Debts Recovery Tribunal allowed an original application filed by Punjab Gramin Bank against respondents for recovery of Rs 23.27 lakhs. The court decreed uniform interest at 8% p.a. instead of claimed rates.
Order declaring liability to pay Rs.23,27,028 with 8% interest and authorizing recovery through sale of mortgaged properties.
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.1273/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 03.10.2024
DATE OF DECISION: 04.03.2025
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, Punjab and having its branches at different places including one at Nurdi Chowk, Tarn Taran, Tehsil and District Taran Taran Punjab through its constituted attorney/Manager Sh. Dalbir Singh.
….……Defendants
Advocates:
Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) Defendants are ex parte
FINAL ORDER
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| 2. The brief facts of the OA that the defendants had approached the |
|---|
| applicant bank for the grant of KCC Limit of Rs.10.00 Lacs vide Loan |
| Application dated 20.01.2011, which isAnnexure A2to this OA. |
| 3. The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs |
| vide Sanction Letter dated 09.02.2011, which isAnnexure A3to this |
| OA and the terms and conditions were duly accepted by the defendant. |
| 4. Defendant no 1 had mortgaged his immovable properties i.e. total |
| land measuring 24Kanal 00Marlasituated at Village Kot Dharam Chand |
| Khurd, Hadbast no.199, Tehsil and District Tarn Taran, Punjab vide |
| Registered Mortgage Deed bearing Vasika no.4949 dated 03.02.2011, with its translation, which isAnnexure A5to this OA. |
| Documents executed: - Loan agreement dated 09.02.2011, which is |
| Annexure A4to this OA; Notice dated 26.06.2023, which isAnnexure |
| A6to this OA;BC Letters dated 24.07.2013, 18.02.2016, 06.12.2017, |
| 13.10.2020, 15.07.2023,which areAnnexures A7 to A7/4to this OA and Statement of account along with certificate, which isAnnexure A8 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.23,27,028.00p, 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 defendants were served notices to appear before this Tribunal |
| but no one appeared on behalf of defendants and he were proceeded |
| ex-parte on 15.02.2025. |
| 7. In support of the OA, affidavit of Sh. Dalbir Singh, constituted |
attorney/Manager,Punjab Gramin Bank has been filed. |
| 8. Heard arguments and perused record |
| 9. It was argued by learned counsel (through Video |
| **Conferencing)**that in view of the documentary evidence brought on |
| record which had gone unrebutted, the applicant had proved its case. |
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From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan 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.23,27,028.00p (Rupees Twenty Three Lacs Twenty Seven Thousand Twenty Eight 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.25%p.a. along with penal interest @2.00%p.a. with half yearly rests from 01.10.2024 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 defendants, 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 defendants are liable to pay to the applicant a total sum of Rs.23,27,028.00p (Rupees Twenty Three Lacs Twenty Seven Thousand Twenty Eight Only) jointly and severally, with costs, current and future simple 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
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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 defendants. The applicant is at liberty to enforce the claim through due process of law.
Dated: 04.03.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant bank is entitled to recover the outstanding debt of Rs.23,27,028.00 from the defendants?
2 provisions across 2 enactments
Punjab Gramin Bank
Sh. Sawinder Singh
Sh. Jasbir Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
