The DRT allowed the Original Application filed by Punjab National Bank against a defendant borrower for recovery of dues amounting to approximately Rs.27.59 lakhs arising from a defaulted KCC loan account.
Declaration of liability to pay Rs.27,59,012.08p with simple interest at 8% p.a.; issuance of Recovery Certificate.
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-III, CHANDIGARH
ORIGINAL APPLICATION NO.1222/2023
PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 02.09.2023
DATE OF DECISION: 13.09.2024
Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Collage Road, Grain Market, Jagraon, District Ludhiana through Sh. Rajesh Kumar Bagga, Senior Manager and Attorney Holder of plaintiff Bank posted at Circle Sastra Ludhiana.
……..Applicant/Plaintiff
Versus
Tehsil Jagraon, District Ludhiana, Punjab.
Advocates:
Argued by Sh. Manish Singla, Advocate for the applicant Defendant is ex-parte
FINAL ORDER
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Documents executed:- Hypothecation Agreement, Letter of Undertaking & Letter of Consent all dated 03.10.2011, which are Annexures A3 to A5 this OA; Balance Confirmation Letters dated 30.07.2014, 03.03.2016, 26.12.2017 & 04.09.2020, which is Annexure A7 to this OA; Notice dated 03.07.2018, which is Annexure A8 to this OA and Statements of Account along with Certificate under Bankers Book Evidence Act, which is Annexure A9 to this OA. 5. The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.27,59,012.08p, which is recoverable and the defendant was 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he is proceeded exparte on 30.05.2024. 7. In support of the OA, affidavit of Sh. Rajesh Kumar Bagga, Senior Manager, Punjab National Bank h as been filed. 8. Heard arguments and perused record.
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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 defendant, 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 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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Rs.27,59,012.08p (Rupees Twenty Seven Lacs Fifty Nine Thousand Twelve And Paise Eight Only) jointly and severally, with costs, current and future simple interest @8.00%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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.
Pronounced by me in the open Tribunal.
Dated: 13.09.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding amount of Rs.27,59,012.08p with interest from the defaulting defendant.
Whether the Tribunal can modify the rate of interest claimed by the applicant.
2 provisions across 2 enactments
Punjab National Bank
Sh. Surjit Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
