Allowed

Punjab National Bank v. Sh. Hardev Singh

DRT12 Mar 2025OA/166/2024

Case brief

AI extract

What is this about?

In a debt recovery matter, the Tribunal allowed the applicant's application for recovery of Rs.29.04 lakhs. It discharged the respondents jointly and severally and ordered recovery with interest at 8% per annum from the filing date, permitting enforcement via SARFAESI or asset attachment.

What did the court decide?

Recovery of Rs.29,04,301.71 with costs and simple interest at 8% p.a. from the filing date, enforceable via sale of mortgaged/personal assets.

Punjab National Bank versus Sh. Hardev Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.166/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.01.2024

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DATE OF DECISION: 12.03.2025

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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 inter alia a branch office at Patto Hira Singh, District Moga 142046 through its Constituted Attorney and Circle Sastra Manager Sh. Rajesh Sachdeva posted at Circle Office, Moga.

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……..Applicant Versus

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Sh. Hardev Singh S/o Sh. Mal Singh R/o Old Greain Market Nihal Singh Wala, Tehsil Nihal Singh Wala, District Moga 142055

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Sh. Gurcharan Singh S/o Sh. Mal Singh R/o Old Greain Market Nihal Singh Wala, Tehsil Nihal Singh Wala, District Moga 142055

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Sh. Harjinder Singh S/o Sh. Bikker Singh R/o VPO Nihal Singh Wala District Moga.

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………. Defendants

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Advocates:

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Argued by Sh. R.S. Bhatia, 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.29,04,301.71p (Rupees Twenty Nine Lacs Four Thousand Three Hundred One And Paise Seventy One Only). The Original Application has been filed through Sh. Rajesh Sachdeva, Manager o f the applicant, who is competent to institute the Original Application vide General

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Power of Attorney dated 09.06.2017, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of OGC Limit of Rs. 20.00 Lacs vide Loan Application dated 09.03.2011, which is Annexure A3 to this OA. 3. The applicant sanctioned OGC Limit of Rs. 20.00 Lacs vide Sanction Letter dated 10.03.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 55K-02M detailed as:a. land measuring 43K-15M situated in Village Manuke Patti dandu, Tehsil Nihal Singh Wala, District Moga b. l and measuring 11K-7M situated in Village Patto Hira Singh –I, Tehsil Nihal Singh Wala, District Moga vide Registered Mortgaged Deed bearing v asika No.2690 dated 14.03.2011 along with its translation, which is Annexure A7 to this OA. Documents executed:- Notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement for Hypothecation and Agreement of Guarantee both dated 17.03.2011, which are Annexures A5 & A6 to this OA; Mutation Letter dated 16.03.2011, which is Annexure A8 to this OA; Balance Confirmation Letter dated 17.05.2013, which is Annexure A9 to this OA; Balance & Security Confirmation dated 08.04.2015, 16.01.2018, 01.01.2020, 28.08.2020 and 22.07.2023, which are Annexures A10 to A14 to this OA; Legal Notice dated 06.02.2023, which is Annexure A15 to this OA and Statement of Account which is Annexure A16 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 adebit of Rs.29,04,301.71p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 21.02.2025.

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In support of the OA, affidavit of Sh. Rajesh Sachdeva, Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned 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 A16 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was 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.29,04,301.71p (Rupees Twenty Nine Lacs Four Thousand Three Hundred One And Paise Seventy One 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 @11.75%p.a. with Half yearly rests from 06.12.2023 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 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 defendants are liable to pay to the applicant a total sum of Rs.29,04,301.71p (Rupees Twenty Nine Lacs Four Thousand Three Hundred One And Paise Seventy One Only) jointly and severally, 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 defendants 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 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 15.04.2025.

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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: 12.03.2025

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

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Punjab National Bank v. Sh. Hardev Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Hardev Singh

Case brief

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