Allowed

Punjab National Bank v. Sh. Harwinder Singh Purewal and Another

DRT23 Jul 2025OA/1124/2022

Case brief

AI extract

What is this about?

This judgment allows an Original Application filed by Punjab National Bank for recovery of Rs. 28,48,267 from two defendants on default of housing and overdraft loans. The Tribunal granted a recovery certificate and fixed uniform simple interest at 7.55% p.a., directing enforcement via sale of mortgaged properties.

What did the court decide?

Recovery Certificate issued; liability declared to pay Rs.28,48,267 with simple interest at 7.55% p.a. from filing date.

Punjab National Bank versus Sh. Harwinder Singh Purewal and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1124/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.05.2022

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DATE OF DECISION: 23.07.2025

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Punjab National Bank, a body corporate constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and Branch offices amongst others at Branch Office Barewal Road, Barewal Awana, Gurdev Hospital, Madhuban Enclave, Ludhiana, Punjab 141012. Later on the account has been transferred to Punjab National Bank, Circle SASTRA Centre (West), Site No.5, PNB House, Ferozepur Road, Ludhiana, Punjab, through its General Power of Attorney Holder Sh. Ramesh Kumar Aggarwal, Deputy Manager of the applicant.

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……..Applicant

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Versus

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Sh. Harwinder Singh Purewal S/o Sh. Chanan Singh, R/o House No. 191-B (2^nd Floor), Model Town Extension, Near Swami Viveka Nand Hospital, Ludhiana, Punjab.

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2^nd address:6-L, Ishar Nahar, Ludhiana, Punjab

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Smt. Komal Purewal W/o Sh. Harwinder Singh, R/o House No.191-B (2^nd Floor), Model Town Extension, Near Swami Viveka Nand Hospital, Ludhiana, Punjab.

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2^nd address:6-L, Ishar Nahar, Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. P. K. Khurana, Advocate for the Applicant

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Defendants already ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank

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under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993,

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against the defendants for recovery of Rs.28,48,267.00p (Rupees

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2 OA/1124/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH PUREWAL AND ANOTHER

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Twenty Eight Lacs Forty Eight Thousand Two Hundred Sixty Seven Only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, Deputy Manager o f the applicant, 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 defendants had approached the applicant for the grant of Housing Loan of Rs.28.50 Lacs vide Loan Application dated 10.02.2016, which is Annexure A2 to this OA. Further, the defendants approached the applicant for Grant of Overdraft Limit against Housing Loan of Rs. 3.50 Lacs for personal needs vide Loan application, which is Annexure A3 to this OA.

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The applicant sanctioned the Housing Loan of Rs.28.50 Lacs vide Sanction Letter dated 10.02.2016, which is Annexure A4 to this OA and further, Overdraft Limit against Housing Loan of Rs. 3.50 Lacs vide sanction dated 20.09.2017, which is Annexure A5 and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. all the part and parcel of property measuring 120Sq. Yards Hadbast No.263, situated at Street No.6L, Guru Nanak Mission Gurudwara, Abadi Isher Singh Nagar, Vakia Mauja Gill-1, Ludhiana Punjab vide equitable mortgage of Title Deed, bearing V asika no. 9388 dated 10.02.2016 along with NEC dated 26.02.2016 Affidavit dated 25.02.2016, valuation report dated 15.11.2021, along with translations, w hich are Annexures A6(Colly) to this OA.

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Documents executed:- Agreements of Housing Loan, Letter of Authority, Affidavits dated 10.02.2016, which are Annexure A7 to Annexure A10 to this OA; Agreement of Overdraft Facility for Housing Loan Borrowers dated 20.09.2017, which is Annexure A11 to this OA; Legal Notice dated 23.08.2018, which is Annexure A12 to this OA; Notice dated 08.03.2019 under section 13(2), which is Annexure A13

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3 OA/1124/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH PUREWAL AND ANOTHER

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to this OA; Possession Notice dated 19.10.2019 and 05.12.2020, which is Annexure A14 to this OA; Sale Notices dated 28.01.2021 and 29.11.2021, which is Annexure A15 to this OA; Balance & Security Confirmation Letter dated 03.01.2019, which is Annexure A16 to this OA and Statement of Accounts, which is Annexure A17 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.28,48,267.00, which is recoverable and the defendants was 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 18.07.2025.

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

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A17 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,48,267.00p (Rupees Twenty Eight Lacs Forty Eight Thousand Two Hundred Sixty

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OA/1124/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH PUREWAL AND ANOTHER

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Seven Only) along with interest from the defendants, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @7.55%p.a. in housing loan and @8.65% p.a. Overdraft from 01.04.2022 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 of the defendants, quantum of loans 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 @7.55%p.a. in the loan accounts 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.28,48,267.00p (Rupees Twenty Eight Lacs Forty Eight Thousand Two Hundred Sixty Seven Only). with costs, current and future simple interest @7.55%p.a. in the loan accounts 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 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.

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12. Any other application pending stands disposed of.

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5 OA/1124/2022 PUNJAB NATIONAL BANK VS SH. HARWINDER SINGH PUREWAL AND ANOTHER

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.08.2025.

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Copy of this order be given Dasti to the applicant bank 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: 23.07.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Harwinder Singh Purewal and Another

Case brief

What is this about?

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Punjab National Bank v. Sh. Harwinder Singh Purewal and Another

Case brief

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