Allowed

Punjab National Bank v. Smt. Kuldeep Kaur

DRT21 Apr 2025OA/1101/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an ex parte Original Application filed by a bank to recover outstanding dues of over Rs.66 lakhs from a defaulting borrower. The Tribunal upheld the bank's liability claim and granted a reduced simple interest rate of 8% per annum.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.66,42,675.96 with costs and simple interest @ 8% p.a. from date of filing.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1101/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.08.2023

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DATE OF DECISION: 21.04.2025

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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 110075 and the successor of Oriental Bank of Commerce, by Scheme of Amalgamation of Oriental Bank of commerce dated 04.03.2020, passed by the Central Government under section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, having Branch Office amongst others at Banga Road, Mohollon, District SBS Nagar, through Sh. Jitendra Verma, Branch Manager, Banga Road, Mohollon, District SBS Nagar, Principal Officer and duly constituted Attorney of the applicant.

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……..Applicant

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Versus

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Smt. Kuldeep Kaur W/o Sh. Jagdev Singh, R/o Village Manewal, P.O. Machiwara, Tehsil Samrala, Ludhiana.

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….……Defendant

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Advocates:

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Argued by Sh. Sahaj Punj, Advocate proxy for Sh. Amandeep Singh Sobti, Advocate for Applicant Defendant 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.66,42,675.96p (Rupees Sixty Six Lacs Fourty Two Thousand Six Hundred Seventy Five and Paise Ninety Six Only). The Original Application has been filed through Sh. Jitendra Verma, Branch Manager o f the applicant bank, who is competent to institute the

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2 OA NO.1101/2023 PUNJAB NATIONAL BANK VS SMT. KULDEEP KAUR

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Original Application vide General Power of Attorney dated 20.11.2014, which is Annexure A2 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.30.00 Lacs vide Loan Application dated 12.02.2013, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.30.00 Lacs vide Sanction Letter dated 13.02.2013, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged her immovable properties i.e. total land measuring 65Kanal-04Marla situated at Revenue State in Village Malewal/375, Tehsil Balachaur, District SBS Nagar, Punjab vide Registered Mortgage Deed bearing V asika No.4864 dated 12.02.2013 along with their translation, which are Annexures A6 & A6A to this OA. Documents executed:- Gazette Notification dated 04.03.2020, which is Annexure A1 to this OA; Hypothecation Agreement dated 14.02.2013, which is Annexure A5 to this OA; Fard Jamabandi along with its Translation dated 13.02.2013, which are Annexures A7 to A7A to this OA; Notices dated 15.07.2016, 12.02.2018 and 15.03.2022, which are Annexures A8 to A10 to this OA; Balance Confirmations dated 12.02.2016, 18.11.2017, 31.03.2020 and 16.06.2022, which are Annexures A11 to A14 to this OA and Statement of account which is Annexure A15 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 adebit of Rs.66,42,675.96p, which is recoverable and the defendant was 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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3 OA NO.1101/2023 PUNJAB NATIONAL BANK VS SMT. KULDEEP KAUR

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 04.04.2025.

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In support of the OA, affidavit of Sh. Jitendra Verma, Branch 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 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 A15 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that she 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.66,42,675.96p (Rupees Sixty Six Lacs Fourty Two Thousand Six Hundred Seventy Five and Paise Ninety Six 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 @11.50%p.a. with half yearly rests from 15.02.2023 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 defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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4 OA NO.1101/2023 PUNJAB NATIONAL BANK VS SMT. KULDEEP KAUR

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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 defendant is liable to pay to the applicant a total sum of Rs.66,42,675.96p (Rupees Sixty Six Lacs Fourty Two Thousand Six Hundred Seventy Five and Paise Ninety Six 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.05.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 21.04.2025

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

Punjab National Bank v. Smt. Kuldeep Kaur

Case brief

What is this about?

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Punjab National Bank v. Smt. Kuldeep Kaur

Case brief

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What did the court decide?

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