Allowed

Punjab National Bank v. Sh. Nardeep Singh and Another

DRT22 Jul 2025OA/254/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant's application under the RDDB Act for recovery of a defaulted loan. The Tribunal reduced the claimed interest rate to 8% per annum and authorized recovery from mortgaged properties or attachable assets.

What did the court decide?

Recovery of principal amount Rs.24,59,577.68 with simple interest @08.00%p.a. from date of filing; Recovery Certificate issued; Enforcement via sale of mortgaged properties or attachment of personal a

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.254/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.12.2023

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DATE OF DECISION: 22.07.2025

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Punjab National Bank, (Erstwhile Oriental Bank of Commerce) a body corporate constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and one of its branch situated at Urapar, District S.B.S Nagar, Punjab through its Authorized Officer Sh. Ankur Rawat, presently posted at Punjab National Bank, Circle Sastra Centre, Kapurthala.

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……..Applicant

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Versus

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Sh. Nardeep Singh S/o Ravi Nandan Singh R/o Village Bhakhlaur,

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Tehsil Nawanshahr, District S.B.S Nagar, Punjab.

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Sh. Rajesh Rana S/o Sh. Ashok Kumar R/o Village Bhakhlaur, Tehsil Nawanshahr, District S.B.S Nagar, Punjab.

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……….Defendants

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the applicant

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Defendants 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 and Bankruptcy Act, 1993, against the defendants for recovery of Rs.24,59,577.68p (Rupees Twenty Four Lacs Fifty Nine Thousand Five Hundred Seventy Seven And Paise Sixty Eight Only). The Original Application has been filed through Sh. Ankur Rawat, Authorized Officer o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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OA/254/2024 PUNJAB NATIONAL BANK V/S SH. NARDEEP 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 vide Loan Application dated 20.12.2016, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 20.01.2017, which is Annexure A3, to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable property i.e. Agriculture Land measuring 42 Kanal 00 Marla situated at Village Mahaal Badowal, H No. 200, Tehsil and District S.B.S Nagar, Punjab, vide Declaration u/s 4(1) dated 13.01.2017, which is Annexures A9 to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Declaration regarding Agri Land, all dated 23.01.2017 which are Annexures A4 to A8 to this OA; Legal Opinion dated 12.01.2017 and Non Encumbrance Certificate, which are Annexures A10 to A11 to this OA, Letter to Sub Registrar for Creation of Charge, dated 13.01.2017, which is Annexure A12 to this OA ; Affidavit dated 18.01.2017 and 20.01.2017, which are Annexures A13 to A14 to this OA; Balance and Security Confirmation Letter dated 30.12.2019 and 29.12.2022, which are Annexures 15 and A16 to this OA; Recall Notice dated 13.06.2023 which is Annexure A17 to this OA; Statement of Account with Certificate dated 14.08.2023 under Banker Book Evidence, which are Annexures A18 & A19 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 a debit of Rs.24,59,577.68p, 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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OA/254/2024 PUNJAB NATIONAL BANK V/S SH. NARDEEP SINGH AND ANOTHER 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 17.07.2025. 7. In support of the OA, affidavit of Sh. Ankur Rawat, Authorized Officer, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A19 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 Rs.24,59,577.68p (Rupees Twenty Four Lacs Fifty Nine Thousand Five Hundred Seventy Seven And Paise Sixty Eight 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 @12.50%p.a. along with penal interest @2%p.a. with half yearly rests, from 01.04.2023 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 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

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OA/254/2024

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PUNJAB NATIONAL BANK V/S SH. NARDEEP SINGH AND ANOTHER

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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.24,59,577.68p (Rupees Twenty Four Lacs Fifty Nine Thousand Five Hundred Seventy Seven And Paise Sixty Eight 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 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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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 27.08.2025. 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: 22.07.2025

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

Punjab National Bank v. Sh. Nardeep Singh and Another

Case brief

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Punjab National Bank v. Sh. Nardeep Singh and Another

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