Allowed

Punjab National Bank v. Smt. Gurdeep Kaur and Others

DRT1 May 2025OA/1058/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of an outstanding loan. The defendants failed to appear. The court reduced the claimed interest rate to 8% p.a. and granted a recovery certificate.

What did the court decide?

Order for payment of Rs. 29,32,394.72 with 8% p.a. interest; Issuance of Recovery Certificate; Liberty to enforce via SARFAESI or attachment of personal assets.

Punjab National Bank versus Smt. Gurdeep Kaur and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1058/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.08.2024

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DATE OF DECISION: 01.05.2025

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Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition and 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 Payal Tehsil and District Ludhiana, Punjab through Sh. Ravinder Kumar, Senior Manager and Attorney Holder.

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……..Applicant Versus

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Smt. Gurdeep Kaur W/o Sh. Kesar Singh R/o Village Majora Post office Sahnewal Tehsil and District Ludhiana Punjab.

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Sh. Kesar Singh S/o Sh. Sukhdev Singh R/o Village Majora Post office Sahnewal Tehsil and District Ludhiana Punjab.

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Sh. Jagjit Singh Bawa S/o Sh. Babu Singh R/o H. No. 100/1, Ward no. 2, Doraha Road, Near Khara Soap, VPO Payal, Tehsil Payal District Ludhiana Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Rajni Narula, Advocate for the applicant (through VC) 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.29,32,394.72p (Rupees Twenty Nine Lacs Thirty Two Thousand Three Hundred Ninety Four And Paise Seventy Two Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant, who is competent to institute the Original

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2 OA NO.1058/2024

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PUNJAB NATIONAL BANK VS GURDEEP KAUR AND OTHERS

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Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 07.07.2017, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 21.07.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos. 1 and 2 had mortgaged their immovable properties i.e. total land measuring 27K-17M situated at Village Majara, H.B. No. 230, Sub-Tehsil Sahnewal, District Ludhiana vide Declaration U/s 4(1) bearing vasika No.25 dated 1 1.07.2017, which is Annexure A9 to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent(Revised), Supplemental Agreement and Deed of Guarantee executed by defendant no. 3 all dated 21.07.2017, which are Annexures A4 to A8 to this OA; Balance Confirmation Letters dated 21.06.2019 and 17.02.2022, which is Annexure A10 to this OA; Notice dated 11.06.2024 with postal receipts, which is Annexure A11 to this OA and Statement of Account duly certified, which is Annexure A12 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 adebit of Rs.29,32,394.72p, 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.

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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 29.04.2025.

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3 OA NO.1058/2024 PUNJAB NATIONAL BANK VS GURDEEP KAUR AND OTHERS

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel through Video

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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 A12 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. 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.29,32,394.72p (Rupees Twenty Nine Lacs Thirty Two Thousand Three Hundred Ninety Four And Paise Seventy Two 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.

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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 22.07.2024 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 appropriate to grant uniform simple interest @08.00%p.a. in

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OA NO.1058/2024 PUNJAB NATIONAL BANK VS GURDEEP KAUR AND OTHERS

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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 defendants are liable to pay to the applicant a total sum of Rs.29,32,394.72p (Rupees Twenty Nine Lacs Thirty Two Thousand Three Hundred Ninety Four And Paise Seventy Two Only) jointly and severally, 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 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 23.05.2025. 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: 01.05.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Gurdeep Kaur and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Smt. Gurdeep Kaur and Others

Case brief

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What did the court decide?

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