Allowed

Punjab National Bank v. Smt. Surinder Kaur and Another

DRT28 May 2025OA/322/2023

Case brief

AI extract

What is this about?

Allowed an Original Application under Section 19 RDDBFI Act for recovery of a KCC loan. The court decreed repayment of the principal sum with adjusted interest and directed issuance of a recovery certificate enforceable under the SARFAESI Act.

What did the court decide?

Recovery certificate issued for Rs.35,86,885.50 with simple interest at 8% p.a.; enforcement to be made through sale of mortgaged or personal assets.

Punjab National Bank versus Smt. Surinder Kaur and Another — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.322/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.03.2023

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DATE OF DECISION: 28.05.2025

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Punjab National Bank, constituted under the banking companies (Acquisition & transfer of Undertakings) Act, 1970 having its head office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 inter alia a branch office at Jamalpur Awana thorugh Sh. Ravinder Kumar, Sr. Manager, PNB, SASTRA Centre Ludhiana Punjab.

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……..Applicant

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Versus

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1. Smt. Surinder Kaur W/o Sh. Kuldeep Singh R/o House No.1186, Sector-39, Chandigarh Road, Ludhiana Punjab.

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Second address:- Smt.Surinder Kaur W/o Sh. Kuldeep Singh R/o Village Dhaula, Tehsil and District Ludhiana Punjab.

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2. Sh. Balwinder Singh S/o Sh. Karnail Singh R/o House No.1186, Sector-39, Chandigarh Road, Ludhiana Punjab.

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Second address:- Sh. Balwinder Singh S/o Sh. Karnail Singh R/o Village Dhaula, Tehsil and District Ludhiana Punjab

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….……Defendants

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Advocates:

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Argued by Sh. R.S. Bhatia, 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.35,86,885.50p (Rupees Thirty Five Lacs Eighty Six Thousand Eight Hundred Eight Five & Fifty Paisa only). The Original Application has been filed through Sh. Ravinder Kumar, Sr. Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants KCC Limit of Rs.30.00 Lacs vide Loan application dated 11.09.2009, which is Annexure A2 to this OA.

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2 OA NO.322/2023 PUNJAB NATIONAL BANK VS SURINDER KAUR AND ANOTHER

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The applicant sanctioned the KCC Limit of Rs.30.00 Lacs vide Sanction Letter dated 16.09.2009, which is Annexure A3 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 32K-07M situated at Village Dhoula, Hadbast No.67, Tehsil and District Ludhiana Punjab vide Registered Mortgaged Deed bearing vasika no.9654 dated 24.09.2009 with its translations, which is Annexure A5 and A5T to this OA.

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Documents executed: - Hypo. Agreement dated 06.10.2009, which is Annexure A4 to this OA; Legal notice dated 10.09.2018, which is Annexure A6 to this OA; Acknowledgement of debts dated 27.10.2011, 23.11.2012 & 09.12.2015, which are Annexures A7 to A9 to this OA and Statement of account with certificate, which is Annexure A10 to this OA.

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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.35,86,885.50p, 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.

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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 26.05.2025.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Sr. Manager, Punjab National Bank, has been filed. 8. 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 A10 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in

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3 OA NO.322/2023 PUNJAB NATIONAL BANK VS SURINDER KAUR AND ANOTHER

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favour of the applicant. 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.35,86,885.50p (Rupees Thirty Five Lacs Eighty Six Thousand Eight Hundred Eight Five & Fifty Paisa only) rest 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 @12.75%p.a. with monthly rests from 01.10.2022 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.

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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.35,86,885.50 p (Rupees Thirty Five Lacs Eighty Six Thousand Eight Hundred Eight Five & Fifty Paisa only) jointly and severally, with costs, current and future simple interest @8.00%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

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4 OA NO.322/2023 PUNJAB NATIONAL BANK VS SURINDER KAUR AND ANOTHER

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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 12.06.2025. 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: 28.05.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Surinder Kaur and Another

Case brief

What is this about?

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Punjab National Bank v. Smt. Surinder Kaur and Another

Case brief

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