Defendants failed to repay a KCC loan; DRT allowed applicant's original application for recovery of Rs. 48,07,913.00 with 8% simple interest and directed issuance of Recovery Certificate.
Recovery of Rs. 48,07,913.00 plus 8% interest; Issuance of Recovery Certificate; Parties to file before Recovery Officer.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1499/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 30.04.2022
DATE OF DECISION: 24.11.2025
Punjab National Bank, constituted under Banking Companies (Acquisition & transfer of Undertakings) Act, 1970 having its Head Office at Plot No. 4, Sector-10 Dwarka, New Delhi-110075 and inter alia a Branch Office at Circle SASTRA, Ludhiana West, through its Attorney and Principal Officer Sh. Ramesh Kumar, Dy. Manager, Branch Office Circle SASTRA, Ludhiana West.
……..Applicant Versus
………Defendants
Advocates:
Argued by Sh. R.S. Bhatia, Advocate for Applicant Defendants already ex parte
FINAL ORDER
2 OA NO.1499/2022
PUNJAB NATIONAL BANK VS SH. DAVINDER SINGH AND ANOTHER
Documents executed:- Amalgamation notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement of hypothecation, Agreement of guarantee, both dated 25.01.2013, which are Annexures A4 and A5 to this OA; Legal notice dated 21.02.2018, which is Annexure A11 to this OA; Balance confirmation letter dated 13.10.2018 and 07.05.2021, which are Annexures A12 and A13 to this OA; Statement of account, which is Annexure A14 to this OA. 5. The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs. 48,07,913.00p, which is recoverable and the defendants were served recall notice but defendants did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 15.09.2025. 7. In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Senior Manager, Punjab National Bank, has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through 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 A14 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which were
3 OA NO.1499/2022 PUNJAB NATIONAL BANK VS SH. DAVINDER SINGH AND ANOTHER
granted to them and for that they had executed all the relevant documents in favour of the bank. 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. 48,07,913.00p (Rupees Forty Eight Lacs Seven Thousand Nine Hundred Thirteen 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.
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/hypothecated assets, 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 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.
4 OA NO.1499/2022
PUNJAB NATIONAL BANK VS SH. DAVINDER SINGH AND ANOTHER
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding sum from the defendants jointly and severally.
What rate of interest is appropriate to be granted on the outstanding loan amount.
2 provisions across 2 enactments
Punjab National Bank
Davinder Singh
Kesar Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
