Allowed

Punjab and Sind Bank v. Sh. Sohan Singh and Another

DRT17 Apr 2025OA/1353/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.32,10,559.68 p due from defaulting borrowers. Dismissing the ex-parte lenders' arguments, the Tribunal decreed payment with future simple interest at 8% p.a., directing issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.32,10,559.68p with costs and future simple interest @8.00%p.a.; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1353/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.11.2024

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DATE OF DECISION: 17.04.2025

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Punjab & Sind Bank, a Body Corporate, Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1980 (Act No. 40 of 1980) with its Head Office at 21 Rajindera Place, New Delhi and branches amongst other places, one at Jagraon, Tehsil Jagraon & District Ludhiana, through its Authorized Attorney Sh. Jaswinder Singh, Chief Manager.

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……..Applicant Versus

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Sh. Sohan Singh S/o Sh. Balwant Singh R/o Village Bhamipura, Tehsil Jagraon, District Ludhiana.

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Sh. Parshotam Singh S/o Sh. Kaur Singh R/o Village Bhamipura, Tehsil Jagraon, District Ludhiana.

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….……Defendants

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Advocates:

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Present by Sh. Sahaj Punj, Advocate proxy for Sh. A.B.S. Sidhu, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.32,10,559.68p (Rupees Thirty Two Lacs Ten Thousand Five Hundred Fifty Nine and Paisa Sixty Eight Only). The Original Application has been filed through Sh. Jaswinder Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lac

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2 OA NO.1353/2024 PUNJAB AND SIND BANK VS SOHAN SINGH AND ANOTHER

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vide Loan application dated 20.05.2016 which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 20.05.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property total land measuring 26K-19Marla situated at Village Bhamipura-2, Hadbast no.147, Tehsil Jagraon, District Ludhiana vide Declaration U/s 4(1) bearing vasika no. 383 dated 14.06.2016 with its Translations, which is Annexure A14 to this OA. Documents executed:-Form No.14, Form No.106, Form No.201, Form No.200, Form No.312, Form No.159, Form No.199, CIBIL, Form No. 256 and CIBIL all dated 20.05.2016, which are Annexures A4 to A13 to this OA; Jamabandi and its translation of year 2018-19, which is Annexure A15 to this OA; Balance & Security Confirmation Letters dated 13.02.2019 and 22.11.2021, which are Annexures A16 to A17 to this OA; Legal Notice dated 11.04.2024, which is Annexure A18 to this OA; Statement of Account, which is Annexure A19 to this OA and Certificate Evidence dated 01.08.2024, which is Annexure A20 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.32,10,559.68p, 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 they were proceeded ex-parte on 04.04.2025. 7. In support of the OA, affidavit of Sh. Jaswinder Singh, Chief Manager, Punjab & Sind Bank h as been filed.

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3 OA NO.1353/2024 PUNJAB AND SIND BANK VS SOHAN SINGH AND ANOTHER

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Learned proxy counsel present has not advanced any

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arguments. Perused record.

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In view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexure A1 to A20 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 applicant. 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.32,10,559.68p (Rupees Thirty Two Lacs Ten Thousand Five Hundred Fifty Nine and Paisa Sixty 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.

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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 @12.15%p.a. from 01.10.2024 plus penal interest @2.00%p.a. with Half yearly rests in both till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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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4 OA NO.1353/2024 PUNJAB AND SIND BANK VS SOHAN SINGH AND ANOTHER

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.32,10,559.68p (Rupees Thirty Two Lacs Ten Thousand Five Hundred Fifty Nine and Paisa Sixty Eight Only) jointly and severally, 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 bank 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 bank 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.05.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 17.04.2025

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

Punjab and Sind Bank v. Sh. Sohan Singh and Another

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Punjab and Sind Bank v. Sh. Sohan Singh and Another

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