Allowed

Punjab National Bank v. Hardeep Singh

DRT24 Jan 2025OA/1218/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Punjab National Bank for recovery of Rs. 38,09,579 from the defendant. The court fixed simple interest at 8% p.a. and authorized recovery via sale of mortgaged properties or personal assets under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendant ordered to pay Rs. 38,09,579 plus 8% p.a. interest enforceable against mortgaged or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1218/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.12.2021

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DATE OF DECISION: 24.01.2025

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Punjab National bank, a body corporate having common seal and perpetual Succession constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 carrying on the Banking business and having its head office at Plot NO.4, Sector-10, Dwarka, New Delhi, 110075 and one of the branch office amongst others Patiala Circle Sastra Centre 2^nd Floor, Opposite improvement Trust building Chotti Baradari, Patiala (Punjab)-147101 through its attorney holder and authorized representative Sh. Abhinandan Modi, Senior Manager.

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……..Applicant Versus

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Sh. Hardeep Singh S/o Sh. Ajit Singh, R/o House No.131, Part-2, Village Sagra, Tehsil Patran, District Patiala.

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….……Defendants

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Advocates: Argued by Sh. Kanwal Deep Sachdeva, Advocate for Applicant (through VC) Defendants is 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.38,09,579.00p (Rupees Thirty Eight Lacs Nine Thousand Five Hundred And Seventy Nine Only). The Original Application has been filed through Sh. Abhinandan Modi, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 30.12.2013, 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 OGC Limit of Rs.16.00 Lacs vide Loan Application dated 10.06.2011 with its translations, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the of OGC Limit of Rs.16.00 Lacs vide Sanction Letter dated 14.06.2011, which is Annexure A4 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 62Kanal-00Marla situated at Village Sagra, Tehsil Patran, District Patiala vide Registered Mortgage Deed bearing vasika no.542 dated 14.06.2011 and Jamabandi for the year 2006-2007 with their translations, which are Annexures A6 & A7 to this OA. Documents executed:- Notification dated 01.04.2020, which is Annexure A2 to this OA; Agreement of hypothecation dated 24.06.2011, which is Annexure A5 to this OA; Balance & Confirmation letters dated 25.02.2014, 29.06.2016 & 15.11.2018, which is Annexure A8 to this OA; Recall Notice dated 15.11.2021, which is Annexure A9 to this OA and Statement of Account duly certified under the Bankers’s Books Evidence dated 15.11.2021, which is Annexure A10 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.38,09,579.00p, which is recoverable and the defendant was 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 exparte on 16.01.2025. 7. In support of the OA, affidavit of Sh. Abhinandan Modi, Senior Manager , Punjab National Bank, h as been filed. 8. Heard arguments and perused record

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It was argued by learned counsel (through Video

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Conferencing) 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 A10 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.38,09,579.00p (Rupees Thirty Eight Lacs Nine Thousand Five Hundred And Seventy Nine 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 @13.50%p.a. along with penal interest @2.00% with half yearly rests from 16.12.2021 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.38,09,579.00p (Rupees Thirty Eight Lacs Nine Thousand Five Hundred And Seventy Nine Only) with costs, current and future simple

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interest @08.00%p.a. 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.03.2025 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: 24.01.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Hardeep Singh

Case brief

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Punjab National Bank v. Hardeep Singh

Case brief

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