PUNJAB NATIONAL BANK vs M/S NAZ TRADING COMPANY AND ORS on 9 October 2026

**FINAL ORDER**

This original application has been filed by the applicant bank on 18.08.2020 before DRT-III Delhi and then transferred to DRT-I, Delhi under Section 19 of Recovery of Debts and Bankruptcy Act, 1993 against the defendants for recovery of a Sd/-

sum of Rs.56,28,246/- (Rupees Fifty Six lacs Twenty Eight thousand Two hundred Forty Six only) as on 15.07.2020 alongwith future interest @10.75% in Cash Credit account and @2% penal interest from 16.07.2020 till the date of its realization and costs.

2. The brief facts of the case are that on the request of the defendant no.2 being proprietress of defendant no.1 M/s Naz Trading Company, the applicant bank sanctioned Cash Credit facility for Rs.50,00,000/- (Rupees Fifty lacs only) for business requirement on 18.09.2018 against hypothecation of stocks and book debts and mortgage of property bearing no.1027, land measuring 250.83 sq.metres, Village Chandrawali alias Shahdara, Near GT Road Abadi, Tehsil Vivek Vihar, Shahdara, Delhi owned by defendant no.3 who stood as guarantor for the credit facility availed by defendant no.1 and 2.

3. That in order to avail the credit facility, the defendant no.2 as proprietress of defendant no.1 submitted loan application and executed Hypothecation of Goods and Book Debts to secure Cash Credit Facility Form No.PNB-222-788 and Agreement of Guarantee by defendant no.3 on 18.09.2018 in favour of applicant bank.

4. In order to secure the credit facility, the defendant no.3 extended the equitable mortgage of property bearing no.1027, land measuring 250.83 sq.metres, Village Chandrawali alias Shahdara, Near G.T.Road Abadi, Tehsil Vivek Vihar, Shahdara, Delhi on 14.06.2018 which was already mortgage in the account of M/s M.I.Raw Foods (India) Pvt.Ltd. by depositing sale deed dated 29.10.2015 vide registration no.4589, Book No.1, Volume 2028, on page 1 to 8.

Sd-

5. It has been submitted by the applicant bank that after availing the credit facility, the defendants failed to comply with the terms and conditions of financial discipline and neglected to pay outstanding towards interest and instalments committed various other defaults in the account with applicant bank. Ultimately, the applicant bank classified the account as NPA on 30.06.2019 as per RBI guidelines and issued final recall notice on 06.08.2020 but defendants neglected to regularize the account. Hence, the applicant bank approached this tribunal for recovery of their dues.

6. Notice under section 13(2) of the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 dated 05.07.2019 was issued to the defendants calling upon them to pay the entire outstanding dues with the applicant bank.

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 13.05.2025, 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 copies of various documents such as General Power of Attorney, Loan Application along with relevant documents, Hypothecation of Goods and Book Debts, Agreement of Guarantee, Photocopy of Title Deeds along with Agreement, Demand Notice u/s 13(2), Recall Notice, Statement of Account, Statement of Account u/s 65-B(2) of Indian Evidence Act, u/s sd-

2A(A(B) of Bankers' Books of Evidence Act and NPA Certificate, Original List of Reliance marked as page no.1 to 64.

9. The applicant bank has fully corroborated the averments made in the O.A. Even otherwise the whole case of the 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 a period of 30 days, jointly or severally, a sum of Rs.56,28,246/- (Rupees Fifty Six lacs Twenty Eight thousand Two hundred Forty Six only) as on 15.07.2020 together with pendentelite and future interest @12.75% per annum with monthly rests from 16.07.2020 till its realization with costs; failing which the aforesaid amount shall be recovered from the sale of hypothecated stocks, book debts and mortgaged property bearing no.1027, land measuring 250.83 sq.metres, Village Chandrawali alias Shahdara, Near G.T.Road Abadi, Tehsil Vivek Vihar, Shahdara, Delhi owned by defendant no.3. In case of shortfall, the same shall be recovered from the sale of movable and immovable properties of the defendants.

Sd/-

(II) The recovery certificate be issued forthwith and be sent to the Recovery Officer, Debt Recovery Tribunal-I, Delhi.

(III) Parties are directed to appear before Recovery Officer, DRT I, Delhi on 08.12.2026.

(IV) Copies of final order as well as Recovery Certificate be sent to all concerned free of cost.

a sd- [Signature] **(GOVIND BALLABH SHARMA)** **PRESIDING OFFICER** **DRT-I, DELHI**

(Dictated and pronounced in open court)

Dated: 09.10.2026