Allowed

Punjab Gramin Bank v. Sh. Lal Singh

DRT23 Apr 2025OA/1204/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab Gramin Bank for recovery of dues of Rs.35,68,017 from Sh. Lal Singh. The court proceeded ex parte, confirmed the loan default and debt, and granted a uniform interest rate of 8% p.a. instead of the claimed 13%.

What did the court decide?

Recovery of Rs.35,68,017 with interest at 8% p.a. payable from the date of filing of the OA until realization. Recovery certificate issued.

Punjab Gramin Bank versus Sh. Lal Singh — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1204/2024

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 01.10.2024

¶5

DATE OF DECISION: 23.04.2025

¶6

Punjab Gramin Bank, a body corporate constituted under the provisions of the Regional Rural Bank Act 1976 (Act No. 21 of 1976) having its Head Office at Markfed Road, Kapurthala, and amongst others a Branch Office at Badalgarh, Tehsil Moonak, District Sangrur through Ms. Nisha Batta D/o Sh. Surinder Kumar, Branch Manager, General Attorney, and Principal Officer of the applicant.

¶7

……..Applicant Versus

¶8

Sh. Lal Singh S/o Sh. Bhagwan Singh, R/o Village Bushera, Tehsil Moonak & District Sangrur, Punjab – 148033.

¶9

….……Defendant

¶10

Advocates:

¶11

Argued by Sh. Ajay Singla, Advocate for Applicant Defendant is ex parte

¶12

FINAL ORDER

¶13

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.35,68,017.00 (Rupees Thirty Five Lacs Sixty Eight Thousand and Seventeen Only). The Original Application has been filed through Ms. Nisha Batta, Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

¶14

The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.10.00 Lacs, KGC Limit of Rs.8.25 Lacs and Debt Swap of Rs.1.00 Lacs vide Loans Applications along with their translations dated 03.02.2016, which are Annexures A2, A7 and A12 to this OA.

¶15

2 OA NO.1204/2024 PUNJAB GRAMIN BANK VS LAL SINGH

¶16

The applicant sanctioned the KCC Limit of Rs.10.00 Lacs, KGC Limit of Rs.8.25 Lacs and Debt Swap of Rs.1.00 Lacs vide Letter of Arrangements dated 09.02.2016 which are Annexures A3, A8 and A13 to this OA and the terms and conditions were duly accepted by the defendant.

¶17

Defendant had mortgaged his immovable properties i.e. total land measuring 40Kanal-00Marla situated at Village Bushera, Tehsil Moonak & District Sangrur, Punjab vide Declaration U/s 4(1) d ated 10.02.2016, which is Annexure A17 to this OA. Documents executed:- Loan Agreements, Demand Promissory notes, Letters of undertaking all dated 12.02.2016, which are Annexures A4 to A6, A9 to A11 and A14 to A16 to this OA; Jamabandi along with its translation of year 2011-12, which is Annexure A18 to this OA; Revival Letters dated 30.11.2018, which are Annexures A19, A21 and A23 to this OA; Balance and Security Confirmation Letters dated 24.11.2021, which are Annexures A20, A22 and A24 to this OA; Notice along with its translation dated 06.09.2023, which is Annexure A25 to this OA and Accounts Statements, which are Annexures A26 to A28 to this OA.

¶18

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.35,68,017.00, which is recoverable and the defendant was served recall notices but he 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 exparte on 04.04.2025. 7. In support of the OA, affidavit of Ms. Nisha Batta, Branch Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record

¶19

3 OA NO.1204/2024 PUNJAB GRAMIN BANK VS LAL SINGH

¶20

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 A28 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.35,68,017.00 (Rupees Thirty Five Lacs Sixty Eight Thousand and Seventeen Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

¶21

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @13.00%p.a. with half yearly rests from 16.09.2024 till the realization.

¶22

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 defendant is liable to pay to the applicant a total sum of Rs.35,68,017.00 (Rupees Thirty Five Lacs Sixty Eight Thousand and

¶23

4 OA NO.1204/2024 PUNJAB GRAMIN BANK VS LAL SINGH

¶24

Seventeen Only) with costs, current and future simple inte	rest
@08.00%p.a. in all the loan accounts from the date of filing of O	A 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 execu	tion
proceedings if not sold earlier under the provisions of the SARF	AESI
Act, 2002. If the dues of the still remain unsatisfied, it shall be ent	itled
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 20.05.2025.
15. Copy of this order be given Dasti to the applicant and be se	nt to
defendant through registered/speed post and this order be	also
uploaded on the official website of this Tribunal and record consigned.	be
Pronounced by me in the open Tribunal.
Dated: 23.04.2025
(MRIDULESH KUMAR SIN Presiding Offi DRT-III, Chandig	GH) cer, arh

Punjab Gramin Bank v. Sh. Lal Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Lal Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Sh. Sukhwinder Singh

Punjab National Bank versus Sh. Amrik Singh

Punjab National Bank versus Monika

Hdfc Bank Limited versus Messrs Jatin Steels and Others

Icici Bank Limited versus Eeshaan Traders

South Indian Bank Ltd. versus Messrs a S Constructions and Others