DRT allowed Punjab National Bank's original application under Section 19 of RDB Act for recovery of Rs.21.64 lakh. Interest rate fixed at 8% p.a. Recovery certificate issued.
Recovery certificate issued for Rs.21,64,729.75 with 8% simple interest; liberty to recover via sale of secured assets.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 841/2023
DATE OF INSTITUTION: 19.05.2023
DATE OF DECISION: 17th DAY OF NOVEMBER, 2023
Punjab National Bank , a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi and its Branch at Punjab National Bank, Pipli, District Kurukshetra-136131, through its Authorised Representative, Sh. Baldev Raj, Chief Manager, Circle Sastra Centre, Punjab National Bank, Chattha Complex, Pipli Road, District Kurukshetra-136118, Contact No. 7419741874, Email [email protected]
…..Applicant
Versus
Sh. Rajbir @Rajveer Singh s/o Sh. Ran Singh r/o House No. 218, Village Gobindgarh (80), Kurukshetra, Haryana-136132
....Defendant
Argued by: Sh. Rehan Chaudhary proxy counsel for Sh. Krishan Kumar, Advocate for the applicant bank Defendant ex parte vide order dated 05.08.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendant for recovery of Rs.21,64,729.75/- (Rupees Twenty One Lac Sixty Four Thousand Seven Hundred Twenty Nine and Seventy Five Paisa Only) . It has been filed through Sh. Baldev Raj, Chief Manager of the applicant bank stated to be competent to
OA/840/2017 AXIS BANK VS BALBIR SINGH
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institute the Original Application vide Power of Attorney dated 04.09.2003, Annexure-A1 (copy).
The documents relating to the mortgage are as under:
OA/840/2017 AXIS BANK VS BALBIR SINGH 3
outstanding amount vide legal notice dated 09.03.2023 along with its original postal receipt, Annexure-A8 (colly) (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.21,64,729.75/(Rupees Twenty One Lac Sixty Four Thousand Seven Hundred Twenty Nine and Seventy Five Paisa Only), is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A9 (colly) (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/840/2017 AXIS BANK VS BALBIR SINGH 4
favour of the applicant bank. Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,64,729.75/(Rupees Twenty One Lac Sixty Four Thousand Seven Hundred Twenty Nine and Seventy Five Paisa Only) from the defendant.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Only) with current and future simple interest @8% per annum w.e.f.
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19.05.2023 , till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendant in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendant. However, the applicant bank is at liberty to enforce the claim through due process of law.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the bank is entitled to recover the outstanding loan amount of Rs.21,64,729.75 from the defendant.
What rate of interest should be granted pending recovery of the dues.
Colour shows how this judgement treated each authority
OA/840/2017 Axis Bank vs Balbir SinghReferred¶13
OA/840/2017 AXIS BANK VS BALBIR SINGH
3 provisions across 3 enactments
Punjab National Bank
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
