Allowed

Punjab Gramin Bank v. Amritpal Singh

DRT30 Dec 2024OA/810/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's recovery application seeking Rs.21 Lakhs. The defendant was absent. The Tribunal granted simple interest at 8% p.a. instead of the claimed rate and ruled for recovery from sale of mortgaged or personal assets.

What did the court decide?

Recovery of principal Rs.21,46,616 with 8% simple interest enforced via sale of mortgaged or attachment of personal assets and issuance of Recovery Certificate.

Punjab Gramin Bank versus Amritpal Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.810/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:12.06.2024

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DATE OF DECISION:30.12.2024

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Punjab Gramin Bank, a Body Corporate Constituted under the Regional Rural Bank Act, 1976, Act No.21 of 1976 having its Head office, at Markfed Road Kapurthala (Pb) and having its branches at different places including one at Nurdi Chowk Tarn Taran, Tehsil and Distt Taran Taran (Pb) through its Constituted Attorney/Manager Sh. Dalbir Singh. ……..Applicant Versus Sh. Amritpal Singh S/o Sh. Ajit Singh, R/o Village Bakipur, Tehsil & District Tran Taran, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Gulshan Mehta, Advocate proxy for Sh. Bhushan Bhatia, Advocate for Applicant Defendants is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.21,46,616.00p (Rupees Twenty One Lacs Forty Six Thousand Six Hundred Sixteen Only). The Original Application has been filed through Sh . Dalbir Singh, Constituted Attorney/Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 09.01.2017, which is Annexure A1 to this OA. 2. The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.13.16 Lacs & Term Loan of Rs.2.00 Lacs vide Loan Application dated 19.02.2015, which is Annexure A2 to this OA.

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3. The applicant Bank sanctioned the KCC Limit of Rs.13.16 Lacs & Term Limit of Rs.2.00 Lacs vide Sanction Letter dated 26.02.2015, which isAnnexure A3to this OA and the terms and conditions were duly
accepted by the defendant.
4. Defendant had mortgaged his immovable properties i.e. total land measuring 12Kanal-00Marlasituated at Village Bakipur, Tehsil and
District Tarn Taran, Punjab vide Declaration u/s 4(1) dated 27.02.2015, with its translation, which isAnnexure A5to this OA.
Documents executed:- Loan Agreement dated 28.02.2015, which is
Annexure A4to this OA; Notice dated 25.01.2024,which isAnnexure
A6to this OA; BC Letters dated 29.05.2019, 24.02.2021, 15.06.2021,
02.01.2017, 30.05.2019 & 09.11.2020, 24.02.2021 and 15.06.2021, which areAnnexures A7 to A7/8to this OA and Statement of Account with certificate by the officer in-charge of Computer System, which is Annexure A8to this OA.
5. The loan accounts became irregular and were classified as NPA
and after adjusting debit and credit entries in both the loan accounts
there was a debit of Rs.21,46,616.00p, which is recoverable and the
defendant was served recall notices but they did not repay the
outstanding amount, therefore, the applicant bank 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 was proceeded ex- parte on 26.12.2024.
7. In support of the OA, affidavit of Sh.Dalbir Singh, Constituted
Attorney/Manager, Punjab Gramin Bankhas been filed.
8. Heard arguments and perused record.
9. 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 theAnnexures
A1 to A8to this OA, it is proved that the defendant approached
applicant for availing of the loan facility which was granted to him and

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for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,46,616.00p (Rupees Twenty One Lacs Forty Six Thousand Six Hundred Sixteen Only). along with interest from the defendant, 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 bank in relief clause has claimed interest @11.25%p.a. along with penal interest @2.00%p.a. with yearly rests from 01.06.2024 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 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.21,46,616.00p (Rupees Twenty One Lacs Forty Six Thousand Six Hundred Sixteen Only) with costs, current and future simple interest @08.00%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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act,

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If the dues of the 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.

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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 19.02.2025.

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Copy of this order be given Dasti to the applicant bank and be sent to defendant 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: 30.12.2024.

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

Punjab Gramin Bank v. Amritpal Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Amritpal Singh

Case brief

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