit by diary no.3936 dated 22.07.2025 in S.A. No. 62 of 2024 be kept on record of S.A. No. 62 of 2024 that shall consider on the date fix. It is also requested to bank authorities to take action in relation to compliance of this order in S.A. No. 62 of 2024 also in strict manner. In case of any adverse order the bank authorities shall be responsible themselves.

The original Application with application submitted by applicant bank also put up with S.A. No. 62 of 2024 for passing appropriate order.

As per Ld. Counsel for Applicant bank of this miscellaneous petition the date before Hon'ble Debts Recovery Appellate Tribunal is fixed 28.08.2025. Hence put up on **25.09.2025** for further consideration.

This order shall be read in continuation of order dated 24.04.2025

(Umesh Kumar Sharma) Presiding Officer DRT, Dehradun

Copy of this order be placed on S.A. No. 62 of 2024 & O.A. Diary No.1281/2024

***If any party feels prejudice with this order may prefer Appeal before Hon'ble Debts Recovery Appellate Tribunal, Allahabad under Section 18 of the S.A.R.F.A.E.S.I. Act.***