Allowed

Punjab National Bank v. Sh. Amrik Singh

DRT22 Apr 2025OA/1483/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for recovery of Rs.27,31,436.00 advanced as a term loan and OD facility. After the respondents failed to repay, the Tribunal declared them jointly and severally liable and directed the issuance of a recovery certificate.

What did the court decide?

The respondents are liable to pay Rs.27,31,436.00 with 8% p.a. simple interest; a recovery certificate is issued; execution proceedings may be initiated to recover the amount.

Punjab National Bank versus Sh. Amrik Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1483/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.12.2024

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DATE OF DECISION: 22.04.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and having one its branch situated at Punjab National Bank, Village Mahil Gehlan, Tehsil banga, District SBS Nagar, Punjab through Mr. Mahaveer Prasad, currently posted as Manager, Punjab National Bank, Village Mahil Gehlan, Tehsil banga, District SBS Nagar, Punjab who is duly authorized and Principal Officer of Applicant.

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……..Applicant

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Versus

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Sh. Amrik Singh S/o Sh. Ranjit Singh, R/o Village Musapur, Tehsil Nawanshahr, District SBS Nagar, Punjab

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Smt. Raspal Kaur W/o Sh. Amrik Singh, R/o Village Musapur, Tehsil Nawanshahr, District SBS Nagar, Punjab

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………. Defendants

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Advocates:

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Argued by Ms. Anuradha Gupta, Advocate proxy for Sh. Mohinder Nath Sharma, 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.27,31,436.00 (Rupees Twenty Seven Lacs Thirty One Thousand Four Hundred Thirty Six Only). The Original Application has been filed through Mr. Mahaveer Prasad, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 07.08.2020, which is Annexure A1 to this OA.

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2 OA NO.1483/2024

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PUNJAB NATIONAL BANK VS AMRIK SINGH AND ANOTHER

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The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs.20.00 Lacs and further for its renewal vide Loan Applications dated 12.06.2016 and 28.07.2021, which is Annexure A2 and A11 to this OA. Later defendants again approached the applicant for grant of OD Limit of Rs.0.50 Lacs vide Loan application dated 14.09.2021.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 15.06.2016, which is Annexure A3 to this OA and Further sanctioned its renewal. Later applicant sanction OD Limit of Rs.0.50 Lacs vide Sanction Letter dated 14.09.2021, which is Annexure A12 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable properties i.e. total Land measuring 33K-7M-7¾Sarsahi situated at Village Musapur, Hadbast No.116, Tehsil Nawanshahr, District SBS Nagar, Punjab vide Declaration U/s 4(1) w ith its translation and Letter to Sub Registrar for creation of charge dated 15.06.2016, which are Annexure A5 and A6 to this OA.

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Documents executed:- Advocate Title Search Report dated 12.06.2016, which is Annexure A4 to this OA; Hypothecation Agreement, Letter of Undertaking and Letter of Consent all dated 16.06.2016, which are Annexures A7 to A9 to this OA; Balance and Security Confirmation Letter dated 31.05.2019, which is Annexure A10 to this OA; Hypothecation Agreement, Master Agreement and DP Note dated 14.09.2021, which are Annexures A13 to A15 to this OA; Balance and Security Confirmation Letter dated 05.05.2022 and 06.09.2024, which are Annexures A16 and A17 to this OA; Recall Notice dated 29.11.2024, which is Annexure A18 to this OA; Accounts statements with Certificate, which are Annexure A19 and A20 to this OA.

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3 OA NO.1483/2024 PUNJAB NATIONAL BANK VS AMRIK SINGH AND ANOTHER

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.27,31,436.00, which is recoverable and the defendants were served recall notices but they 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 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.

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In support of the OA, affidavit of Mr. Mahaveer Prasad, Manager, Punjab National Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 A20 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, 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.27,31,436.00 (Rupees Twenty Seven Lacs Thirty One Thousand Four Hundred Thirty Six 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

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4 OA NO.1483/2024 PUNJAB NATIONAL BANK VS AMRIK SINGH AND ANOTHER

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@9.95%p.a. along with penal interest @2.00%p.a. with yearly rests from 17.06.2024 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 defendants, 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 both 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,31,436.00 (Rupees Twenty Seven Lacs Thirty One Thousand Four Hundred Thirty Six Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 . 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.05.2025.

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5 OA NO.1483/2024 PUNJAB NATIONAL BANK VS AMRIK SINGH AND ANOTHER

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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. Pronounced by me in the open Tribunal . Dated: 22.04.2025

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

Punjab National Bank v. Sh. Amrik Singh

Case brief

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Punjab National Bank v. Sh. Amrik Singh

Case brief

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