Allowed

Punjab National Bank v. Late Sh. Gulzar Singh and Others

DRT24 Apr 2025OA/364/2023

Case brief

AI extract

What is this about?

This judgment allowed an Original Application filed under the RDBFI Act for recovery of a defaulted loan. The Tribunal decreed payment of the principal sum with costs and reduced simple interest from the filing date, ordering recovery via hypothecated properties or personal asset attachment.

What did the court decide?

Recovery of Rs. 37,73,591.00 with costs and simple interest @ 8% p.a. from filing date; Recovery Certificate issued.

Punjab National Bank versus Late Sh. Gulzar Singh and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.364/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.08.2022

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DATE OF DECISION: 24.04.2025

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Punjab National Bank erstwhile Oriental bank of Commerce a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act having its Head Office at Sector-10, Dwarka, New Delhi and one of its Branch office amongst other at Hoshiarpur Road, Phagwara, District Kapurthala, Punjab, through its General Power of Attorney holder.

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……..Applicant Versus

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Sh. Gulzar Singh (Deceased) son of Sh. Sadhu Singh, resident of village Duggan, P.O. Bhabiana, Tehsil Phagwara, District Kapurthala, Punjab through his legal hiers namely.

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i. Sh. Arwinder Singh S/o Sh. Gulzar Singh (Deceased), R/o village Duggan, P.O. Bhabiana, Tehsil Phagwara, District Kapurthala, Punjab

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ii. Ms. Rajwinder Kaur D/o Sh. Gulzar Singh (Deceased) R/o village Duggan, P.O. Bhabiana, Tehsil Phagwara, District Kapurthala, Punjab

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Sh. Jaswant Singh, S/o Sh. Mohinder Singh, R/o Village Jagtpalpur, Tehsil Phagwara, District Kapurthala, Punjab.

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………. Defendants

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Advocates: Argued by Sh. Manish Singla, Advocate for the applicant (through VC) 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.37,73,591.00 (Rupees Thirty Seven Lacs Seventy Three Thousand Five Hundred Ninety One Only). The Original Application has been filed

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2 OA NO.364/2023 PUNJAB NATIONAL BANK VS LATE SH. GULZAR SINGH AND OTHERS

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through Sh. Amrit Lal Parashar, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 19.09.2008, which is Annexure A13 to this OA.

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The brief facts of the OA are that the defendant no.1 (Since Deceased) and 2 h ad approached the applicant for grant of OGC Limit of Rs.15.00 Lacs vide Loan Application dated 26.03.2013, which is Annexure A2 to this OA.

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The applicant sanctioned OGC Limit of Rs.15.00 Lacs vide Sanction Letter dated 26.03.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 (Since Deceased) h ad mortgaged his immovable property i.e. total Land measuring 21K-10½M situated at village Duggan, Hadbast No.5, Tehsil Phagwara, District Kapurthala, Punjab vide Registered Mortgaged Deed bearing vasika no.5818 dated 22.03.2013 along with its translation, which is Annexure A1 to this OA.

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Documents executed:- Agreement of Hypothecation and Agreement of Guarantee dated 26.03.2013, which are Annexures A4 to A5 to this OA; Undertaking (from Legal Heir) dated 01.06.2018, which is Annexure A6 to this OA; Balance Security Confirmation dated 05.06.2015 and 26.03.2021, which are Annexures A7 & A8 to this OA; Notices Dated 10.01.2022, which are Annexures A9 & A10 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which are Annexures A11 and 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.37,73,591.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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3 OA NO.364/2023 PUNJAB NATIONAL BANK VS LATE SH. GULZAR SINGH AND OTHERS

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amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The legal heirs of deceased defendant no.1 and defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 17.04.2025.

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In support of the OA, affidavit of Sh. Amrit Lal Parashar, Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A13 to this OA, it is proved that the defendant no.1 (Since Deceased) and 2 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 bank. The defendant no.1 (Since Deceased) and 2 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1 (Since Deceased) and 2 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,73,591.00 (Rupees Thirty Seven Lacs Seventy Three Thousand Five Hundred Ninety One Only) along with interest from the legal heirs of deceased defendant no.1 and from defendant no.2, 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% with monthly rests from 01.04.2022 till the realization.

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4 OA NO.364/2023 PUNJAB NATIONAL BANK VS LATE SH. GULZAR SINGH AND OTHERS

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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 @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 legal heirs of deceased defendant no.1 and defendant no.2 are liable to pay to the applicant a total sum of Rs.37,73,591.00 (Rupees Thirty Seven Lacs Seventy Three Thousand Five Hundred Ninety One 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 defendant no.1(since deceased) 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 legal heirs of deceased defendant no.1 and defendant no.2. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.05.2025.

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5 OA NO.364/2023 PUNJAB NATIONAL BANK VS LATE SH. GULZAR SINGH AND OTHERS

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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: 24.04.2025

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

Punjab National Bank v. Late Sh. Gulzar Singh and Others

Case brief

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Punjab National Bank v. Late Sh. Gulzar Singh and Others

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