Allowed

Punjab National Bank v. Pritpal Singh and Another

DRT8 Jan 2025OA/1050/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the applicants Original Application for recovery of Rs.31.90 lakhs advanced by Punjab National Bank. Court granted uniform simple interest at 8.00% p.a., directing recovery from mortgaged properties and personal assets under SARFAESI Act.

What did the court decide?

Recovery certificate issued; defendants liable to pay Rs.31,90,686.21p with costs and future simple interest at 8.00%p.a.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1050/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 13.08.2024

¶4

DATE OF DECISION: 08.01.2025

¶5

Punjab National Bank, a body corporate and nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and amongst other a branch office at Dhalleke, District Moga (Punjab) through its Constituted Attorney and Senior Manager Sh. Sukhbir Son of Sh. Shamsher Singh posted at Punjab National Bank, Partap Road, First Floor, Circle Sastra, Moga Punjab.

¶6

……..Applicant

¶7

Versus

¶8

1. Sh. Pritpal Singh S/o Sh. Bhagwant Singh R/o VPO Chand Purana, Tehsil Bagha Purana, District Moga-142038.

¶9

2. Sh. Chamkaur Singh S/o Sh. Dhanna Singh R/o VPO Chand Purana, Tehsil Bagha Purana, District Moga-142038.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Kanwar Harbir Singh Bath, 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.31,90,686.21p (Rupees Thirty One Lacs Ninety Thousand Six Hundred Eighty Six & Twenty One Paisa only). The Original Application has been filed through Sh. Sukhbir, Senior Manager who is competent to institute the Original Application vide Power of Attorney dated 22.12.2022, which is Annexure A2 to this OA.

¶15

¶16

2. The brief facts of the OA are that the defendant no.1 had
approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 13.12.2012, which isAnnexure A4to this
OA.
3. The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide
Sanction Letter dated 18.12.2012, which isAnnexure A5to this OA and the terms and conditions were duly accepted by the defendants.
4. Defendant no.1 had Mortgage his immoveable properties i.e. total
land measuring 36Kanla-02Marla situated at Village Chand Purana, Tehsil Bagha Purana and District Moga vide Registered Mortgage Deed
bearing vasika no. 3809 dated 01.01.2013, which isAnnexure A8to
this OA.
Documents executed:- Collector Rates, which isAnnexure A1to this
OA; Notification of Amalgamation dated 04.03.2020, which isAnnexure A3to this OA; Agreement for Hypothecation, Agreement of Guarantee
both dated 04.01.2013, which areAnnexures A6 & A7to this OA;
Balance and Security Confirmation Letters dated 07.10.2015,
22.06.2018, 21.05.2020 & 27.06.2023, which areAnnexures A9 to
A12to this OA; Legal Notice dated 20.07.2024, which isAnnexure A13 to this OA and Loan account statement, which isAnnexure A14to this OA. 5. 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.31,90,686.21p, 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 03.01.2025.
7. In support of the OA, affidavit of Sh. Sukhbir, Senior Manager,
Punjab National Bank, has been filed.
8. Heard arguments and perused record.

¶17

¶18

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 Annexures A1 to A14 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.31,90,686.21p (Rupees Thirty One Lacs Ninety Thousand Six Hundred and Eighty Six 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.

¶19

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.80%p.a. along with penal interest @2.00%p.a. with half yearly rests from 31.03.2024 till the realization.

¶20

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.31,90,686.21p (Rupees Thirty One Lacs Ninety Thousand Six Hundred and Eighty Six only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date

¶21

¶22

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.

¶23

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.02.2025.

¶24

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: 08.01.2025.

¶25

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

Punjab National Bank v. Pritpal Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Pritpal 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 Mohinder Singh

Idbi Bank Limited, versus Balbir Singh and Another

Yes Bank Limited versus Harpreet Singh and Another

Punjab National Bank versus M/S Som Nath and Bros. and Others

Hdfc Bank Limited versus M/S Orbit Knit Fab and Others

Punjab National Bank versus M/S Baweja Knitwear and Others