Allowed

Punjab National Bank v. Sh. Jagvir Singh

DRT24 Apr 2025OA/1042/2024

Case brief

AI extract

What is this about?

RDT allowed a bank's application for recovery of a loan classified as NPA. In the absence of the defendant, the Tribunal accepted documentary evidence of the loan, mortgage, and default, granting uniform simple interest at 08% p.a. instead of the claimed rate and authorizing recovery via sale of mortgaged or personal assets.

What did the court decide?

Declaration of liability to pay Rs.24,72,268.21 with costs and future simple interest at 08% p.a.; Issuance of Recovery Certificate; recovery via sale of mortgaged or personal assets in case of non-pa

Punjab National Bank versus Sh. Jagvir Singh — Contract and Commercial Disputes | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1042/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 06.08.2024

¶4

DATE OF DECISION: 24.04.2025

¶5

Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of The Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and amongst others a Branch at Sahnewal, Tehsil and District Ludhiana, Punjab through Sh. Ravinder Kumar, Senior Manager and Attorney Holder.

¶6

(Transferee Bank from Erstwhile Oriental Bank of Commerce)

¶7

……..Applicant

¶8

Versus

¶9

Sh. Jagvir Singh S/o SH. Bhagwant Singh, R/o Village Jugian Begga, Tehsil and District Ludhiana, Punjab

¶10

….……Defendant

¶11

Advocates:

¶12

Present Ms. Rajni Narula, Advocate for the Applicant ( through VC) Defendant is ex parte

¶13

FINAL ORDER

¶14

Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.24,72,268.21p (Rupees Twenty Four Lacs Seventy Two Thousand Two Hundred Sixty Eight and Paise Twenty One Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

¶15

2 OA NO.1042/2024 PUNJAB NATIONAL BANK VS JAGVIR SINGH

¶16

The brief facts of the OA that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.20.00 Lacs vide Loan Application Form dated 06.01.2009, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.20.00 Lacs vide Sanction Letter, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Land measuring 20K-0M situated at within revenue estate of Village Jhungian Bega, Hadabst No.37, Sub Tehsil Koom Kalan, Tehsil and District Ludhiana vide Registered Mortgage Deed bearing no. 1196 dated 29.12.2008 with its translation, which is Annexure A7 to this OA. Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement for Hypothecation and Common Agreement both dated 06.01.2009, which are Annexures A5 to A6 to this OA; Balance Confirmation Letter dated 27.01.2012, 22.11.2014, 07.09.2017, 30.05.2020 and 09.05.2023, which is Annexure A8 to this OA; Notice dated 11.06.2024, which is Annexure A9 to this OA and Statement of account dated 31.08.2024, which is Annexure A10 to this OA.

¶17

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was adebit of Rs.24,72,268.21p, which is recoverable and the defendant was 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 15.04.2025. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed.

¶18

3 OA NO.1042/2024 PUNJAB NATIONAL BANK VS JAGVIR SINGH

¶19

Heard arguments and perused record

¶20

It was argued by learned counsel through video conferencing 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 A10 to this OA, it is 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 applicant. 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.24,72,268.21p (Rupees Twenty Four Lacs Seventy Two Thousand Two Hundred Sixty Eight and Paise Twenty One Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶21

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.05%p.a. plus penal interest @2.00%p.a. with half yearly rests from 07.01.2024 till the realization.

¶22

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.

¶23

4 OA NO.1042/2024 PUNJAB NATIONAL BANK VS JAGVIR SINGH

¶24

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,72,268.21p (Rupees Twenty Four Lacs Seventy Two Thousand Two Hundred Sixty Eight and Paise Twenty One Only) with costs, current and future simple interest @08.00%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 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.

¶25

Any other application pending stands disposed of .

¶26

Issue Recovery Certificate accordingly.

¶27

Parties to appear before Learned Recovery Officer of this Tribunal on 21.05.2025. 15. Copy of this order be given Dasti to the applicant bank and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

¶28

Pronounced by me in the open Tribunal . Dated: 24.04.2025

¶29

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

Punjab National Bank v. Sh. Jagvir Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Jagvir Singh

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

Union Bank of India versus Messrs v R Fashion and Others

South Indian Bank Ltd. versus Messrs a S Constructions and Others

Icici Bank Limited versus Eeshaan Traders

Union Bank of India versus Sh. Rajeshwar Verma and Another

Union Bank of India versus M/S Saggu Industries and Another

Punjab National Bank versus Late Sh. Gulzar Singh and Others