Partly allowed

Punjab National Bank (Oriental Bank of Commerce) v. Sh. Sarabjit Singh

DRT9 Mar 2023OA/920/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery against the primary mortgagor but held the application against the guarantor to be time-barred. A recovery certificate was issued, and the sale of mortgaged property was ordered.

What did the court decide?

Recovery of Rs.22,54,285/- with interest is allowed only against Defendant No.1. Recovery is to be effected via sale of mortgaged land.

Punjab National Bank (Oriental Bank of Commerce) versus Sh… — Banking and Recovery | DRT (2023)

¶1

IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

¶2

BEFORE: A S NARANG, PRESIDING OFFICER

¶3

OA No: 920/2022 Date of Institution: 11.05.2022 Date of Decision: 09.03.2023

¶4

Punjab National Bank, (erstwhile Oriental Bank of Commerce), Branch Office at Sadar Bazar, Ferozepur Cantt, District Ferozepur, Punjab.

¶5

……..Applicant

¶6

Vs.

¶7

Sh. Sarabjit Singh S/o Sh. Suba Singh R/o Village Nathuwala Basti Balvir PO Loombri Wala, Tehsil and District Ferozepur.

¶8

Sh. Avtar Singh S/o Sh. Suba Singh R/o Village Nathuwala Basti Balvir PO Loombri Wala, Tehsil and District Ferozepur.

¶9

……….Defendants

¶10

Advocates

¶11

Ms. Sonal, proxy Counsel for Sh. Pankaj Beri, Counsel for the applicant bank.

¶12

Defendants – ex parte

¶13

OA for the Recovery of Rs.22,54,285/- with interest @12.50% per annum with half yearly rests from 01.03.2022.

¶14

ORDER

¶15

Punjab National Bank, (erstwhile Oriental Bank of Commerce), (Applicant Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.22,54,285/- with interest agains Sh. Sarabjit Singh and another (defendants).

¶16

Bank’s case is that on 17.09.2010, it had granted OGC Limit of Rs.10.00 Lacs to defendant No.1 for agricultural purpose. Defendant No.2 stood guarantor. To secure the loan, Defendant No.1 had mortgaged his agricultural land (fully detailed in para No.5(v) of the application). The loan was chargeable to interest @12.50% per annum

¶17

¶18

with half yearly rests. On 01.03.2022, a sum of Rs.22,54,285/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

¶19

On 01.06.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 12.01.2023, they were proceeded ex parte .

¶20

In order to prove its case, the Bank has placed on record the affidavit of Mr. Sandeep Kumar, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-8. 5. I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.10.00 Lacs and on 01.03.2022, a sum of Rs.22,54,285/- was due. 5(a) The loan was given by the bank in the year 2010 and the present OA was filed in the year 2022. Accordingly, the OA against defendant No.2 is time-barred. Since defendant No.1 had created the mortgage, the OA against defendant No.1 on the basis of creation of mortgage is within time.

¶21

Accordingly, the application of the bank for the recovery of Rs.22,54,285/- (Rupees Twenty Two Lacs Fifty Four Thousand Two Hundred and Eighty Five Only) with interest @12.50% per annum with half yearly rests from 01.03.2022, till the date of payment is hereby allowed with costs against defendant No.1 only. Bank can recover its dues by the sale of mortgaged land fully detailed in para No.5(v) of the application only.

¶22

7.	Pending IAs, if any, stand disposed of.
8.	Recovery Certificate be issued accordingly.

¶23

¶24

Parties are directed to appear before Recovery Officer on 11.04.2023, who is directed to distribute the sale proceeds of the mortgage land and standing crops as per the provisions of Section 19(20AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 09.03.2023 Presiding Officer DRT-1, Chandigarh Pankaj

Punjab National Bank (Oriental Bank of Commerce) v. Sh. Sarabjit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. Sh. Sarabjit Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus Siri Enterprises

Indian Overseas Bank versus Tirumalesh Pasuvula Dana and Processing Unit

State Bank of India versus M/S. Sri Laxmi Vinayaka Filling Station

Meenu Kalia versus Bank of Maharashtra

Karnataka Bank Limited versus Ms Nine Projects

Bank of Baroda versus Asyuraju