Allowed

Punjab National Bank v. Saraj Singh and Others

DRT18 Jan 2025OA/480/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs.42.43 Lakhs from three defendants. The court granted a uniform simple interest rate of 8% per annum from the date of filing and ordered the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.42,43,281.85p with 8% simple interest from filing date; issuance of Recovery Certificate; liberty to enforce via SARFAESI or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.480/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.02.2022

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DATE OF DECISION: 18.01.2025

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at plot No.4, sector 10 Dwarka New Delhi 110075 and amongst others a branch at DAV College Malout, District Sri Muktsar Sahib through Sh. Kuldeep Singh Chief Manager and Attorney holder presently posted at Circle SASTRA Centre Fazilka. ……..Applicant

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Versus

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Sh. Saraj Singh S/o Sh. Ajaib Singh R/o House No.346 Dhani Mogi Walian Di, Village Kolian Wali, Tehsil Malout, District Sri Muktsar Sahib.

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Sh. Kanwarjeet Singh S/o Sh. Saraj Singh R/o House No.346 Dhani Mogi Walian Di, Village Kolian Wali Tehsil Malout, District Sri Muktsar Sahib.

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Sh. Bikramjeet Singh S/o Sh. Saraj Singh R/o House No.346 Dhani Mogi Walian Di, Village Kolian Wali Tehsil Malout, District Sri Muktsar Sahib.

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….……Defendants

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Advocates:

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Argued by Sh. Manish Singla, 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.42,43,281.85p (Rupees Forty Two Lacs Forty Three Thousand Two Hundred Eighty One & Eighty Five Paise only). The Original Application has been filed through Sh. Kuldeep Singh Chief Manager and Attorney holder of the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 to 3 had approached the applicant for the grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 22.12.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.25.00 Lacs vide Sanction Letters dated, 22.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e total land measuring 80K-00M situated in Village Kolian Wali, Tehsil Malout, District Sri Muktsar Sahib vide Declaration u/s 4(1) & Letter to Sub Registrar for creation of Charge dated 06.02.2015, which is Annexure A7 to this OA. Documents executed:- Hypothecation agreement, Letter of Undertaking, Letter of Consent(Revised), which are Annexures A4 to A6 to this OA; Balance & Security Confirmation letters dated 16.09.2017 & 12.07.2019 , which are Annexures A8 & A9 to this OA; Notice dated 05.02.2022, which is Annexure A10 to this OA and statement of account dated 31.01.2022, which is Annexure A11 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.42,43,281.85p, 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. 6. 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 09.01.2025. 7. In support of the OA, affidavit of Sh. Kuldeep Singh Chief Manager and Attorney holder, Punjab National Bank, has been filed. 8. Heard 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,

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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 facility which was 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, 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.42,43,281.85p (Rupees Forty Two Lacs Forty Three Thousand Two Hundred Eighty One & Eighty Five Paise 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 @10.35%p.a. along with penal interest @2.00%p.a. with half yearly rests from 01.02.2022 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 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 @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.42,43,281.85p (Rupees Forty Two Lacs Forty Three Thousand Two Hundred Eighty One & Eighty Five Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the

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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. 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 28.02.2025

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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.

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Pronounced by me in the open Tribunal . Dated: 18.01.2025

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

Punjab National Bank v. Saraj Singh and Others

Case brief

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Punjab National Bank v. Saraj Singh and Others

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