Allowed

Punjab National Bank v. Jagwinder Singh

DRT2 Jan 2025OA/1090/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.25,87,229.00 plus interest. The Tribunal reduced the claimed interest rate to 8% p.a. uniform simple interest and ordered recovery from mortgaged or personal assets.

What did the court decide?

Recovery of Rs.25,87,229.00 with costs and 8% p.a. uniform simple interest from the date of filing OA till realization, enforceable through sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1090/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.04.2022

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DATE OF DECISION: 02.01.2025

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Punjab National Bank, a Body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act,1970 having its Head Office at Plot No.4, Sector-10,Dwarka,New Delhi-110075and w.e.f.01.04.2020 being the Successor to Oriental Bank of Commerce in terms of Gazette of India Notification No.G.S.R.153 (E) dated 04^th March, 2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking companies (Acquisition & Transfer of Undertakings) Act, 1970 ( 5 of 1970) and Section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act 1980(40 of 1980) after consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of the erstwhile Oriental Bank of Commerce into Punjab National Bank Scheme, 2020. The erstwhile Oriental Bank of Commerce’s Branch office at Mullanpur Mandi, Raikot Road, District Ludhiana (Punjab) now known as Punjab National Bank (e-OBC), Mullanpur Mandi, Raikot Road, District Ludhiana (Punjab). Later on the account has been maintained by Punjab National Bank, Circle SASTRA(West) Site No.5, PNB House, Ferozepur Road, Ludhiana (Punjab) through its General Power of Attorney holder Sh. Ramesh Kumar Aggarwal posted as Deputy Manager of the Applicant.

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……..Applicant Versus

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Sh. Jagwinder Singh S/o Sh. Sadhu Singh, R/o VPO Khanjarwal, Tehsil & District Ludhiana.

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….……Defendant

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Advocates: Argued by Ms. Ashmita Goel, Advocate proxy for Sh. Banni Thomas, Advocate for Applicant Defendants is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.25,87,229.00p (Rupees Twenty Five Lacs Eighty Seven Thousand Two Hundred Twenty Nine Only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 24.09.2013, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.20.00 Lacs vide Loan Application dated 18.04.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.20.00 Lacs vide Sanction Letter dated 20.04.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 16Kanal-18Marla situated at Village Khanjarwal, Hadbast No.75, Sub Tehsil Mullanpur Dakha, Tehsil & District Ludhiana, Punjab vide Registered Mortgage Deed bearing V asika No.219 dated 02.05.2013, with its translation, which is Annexure A4 to this OA. Documents executed:- Agreement for Hypothecation of Existing & Future Crops/Moveable Assets/Live stock to secure a cash credit account of Oriental Green Card dated 20.04.2013 which is Annexure A5 to this OA; Letters/Communications dated 15.11.2017 & 01.03.2018, which is Annexure A6 to this OA; Balance & Security Confirmation Letters dated 12.04.2016 & 12.02.2019, which is Annexure A7 to this OA and Statement of Account with Calculation Chart certified under Banker Books Evidence Act,1891, which is Annexure A8 to 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

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debit of Rs.25,87,229.00p, which is recoverable and the defendant 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 31.12.2024.

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In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Deputy Manage r, Punjab National Bank has been filed.

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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 A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.25,87,229.00p (Rupees Twenty Five Lacs Eighty Seven Thousand Two Hundred Twenty Nine Only) along with interest from the defendant, 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 bank in relief clause has claimed interest @10.60%p.a. with half yearly rests from 18.03.2022 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

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of the defendant, 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 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 defendant is liable to pay to the applicant a total sum of Rs.25,87,229.00p (Rupees Twenty Five Lacs Eighty Seven Thousand Two Hundred Twenty Nine Only) 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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 04.02.2025. 15. Copy of this order be given Dasti to the applicant bank and be sent to defendant 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: 02.01.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Jagwinder Singh

Case brief

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Punjab National Bank v. Jagwinder Singh

Case brief

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