Allowed

Punjab National Bank v. Jasvir Singh

DRT16 Jan 2025OA/1283/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the DRT application filed by Punjab National Bank for the recovery of dues of Rs.29,08,713.26p from the respondent. The decision recognizes the mortgage and debt default, permitting recovery via mortgaged, hypothecated, or personal assets subject to due process.

What did the court decide?

Recovery Certificate issued; respondent liable to pay Rs.29,08,713.26p with simple interest @8.00%p.a.; recovery permissible from sale of mortgaged/hypothecated/personal properties.

Punjab National Bank versus Jasvir Singh — Money Laundering | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1283/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.10.2023

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DATE OF DECISION: 16.01.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 having the head office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Landran, through recovery vertical at Circle Sastra, SAS Nagar, Punjab 160055 through Sh. Maninder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the applicant.

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……..Applicant

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Versus

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Sh. Jasvir Singh S/o Sh. Sarup Singh, R/o #46, Village Patran, PO Chudiala, Tehsil Kharar, District SAS Nagar, Punjab-140307.

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….……Defendant

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Advocates:

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Argued by Sh. Anirudh Gupta, Advocate for the applicant Defendant is 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.29,08,713.26p (Rupees Twenty Nine Lacs Eight Thousand Seven Hundred Thirteen and Paisa Twenty Six only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.02.1998, 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 the grant of KCC Limit of Rs.14.50 Lacs vide application Form dated 03.08.2013, which is Annexure A2 to this OA

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and again approached the applicant for enhancing the existing Limit to Rs.16.50 Lacs vide application Form dated 31.03.2019, which is Annexure A11 to this OA

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The applicant sanctioned the KCC Limit of Rs.14.50 Lacs vide sanction letter dated 03.08.2013, which is Annexure A3 to this OA and sanctioned the enhanced KCC Limit to Rs. 16.50 Lacs vide sanction letter dated 31.03.2019, which is Annexure A12 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. total land measuring 8K-0M situated at Village Pattran, Hadbast No. 297, Tehsil Kharar, District SAS Nagar, Punjab vide Registered Mortgage Deed bearing vasika no. 2919 dated 08.08.2013 and along with its English Translation, which is Annexure A9 to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking, Declaration, Letter of Consent all dated 13.08.2013, which are Annexures A4 to A7 to this OA; Affidavit dated 08.08.2013, which is Annexure A8 to this OA; Balance Confirmation Letter dated 24.05.2016, 04.05.2019 and 22.12.2021, which is Annexure A10 to this OA; Hypothecation Agreement dated 31.03.2019, which is Annexure A13 to this OA; Letter to Tehsildaar dated 03.03.2021, which is Annexure A14 to this OA; Notice dated 28.08.2023 along with its Postal Receipt, which is Annexure A15 to this OA and Statement of account along with Certificate which are Annexures A16 & A17 to this OA.

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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.29,08,713.26p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 18.06.2024.

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In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief 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 A17 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 applicant. 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.29,08,713.26p (Rupees Twenty Nine Lacs Eight Thousand Seven Hundred Thirteen and Paisa Twenty Six 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 in relief clause has claimed @11.50%p.a. along with penal interest @2.00%p.a. from 14.08.2023 OA 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

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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 defendant is liable to pay to the applicant a total sum of Rs.29,08,713.26p (Rupees Twenty Nine Lacs Eight Thousand Seven Hundred Thirteen and Paisa Twenty Six 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 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.

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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 25.02.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 16.01.2025

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

Punjab National Bank v. Jasvir Singh

Case brief

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Punjab National Bank v. Jasvir Singh

Case brief

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