Allowed

Punjab National Bank v. Sh. Jangdip Singh

DRT18 Jul 2025OA/465/2025

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of an outstanding loan of Rs. 22,87,151.00 classified as NPA. The tribunal ex-parte proceedings due to the defendant's absence. While granting recovery, the tribunal reduced the claimed interest rate from 13% to 8% simple interest per annum.

What did the court decide?

Recovery Certificate issued for Rs. 22,87,151.00 with interest at 8% p.a. Defendant liable to pay jointly and severally. Order transmitted to Recovery Officer.

Punjab National Bank versus Sh. Jangdip Singh — Specific Performance | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.465/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.03.2025

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DATE OF DECISION: 18.07.2025

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Punjab National Bank, a body corporate having and Nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and amongst other a Branch Office at Hambran, District Ludhiana, (Punjab) through its Constituted Attorney and Manager Sh. Piyush Aggarwal S/o Sh. Naresh Kumar Aggarwal posted at Punjab National Bank, Hambran, District Ludhiana, Punjab.

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……..Applicant Versus

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Sh. Jangdip Singh S/o Sh. Jassa Singh R/o V.P.O. Purain, Sub-Tehsil Sidhwan Bet, District Ludhiana- 141110.

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………. Defendant

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Advocates:

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Argued by Sh. Kanwar Harbir Singh Bath, 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 under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendants for recovery of Rs.22,87,151.00 (Rupees Twenty Two Lacs Eighty Seven Thousand One Hundred and Fifty One Only). The Original Application has been filed through Sh. Piyush Aggarwal, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 08.03.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC of Rs.7.50 Lacs, vide Loan Application dated 23.11.2009, which is Annexure A2 to this OA.

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2 OA/465/2025 PUNJAB NATIONAL BANK VS JANGDIP SINGH

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The applicant sanctioned KCC of Rs.07.50 Lacs, vide sanction letter dated 17.12.2009 which is Annexure A3 to this OA, and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged deed his immovable properties i.e. land measuring 22 Kanal 11 ½ Marlas situated at V.P.O. Purain, SubTehsil Sidhwan Bet, District Ludhiana, Punjab, vide Registered Mortgage vide vasika no. 1418 dated 04.12.2009, along with its translation, which is Annexure A5 to this OA. Documents executed: - Hypothecation Agreement dated 17.12.2009, which is Annexure A4 to this OA, Balance and Security Confirmation Letter, dated 25.08.2012, 25.10.2014, 01.07.2017, 11.03.2020, 01.10.2022, which are Annexures A6 to A10 to this OA; Legal Notice, which is Annexures A11 to this OA; Statement of account with certificate under Banker’s Book Evidence Act, which is Annexure A12 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.22,87,151.00, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.07.2025. 7. In support of the OA, affidavit of Sh. Piyush Aggarwal, Manager, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A12 to this OA, it is proved that the defendant approached applicant for

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3 OA/465/2025 PUNJAB NATIONAL BANK VS JANGDIP SINGH

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availing of the loans facility which was granted to them and for that he had executed all the relevant document 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 Rs.22,87,151.00 (Rupees Twenty Two Lacs Eighty Seven Thousand One Hundred and Fifty One Only) along with interest from the defendant, 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 @13.00%p.a. with half yearly rests including penal interest @2%p.a. from 18.12.2024 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 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.22,87,151.00 (Rupees Twenty Two Lacs Eighty Seven Thousand One Hundred and Fifty 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

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OA/465/2025

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PUNJAB NATIONAL BANK VS JANGDIP SINGH

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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 applicant 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. 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 25.08.2025. 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: 18.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Jangdip Singh

Case brief

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Punjab National Bank v. Sh. Jangdip Singh

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