The Debts Recovery Tribunal upheld the bank's claim against the legal heir of a deceased defaulter, ordering payment of Rs. 22.49 lakhs plus 5% simple interest from the filing date, limiting liability to the deceased's estate.
Recovery Certificate issued for Rs. 22,49,845 along with simple interest at 5% per annum from 02.05.2022.
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. 866/2022
DATE OF INSTITUTION: 02.05.2022
DATE OF DECISION: 26th DAY OF SEPTEMBER, 2023
Punjab National Bank , Ismailabad, Tehsil Pehowa, District Kurukshetra-136129, through its Authorised Representative, Sh. Naresh Kumar Bheem, Senior Manager, Sastra, Punjab National Bank, Chattha Complex, Pipli Road, District Kurukshetra-136118, contact9414502776, [email protected]
…..Applicant Bank
Versus
Late Sh. Avtar Singh through its legal heir Sh. Bhupinder Singh r/o Village Chammu, Sub-Tehsil Ismailabad, District Kurukshetra, Haryana-136129
....Defendant
Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendant ex parte vide order dated 04.08.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.22,49,845/(Rupees Twenty Two Lac Forty Nine Thousand Eight Hundred and Forty Five Only) . It has been filed through Sh. Naresh Kumar Bheem, Senior Manager of the applicant
OA/866/2022 PNB BANK VS AVTAR SINGH THROUGH LR 2
bank stated to be competent to institute the Original Application vide
general power of attorney, Annexure-A1 (copy).
Annexures-A2 and A5 (copy).
The documents relating to the mortgage are as under:
OA/866/2022 PNB BANK VS AVTAR SINGH THROUGH LR 3
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.22,49,845/(Rupees Twenty Two Lac Forty Nine Thousand Eight Hundred and Forty Five Only), is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, along with certificate, Annexure-A12 (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/866/2022 PNB BANK VS AVTAR SINGH THROUGH LR 4
Twenty Two Lac Forty Nine Thousand Eight Hundred and Forty Five 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
OA/866/2022 PNB BANK VS AVTAR SINGH THROUGH LR 5
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, prevalent market rates of interest which have gone drastically downhill in yesteryears and death of the borrower, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @5% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/866/2022 PNB BANK VS AVTAR SINGH THROUGH LR 6
deceased borrower shall remain confined only to estate of the deceased borrower if it is inherited by them and not beyond that or otherwise. The recovery proceedings shall proceed only after the Recovery Officer is fully satisfied on the aspect of the estate being inherited by the Legal Representatives/Heirs and the liability being incurred accordingly .
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the application is maintainable to recover outstanding dues from the legal heirs of a deceased borrower.
Whether interest rate claimed by the bank is allowable or if the Tribunal has discretion to modify it.
1 provisions across 1 enactments
Punjab National Bank
Sh. Bhupinder Singh
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
