Allowed

Punjab and Sind Bank v. Sh. Paramjit Singh

DRT21 Mar 2025OA/1327/2022

Case brief

AI extract

What is this about?

The DRT, Chandigarh allowed an original application filed by Punjab & Sind Bank for recovery of ₹21,95,181.32 from borrowers who defaulted on KCC, Term, and Housing loans. The Tribunal ex-parte granted a uniform interest rate of 7.75% p.a. and ordered recovery from hypothecated properties.

What did the court decide?

Recovery Certificate issued for total sum of Rs.21,95,181.32 plus future simple interest at 7.75% p.a. on all loan accounts from date of OA till realization; recovery to be enforced through sale of hy

Punjab and Sind Bank versus Sh. Paramjit Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1327/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.05.2022

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DATE OF DECISION: 21.03.2025

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Punjab & Sind bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Act No. 40 of 1980) with its Head Office at, Rajendra Place, New Delhi and branches amongst other places, one at Ahmedgarh Mandi, District Malerkotla, through its Constituted Attorney Sh. Mahaveer Prasad, through its Branch Manager.

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……..Applicant

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Versus

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Sh. Paramjit Singh S/o Sh. Pritpal Singh, R/o Ranga Patti, Village Qila Raipur, Tehsil Dehlon and District Ludhiana, Punjab.

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Sh. Balwant Singh S/o Sh. Joginder Singh, R/o House No. 52, Hargobind Nagar Colony, Minni Chhapar, Tehsil and District Ludhiana, Punjab.

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….…Defendants

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Advocates:

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Argued by Sh. Ranvir S. Chauhan, Advocate for the 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.21,95,181.32p (Rupees Twenty One Lacs Ninety Five Thousand One Hundred Eighty One and Paisa Thirty Two Only). The Original Application has been filed through Sh. Mahaveer Prasad, Branch Manager, who is competent to institute the Original Application vide Letter of Authorization dated 19.04.2022 and General Power of Attorney dated 25.10.2018, which are Annexures A1 & A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit to Rs.7.00 Lacs, Term Loan of Rs.3.00 Lacs and Housing Loan of Rs.2.00 Lacs.

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The applicant sanctioned the KCC Limit to Rs.7.00 Lacs, Term Loan of Rs.3.00 Lacs and Housing Loan of Rs.2.00 Lacs vide Sanction letters dated 06.08.2016 and 30.08.2016, which are Annexures A3, A4 & A5 to this OA and terms and conditions were duly accepted by the defendant.

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Defendants No.1 had mortgaged his immovable property i.e. Total land measuring 16K-5-2/3M situated at Village Dehlon, Hadbast no.331, Tehsil and District Ludhiana, Punjab vide Letter to Sub Registrar dated 04.08.2016 along with its English Translations and Mortgage Affidavit dated 29.08.2016, which are Annexures A30 & A30A to this OA.

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Documents executed:- Pronote 14-R, Letter of Waiver form No.106, Letter of Penal Interest, Form 200, Letter of Continuity, Hypothecation Agreement, Undertaking Form No. 199, Agriculturist From No. 216, Hypothecation Agreement, Guarantor’s Agreement all dated 06.08.2016, which are Annexures A6 to A23 to this OA; Pronote 14R, Letter of Waiver form No.106, Letter of Penal Interest, Form 200, Letter of Penal ROI F No.291, Guarantor’s Agreement all dated 30.08.2016, which are Annexures A24 to A29 to this OA; Revival Letters dated 24.07.2019, which are Annexures A31 to A33 to this OA; Legal Notice dated 23.02.2022 along with Postal receipts, which is Annexure A34 to this OA and Statement of account and Interest allocation Chart along with Certificate Under banker of evidence, which are Annexures A35 to A37 to this OA.

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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.21,95,181.32p, which is recoverable and the defendants were served recall notices but they did not repay the

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 19.02.2025.

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In support of the OA, affidavit of through Sh. Mahaveer Prasad, Branch Manager, Punjab & Sind 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 A37 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,95,181.32p (Rupees Twenty One Lacs Ninety Five Thousand One Hundred Eighty One and Paisa Thirty Two Only) along with interest from the defendants, jointly and severally, 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 @9.95%p.a. in KCC, @9.50%p.a.in Term Loan and @7.75%p.a. in Housing Loan with monthly rests from 01.03.2022 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

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of the defendants, quantum of loans 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 @7.75%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 defendants is liable to pay to the applicant a total sum of Rs.21,95,181.32p (Rupees Twenty One Lacs Ninety Five Thousand One Hundred Eighty One and Paisa Thirty Two Only) with costs, current and future simple interest @7.75%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 applicant 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 19.04.2025.

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Copy of this order be given Dasti to the applicant 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: 21.03.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

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Punjab and Sind Bank v. Sh. Paramjit Singh

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank v. Sh. Paramjit Singh

Case brief

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What did the court decide?

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