Allowed

Punjab Gramin Bank v. M/S Pico Electric and Another

DRT27 Jun 2025OA/259/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application filed by Punjab Gramin Bank for recovery of dues amounting to Rs. 32,44,502.90 from M/s Pico Electric and Sh. Harjaap Singh. The court granted the claim and directed the issue of a recovery certificate.

What did the court decide?

Recovery Certificate issued; respondents liable to pay Rs. 32,44,502.90 p.a. with 8% simple interest; direction to appear before Recovery Officer.

Punjab Gramin Bank versus M/S Pico Electric and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO. 259/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.03.2025

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DATE OF DECISION: 27.06.2025.

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Punjab Gramin Bank, a body corporate constituted under the regional Rural Bank Act, 1976 Act No 21 of 1976 having its head office at Markfed Road, Kapurthala, Punjab (Pb) and having its branches at different places including one at B.O. Mehmoodpura, District Ludhiana (Punjab) through its authorized representatives Ms. Kanika Dawar.

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……..Applicant

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Versus

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1. M/s Pico Electric Situated at E-422, Focal Point, Phase-6, Ludhiana through its proprietor Sh. Harjaap Singh S/o Sh. Balkaar Singh.

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2. Sh. Harjaap Singh S/o Sh. Balkar Singh R/o House No.2204, Phase-1, Urban Estate, Dugri, Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Arvind Rajotia, Advocate proxy for Sh. Ankit Kaushal, 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.32,44,502.90p (Rupees Thirty Two Lacs Forty Four Thousand Five Hundred Two & Ninety Paise only). The Original Application has been filed through Ms. Kanika Dawar, Authorized Representatives o f the applicant, who is competent to institute the Original Application vide Power of attorney dated 25.10.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of CC Limit of Rs.20.00 Lacs

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2 OA NO.259-2025 PUNJAB GRAMIN BANK VS M/S PICO ELECTRIC AND ANOTHER

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and Term Loan of Rs.10.00 Lacs vide Loan Application dated 06.02.2023, which is Annexure A2 to this OA.

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The applicant sanctioned the CC Limit of Rs.20.00 Lacs and Term Loan of Rs.10.00 Lacs vide Sanction letter dated 21.02.2023, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had hypothecated its movable properties/assets i.e. Stock, Book debts and Machinery etc. vide Copy of hypothecation agreement dated 15.02.2023 & 21.02.2023, which are Annexures A4 & A5 to this OA

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Documents executed: Statements of account along with certificate by officer In charge of the computer system, which are Annexures A6 & A7 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.32,44,502.90p, 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 25.06.2025. 7. In support of the OA, affidavit of Ms. Kanika Dawar, authorized representatives, Punjab Gramin Bank, h as been filed. 8. Heard 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 A7 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were

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3 OA NO.259-2025 PUNJAB GRAMIN BANK VS M/S PICO ELECTRIC AND ANOTHER

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granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,44,502.90p (Rupees Thirty Two Lacs Forty Four Thousand Five Hundred Two & Ninety Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @2.00%p.a. with half yearly rests from 21.02.2025 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 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 both 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 defendants are liable to pay to the applicant a total sum of Rs.32,44,502.90p (Rupees Thirty Two Lacs Forty Four Thousand Five Hundred Two & Ninety Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the

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4 OA NO.259-2025 PUNJAB GRAMIN BANK VS M/S PICO ELECTRIC AND ANOTHER

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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. 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 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: 27.06.2025.

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

Punjab Gramin Bank v. M/S Pico Electric and Another

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Punjab Gramin Bank v. M/S Pico Electric and Another

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