Allowed

Punjab Gramin Bank v. Nishan Singh

DRT19 Feb 2025OA/1294/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Punjab Gramin Bank against the legal heirs of a deceased borrower. The court granted recovery of the outstanding loan amount along with interests reduced to 8% per annum due to prevailing market rates.

What did the court decide?

Recovery of Rupees 48,35,130.43 with simple interest at 8% p.a. and costs, enforceable against mortgaged and personal assets.

Punjab Gramin Bank versus Nishan Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1294/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.10.2024

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DATE OF DECISION: 19.02.2025

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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 Jalandhar Road, Kapurthala (Pb) and having its branches at different places including one at B.O. Kot Budha, Tehsil Patti, District Tarn Taran, (Pb) through its authorized Representative Sh. Rajan Koral.

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……..Applicant Versus

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Late Sh. Nishan Singh through LRs:

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Paramjit Kaur Wd/o Late Nishan Singh

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Kulbir Singh S/o Late Nishan Singh

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Jasmeen Kaur D/o Nishan Singh

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Gurtej Singh S/o Late Nishan Singh

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All LRs R/o Village Sito Nau Abad, Tehsil Patti, District Tarn Taran(Pb) ….……Defendants

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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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.48,35,130.43p (Rupees Forty Eight Lacs Thirty Five Thousand One Hundred Thirty & Forty Three Paise Only). The Original Application has been filed through Sh. Rajan Koral, authorized Representative of the applicant bank, who is competent to institute the Original Application

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vide Copy of General Power of Attorney dated 22.01.2021, which is Annexure A1 to this OA.

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The brief facts of the OA that Late Sh. Nishan Singh had approached the applicant bank for the grant of KCC Limit of Rs.24.88 Lacs, Agriculture Credit Limit of Rs.2.00 Lacs & Debt Swap Term Loan of Rs.1.00 Lacs vide Loan Applications dated24.11.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.24.88 Lacs, Agriculture Credit Limit of Rs.2.00 Lacs & Debt Swap Term Loan of Rs.1.00 Lacs vide Sanction Letter dated 30.12.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Late Sh. Nishan Singh had mortgaged his immovable properties i.e. total land measuring 110Kanal-07Marla situated at Village Sito Nau Abad, Tehsil Patti, District Tarn Taran, Punjab vide Declaration u/s 4(1) & L etter to Sub Registrar for Creation of Charge dated 09.12.2015 , which is Annexure A5 to this OA. Documents executed:- Copy of hypothecation agreement dated 30.12.2015, which is Annexure A4 to this OA; Statement of accounts along with certificate by officer In charge of the computer system, which are Annexures A6 & A7 to this OA; Notice dated 22.04.2022, which is Annexure A8 to this OA and BC Letters dated 27.03.2018, 18.05.2018, 27.03.2018, 06.07.2020, 24.02.2021 & 05.01.2023, which are Annexures A9 to A15 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.48,35,130.43p, which is recoverable and the defendant 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 legal heirs of Late Sh. Nishan Singh i.e. defendant nos.1 to 4 were served notices to appear before this Tribunal but no one appeared

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on behalf of defendants and they were proceeded ex-parte on 12.02.2025.

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In support of the OA, affidavit of Sh. Rajan Koral, authorized Representative, Punjab Gramin Bank, h as been filed. 8. Heard arguments and perused record 9. 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 A15 to this OA, it is proved that the Late Sh. Nishan Singh 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 Late Sh. Nishan Singh were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.48,35,130.43p (Rupees Forty Eight Lacs Thirty Five Thousand One Hundred Thirty & Forty Three Paise Only) along with interest from the legal heirs of Late Sh. Nishan Singh i.e. defendant nos.1 to 4, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed [email protected]%p.a. in KCC Limit & Term Loan and [email protected]%p.a.in Debt swap Limit along with penal interest @2.00%p.a. with yearly rests from 01.10.2024 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

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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 legal heirs of Late Sh. Nishan Singh i.e. defendant nos.1 to 4 are liable to pay to the applicant a total sum of Rs.48,35,130.43p (Rupees Forty Eight Lacs Thirty Five Thousand One Hundred Thirty & Forty Three 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 defendants 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.03.2025.

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Copy of this order be given Dasti to the applicant bank 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.

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Pronounced by me in the open Tribunal .

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Dated: 19.02.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab Gramin Bank v. Nishan Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Nishan Singh

Case brief

What is this about?

What did the court decide?

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