Allowed

Punjab and Sind Bank v. Sarvinder Singh and Another

DRT11 Feb 2025OA/185/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the application filed by Punjab & Sind Bank to recover Rs.31,51,847.50p from the respondents, declaring them jointly and severally liable. The Tribunal reduced theclaimed interest rate to 8% per annum and ordered the issuance of a Recovery Certificate.

What did the court decide?

Deletary amount of Rs.31,51,847.50p with interest @8% p.a. recovered from sale of properties; Recovery Certificate issued.

Punjab and Sind Bank versus Sarvinder Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.185/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.12.2021

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DATE OF DECISION: 11.02.2025

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Punjab & Sind Bank, a Body Corporate, Constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act 1980, with its Head Office at 21 Rajindra Place, New Delhi and Zonal Office at Situated at Bathinda and inter alia a branch office situated at G.T. Road, Malout, District Sri Muktsar Sahib, through its constituted attorney Sh. Sunder Lal, Chief Manager, Punjab and Sind Bank G.T. Road, Malout, District Sri Muktsar Sahib, and who is Also the principal officer of the applicant/Plaintiff.

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….Applicant

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Versus

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Sh. Sarvinder Singh S/o Sh. Sarabjit Singh R/o Village Virk Kherha, Tehsil Malout, District Muktsar Sahib, Punjab.

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Smt. Amarjeet Kaur W/o Sh. Sarabjit Singh R/o Village Virk Khera, Tehsil Malout District Muktsar Sahib, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Varun Verma, Advocate Proxy for Sh. Ashok Kumar Verma, Advocate for 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.31,51,847.50p (Rupees Thirty One Lacs Fifty One Thousand Eight Hundred Forty Seven And Paise Fifty Only). The Original Application has been filed through Sh. Sunder Lal, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Late Sh. Sarabjit Singh had approached the applicant for the grant of Cash Credit Limit of Rs.22.00

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Lacs vide Loan Application dated 22.06.2015, which is Annexure A2 to this OA.

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3. The applicant sanctioned the Cash Credit Limit of Rs.22.00 Lacs
vide Sanction Letter dated 22.06.2015, which isAnnexure A3to this
OA and the terms and conditions were duly accepted by the defendants.
4.. Late Sh. Sarabjit Singh had mortgaged his immovable property
i.e. total land measuring 52K situated at VillageVillage Virk Kherha,
Tehsil Malout, District Muktsar Sahib, Punjab vide Declaration u/s 4(1) dated 17.06.2015, with its translations, which isAnnexure A12to this
OA.
Documents executed:- D.P. Note, Letter of continuity, Agreement for
hypothecation, Form No.106, Form No.201, Revised Clause Pertaining
to rate of interest, Form No.199, Deed of Guarantee all dated 22.06.2015, which areAnnexures A4 to A11to this OA; Copy of death certificate dated 08.03.2018, which isAnnexure A13to this OA ; D.P. Note, Undertaking of Owing liability of deceased both dated 01.05.2018, which areAnnexures A14 & A15to this OA; Revival letter dated
16.04.2021, which isAnnexure A16to this OA and Certified copy of
statement of account, which isAnnexure A17to 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 a debit of Rs.31,51,847.50p 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.
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 21.01.2025.
7. In support of the OA, affidavit of Sh. Sunder Lal, Chief Manager,
Punjab and Sind Bank,has been filed.
8. 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 A17 to this OA, it is proved that Late Sh. Sarabjit Singh 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. Late Sh. Sarabjit Singh failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the Late Sh. Sarabjit Singh was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,51,847.50p (Rupees Thirty One Lacs Fifty One Thousand Eight Hundred Forty Seven And Paise Fifty 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 @12.10%p.a. with half yearly rests from 01.11.2021 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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.31,51,847.50p (Rupees Thirty One Lacs Fifty One Thousand Eight Hundred Forty Seven And Paise Fifty Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account

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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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.03.2025. 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: 11.02.2025

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

Punjab and Sind Bank v. Sarvinder Singh and Another

Case brief

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Punjab and Sind Bank v. Sarvinder Singh and Another

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