Granted an original application by Punjab National Bank against borrowers for recovery of Rs.26.33 lakhs and future interest at 8% p.a., allowing the bank to recover dues from mortgaged properties.
Recovery of Rs.26,33,871.15p plus simple interest at 8.00%p.a.; Recovery Certificate issued; Order of sale of mortgaged properties.
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.97/2023
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 10.11.2022
DATE OF DECISION: 31.05.2024
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 Delhi110075 and one of its Branch situated at 151 Industrial Area A, Cheema Chowk, District Ludhiana, Punjab through its Attorney Holder Sh. Ravinder Kumar, Authorised Officer, Punjab National Bank, Circle Sastra Centre, Ludhiana.
……..Applicant
Versus
….……Defendants
Advocates:
Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
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Application vide Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.
Documents executed:- Loan Agreement, Common Agreement, Common Affidavits, Undertakings and Affidavit all dated 17.10.2017, which are Annexures A4 to A9 to this OA; Title Search Report dated 25.03.2018, which is Annexure A11 to this OA; Undertaking dated 09.08.2019, which is Annexure A12 to this OA; Loan Agreement, Common Agreement, Affidavits from Borrowers all dated 16.01.2020, which are Annexures A15 to A18 to this OA; Undertaking dated 17.01.2020, which is Annexure A19 to this OA; Balance and Security Confirmation Letter dated 04.09.2020, which is Annexure A20 to this OA; Demand Notice U/s 13(2) dated 02.06.2020 with postal receipts, which is Annexure A21 to this OA and Accounts Statements along
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with Certificate dated 11.07.2022, which are Annexures A22 to A24 to this OA.
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defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.
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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,33,871.15p (Rupees Twenty Six Lacs Thirty Three Thousand Eight Hundred Seventy One and Paisa Fifteen only) jointly and severally, 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 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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3 issues framed by the court
Whether the applicant bank is entitled to recovery of outstanding loan amount and interest jointly and severally from the borrowers.
Whether the Tribunal may exercise discretion to grant uniform simple interest at 8.00% p.a. instead of claimed rate.
Whether the applicant bank is entitled to enforce claim through sale of hypothecated properties under SARFAESI Act.
1 provisions across 1 enactments
Punjab National Bank
Smt. Rajwinder Kaur
Sh. Amit Singh
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
