Allowed

Punjab and Sind Bank v. Jasbir Kaur and Others

DRT9 Jan 2025OA/1074/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of non-performing loan dues. The court directed the defendants to pay the principal amount with interest at 8% p.a. declining the bank's plea for penal interest, and authorized recovery via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Debt of Rs.21,35,182.51P with interest at 8% p.a. declared recoverable; issuance of Recovery Certificate and liberty to enforce via sale of properties or attachment of assets.

Punjab and Sind Bank versus Jasbir Kaur and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1074/2024

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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: 09.01.2025

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Punjab & Sind Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act No V of 1980, having its Head Office at 21, Rajindera Place, New Delhi and branch amongst others one at Branch Office Khadoor Sahib, District Tarn Taran through Sh. Manmeet Singh, Manager, Punjab & Sind Bank, Chohla Sahib, District Tarn Taran duly constituted Attorney of the applicant bank and duly authorized by the competent authority of the applicant bank.

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… …..Applicant Versus

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Smt. Jasbir Kaur W/o Sh. Pakhar Singh R/O Patti Ballo di, Khadoor Sahib, District Tarn Taran.

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Sh. Gurmeet Singh S/o Sh. Pakhar Singh R/O Patti Ballo di, Khadoor Sahib, District Tarn Taran.

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Sh. Harjit Singh S/o Sh. Naranjan Singh R/O Patti Ballo di, Khadoor Sahib, District Tarn Taran.

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….……Defendants

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Advocates:

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Argued by Sh. Amandeep Singh Sobti, 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.21,35,182.51P (Rupees Twenty One Lacs Thirty Five Thousand One Hundred Eighty Two and Paise Fifty One Only). The Original Application has been filed through Sh. Manmeet Singh, Manager of the applicant,

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who is competent to institute the Original Application vide General Power of Attorney dated 19.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs. 3. The applicant sanctioned KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 11.08.2015, 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 property total land measuring 46-Kanal-02Marla situated at Village Khadoor Sahib, H.B. No.129, District Tarn Taran vide Declaration under Section 4 (1) dated 03.08.2015 along with Jamabandi for the year 2015-2016 and their translations, which are Annexures A15, A17 & A17-A to this OA.

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Documents executed:-Authorization Letter dated 17.07.2024, which is Annexure A2 to this OA; D.P. Note, Hypothecation of Goods to secure a demand cash credit, Letter of Continuity, Form No.103, 106, 122, 126, 291, 412, 200 & 199, which are Annexures A4 to A14 to this OA; Letter to Tehsildar dated 03.08.2015, which is Annexure A16 to this OA; Guarantee Agreements dated 11.08.2015, which are Annexures A18 & A19 to this OA; Balance and Security Confirmation Letter dated 10.08.2018 & 04.08.2021, which are Annexures A20 & A21 to this OA; Notice dated 22.07.2024, which is Annexure A22 to this OA and Statement of Account with certificate, which is Annexure A23 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 the loan account there was a debit of Rs.21,35,182.51P, which is recoverable and the defendants were 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.

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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 06.01.2025.

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In support of the OA, affidavit of Sh. Manmeet Singh, Manager, Punjab & Sind Bank h as been filed.

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Heard arguments and perused record.

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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 bank had proved its case. From the perusal of all the Annexure A1 to A23 to this OA, it is proved that the defendants approached applicant bank 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 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 bank is entitled to recover a sum of Rs.21,35,182.51P (Rupees Twenty One Lacs Thirty Five Thousand One Hundred Eighty Two and Paise Fifty One 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 @11.55%p.a. along with penal interest @2.00%p.a. with half yearly rests from 01.04.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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,

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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.

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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.21,35,182.51P (Rupees Twenty One Lacs Thirty Five Thousand One Hundred Eighty Two and Paise Fifty One 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 bank 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 bank 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 19.02.2025 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: 09.01.2025

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

Punjab and Sind Bank v. Jasbir Kaur and Others

Case brief

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Punjab and Sind Bank v. Jasbir Kaur and Others

Case brief

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