Allowed

Punjab National Bank v. Jaspreet Kaur Cheema and Others

DRT26 Sept 2024OA/1168/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab National Bank against legal heirs and co-borrowers for recovery of a non-performing asset loan of Rs.20.01 lakhs. The Tribunal granted a recovery certificate and fixed interest at 8% p.a.

What did the court decide?

Recovery of Rs.20,01,977.00 with simple interest at 8% p.a. from date of filing until realization; Recovery Certificate issued.

Punjab National Bank versus Jaspreet Kaur Cheema and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1168/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.12.2021

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DATE OF DECISION: 26.09.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and one of its Branch Offices at Raikot Road, Mandi Mullanpur, Ludhiana (earlier known as Oriental Bank of Commerce and now amalgamated with Punjab National Bank w.e.f 01.04.2020 vide Gazette Notification no.133 dated 4-3-2020 of Govt. of India), through its Principal officer and constitute attorney Sh. Sunil Kumar, Sr. Manager.

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……..Applicant/Plaintiff Versus

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Ms. Jaspreet Kaur Cheema D/o Sh. Joginder Singh (being Legal Heir of Deceased Sh. Sadhu Singh Borrower) r/o Village Jangpur, Tehsil and District Ludhiana.

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Smt. Amarjit Kaur W/o Sh. Joginder Singh (being Legal Heir of Deceased Sh. Sadhu Singh Borrower) r/o Village Jangpur, Tehsil and District Ludhiana.

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Sh. Joginder Singh S/o Sh. Sadhu Singh Co-Borrower and Legal Heir of Deceased Sh. Sadhu Singh r/o Village Jangpur, Tehsil and District Ludhiana.

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Sh. Davinder Singh S/o Malkit Singh R/o Village Rurka Tehsil and District Ludhiana.

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……….Defendants

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Advocates:

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Argued by Sh. Amod Kumar Thakur, Advocate proxy for Sh. Sarabdeep Singh, 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.20,01,977.00 (Rupees Twenty Lacs One Thousand Nine Hundred Seventy Seven Only). The Original Application has been filed through Sh. Sunil Kumar, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.09.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Sh. Sadhu Singh (Since Deceased) and defendant no.3 had approached the applicant for grant of OGC Limit of Rs.10.00 Lacs vide Loan Application dated 09.12.2011 along with Driving License, which is Annexure A4 to this OA.

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The applicant sanctioned OGC Limit of Rs.10.00 Lacs vide Sanction Letter dated 09.12.2011, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Sh. Sadhu Singh (Since deceased) had mortgaged his immovable properties i.e. total land measuring 19K-15M situated at Village Jangpur, H.B No.423, Tehsil and District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing v asika No.2279 dated 16.12.2011 along with its translation and as per Jamabandi for the year 20082009, which are Annexures A10 & A11 to this OA. Documents executed:-Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Copy of death certificate of Sh. Sadhu Singh along with its translation, which is Annexure A3 to this OA; Hypothecation of Existing and Future crops/movable assets/ live stocks to secure cash credit account of oriental green card and Agreement of Guarantee both dated 22.12.2011, which are Annexures A6 and A8 to this OA; Schedule-I & II, which are Annexures A7 and A8 to this OA; Balance & Security Confirmation Letters dated 27.09.2014 & 21.06.2017, which are Annexures A12 & A13 to this OA; Undertaking to pay the debts from legal heirs dated 10.01.2020, which

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is Annexure A14 to this OA; Legal Notice dated 28.08.2021 along with postal receipts, which are Annexures A15 to A18 to this OA and Statement of Account along with Certificate under section 65-B of Indian Evidence Act & Court order regarding limitation, which are Annexures A19 to A21 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.20,01,977.00, 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 28.08.2024.

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In support of the OA, affidavit of Sh. Sunil Kumar, Senior 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 A21 to this OA, it is proved that Sh. Sadhu Singh (Since Deceased) and defendant no.3 approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,01,977.00 (Rupees Twenty Lacs One Thousand Nine Hundred Seventy Seven Only) along with interest from the defendants, 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 @10.80%p.a. along with penal interest @2%p.a. with half yearly rests from 01.10.2021 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 defendants, 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 @08.00%p.a. in the loan account 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 defendants are liable to pay to the applicant a total sum of Rs.20,01,977.00 (Rupees Twenty Lacs One Thousand Nine Hundred Seventy Seven Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account 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 defendants 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 defendants. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.10.2024.

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Copy of this order be given dasti to the applicant and be sent to defendants 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 . Dated: 26.09.2024

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

Punjab National Bank v. Jaspreet Kaur Cheema and Others

Case brief

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Punjab National Bank v. Jaspreet Kaur Cheema and Others

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