Debts Recovery Tribunal allowed Original Application by Punjab National Bank against defaulting borrower for recovery of Rs.27.41 lakhs. Tribunal fixed uniform interest rate at 8%p.a. and directed issuance of Recovery Certificate.
Allowed OA for recovery of Rs.27,41,418.09 with 8%p.a. interest; issued Recovery Certificate; entitled to sell assets.
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.872/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 08.07.2023
DATE OF DECISION: 11.12.2024
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 Delhi 110075 and one of its Branch at Bariwala, Tehsil Bariwala, Distt. Sri Muktsar Sahib and a Circle Sastra Division Fazilka, Tehsil & District Fazilka(Punjab) through its General Power of Attorney holder Sh. Sandeep Kumar Doda, Officer presently posted at its Circle Sastra Office at Fazilka, Punjab 152123.
……..Applicant
Versus
Sh. Jagtar Singh S/o Sh. Pyara Singh, resident of Village Budhimaal, Tehsil and District Sri Muktsar Sahib (Punjab)
….……Defendant
Advocates:
Argued by Sh. Jas Bains, Nodal Officer for Applicant Defendants are ex-parte
FINAL ORDER
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Documents executed:- Hypothecation Deed and Letter of Undertaking both dated 21.08.2015, which are Annexures A4 & A5 to this OA; BCL Letters are dated 31.10.2017, 11.11.2019 & 21.09.2022, which are Annexures A9 to A11 to this OA; Legal Notice dated 14.06.2023 with postal receipts, which is Annexure A12 to this OA and Statement of Account with certificate, which is Annexure A13 to this OA.
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granted to him and 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, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.27,41,418.09p (Rupees Twenty Seven Lacs Forty One Thousand Four Hundred Eighteen And Nine Paisa Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.
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 loans 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 accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.27,41,418.09p (Rupees Twenty Seven Lacs Forty One Thousand Four Hundred Eighteen And Nine Paisa Only) 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 bank 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
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SARFAESI Act, 2002. If the dues of the bank 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: 11.12.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether Original Application for recovery of debt was maintainable on merits.
Whether defendant is liable to pay declared amount of Rs.27,41,418.09 with interest.
Whether Recovery Certificate should be issued against unmortgaged personal assets.
2 provisions across 2 enactments
Punjab National Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
