Allowed

Punjab National Bank v. Late Lakhwinder Singh and Others

DRT15 Oct 2024OA/1029/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application, holding the deceased borrower's legal heirs liable to repay Rs. 32 lacs. The Tribunal reduced the interest rate to 8% p.a. and directed recovery from mortgaged properties or personal assets.

What did the court decide?

Order accepting the application and directing the legal heirs to pay Rs. 32,53,733 with 8% simple interest; recovery from mortgaged or personal assets; issue of Recovery Certificate.

Punjab National Bank versus Late Lakhwinder Singh… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1029/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.08.2023

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DATE OF DECISION: 15.10.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No. 4, Sector-10, Dwarka New Delhi-110075 and branch offices amongst others branch office Gharyala, Tehsil Patti, District Tarn Taran (Punjab) through its General Power of Attorney holder Sh. Satish Kumar, Branch Manager cum Principal Officer of the Applicant.

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……..Applicant

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Versus

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Late Sh. Lakhwinder Singh S/o Sh. Gurdeep Singh, R/o Village Toot, Tehsil Patti, District Tarn Taran, Punjab. Since deceased through his legal heirs:-

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1(i) Smt. Daljit Kaur @ Smt. Narinder Kaur W/o Late Sh. Lakhwinder Singh, R/o Village Toot, Tehsil Patti, District Tarn Taran, Punjab.

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1(ii) Sh. Malkit Singh S/o Late Sh. Lakhwinder Singh, R/o Village Toot, Tehsil Patti, District Tarn Taran, Punjab.

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1(iii) Sh. Harpreet Singh S/o Late Sh. Lakhwinder Singh, R/o Village Toot, Tehsil Patti, District Tarn Taran, Punjab.

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1(iv) Sh. Mandeep Singh S/o Late Sh. Lakhwinder Singh, R/o Village Toot, Tehsil Patti, District Tarn Taran, Punjab

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………Defendants

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Advocates:

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Argued by Sh. Jasneet Singh, Advocate proxy for Sh. Harinder Kumar, Advocate for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.32,53,733.00 (Rupees Thirty Two Lacs Fifty Three Thousand Seven Hundred and Thirty Three only). The Original Application has been filed through Sh Satish Kumar, Branch Manager w ho is competent to institute the Original Application vide General Power of Attorney dated 22.12.2022, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) was already availing the KCC Limit Rs.14.50 Lacs and had approached the applicant for enhancement of KCC Limit to Rs.19.00 Lacs vide Loan Application dated 22.09.2016, which is Annexure A2 to this OA.

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The applicant sanctioned enhancement of KCC Limit to Rs.19.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no.1 (since deceased).

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Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 60K-13M situated at Village Toot, hadbast No. 334, Tehsil Patti and District Tarn Taran, Punjab vide Declaration under Section 4 (1) dated 16.10.2015 and Jamabandi of the year 2013-2014 long with their Translations, which are Annexures A4, A11 & A11T to this OA. Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Letter of Undertaking and Letter/undertaking unconditional to cancel and stop the limit by applicant any time and Declaration all dated 23.12.2016, which are Annexures A5 to A10 to this OA; Death Certificate dated 08.06.2019 with translation, which are Annexures A12 & A12T to this OA; Letter of Undertaking dated 21.11.2019, which is Annexure A13 to this OA;

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Balance Confirmation Letter dated 01.09.2022, which is Annexure A14 to this OA; Recall notice dated 06.08.2021 with its translation and postal receipt, which is Annexure A15 to this OA and Statements of accounts along with the Calculation chart certified under Banker Books Evidence Act, 1891, which is Annexure A16 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.32,53,733.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv) were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded exparte on 27.09.2024.

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In support of the OA, affidavit of Sh. Satish Kumar , Branch Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendant no.1 (since deceased) approached applicant for availing of the loan facility which were granted to him and for that he had executed all the relevant documents in favour of the applicant. Defendant no.1 (since deceased) failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1 (since deceased) was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,53,733.00 (Rupees Thirty Two Lacs Fifty Three Thousand Seven Hundred and Thirty Three only) along with

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interest from the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv), jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.10%p.a. plus penal interest @2.00%p.a. from 01.06.2023 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv), quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv) are liable to pay to the applicant a total sum of Rs.32,53,733.00 (Rupees Thirty Two Lacs Fifty Three Thousand Seven Hundred and Thirty Three only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv) in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the

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legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv). The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 25.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and 1(iv) through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal.

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Dated: 15.10.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Late Lakhwinder Singh and Others

Case brief

What is this about?

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Punjab National Bank v. Late Lakhwinder Singh and Others

Case brief

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What did the court decide?

What the court decided

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