Allowed

Punjab National Bank v. Mandar Singh and Others

DRT7 Jan 2025OA/1052/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's Original Application for recovery of Rs.31,15,520.80 from the legal heirs of a deceased borrower. The Tribunal fixed a uniform simple interest rate of 8% p.a. and ordered the recovery from mortgaged or personal assets.

What did the court decide?

The defendants are liable to pay Rs.31,15,520.80 jointly and severally with simple interest at 8% p.a.; recovery to be enforced through sale of mortgaged or personal assets.

Punjab National Bank versus Mandar Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1052/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION:13.08.2024

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DATE OF DECISION: 07.01.2025

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Punjab National Bank, a body corporate and nationalized Bank under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector-10, Dwarka New Delhi-110075 and amongst others 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.

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……..Applicant

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Versus

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Late Sh. Mandar Singh S/o Sh. Bachittar Singh R/o VPO Charrik Patti Sarkar, Tehsil and District Moga-142002 (Punjab) through his legal heirs :

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Smt. Veerpal Kaur W/o Late Sh. Mandar Singh R/o VPO Charrik Patti Sarkar, Tehsil and District Moga-142002 (Punjab).

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Sh. Jaskaran Singh S/o Late Sh. Mandar Singh R/o VPO Charrik Patti Sarkar, Tehsil and District Moga-142002 (Punjab).

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Sh. Jit Singh S/o Sh. Boora Singh R/o VPO Charrik Patti Sarkar, Tehsil and District Moga-142002 (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Kanwar Harbir Singh Bath, 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.31,15,520.80p (Rupees Thirty One Lacs Fifteen Thousand Five Hundred Twenty And Eighty Paisa only). The Original Application has been filed through Sh. Sukhbir, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 22.12.2022, which is Annexure A2 to this OA.

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2. The brief facts of the OA are that the Late Sh. Mandar Singh
defendant no.3 had approached the applicant for the grant of KCC Limit of Rs.15.00 Lacs vide Loan Applications dated 25.11.2011, which is Annexure A4to this OA.
3. The applicant sanctioned the KCC Limit of Rs.15.00 Lacs vide
Sanction Letters dated 25.11.2011, which isAnnexure A5to this OA and the terms and conditions were duly accepted by the defendants.
4. Late Sh. Mandar Singh had mortgaged his immovable properties
i.e. Land Measuring 24Kanal-16Marla detailed as:
a. Land Measuring 16Kanal-13Marla situated at VillageCharik Patti
Jagir-1, tehsil and District Moga
b. Land Measuring 8Kanal-03Marla situated at VillageCharik Patti
Jagir-2, tehsil and District Moga
vide Registered Mortgage Deed bearing vasika no. 7054 dated
05.12.2011, along with its Translations,which isAnnexure A8to this
OA.
Documents executed:-Collector rates,which isAnnexure A1to this
OA; Scheme of Amalgamation dated 04.03.2020, which isAnnexure
A3to this OA; agreement of Hypothecation, Agreement of Guarantee
both dated 21.12.2011, which areAnnexures A6 & A7to this OA;
Balance and Security Confirmation letter dated 04.08.2014, 24.03.2017 & 27.12.2019, which areAnnexures A9 to A11to this OA; Legal Notice dated 20.07.2024, which isAnnexure A12to this OA and Loan Account Statement, which isAnnexure A13to 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.31,15,520.80p, 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 legal heirs of Late Sh. Mandar Singh i.e. defendant no.1,2
and defendant no.3 were served notices to appear before this Tribunal
but no one appeared on behalf of legal heirs of Late Sh. Mandar Singh

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i.e. defendant no.1,2 and defendant no.3 and they were proceeded exparte on 03.01.2025.

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7.	In support of the OA, affidavit of Sh. Sukhbir, constituted attorney
and	Senior Manager, Punjab National Bank,has been filed.
8.	Heard arguments and perused record.

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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 A13 to this OA, it is proved that the Late Sh. Mandar Singh defendant no.3 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 Late Sh. Mandar Singh defendant no.3 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the Late Sh. Mandar Singh defendant no.3 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,15,520.80p (Rupees Thirty One Lacs Fifteen Thousand Five Hundred Twenty And Eighty Paisa only) along with interest from the legal heirs of Late Sh. Mandar Singh i.e. defendant no.1,2 and from defendant no.3, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.10%p.a. along with penal interest @2.00%p.a. with half yearly rests from 10.02.2024 till the realization.

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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

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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.

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In the result, the application is allowed declaring that the legal heirs of Late Sh. Mandar Singh i.e. defendant no.1,2 and defendant no.3 are liable to pay to the applicant a total sum of Rs.31,15,520.80p (Rupees Thirty One Lacs Fifteen Thousand Five Hundred Twenty And Eighty Paisa 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 legal heirs of Late Sh. Mandar Singh i.e. defendant no.1,2 and defendant no.3 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 legal heirs of Late Sh. Mandar Singh i.e. defendant no.1,2 and defendant no.3. 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.02.2025. 15. Copy of this order be given dasti to the applicant and be sent to the legal heirs of Late Sh. Mandar Singh i.e. defendant no.1,2 and defendant no.3 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: 07.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Mandar Singh and Others

Case brief

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Punjab National Bank v. Mandar Singh and Others

Case brief

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