Allowed

Punjab National Bank v. Surjit Singh and Another

DRT13 Feb 2025OA/1028/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 28,85,249 against defaulting borrowers. The tribunal set the interest rate at 8% p.a. and directed the issue of a recovery certificate under the SARFAESI Act.

What did the court decide?

Recovery of Rs. 28,85,249 jointly and severally with costs and simple interest at 8% p.a.; issuance of Recovery Certificate.

Punjab National Bank versus Surjit Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1028/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.04.2022

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DATE OF DECISION: 13.02.2025

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Punjab National Bank a body corporate constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector10, Dwarka, New Delhi (110075) and w. e. f. 01.04.2020 being the successor to Oriental Bank of Commerce in terms of Gazette of India notification No. G.S.R. 153( E ) dated 04^th March 2020 issued by the central Government in exercise of powers conferred upon it by Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 (40of 1980) after Consultation with the Reserve Bank of India notified the scheme of Amalgamation of the erstwhile Oriental Bank of Commerce into Punjab National Bank Scheme 2020. The erstwhile Oriental Bank of Commerce Branch Office at Raikot, District Ludhiana Punjab now known as Punjab National Bank (E-OBC) Raikot, District Ludhiana Punjab. Later on, the account has been maintained by the Punjab National Bank Circle SASTRA (West) Site No.5, PNB House, Ferozepur Road, Ludhiana Punjab through its General Power of Attorney Holder Sh. Ramesh Kumar Aggarwal, posted as Deputy Manager of the Applicant.

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……..Applicant

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Versus

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Sh. Surjit Singh S/o Sh. Bachan Singh R/o Village Mangewal, Tehsil & District Barnala (Punjab).

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Sh. Mukhtiar Singh S/o Sh. Teja Singh R/o Village Mangewal, Tehsil & District Barnala (Punjab).

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….……Defendants

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Advocates: Argued by Sh. P.K. Khurana, Advocate for 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.28,85,249.00p (Rupees Twenty Eight Lacs Eighty Five Thousand Two Hundred Forty Nine Only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, posted as Deputy Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 24.09.2013, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of OGC Limit of Rs.20.00 Lacs vide Loan Application dated 08.05.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the OGC Limit of Rs.20.00 Lacs vide Credit Sanction Letter dated 17.05.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 39Kanal-05Marla situated at Village Mangewal, Hadbast No.9, Tehsil & District Barnala, Punjab vide Registered Mortgage Deed bearing vasikano.152 dated 09.05.2012 and Jamabandi for the Year 2006-2007 with their translations, which is Annexure A4 to this OA. Documents executed :- Agreement for Hypothecation of Existing & Future Crops /Moveable Assets/ Live stock to secure a Cash Credit Account of OGC, Agreement of Guarantee executed by Defendant No.2 on behalf of defendant no.1 both dated 17.05.2012, which are Annexures A5 & A6 to this OA; Legal Notice dated 18.01.2020 along with postal receipts, which is Annexure A7 to this OA; Balance & Security Confirmation Letters dated 08.05.2018, 30.04.2019 & 25.07.2019, which is Annexure A8 to this OA and statement of accounts along with Certificate under Banker’s Books of evidence , which is Annexure A9 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.28,85,249.00p, 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 21.01.2025. 7. In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Deputy Manager, Punjab National Bank, has been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A9 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.28,85,249.00p (Rupees Twenty Eight Lacs Eighty Five Thousand Two Hundred Forty Nine 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.60%p.a. along with penal interest @2.00% with half yearly rests from 01.04.2022 till the realization. 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

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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.28,85,249.00p (Rupees Twenty Eight Lacs Eighty Five Thousand Two Hundred Forty Nine 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 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.03.2025.

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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 .

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Dated: 13.02.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Surjit Singh and Another

Case brief

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Punjab National Bank v. Surjit Singh and Another

Case brief

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