Allowed

Punjab National Bank v. Mohan Singh and Another

DRT8 Jul 2025OA/349/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Punjab National Bank against two guarantors for recovery of a crop loan of Rs. 26.08 Lakhs. The Tribunal reduced the claimed interest rate to 8% p.a. and ordered the recovery from hypothecated properties.

What did the court decide?

Recovery Order entered directing defendants to pay Rs. 26.08 Lakhs with interest at 8% p.a. authorized to recover from sale of mortgaged properties.

Punjab National Bank versus Mohan Singh and Another — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.349/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.03.2025

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DATE OF DECISION: 08.07.2025

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Punjab National Bank, a body corporate constituted under the Banking companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Village Pakhowal, District Ludhiana, Punjab through Sh. Sukhpal Grewal, Posted as Deputy Manager and Attorney Holder Presently posted at Circle SASTRA Centre site no.5, PNB House, Ferozepur Road, Ludhiana, (Punjab).

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……..Applicant

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Versus

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Sh.Mohan Singh S/o Sh. Nachhattar Singh R/o House No. 225, Village Barhampur, Tehsil Raikot, District Ludhiana (Punjab).

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Sh.Balbir Singh S/o Sh. Gurdev Singh R/o Village Maholi Khurd, Teshil Malerkotla, District Sangrur (Punjab).

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….……Defendants

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Advocates:

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Argued by Sh. Banni Thomas, Advocate for the applicant Defendants are 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.26,08,124.00p (Rupees Twenty Six Lacs Eight Thousand One Hundred Twenty Four only). The Original Application has been filed through Sh. Sukhpal Grewal, Deputy Manager o f the applicant, who is competent to institute the Original Application vide General Power of attorney dated 11.09.2023, which is Annexure A1 to this OA.

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OA No. 349/2025 PUNJAB NATIONAL BANK V/S SH. MOHAN SINGH AND ANOTHER

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The brief facts of the OA are that the defendant No.1 had approached the applicant for the grant of Crop Loan under OGC Scheme of Rs.10.00 Lacs vide Loan application dated 20.06.2011, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor. 3. The applicant sanctioned the OGC Limit of Rs.10.00 Lacs vide Sanction letter dated 21.06.2011, 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 24K-13M situated at Village Brahampur, Hadbast No. 376 Tehsil Raikot, District Ludhiana (Punjab) vide Registered Mortgaged deed bearing vasika no.2058 dated 19.07.2011, along with its translation, which is Annexure A4 to this OA.

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Documents executed: -Agreement of hypothecation, agreement of guarantee both dated 30.07.2011, which are Annexures A5 & A6 to this OA; Legal notice dated 09.05.2022 & 10.04.2023, which is Annexure A7 to this OA; Balance & security confirmation letters dated 30.11.2013, 14.07.2016, 12.07.2019 & 24.06.2022, which are Annexures A8 to A11 to this OA and Statement of account, which is Annexure A12 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.26,08,124.00p, 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 02.07.2025. 7. In support of the OA, affidavit Sh. Sukhpal Grewal, Deputy Manager, Punjab National Bank, h as been filed.

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OA No. 349/2025 PUNJAB NATIONAL BANK V/S SH. MOHAN SINGH AND ANOTHER

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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 A12 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 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.26,08,124.00p (Rupees Twenty Six Lacs Eight Thousand One Hundred Twenty Four 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 @11.50%p.a. with half yearly rests and penal interest @2% p.a. from 01.08.2024 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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OA No. 349/2025 PUNJAB NATIONAL BANK V/S SH. MOHAN SINGH AND ANOTHER

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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.26,08,124.00p (Rupees Twenty Six Lacs Eight Thousand One Hundred Twenty Four 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 unsatisfied, the applicant 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 24.07.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 08.07.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Mohan Singh and Another

Case brief

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Punjab National Bank v. Mohan Singh and Another

Case brief

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