Allowed

Punjab Gramin Bank v. Sh. Balwinder Singh

DRT3 Mar 2025OA/1262/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Punjab Gramin Bank for recovery of Rs.32,28,151.50p outstanding against a defendant who failed to repay sanctioned loans and hypothecated properties. The court granted simple interest at 8% per annum.

What did the court decide?

Recovery of Rs.32,28,151.50p with simple interest @08.00%p.a. from sale of mortgaged or personal assets of the defendant.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1262/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.10.2024

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DATE OF DECISION: 03.03.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act, 1976, Act No.21 of 1976 having its Head Office, at Markfed Road, Kapurthala (Pb) and having its branches at different places including one at BO Valtoha, Tehsil Patti, District Tarn Taran (PB) through its Authorized Representative Sh. Gagandeep Singh.

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……..Applicant Versus

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Sh. Balwinder Singh S/o Sh. Kala Singh R/o Village Radhelke, Tehsil Patti, District Tarn Taran

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………. Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, 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 defendant for recovery of Rs.32,28,151.50p (Rupees Thirty Two Lacs Twenty Eight Thousand One Hundred Fifty One and Fifty Paise Only). The Original Application has been filed through Sh. Gagandeep Singh, Authorized Representative of 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.

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The brief facts of the OA are that the defendant had approached the applicant for grant of CC Limit of Rs.0.50 Lacs, KCC Limit of Rs.8.00 Lacs & Debt Swap Term Loans of Rs.1.00 Lacs vide Loan Applications dated 05.02.2008, 18.02.2012 and 27.09.2011, which are Annexures A2 to A4 to this OA.

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The applicant sanctioned CC Limit of Rs.0.50 Lacs, KCC Limit of Rs.8.00 Lacs & Debt Swap Term Loans of Rs.1.00 Lacs vide Sanctioned Letter dated 05.02.2008, 18.02.2012 and 27.09.2011, which are Annexures A5 to A7 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant had mortgaged his immovable property i.e. total Land measuring 23K-07M situated at wakia rakba Muthiyanwala, Tehsil Patti, District Tarn Taran, Punjab vide Registered Mortgage deed bearing vasika no.1611 d ated 22.02.2012 with its translation, which is Annexure A9 to this OA.

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Documents executed:- Hypothecation Agreements dated 02.03.2012, which is Annexure A8 to this OA; Statements of Accounts duly certified, which are Annexures A10 to A13 to this OA; Notice postal receipts dated 14.02.2024, which is Annexure A14 to this OA and Security and Balance confirmation letters dated 25.08.2010, 30.12.2012, 05.11.2015, 02.08.2018, 31.07.2021, 16.03.2024, 26.04.2014, 03.04.2017, 30.11.2019, 01.10.2022, 22.07.2015, 02.06.2018, 01.06.2021 and 03.02.2024, which are Annexures A15 to A29 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all loan accounts there was a debit of Rs.32,28,151.50p, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 15.02.2025. 7. In support of the OA, affidavit of Sh. Gagandeep Singh, Authorized Representative, Punjab Gramin Bank h as 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 A29 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 bank. The defendant failed to pay back the loan 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.32,28,151.50p (Rupees Thirty Two Lacs Twenty Eight Thousand One Hundred Fifty One and Fifty Paise Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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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 @12.50%p.a. plus penal interest @2.00%p.a. with yearly/half yearly rests in all from 02.08.2024 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 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.32,28,151.50p (Rupees Thirty Two Lacs Twenty Eight Thousand One

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Hundred Fifty One and Fifty Paise Only) with costs, current and future simple interest @08.00%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 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 applicant 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. 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 04.04.2025. 15. Copy of this order be given dasti to the applicant 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: 03.03.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Balwinder Singh

Case brief

What is this about?

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Punjab Gramin Bank v. Sh. Balwinder Singh

Case brief

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