The Tribunal allowed the bank's application for recovery of Rs. 26.84 Lakhs. It modified the claimed interest rate to 8% p.a. and directed recovery from mortgaged and personal assets.
Ordered defendant to pay Rs. 26,84,437.90 plus costs and 8% simple interest. Directed recovery from mortgaged and personal 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.975/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 31.07.2024
DATE OF DECISION: 16.12.2024
Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka New Delhi-110075 and amongst others a branch at Dhandari Kalan, Tehsil & District Ludhiana, Punjab through Sh. Ravinder Kumar, Senior Branch Manager and Attorney holder.
……..Applicant
Versus
Sh. Avtar Singh S/o Sh. Balwant Singh, R/o Village Jugian Bagga, Tehsil and District Ludhiana, Punjab.
….……Defendant
Advocates:
Argued by Sh. Alankar Narula, Advocate for Applicant (through VC) Defendants is ex parte
FINAL ORDER
2
3
proved that the defendant approached applicant for availing of the loan facility which was 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 is entitled to recover a sum of Rs.26,84,437.90p (Rupees Twenty Six Lacs Eighty Four Thousand Four Hundred Thirty Seven & Ninety 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 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 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.
4
sale of hypothecated/mortgaged properties of the defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendant is liable to repay the outstanding loan amount along with interest.
Whether the Tribunal should grant uniform simple interest at a lower rate compared to the claim.
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
