Allowed

Punjab Gramin Bank v. Sh. Gurdev Singh

DRT6 Mar 2025OA/1302/2024

Case brief

AI extract

What is this about?

In an Original Application filed under Section 19 of the RDBFI Act, the Punjab Gramin Bank sought recovery of a loan of Rs.35.99 lakhs from the legal heirs of a deceased borrower and the surviving borrower. The defendants appeared ex-parte. The Tribunal allowed the application, declared the defendants liable to pay the principal amount with costs, and granted a uniform simple interest rate of 8% p

What did the court decide?

The defendants were liable to pay Rs.35,99,351 with costs and simple interest @ 8% p.a. Recovery Certificate was issued, and parties directed to appear before the Recovery Officer.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1302/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.11.2024

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DATE OF DECISION: 06.03.2025

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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 Punjab and having its branches at different places including one at Valhota District Tarn Taran (PB) through its constituted attorney /Manager Sh. Gagandeep Singh.

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……..Applicant Versus

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Sh. Gurdev Singh S/o Sh. Kartar Singh, Since Deceased through legal heirs: a. Charanjit Kaur W/o Sh. Gurdev Singh b. Gurjit Singh S/o Sh. Gurdev Singh

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c. Gurjant Singh S/o Sh. Gurdev Singh

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All R/o Village Jodh Singh Wala, Tehsil Patti, District Tarn Taran Punjab. 2. Charanjit Kaur W/o Sh. Gurdev Singh R/o Village Jodh Singh Wala, Tehsil Patti, District Tarn Taran Punjab Borrower

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….……Defendants

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) 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.35,99,351.00p (Rupees Thirty Five Lacs Ninety Nine Thousand Three Hundred Fifty One Only). The Original Application has been filed through Sh. Gagandeep Singh, constituted attorney/Manager of the applicant

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bank, who is competent to institute the Original Application vide General Power of attorney dated 03.09.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA that the defendant Nos.1(since deceased) and 2 had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 16.07.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 23.07.2013, which is Annexure A3 to 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 36Kanal 00Marla situated at Village Jodh Singh Wala, Tehsil Patti, District Tarn Taran Punjab vide Registered Mortgage Deed bearing Vasika no. 1809 dated 24.07.2013 with its translation, which is Annexure A5 to this OA. Documents executed: - Loan agreement dated 27.07.2013, which is Annexure A4 to this OA; Notice dated 07.12.2023, which is Annexure A6 to this OA; BC Letters dated 08.04.2016, 14.01.2019, 01.01.2022, which are Annexures A7 to A7/2 to this OA; Statement of account, which is Annexure A8 to this OA and Death certificate dated 25.09.2020, which is Annexure A9 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.35,99,351.00p, 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and defendant no.2 was served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 17.02.2025. 7. In support of the OA, affidavit of Sh. Gagandeep Singh, constituted attorney/Manager, Punjab Gramin Bank has been filed.

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Heard arguments and perused record

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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. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant Nos.1(since deceased) and 2 approached the 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 defendant Nos.1(since deceased) and 2 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant Nos.1(since deceased) and 2 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.35,99,351.00p (Rupees Thirty Five Lacs Ninety Nine Thousand Three Hundred Fifty One Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and defendant no.2, 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.

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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 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.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and defendant no.2 were liable to pay to the applicant a total sum of Rs.35,99,351.00p (Rupees Thirty Five Lacs Ninety Nine Thousand Three Hundred Fifty One Only) 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 hypothecated/mortgaged properties of the defendant Nos.1(since deceased) 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 legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and defendant no.2. 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 08.04.2025.

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Copy of this order be given Dasti to the applicant bank and be sent to legal heirs of deceased defendant no.1 i.e. 1(a), 1(b), 1(c) and defendant no.2 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: 06.03.2025

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

Punjab Gramin Bank v. Sh. Gurdev Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Sh. Gurdev Singh

Case brief

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