Allowed

Punjab National Bank v. Mohar Singh and Others

DRT24 Oct 2024OA/864/2022

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal adjudicated an original application filed by Punjab National Bank for recovery of dues of Rs. 32.41 lakh from the borrower's legal heirs. The court upheld the liability jointly and severally, modifying the claimed interest rate from 12.50% to 8% per annum while issuing a recovery certificate.

What did the court decide?

Recovery of Rs.32,41,820.00 with current and future simple interest at 8% p.a. declared; Recovery Certificate issued.

Punjab National Bank versus Mohar Singh and Others — Specific Performance | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.864/2022

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 31.07.2020

¶5

DATE OF DECISION: 24.10.2024

¶6

Punjab National Bank, a body corporate and nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector10, Dwarka, New Delhi-110075 and amongst other a Branch Office at Railway Road, Moga, District Moga through its Constituted Attorney and Senior Manager Sh. Sandeep Kumar posted at Circle Sastra, Moga.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Mohar Singh son of Sh. Kartar Singh, since deceased survived by following legal heirs:

¶10

(i) Smt. Manjit Kaur Widow of Late Sh. Mohar Singh;

¶11

(ii)Sh. Sukhdev Singh Son of Late Sh. Mohar Singh

¶12

(iii)Sh. Santokh Singh Son of Late Sh. Mohar Singh;

¶13

All residents of Village Janer, Tehsil and District Moga.

¶14

Sh. Gurdeep Singh son of Sh. Jarnail Singh, resident of Village Janer, Tehsil and District Moga.

¶15

………. Defendants

¶16

Advocates:

¶17

Argued by Ms. Sonal Chhabra, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant Defendants are ex-parte

¶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.32,41,820.00 (Rupees Thirty Two Lacs Forty One Thousand Eight

¶20

¶21

Hundred Twenty Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of OGC Limit of Rs.15.00 Lacs vide Loan Application dated 13.04.2011, which is Annexure A2 to this OA. 3. The applicant sanctioned OGC Limit of Rs.15.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 40K-00M situated in Rakba Village Janer, Tehsil and District Moga vide Registered Sale Deed bearing v asika No.5 dated 01.04.2011 along with its translation, which is Annexure A6 to this OA. Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A/A to this OA; Agreement for Hypothecation & Agreement of Guarantee both dated 13.04.2011, which are Annexures A4 & A5 to this OA; Death Certificate of defendant no.1 dated 23.04.2015 with its translation, which is Annexure A7 to this OA; Notice dated 07.02.2022 with postal receipts, which is Annexure A8 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A9 to this OA. 5. 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.32,41,820.00, 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. 6. The legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 21.10.2024

¶22

¶23

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

¶24

Heard arguments and perused record.

¶25

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 A9 to this OA, it is proved that the defendant no.1(since deceased) and defendant no.2 approached applicant for availing of the loan 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(i), 1(ii), 1(iii) 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 brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,41,820.00 (Rupees Thirty Two Lacs Forty One Thousand Eight Hundred Twenty Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50%p.a. with half yearly rests from 01.03.2022 till the realization.

¶26

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 defendant no.2, 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

¶27

¶28

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(i), 1(ii), 1(iii) and defendant no.2 are liable to pay to the applicant a total sum of Rs.32,41,820.00 (Rupees Thirty Two Lacs Forty One Thousand Eight Hundred Twenty 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(i), 1(ii), 1(iii) and defendant no.2 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. 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 legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2. The applicant is at liberty to enforce the claim through due process of law.

¶30

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.11.2024. 15. 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: 24.10.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Mohar Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mohar 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

Indian Bank versus Sohan Lal and Others

Canara Bank versus M/S Bombay Crockery House and Others

Union Bank of India versus M/S Connecting World Trade Pvt. Ltd. and Others

Indian Bank versus Harnek Singh

Hdfc Bank Limited versus Balwant Singh and Others

Icici Bank Limited versus Kulwinder Singh and Another