Allowed

Punjab National Bank v. Late Smt. Charan Kaur and Others

DRT27 Jun 2025OA/371/2024

Case brief

AI extract

What is this about?

DEBT RECOVERY TRIBUNAL, CHANDIGARH allowed an application filed by Punjab National Bank under Section 19 of RDBFI Act, 1993 against the legal heirs of a deceased defendant. The Tribunal decreed the respondents to pay the outstanding principal along with 9% interest instead of the claimed 9.85%. It directed the issuance of a Recovery Certificate, allowing recovery via mortgaged properties first and

What did the court decide?

Recovery Certificate issued. Respondents ordered to pay Rs. 23,99,053 plus 8% p.a. simple interest. Recovery to be effected from mortgaged properties first, then personal assets of legal heirs.

Punjab National Bank versus Late Smt. Charan Kaur and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.371/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.04.2024

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DATE OF DECISION: 27.06.2025.

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Punjab National Bank, a body corporate 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 and a branch office amongst others at Ropar, District Rupnagar, Punjab and Circle Sastra at SCO No.43, Phase-II, Sector-54, SAS Nagar, (Mohali) Punjab.

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……..Applicant

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Versus

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Smt. Charan Kaur W/o Sh. Lachhman Singh R/o House No.9, Village Maujudinpur, P.O. Bhallian, Tehsil Chamkaur Sahib, District Ropar Punjab through legal heirs:

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I. Sh. Harwinder Singh S/o Sh. Dilbagh Singh R/o Village Maujudinpur, P.O. Bhallian, Tehsil Chamkaur Sahib, District Ropar Punjab.

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II. Sh. Davinder Singh S/o Sh. Dilbagh Singh R/o House No.9, Village Maujudinpur, P.O. Bhallian, Tehsil Chamkaur Sahib, District Ropar Punjab.

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Sh. Harwinder Singh S/o Sh. Dilbagh Singh R/o Village Maujudinpur, P.O. Bhallian, Tehsil Chamkaur Sahib, District Ropar Punjab.

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….……Defendants

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Advocates:

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Argued by, Sh. Arvind Rajotia, Advocate proxy for Sh. Jiteshwar Malhi, 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.23,99,053.00p (Rupees Twenty Three Lacs Ninety Nine Thousand Fifty Three only). The Original Application has been filed through Sh.

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2 OA NO.371-2024 PUNJAB NATIONAL BANK VS LATE SMT. CHARAN KAUR AND OTHERS

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Subhash Chandra, Authorized Officer, o f the applicant, who is competent to institute the Original Application vide Power of attorney dated 28.07.2011, 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 KCC Limit of Rs.11.00 Lacs & CC Limit of Rs.2.50 Lacs vide Loan Application dated 12.06.2017, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.11.00 Lacs & CC Limit of Rs.2.50 Lacs vide Copy of Recommendation cum sanction letter dated 19.06.2017, 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 mortgaged her immovable properties i.e. total land measuring 20K-18M situated at Village Maujudinpur, Hadbast No.70, Tehsil Chamkaur Sahib, District Ropar Punjab vide Declaration u/s 4(1) and as per Jamabandi for the year 2012-2013 with its translations, which are Annexures A5 & A6 to this OA. Documents executed: Copy of agreement of hypothecation dated 19.06.2017, which is Annexure A4 to this OA; Copy of acknowledgement of debts and security all dated 09.12.2019 & 01.12.2022, which are Annexures A7 to A9 to this OA; Copy of recall notice dated 17.11.2023 along with postal receipts, which is Annexure A10 to this OA and Statements of account along with certificate banker books evidence Act, which is Annexure A11 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.23,99,053.00p, 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.

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3 OA NO.371-2024 PUNJAB NATIONAL BANK VS LATE SMT. CHARAN KAUR AND OTHERS

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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 25.06.2025.

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In support of the OA, affidavit of Sh. Subhash Chandra, Authorized Officer, Punjab National Bank, h as been filed.

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Heard arguments and perused record.

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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 A11 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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.23,99,053.00p (Rupees Twenty Three Lacs Ninety Nine Thousand Fifty Three only) rest from the legal heirs of deceased defendant no.1 and defendant no.2, 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 @9.85%p.a. with monthly rests from 12.04.2024 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

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4 OA NO.371-2024 PUNJAB NATIONAL BANK VS LATE SMT. CHARAN KAUR AND OTHERS

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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. 11. 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.23,99,053.00p (Rupees Twenty Three Lacs Ninety Nine Thousand Fifty Three 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 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 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.

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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 legal heirs of deceased defendant no.1 and defendant no.2 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 . Dated: 27.06.2025.

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

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5 OA NO.371-2024 PUNJAB NATIONAL BANK VS LATE SMT. CHARAN KAUR AND OTHERS

Punjab National Bank v. Late Smt. Charan Kaur and Others

Case brief

What is this about?

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Punjab National Bank v. Late Smt. Charan Kaur and Others

Case brief

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What did the court decide?

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