Allowed

Punjab National Bank v. Kamaljeet Kaur and Others

DRT15 Jan 2025OA/1085/2024

Case brief

AI extract

What is this about?

Punjab National Bank filed an Original Application under Section 19 RDDBFI Act against legal heirs of the borrower for recovery of an outstanding loan. Defendants were tried ex-parte. The Tribunal allowed the application, granting recovery of the sum with reduced simple interest.

What did the court decide?

Recovery of Rs. 25,39,240.00 jointly and severally with costs and simple interest @ 8.00% p.a.; issuance of Recovery Certificate.

Punjab National Bank versus Kamaljeet Kaur and… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1085/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.08.2024

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DATE OF DECISION: 15.01.2025

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Punjab National Bank, a body corporate constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its head office at plot No.4, sector 10 Dwarka New Delhi 110075 and branch amongst other places at Ikolaha, Tehsil Khanna District Ludhiana represented by Circle Sastra Centre Ferozepur Road, Ludhiana through its authorized officer and duly constituted Attorney Sh. Ravinder Kumar Son of Sh. Madan Lal.

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……..Applicant

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Versus

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Ms. Kamaljeet Kaur W/o Sh. Pritpal Singh VPO Jarg, Tehsil Payal District Ludhiana 141401(Legal heir and representative of borrower-mortgagor late Sh. Pritpal Singh S/o Joginder Singh).

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Ms. Amritpal Kaur D/o Sh. Pritpal Singh VPO Jarg, Tehsil Payal District Ludhiana 141401 (Legal heir and representative of borrower-mortgagor late Sh. Pritpal Singh S/o Joginder Singh).

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Mr. Narinder Pal Singh S/o Sh. Pritpal Singh VPO Jarg, Tehsil Payal District Ludhiana 141401 (Legal heir and representative of borrower-mortgagor late Sh. Pritpal Singh S/o Joginder Singh).

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Mr. Devinder Pal Singh S/o Sh. Pritpal Singh VPO Jarg, Tehsil Payal District Ludhiana 141401 (Legal heir and representative of borrower-mortgagor late Sh. Pritpal Singh S/o Joginder Singh).

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Mr. Jagdev Singh S/o Sh. Inder Singh VPO Jarg, Tehsil Payal District Ludhiana 141401.

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Advocates:

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Argued by Ms. Nitasha, Law Officer of 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

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Institutions Act, 1993, against the defendants for recovery of Rs.25,39,240.00 (Rupees Twenty Five Lacs Thirty Nine Thousand Two Hundred & Forty only). The Original Application has been filed through Sh. Ravinder Kumar, constituted Attorney of the applicant, who is competent to institute the Original Application vide GPA dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that Late Sh. Pritpal Singh and defendant no.5 had approached the applicant for the grant of OGC Limit of Rs.25.00 Lacs vide Loan Application dated 06.12.2012, which is Annexure A4 to this OA.

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The applicant sanctioned the OGC Limit of Rs.25.00 Lacs vide Sanction letter dated 10.12.2012, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Pritpal Singh had mortgaged his immovable properties i.e total land measuring 24Bighe-6Biswa situated in Village Jarg-II, Hadbast No.186, Tehsil Payal, District Ludhiana as per jamabandi for the year 2013-2014 vide Registered Mortgage Deed dated bearing vasika no.2935 dated 20.12.2012, which are Annexures A11 & A12 to this OA.

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Documents executed:- Amalgamation Scheme dated 04.03.2020, which is Annexure A2 to this OA; Death Certificate dated 06.05.2016, which is Annexure A3 to this OA; The acceptance letter duly acknowledged by the borrower dated 10.12.2012, which is Annexure A6 to this OA; Renewal Application for agriculture credit short term loan dated 20.12.2018, which is Annexure A7 to this OA; Hypothecation Cum Loan Agreement for KCC, Agreement of Guarantee, Promissory Note all dated 28.12.2012, which are Annexures A8 to A10 to this OA; Balance Confirmation letters dated 16.11.2015, 20.12.2018 & 03.12.2021, which are Annexures A13 to A15 to this OA; True copy each of signed office copy of Demand Notice

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dated 16.11.2020, which is Annexure A16 to this OA; True copy each of signed office copy of Legal Notice dated 08.07.2024, which is Annexure A17 to this OA and Certified Copy of statement of account along with certificate Under Banker’s Books, which is Annexure A18 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 a debit of Rs.25,39,240.00p, 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 07.01.2025.

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In support of the OA, affidavit of Sh. Ravinder Kumar, constituted Attorney, Punjab National Bank, has been filed. 8. Heard arguments and perused record. 9. It was argued by law officer of applicant 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 A18 to this OA, it is proved that Late Sh. Pritpal Singh and defendant no.5approached 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. Late Sh. Pritpal Singh and defendant no.5failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of Late Sh. Pritpal Singh and defendant no.5was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,39,240.00p (Rupees Twenty Five Lacs Thirty Nine Thousand Two Hundred & Forty

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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 @13.50%p.a. along with penal interest @2.00%p.a. with yearly rests from 08.08.2024 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 @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 defendants are liable to pay to the applicant a total sum of Rs.25,39,240.00p (Rupees Twenty Five Lacs Thirty Nine Thousand Two Hundred & Forty 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 24.02.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 15.01.2025

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

Punjab National Bank v. Kamaljeet Kaur and Others

Case brief

What is this about?

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Punjab National Bank v. Kamaljeet Kaur and Others

Case brief

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