Allowed

Punjab National Bank v. Kesar Singh and Others

DRT1 Oct 2024OA/1518/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Punjab National Bank for recovery of Rs.41,98,022.00 from the legal heirs of the deceased borrower. The Court held the defendants jointly and severally liable and granted uniform simple interest at 8% per annum.

What did the court decide?

Recovery of Rs.41,98,022.00 with simple interest at 8% p.a., joint and several liability on defendants, and issue of Recovery Certificate.

Punjab National Bank versus Kesar Singh and Others — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1518/2022

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 31.08.2022

¶5

DATE OF DECISION: 01.10.2024

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and Branch Offices, amongst others at Branch Office: Mansuran, District Ludhiana, Punjab through its General Power of Attorney Holder Shri Varinder Kumar, Branch Manager of the Applicant Bank.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Kesar Singh S/o Sh. Jagir Singh R/o Village Thakarwal, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab. (Since deceased, now represented through his legal heirs)

¶10

1(a). Smt. Baljinder Kaur W/o Shri Kesar Singh R/o Village Thakarwal, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab. (Legal Heir)

¶11

2(b). Ms. Sumandeep Kaur D/o Shri Kesar Singh R/o Village Thakarwal, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab. (Legal Heir)

¶12

1(c). Sh. Gagandeep Singh S/o Shri Kesar Singh R/o Village Thakarwal, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab. (Legal Heir)

¶13

1(d). Sh. Hardeep Singh S/o Shri Kesar Singh R/o Village Tharkarwal, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab. (Legal Heir)

¶14

Sh. Harvinder Singh S/o Shri Sudagar Singh R/o Village Thakarwal, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab.

¶15

¶16

………. Defendants

¶17

Advocates: Argued by Sh. Himanshu Sharma, Advocate for the applicant None for Defendants

¶18

FINAL ORDER

¶19

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.41,98,022.00 (Rupees Forty One Lacs Ninety Eight Thousand and Twenty Two Only). The Original Application has been filed through Sh. Varinder Kumar, Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 20.02.2016, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendant no.1 (since deceased) had approached the applicant for grant of OGC/KCC limit of Rs.30.00 Lacs vide Loan Application dated 02.02.2012, which is Annexure A2 to this OA.

¶21

The applicant sanctioned OGC/KCC limit of Rs.30.00 Lacs vide Sanction Letter dated 02.02.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 15K-2-2/3M situated at Village Thakarwal, Hadbanst No.280, P.O. Lalton Kalan, Tehsil and District Ludhiana, Punjab vide Registered Mortgaged Deed bearing v asika No.18093 dated 1 7.02.2012 along with its translation, which is Annexure A8 to this OA. Documents executed:-Agreement for Hypothecation for existing and future crops/moveable assets/ live stock to secure cash credit account of oriental green card dated 12.03.2012, which is Annexure A4 to this OA; Legal Heirs Affidavit dated 16.02.2012, which is Annexure A5 to this OA; Undertaking to pay the debt to be obtained from the Legal Heirs/ Guarantors of the Deceased Borrowers dated 30.03.2020, which is Annexure A6 to this OA; Agreement of Guarantee dated

¶22

¶23

12.03.2012, which is Annexure A7 to this OA; Balance & Security Confirmation Letters dated 31.12.2014 & 26.04.2017, which is Annexure A9 to this OA; Legal Notice dated 05.08.2022 with postal receipts, which is Annexure A10 to this OA and Statement of Account along with Certificate, which is Annexure A11 to this OA.

¶24

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.41,98,022.00, which is recoverable and the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2 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. 6. The defendants were served notices to appear before this Tribunal. Ms. Malkit Kaur, Advocate appeared on behalf of defendants and filed her Power of Attorney on 24.05.2023 but did not filed WS. Therefore, the opportunity to file WS by defendants was closed and defense was stuck of on 20.09.2024. 7. In support of the OA, affidavit of Sh. Varinder Kumar, Branch Manager, Punjab National Bank has been filed. 8. Heard arguments of Ld. Counsel of applicant. None appeared for defendants. Perused record. 9. It was argued by learned 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 A11 to this OA, it is proved that the defendant no.1 (Since Deceased) and defendant no.2 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2 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

¶25

¶26

brought on record, it is proved that applicant is entitled to recover a sum of Rs.41,98,022.00 (Rupees Forty One Lacs Ninety Eight Thousand Twenty Two Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶27

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.40%p.a. along with penal interest @2%p.a. with half yearly rests from 01.04.2022 till the realization.

¶28

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.

¶29

In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2 are liable to pay to the applicant a total sum of Rs.41,98,022.00 (Rupees Forty One Lacs Ninety Eight Thousand Twenty Two 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall

¶30

¶31

be entitled to recover the same by attachment and sale of personal assets of the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and 1(d) and defendant no.2. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.10.2024. 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(a), 1(b), 1(c) and 1(d) and defendant no.2 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: 01.10.2024

¶32

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

Punjab National Bank v. Kesar Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Kesar Singh and Others

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

Punjab National Bank versus Gurjit Singh

Hdfc Bank Limited versus Sukhdev Singh and Others

Punjab National Bank versus Kulvinder Alias Kulwinder Singh and Another

Canara Bank versus Sucha Singh and Another

Indian Bank versus Gian Singh

Hdfc Bank Limited versus Yadwinder Singh and Others