The Tribunal allowed the applicant's application filed under Section 19 of the RDBFI Act, 1993 for recovery of a loan. It declared the respondents liable to pay the outstanding sum and awarded simple interest at 8% p.a.
Recovery of Rs.32,01,327.99 with simple interest @8% p.a. from filing date; power to sell mortgaged properties under SARFAESI Act.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1186/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 04.10.2023
DATE OF DECISION:18.01.2025
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 at Landran, through recovery vertical at Circle SASTRA, SAS Nagar, Punjab 160055 through Sh. Maninder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the Applicant.
……..Applicant
Versus
1. Sh. Shiv Karan Singh S/o Sh. Ajit Singh R/o #51A, Village Sekhan Majra, Tehsil Kharar, District SAS Nagar, Punjab-140306 (Now Deceased).
2. Smt. Narinder Kaur W/o Sh. Shiv Karan Singh R/o #51A, Village Sekhan Majra, Tehsil Kharar, District SAS Nagar, Punjab140306 (Legal Heir of deceased).
3. Sh. Malkit Singh S/o Sh. Shiv Karan Singh R/o #81, Village Kurrha, Tehsil Kharar, District SAS Nagar, Punjab-140306 (Legal Heir of deceased).
….……Defendants
Advocates:
Argued by Sh. Anirudh Gupta, Advocate for the applicant Defendants are ex-parte
FINAL ORDER
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Documents executed:-Hypothecation agreement, Letter of Undertaking, Letter of Consent, all dated 21.05.2014, which are Annexures A4, A5 & A7 to this OA; Declaration dated 17.05.2014, which is Annexure A6 to this OA; Affidavit dated 19.05.2014,which is Annexure A8 to this OA; Legal opinion dated 16.05.2014,which is Annexure A9 to this OA; Balance & Confirmation letters dated 07.11.2016, 21.10.2019 & 18.10.2022,which is Annexure A11 to this OA; Death certificate dated 27.08.2019, which is AnnexureA12 to this OA; Recall Notice dated 13.10.2021, which is Annexure A13 to this OA; Legal Notice dated 28.08.2023,which is Annexure A14 to this OA and statement of Accounts along with certificate, 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 a debit of Rs.32,01,327.99p 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. 6. 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 09.01.2025.
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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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Pronounced by me in the open Tribunal .
Dated: 18.01.2025.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recovery of the outstanding loan amount along with interest.
Interpretation of interest rates to be awarded on the outstanding sum.
1 provisions across 1 enactments
Punjab National Bank
Sh. Shiv Karan Singh & Legal Heirs
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
