Allowed

Punjab National Bank v. Kartar Singh

DRT18 Feb 2025OA/418/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs.35,99,100 owed by deceased respondent Kartar Singh and his legal representatives. The court granted a uniform simple interest rate of 8% per annum and directed the issuance of a Recovery Certificate.

What did the court decide?

Order declaring defendants liable to pay Rs.35,99,100 with interest at 8% p.a. and directing issuance of Recovery Certificate.

Punjab National Bank versus Kartar Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.418/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.02.2024

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DATE OF DECISION: 18.02.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank, Village Tibba, District Kapurthala, Punjab through its General Power of Attorney Holder, Sh. Ankur Rawat who is presently working as Senior Manager, Punjab National Bank, Circle Sastra, PNB House, Satyanarayan Bazar, Near Natraj Hotel, Kapurthala, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant

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Versus

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Mr. Kartar Singh (Deceased) S/o Sh. Makhan Singh, Through his LRs:

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(a) Mrs. Amar Kaur W/o Late Mr. Kartar Singh (b) Mr. Lakhbir Singh (Deceased) S/o Late Mr. Kartar Singh Through his LRs: (i) Mrs. Sukhwinder Kaur W/o Late Mr. Lakhbir Singh (ii) Mr. Jobanpreet Singh S/o Late Mr. Lakhbir Singh (iii) Ms. Arshdeep Kaur D/o Late Mr. Lakhbir Singh

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All above are R/o Village Kalru, PO Nasirpur, Distt. Kapurthala, Punjab.

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……….Defendants

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Advocates: Argued by Sh. Mohinder Nath Sharma, 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.35,99,100.00 (Rupees Thirty Five Lacs Ninety Nine Thousand And Hundred Only). The Original Application has been filed through Sh. Ankur Rawat, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 (now deceased) had approached the applicant for grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 09.09.2010, which is Annexure A2 to this OA to this OA.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 09.09.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 (now deceased) had mortgaged his immovable properties i.e. total land measuring 40K-04M situated at Village Kalru, H.B. No.43, Tehsil Sultanpur Lodhi, Distt. Kapurthala, Punjab vide Registered Mortgaged Deed bearing vasika no.1699 dated 17.09.2010 along with its translation, which are Annexures A5 & A5T to this OA. Documents executed:-Advocate report on title deed dated 13.09.2010, which is Annexure A4 to this OA; Hypothecation Agreement, Letter of Undertaking & Letter of Consent all dated 20.09.2010, which are Annexures A6 to A8 to this OA; Balance and Security Confirmation Letters dated 18.06.2013, 25.06.2015, 23.04.2018, 01.02.2019, 20.04.2021 & 27.01.2022, which are Annexures A9 to A14 to this OA; Notice of Recall of Bank’s dues by the Advocate dated 01.02.2024, which is Annexure A15 to this OA and Statement of Account duly certified, which is Annexure A16 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.35,99,100.00, which is recoverable and the defendants

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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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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 15.01.2025.

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In support of the OA, affidavit of Sh. Ankur Rawat, Branch 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 A16 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. 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.35,99,100.00 (Rupees Thirty Five Lacs Ninety Nine Thousand And Hundred 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 @9.75%p.a. along with penal interest @2.00%p.a. with yearly rests from 16.02.2024 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.35,99,100.00 (Rupees Thirty Five Lacs Ninety Nine Thousand And Hundred 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 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 20.03.2025.

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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. Pronounced by me in the open Tribunal . Dated: 18.02.2025

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

Punjab National Bank v. Kartar Singh

Case brief

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Punjab National Bank v. Kartar Singh

Case brief

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