Allowed

Punjab National Bank v. Sh. Saroop Singh

DRT27 Jun 2025OA/252/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of a disrupted loan and overdraft facility. The court declared the defendant liable to pay the outstanding principal amount with costs and fixed a uniform simple interest rate.

What did the court decide?

Declaration of liability to pay Rs. 20,30,898.00p plus costs and future simple interest @ 8% p.a., issuance of Recovery Certificate, and liberty to enforce via sale of mortgaged properties.

Punjab National Bank versus Sh. Saroop Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.252/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.03.2025

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DATE OF DECISION: 27.06.2025

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Punjab National Bank, (erstwhile Known as United Bank of India), a Body Corporate 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 Circle Office: Circle Sastra Centre Ludhiana, Ferozepur Road, Ludhiana Punjab, through its General Power of attorney Holder Sh. Ravinder Kumar, Senior Manager of the applicant.

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…….. Applicant Versus

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Sh. Saroop Singh S/o Sh. Darshan Singh R/o VPO Payal Tehsil Payal, District Ludhiana Punjab-141416.

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….……Defendant

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Advocates:

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Argued by Sh. Arvind Rajotia, Advocate proxy for Sh. Pancham Sharma Advocate for the applicant

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Defendant is already 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 defendant for recovery of Rs.20,30,898.00p (Rupees Twenty Lacs Thirty Thousand Eight Hundred Ninety Eight Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.16.00 Lacs vide Loan Application dated 20.06.2015 which is Annexures A2 to this OA and

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2 OA/252/2025 PUNJAB NATIONAL BANK V/S SH. SAROOP SINGH

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thereafter approached the applicant for grant of Term Loan of Rs. 50,000/- under COVID 19 vide Loan Application dated 12.05.2020, which is Annexure A7 to this OA.

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The applicant sanctioned the KCC Limit of Rs.16.00 Lacs vide sanction letter dated 20.06.2015 & thereafter sanctioned a Term Loan of Rs. 50,000/- under COVID19 vide memorandum of sanction dated 12.05.2020, and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 14B-08B situated Village Payal, Tehsil Payal, District Ludhiana Punjab vide letter dated 26.06.2015 to Sub Registrar for creation of charge, which is Annexure A4 to this OA. Documents executed:- Power of Attorney, which is Annexure A1 to this OA; Agreement for hypothecation dated 30.06.2015, which is Annexure A3 to this OA; BC Letters dated 11.01.2021, 08.05.2023 & 08.01.2024, which is Annexure A5 to this OA; Master agreement dated 05.11.2020, which is Annexure A6 to this OA; Master agreement, Hypothecation agreement both dated 12.05.2020, which are Annexures A8 & A9 to this OA; Legal Notice with postal receipt dated 31.01.2025, which is Annexure A10 to this OA and Statements of accounts, which are Annexures A11 & A12 to this OA. 5. The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts, there was a debit of Rs.20,30,898.00p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 25.06.2025.

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3 OA/252/2025 PUNJAB NATIONAL BANK V/S SH. SAROOP SINGH

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior 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 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 A12 t o this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.20,30,898.00p (Rupees Twenty Lacs Thirty Thousand Eight Hundred Ninety Eight Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed [email protected]%p.a. in KCC with half yearly rests from 01.07.2024 & @14.75%p.a. in Term Loan with monthly rests from 05.01.2025 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 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

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OA/252/2025 PUNJAB NATIONAL BANK V/S SH. SAROOP SINGH

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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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.20,30,898.00p (Rupees Twenty Lacs Thirty Thousand Eight Hundred Ninety Eight Only) with costs, current and future simple interest @08.00%p.a. in 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 defendant 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 defendant. 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 17.07.2025. 15. Copy of this order be given Dasti to the applicant and be sent to defendant 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: 27.06.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Saroop Singh

Case brief

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Punjab National Bank v. Sh. Saroop Singh

Case brief

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