A Debt Recovery Tribunal allowed an application by Punjab Gramin Bank for recovery of a dues of Rs.24 lakhs from a defaulting defendant. The Tribunal decreed liability for the principal amount and fixed simple interest at 8% p.a.
Order for recovery of Rs.24,60,469.00p along with costs and simple interest at 8% p.a.; issuance of Recovery Certificate.
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.1196/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 17.09.2024
DATE OF DECISION: 10.02.2025
Punjab Gramin Bank, a corporate Body constituted under the provisions of the Regional Rural Bank Act, 1976 (Act No.21 of 1976) has its head office at Markfed Road, Kapurthala and amongst others a branch at Badalgarh Tehsil Moonak, District Sangrur through Ms. Nisha Batta daughter of Sh. Surinder Kumar, Branch Manager, General Attorney and principal officer of the applicant.
……..Applicant
Versus
Sh. Joga Singh S/o Sh. Variyam Singh @ Wariyam Singh, R/o House No.126, Village Nawangaon, Tehsil Moonak, District Sangrur.
….……Defendant
Advocates:
Argued by Sh. Manish Singla, Advocate for Applicant Defendants is ex parte
FINAL ORDER
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| 3. The applicant Bank sanctioned the KCC Limit of Rs.10.75 Lacs, KGC Limit of Rs.1.00 Lacs & Debt Swap Limit of Rs.1.00 Lacs vide Letter of arrangements dated 15.11.2014, which areAnnexures A3, A7 & A9 |
|---|
| 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 36Kanal-00Marlasituated at Village Nawangaon, Tehsil |
| Moonak, District Sangrur (Punjab) vide Declaration u/s 4(1) dated |
| 07.11.2014,with its translation, which isAnnexure A12to this OA. Documents executed:-Demand Promissory Note, Letter of Undertaking, Loan Agreement all dated 18.11.2014,which areAnnexures A4 to A6, |
| A10 & A11to this OA; Revival Letters dated 30.10.2017,which is |
| Annexure A13to this OA; Balance & security confirmation letters dated 12.10.2020, 05.11.2022, which areAnnexure A14to this OA; Notice dated 26.10.2022, which isAnnexure A15to this OA and Statement of Accounts duly certified, which areAnnexures A16 & A17to this OA. |
| 5. The loan accounts became irregular and were classified as NPA |
| and after adjusting debit and credit entries in both the loan accounts |
| there was a debit of Rs.24,60,469.00p, which is recoverable and the |
| defendants 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. |
| 6. The defendant was served notices to appear before this Tribunal |
| but no one appeared on behalf of defendant and he was proceeded ex- parte on 21.01.2025. |
| 7. In support of the OA, affidavit ofSh. Surinder Kumar, Branch |
| Manager, Punjab Gramin Bankhas been filed. |
| 8. Heard arguments and perused record |
| 9. 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 theAnnexures A1 to A17 |
| to this OA, it is proved that the defendant approached applicant for |
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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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.24,60,469.00p (Rupees Twenty Four Lacs Sixty Thousands Four Hundred & Sixty Nine Only) along with interest from the defendants, jointly and severally, 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 [email protected]%p.a. along with penal interest @2.00% with half yearly rests in both from 16.09.2024 till the realization.
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 all 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,60,469.00p (Rupees Twenty Four Lacs Sixty Thousands Four Hundred & Sixty Nine Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in
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execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank 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.
Dated: 10.02.2025.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendant is liable to repay the outstanding amount of Rs.24,60,469.00p along with interest.
Whether the application for recovery is maintainable under Section 19 of the RDBFI Act.
2 provisions across 2 enactments
Punjab Gramin Bank
Mridulesh Kumar Singh
As recorded by the court registry
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