Allowed

Punjab and Sind Bank v. Harbhajan Singh and Another

DRT21 Dec 2024OA/993/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for recovery of a defaulting loan amount of Rs.26,63,126.70 plus interest. The court granted uniform simple interest at 8% per annum instead of the claimed rate and authorized recovery via sale of mortgaged properties.

What did the court decide?

Recovery of Rs.26,63,126.70 plus costs and simple interest at 8% p.a. from the defendants, realizable from mortgaged properties or personal assets.

Punjab and Sind Bank versus Harbhajan Singh and Another — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.993/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 02.08.2024

¶4

DATE OF DECISION: 21.12.2024

¶5

Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act, 1980 (Act No. 40 of 1980) with its Head Office at 21, Rajindera Place, New Delhi and branches amongst other places, one at Jagraon, Tehsil Jagraon and District Ludhiana, through its Authorized Attorney Sh. Jaswinder Singh, Chief Manager.

¶6

……..Applicant

¶7

Versus

¶8

Sh. Harbhajan Singh S/o Sh. Nazar Singh, R/o Village Swaddi Kalan, Tehsil Jagraon, District Ludhiana, Punjab.

¶9

Sh. Pritam Singh S/o Sh. Nand Singh, R/o Village Chaukiman, Tehsil Jagraon, District Ludhiana, Punjab.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Sh. C.S. Sidhu, Advocate proxy for Sh. A.B.S. Sidhu, Advocate for the applicant Defendants are ex-parte.

¶13

FINAL ORDER

¶14

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.26,63,126.70p (Rupees Twenty Six Lacs Sixty Three Thousand One Hundred Twenty Six and Paisa Seventy only). The Original Application has been filed through Sh. Jaswinder Singh, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2019, which is Annexure A1 to this OA.

¶15

The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.10.00.

¶16

¶17

The applicant sanctioned the KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 10.05.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No. 1 had mortgaged her immovable properties i.e. total land measuring 19K-08M situated at Village Swaddi Khurd, Hadbast No. 122, Tehsil Jagraon, District Ludhiana (Punjab) vide Registered Mortgage Deed bearing vasika no. 355 dated 0 5.05.2014 and Jamabandi of the year 2017-2018 along with its translations, which are Annexures A11 & A12 to this OA.

¶18

Documents executed:- Form No. 14 Demand Promissory note, Form No. 106, Form No. 201, Form No. 200, Form No. 312, Form No. 159, Form No. 199, Form No. 256 Guarantee Agreement all dated 10.05.2014, which are Annexures A3 to A10 to this OA; Balance & Security Confirmation Letter dated 17.02.2017 & 21.12.2019, which are Annexures A13 & A14 to this OA; Legal Notice dated 26.07.2018 along with its translations and postal Receipts, which is Annexure A15 to this OA and Statement of Account along with Certificate of Evidence, which are Annexures A16 & A17 to this OA.

¶19

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.26,63,126.70p, 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.12.2024. 7. In support of the OA, affidavit of Sh. Jaswinder Singh, Chief Manager, Punjab & Sind Bank has been filed. 8. Heard arguments and perused record. 9. 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

¶20

¶21

Annexures A1 to A17 to this OA, it is proved that the defendants 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 applicant. 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 is entitled to recover a sum of Rs.26,63,126.70p (Rupees Twenty Six Lacs Sixty Three Thousand One Hundred Twenty Six and Paisa Seventy only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶22

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.25%p.a plus penal interest @2.00%p.a.with half yearly rests from 01.04.2024 till the realization.

¶23

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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,63,126.70p (Rupees Twenty Six Lacs Sixty Three Thousand One Hundred Twenty Six and Paisa Seventy 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 shall be entitled to recover

¶24

¶25

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 applicant 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.02.2025. 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: 21.12.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Harbhajan Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Harbhajan Singh and Another

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

Punjab National Bank versus Harwinder Singh

Icici Bank Limited versus Parteek Verma and Another

Punjab National Bank versus Nirmaljit Singh

Punjab Gramin Bank versus Surjit Kaur and Another

Punjab National Bank versus Baljinder Singh

Hdfc Bank Ltd. versus Smt. Harpreet Kaur and Another