Allowed

Punjab National Bank v. Gurmit Singh and Another

DRT23 Jan 2025OA/1256/2023

Case brief

AI extract

What is this about?

In this ex-parte proceedings, the Tribunal allowed the applicant's recovery application against two defendants who failed to appear. The court declared the defendants liable for the principal amount and modified the claimed interest rate to 8.00% p.a., issuing a Recovery Certificate.

What did the court decide?

Issued Recovery Certificate; Defendants liable to pay principal Rs.36,69,316.00 with 8.00% p.a. simple interest; entitled to recover through sale of mortgaged properties or attachment of personal asse

Punjab National Bank versus Gurmit Singh and Another — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1256/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.09.2023

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DATE OF DECISION: 23.01.2025

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Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Sherpur Road, Jagraon, District Ludhiana, Punjab through Sh. Rajesh Kumar Bagga, Senior Manager and Attorney holder posted at Circle Sastra Centre, Ludhiana.

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……..Applicant

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Versus

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1. Sh. Gurmit Singh S/o Sh. Bakshish Singh, R/o Village Bhundri, Tehsil Jagraon, District Ludhiana, Punjab

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2. Sh. Bhag Singh S/o Sh. Guljara Singh, R/o Village Bhundri, Tehsil Jagraon, District Ludhiana, Punjab.

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….…Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the Applicant Defendants are ex-parte

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FINAL ORDER

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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 defendants for recovery of Rs.36,69,316.00 (Rupees Thirty Six Lacs Sixty Nine Thousand Three Hundred and Sixteen Only). The Original Application has been filed through Sh. Rajesh Kumar Bagga, Senior Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 29.08.2012, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had time to time approached the applicant for the grant of OGC Limit of Rs.10.00

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Lacs vide Loan Application Form dated 08.08.2011, which is Annexure A3 to this OA.

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The applicant sanctioned the of OGC Limit of Rs.10.00 Lacs vide Letter of Sanction dated 08.08.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no. 1 had mortgaged his immovable property i.e. Total land measuring 16K-0M situated at Village Gaursian Khan Mohammad, Tehsil Jagraon, District Ludhiana, Punjab vide Registered Sale Deed bearing vasika no. 972 dated 04.08.2011 along with its English Translation , which is Annexure A7 to this OA. Documents executed:- Amalgamation Scheme/ gazette Notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement for Hypothecation of existing and future crops/movable assets/live stock to secure a cash credit account of Oriental Green card, Agreement of guarantee execute by defendant no.2 both dated 08.08.2011, which are Annexures A5 & A6 to this OA; Balance and Security Confirmation Letters dated 28.09.2015, 30.12.2017 and 17.09.2020, which is Annexure A8 to this OA; Notice dated 27.01.2020 along with Postal Receipts, which is Annexure A9 to this OA and Statement of Account duly Certified, 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 the loan account there was a debit of Rs.36,69,316.00, 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 26.06.2024. 7. In support of the OA, affidavit of Sh. Rajesh Kumar Bagga, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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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 A10 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,69,316.00 (Rupees Thirty Six Lacs Sixty Nine Thousand Three Hundred and Sixteen Only) along with interest from the defendants, jointly and severally, 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 in relief clause has claimed interest @13.50%p.a. plus penal interest @2.00%p.a. in OGC Limit with half yearly rests from 01.04.2023 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 defendants, quantum of loans 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.36,69,316.00 (Rupees Thirty Six Lacs Sixty Nine Thousand Three

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Hundred and Sixteen Only) with costs, current and future simple interest @8.00%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 defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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. 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 05.03.2025. 15. Copy of this order be given Dasti to the applicant and be sent to defendants 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: 23.01.2025

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

Punjab National Bank v. Gurmit Singh and Another

Case brief

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Punjab National Bank v. Gurmit Singh and Another

Case brief

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