Allowed

Punjab National Bank v. Late Sh. Krishan Lal Bharti and Others

DRT9 Jul 2025OA/350/2025

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of Rs.30.84 lakhs from the legal heirs of a deceased borrower. The Tribunal directed recovery through sale of mortgaged properties and granted simple interest at 8% p.a.

What did the court decide?

Directing legal heirs to pay Rs.30,84,964 along with 8% interest, allowed recovery via sale of mortgaged properties.

Punjab National Bank versus Late Sh. Krishan Lal Bharti and… — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.350/2025 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 21.03.2025

¶4

DATE OF DECISION: 09.07.2025

¶5

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.

¶6

……..Applicant Versus

¶7

Sh. Krishan Lal Bharti (since deceased) S/o Sh. Ram Dutta Mal R/o House No.169, Ward No.2, Opposite Civil Hospital, Backside Bharti Medicos, Samrala, District Ludhiana-141414 through his legal heirs:

¶8

i.	Smt. Sudesh Bharti W/o Late Sh. Krishan Lal Bharti R/o
	House No.169, Ward No.2, Opposite Civil Hospital, Backside
	Bharti Medicos, Samrala, District Ludhiana-141414.
ii.	Sh. Sandeep Bharti S/o Late Sh. Krishan Lal Bharti R/o
	House No.169, Ward No.2, Opposite Civil Hospital, Backside
	Bharti medicos Samrala, District Ludhiana-141414.
iii.	Sh. Gaurav Bharti S/o Late Sh. Krishan Lal Bharti R/o House
	No.169, Ward No.2, Opposite Civil Hospital, Backside Bharti medicos Samrala, District Ludhiana-141414.
iv.	Sh. Girish Bharti S/o Late Sh. Krishan Lal Bharti R/o House No.169, Ward No.2, Opposite Civil Hospital, Backside Bharti
	medicos Samrala, District Ludhiana-141414.

¶9

2 OA NO.350-2025 PUNJAB NATIONAL BANK VS LATE SH. KRISHAN LAL BHARTI AND OTHERS

¶10

v. Ms. Neha Bharti D/o Late Sh. Krishan Lal Bharti R/o House No.169, Ward No.2, Opposite Civil Hospital, Backside Bharti medicos Samrala, District Ludhiana-141414.

¶11

….……Defendants

¶12

Advocates:

¶13

Argued by Sh. Kanwar Harbir Singh Bath, Advocate for the applicant Defendants are ex parte

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,84,964.00p (Rupees Thirty Lacs Eighty Four Thousand Nine Hundred Sixty Four Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

¶16

The brief facts of the OA that the defendant no.1(since deceased) had approached the applicant for the grant of KCC Limit of Rs.24.80 Lacs.

¶17

The applicant sanctioned the KCC Limit of Rs.24.80 Lacs vide Sanction letter dated 17.01.2013, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 12K-00M situated at revenue estate of Village Ghulal, Hadbast No.141, Tehsil Samrala, District Ludhiana, Punjab vide Registered Mortgaged Deed bearing vasika no.3664 dated 07.03.2013 with certificate, which is Annexure A4 to this OA.

¶18

3 OA NO.350-2025 PUNJAB NATIONAL BANK VS LATE SH. KRISHAN LAL BHARTI AND OTHERS

¶19

Documents executed:- Agreement for hypothecation dated 18.03.2013, which is Annexure A3 to this OA; Balance and security confutations letters dated 20.11.2014, 20.07.2017, 25.10.2019, 28.09.2022 & 31.01.2023 , which are Annexures A5 to A9 to this OA; Recall notice dated 25.10.2023, which is Annexure A10 to this OA and Loan account statement with certificate, which is Annexure A11 to this OA

¶20

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.30,84,964.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

¶21

The legal heirs of deceased defendant no.1 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 of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank, h as been filed.

¶22

Heard arguments and perused record

¶23

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 A11 to this OA, it is proved that the defendant (since deceased) approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.30,84,964.00p (Rupees

¶24

4 OA NO.350-2025 PUNJAB NATIONAL BANK VS LATE SH. KRISHAN LAL BHARTI AND OTHERS

¶25

Thirty Lacs Eighty Four Thousand Nine Hundred Sixty Four Only) along with interest from the legal heirs of deceased defendant no.1, from the date of filing of the present Original Application till realization of the account.

¶26

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.10%p.a. with half yearly rests from 02.03.2025 till the realization.

¶27

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 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.

¶28

In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 are liable to pay to the applicant a total sum of Rs.30,84,964.00p (Rupees Thirty Lacs Eighty Four Thousand Nine Hundred Sixty Four Only) 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 legal heirs of deceased defendant no.1 in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the legal heirs of deceased defendant no.1.

¶29

5 OA NO.350-2025 PUNJAB NATIONAL BANK VS LATE SH. KRISHAN LAL BHARTI AND OTHERS

¶30

The applicant is at liberty to enforce the claim through due process of law.

¶31

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.07.2025.

¶32

Copy of this order be given Dasti to the applicant bank 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: 09.07.2025.

¶33

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

Punjab National Bank v. Late Sh. Krishan Lal Bharti and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Late Sh. Krishan Lal Bharti and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Mohan Singh and Another

Idbi Bank Ltd. versus Balwinder Kaur and Others

Axis Bank Ltd. versus Jarnail Singh and Others

Bank of India versus Late Smt. Shakuntla Devi and Another

Union Bank of India versus Ms Mahadev Industries and another

Bank of India versus Malkit Singh and Others