Allowed

Punjab National Bank v. Mohinder Singh Alias Mohinder Singh Sawatch

DRT3 Sept 2025OA/412/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 24.42 lakhs. The Tribunal granted a recovery certificate and modified the claimed interest rate to 8% per annum for future periods, permitting recovery from mortgaged or personal assets.

What did the court decide?

Recovery certificate issued; Defendant ordered to pay Rs. 24.42 lakhs plus costs and future simple interest at 8% per annum from date of filing.

Punjab National Bank versus Mohinder Singh Alias Mohinder… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.412/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.03.2022

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DATE OF DECISION: 03.09.2025

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Punjab National Bank, a body corporate and a Nationalized Bank, duly Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act V of 1970 having its head office at Plot No.4, Sector-10, Dwarka, New Delhi-110075, and the successor of Oriental Bank of Commerce , by scheme of Amalgamation of Oriental Bank of Commerce, passed by the Central Government under section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, through one of its branch, having office at Jamalpur Awana, (eOBC), Ludhiana, Punjab through its Constituted Attorney Sh. Ravinder Kumar S/o Sh. Madan Lal, Senior Manager, Circle Sastra Centre, Circle office, Ludhiana East, Site No.5, Ferozepur Road, Ludhiana, Punjab-

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……..Applicant Versus

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Sh. Mohinder Singh @ Mohinder Singh Sawatch S/o Sh. Malkit Singh, Resident of Village Hawas, P.O. Jodhewal Basti, Tehsil Ludhiana (East), District Ludhiana, Punjab-141007.

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….……Defendant

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Advocates:

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Argued by Sh. R.K. Bansal, Advocate for the applicant Defendant already ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts and Bankruptcy Act,1993, against the defendant for recovery of Rs.24,42,274.00p (Rupees Twenty Four Lacs Forty Two Thousand Two Hundred Seventy Four Only). The Original Application has been filed through Sh. Ravinder Kumar , Senior Manager, o f the applicant, who is competent to institute

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2 OA/412/2022 PUNJAB NATIONAL BANK VS SH.MOHINDER SINGH @ MOHINDER SINGH SAWATCH

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the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of Agri. Limit of Rs.10.00 Lacs under OGC Scheme vide loan application dated 20.10.2011, which is Annexure A2 to this OA. 3. The applicant sanctioned the Agri. Limit of Rs.10.00 Lacs under OGC Scheme vide Sanction letter dated 27.10.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgage his immovable properties i.e. total land measuring 09K-09M situated at Village Hawas, Hadbast No.59, Sub Tehsil Ludhiana East, District Ludhiana, Punjab vide mortgage Deed bearing vasika no.15835 dated 08.11.2011, along with its true translations, Jamabandi for the year 2007-08, along with its translation, which are Annexures A5 to A8 to this OA. Documents executed:-Notification dated 04.03.2020, which is Annexure A/A to this OA; Agreement for Hypothecation dated 15.11.2011, which is Annexure A4 to this OA; Balance and Security Confirmations Letters dated 31.03.2014, 20.02.2017 & 18.10.2019, which are Annexures A9 to A11 to this OA; Legal notice dated 14.12.2017 & 12.02.2021, along with postal receipts, which are Annexures A12 & A13 to this OA and Statement of account along with Memorandum of Interest, which are Annexures A14 & A15 to this OA. 5. 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.24,42,274.00p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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3 OA/412/2022 PUNJAB NATIONAL BANK VS SH.MOHINDER SINGH @ MOHINDER SINGH SAWATCH

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 21.08.2025.

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In support of the OA, affidavit of Sh. Ravinder Kumar , Senior Manager, Punjab National Bank, h as been filed.

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Heard ex-parte 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 A15 to this OA, it is proved that the defendant 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.24,42,274.00p (Rupees Twenty Four Lacs Forty Two Thousand Two Hundred Seventy Four Only) along with interest from the defendant, 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 bank in relief clause has claimed [email protected]%p.a. with half yearly rests from 24.02.2022 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 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

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4 OA/412/2022 PUNJAB NATIONAL BANK VS SH.MOHINDER SINGH @ MOHINDER SINGH SAWATCH

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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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,42,274.00p (Rupees Twenty Four Lacs Forty Two Thousand Two Hundred Seventy 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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

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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 29.09.2025. 15. Copy of this order be given Dasti to the applicant 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: 03.09.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Mohinder Singh Alias Mohinder Singh Sawatch

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mohinder Singh Alias Mohinder Singh Sawatch

Case brief

What is this about?

What did the court decide?

What the court decided

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