Allowed

Punjab National Bank v. Khushwinder Singh

DRT4 Jan 2025OA/1177/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by a bank for the recovery of an agricultural loan account classified as NPA. The court confirmed the liability of the defendant and fixed a uniform simple interest rate.

What did the court decide?

Recovery of Rs.36,58,044.00p with uniform simple interest @08.00%p.a. from the date of filing till realization via sale of mortgaged/mortgaged assets or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1177/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.05.2022

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DATE OF DECISION: 04.01.2025

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector-10, Dwarka New Delhi 110075 and a Branch amongst others at Kohara, Ludhiana through Sh. Ravinder Kumar S/o Sh. Madan Lal, Senior Manager, Principal Officer, and duly Constituted Attorney of the Applicant.

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……..Applicant

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Versus

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Sh. Khushwinder Singh S/o Sh. Gulab Singh, R/o VPO Budhewal, District Ludhiana (Punjab)-141112.

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….……Defendant

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Advocates:

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Argued by Sh. Pancham Sharma, Advocate proxy for Sh. Anirudh Gupta, Advocate for Applicant Defendants is already 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.36,58,044.00p (Rupees Thirty Six Lacs Fifty Eight Thousand Forty Four Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager, o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, 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 KCC Limit of Rs.25.00 Lacs (under OGC Scheme) vide Loan Application dated 21.11.2011, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.25.00 Lacs (under OGC Scheme) vide Sanction Letter dated 05.12.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 26Kanal-18Marla situated at Village Budhewal, Hadbast No.187, Sub Tehsil Koom Kalan, District Ludhiana, Punjab vide Registered Mortgage Deed bearing V asika No.1196 dated 06.12.2011, with its translation, which is Annexure A6 & A6T to this OA.

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Documents executed:- Agreement for Hypothecation of Existing and future crops/moveable Assets dated 12.12.2011, w hich is Annexure A4 to this OA; Affidavit of legal heirs dated 19.11.2011, which is Annexure A5 to this OA; Balance Confirmation Letters dated 10.10.2014, 06.06.2017 & 15.02.2020, which is Annexure A7 to this OA; Recall Notice dated 07.04.2015, 16.07.2015, 12.10.2015 & 13.10.2016 and their translations, which is Annexure A8 to this OA; Legal Notice dated 01.01.2022 with postal receipt, which is Annexure A9 to this OA and Statement of Account with certificate, which are Annexures A10 & A11 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.36,58,044.00p, 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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6.	The defendant was served notices to appear before this Tribunal
but	no one appeared on behalf of defendant and he was proceeded ex-
part	e on 15.04.2024.
7.	In support of the OA, affidavit of Sh.Ravinder Kumar, Senior
Man	ager, Punjab National Bankhas been filed.
8.	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 A11 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.36,58,044.00p (Rupees Thirty Six Lacs Fifty Eight Thousand Forty Four 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 @9.25%p.a. along with penal interest @2.00%p.a. with half yearly rests 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 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.

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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.36,58,044.00p (Rupees Thirty Six Lacs Fifty Eight Thousand Forty Four Only) with costs, current and future simple interest @08.00%p.a.

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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. 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 07.02.2025. 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: 04.01.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Khushwinder Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Khushwinder Singh

Case brief

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What did the court decide?

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