Allowed

Punjab National Bank, v. Sh.Lakhwinder Singh and Another

DRT16 Jan 2024OA/933/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of a housing loan default of Rs.31,32,180.66p. The court dismissed the defense as ex-parte and issued a recovery certificate, ordering recovery from mortgaged properties. It modified the interest claim to uniform simple interest at 7.35%p.a.

What did the court decide?

Recovery of Rs.31,32,180.66p with simple interest at 7.35%p.a. from mortgaged or personal assets; Recovery Certificate issued.

Punjab National Bank, versus Sh.Lakhwinder Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.933/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.05.2022

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DATE OF DECISION: 16.01.2024

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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 the successor of Oriental Bank of Commerce dated 04.03.2020, passed by the Central Government under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having one of its Branch Office at Mansa Link Road, Mansa, Punjab through Sh. Gian Murti Bansal, Senior Manager, Punjab National Bank, Circle Sastra Centre, Sangrur and its Principal Officer, General Power of Attorney of the applicant bank

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(Erstwhile Oriental Bank of Commerce, Branch Office at Mansa Link Road, Mansa, Punjab)

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……..Applicant Versus

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Sh. Lakhwinder Singh S/o Sh. Prem Singh, R/o Near Lalit Atta Chakki, Mansa Khurd, Tehsil and District Mansa

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Sh. Ninder Singh S/o Sh. Prem Singh (since deceased now represented through his LRs:-

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i. Smt. Jagdip Kaur W/o Late Sh. Ninder Singh, R/o Near Lalit Atta Chakki, Mansa Khurd, Tehsil and District Mansa

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ii. Master Jasnoor (minor) S/o Late Sh. Ninder Singh, through his mother and natural guardian) Smt. Jagdip Kaur W/o Late Sh. Ninder Singh, R/o Near Lalit Atta Chakki, Mansa Khurd, Tehsil and District Mansa ………Defendants

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Advocates: Argued by Sh. Amandeep Singh Sobti, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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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.31,32,180.66p (Rupees Thirty One Lacs Thirty Two Thousand One Hundred Eighty and Paisa Sixty Six only). The Original Application has been filed through Sh. Gian Murti Bansal, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 12.02.2015, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendant No.1 and defendant no.2 (since deceased) had approached the applicant bank for the grant of Housing Loan of Rs.23.24 Lacs vide Loan Application dated 25.04.2017, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the Housing Loan of Rs.23.24 Lacs vide Sanction Letter dated 16.05.2017, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 and defendant no.2 (since deceased) had mortgaged their immovable property i.e. House constructed on land measuring 7.16 Marlas situated in the revenue estate of Village Mansa Khurd, Opposite Gurduwara Sahib, Tehsil and District Mansa, Punjab vide Registered Sale Deed bearing Vasika No.954 dated 26.05.2017, Letter to Registrar dated 27.05.2017 and Jamabandi for the year 2014-15; along with their translations, which are Annexures A7, A- 7A, A8, A9 and A-9A to this OA. Documents executed:- Gazette notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement of Individual housing loan and Common agreement both dated 17.05.2017, which are Annexures A5

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and A6 to this OA; Notice u/s 13(2) of SARFAESI Act dated 01.06.2018, which is Annexure A10 to this OA; Possession notice dated 28.02.2019, which is Annexure A11 to this OA; Statement of account, which is Annexure A12 to this OA and Copy of order of Hon’ble Supreme Court of India dated 10.01.2022, which is Annexure A13 to this OA.

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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.31,32,180.66p, which is recoverable and the defendants were 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 20.10.2023.

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In support of the OA, affidavit of Sh. Gian Murti Bansal, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and 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 bank had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant bank 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 defendants 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 bank is entitled to recover a sum of Rs.31,32,180.66p (Rupees Thirty One Lacs Thirty Two Thousand One Hundred Eighty and Paisa Sixty Six only) along with interest from the defendants, jointly

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and severally, 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 @7.35%p.a. along with @2.00%p.a. penal interest with monthly rests from 01.05.2022 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 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 @7.35%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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.31,32,180.66p (Rupees Thirty One Lacs Thirty Two Thousand One Hundred Eighty and Paisa Sixty Six only) jointly and severally, with costs, current and future simple interest @7.35%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 defendants in execution proceedings if not sold earlier under the provisions of the 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 defendants. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.02.2024. 15. Copy of this order be given dasti to the applicant bank 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: 16.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Sh.Lakhwinder Singh and Another

Case brief

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Punjab National Bank, v. Sh.Lakhwinder Singh and Another

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