Allowed

Punjab Gramin Bank v. Sh. Raj Kumar

DRT25 Jul 2025OA/508/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application by Punjab Gramin Bank against a defendant for recovery of Rs. 27,96,471.00 arising from a KCC loan default, granting uniform simple interest at 8% p.a. and authorizing recovery through sale of mortgaged properties.

What did the court decide?

Recovery certificate issued; defendant liable to pay Rs. 27,96,471.00 with simple interest @8% p.a.; recovery to be enforced through sale of mortgaged or attached properties.

Punjab Gramin Bank versus Sh. Raj Kumar — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.508/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.03.2025

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DATE OF DECISION: 25.07.2025

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No 21 of 1976 having its head office, at Markfed Road Kapurthala, (Pb) and having its branches at different places including one at Rahon, District SBS Nagar (PB) through its Constituted Attorney/Manager Sh. Vishal Kumar Mehandiratta.

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……… Applicant

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Versus

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Sh. Raj Kumar S/o Sh. Mehar Chand, R/o Village Ratnana, Tehsil Nawanshahr, District SBS Nagar (PB)

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….……Defendant

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through

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VC)

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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 & Bankruptcy Act, 1993, against the defendant for recovery of Rs.27,96,471.00 (Rupees Twenty Seven Lakh Ninety Six Thousand and Four Hundred Seventy One Only). The Original Application has been filed through Sh. Vishal Kumar Mehandiratta, Branch Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, 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 the grant of KCC Limit of Rs.15.00 Lacs and Term Loan

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2 OA NO.508/2025 PUNJAB GRAMIN BANK VS. RAJ KUMAR

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Rs. 3.00 Lacs vide Loan Application dated 20.02.2017, which is

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Annexure A2 to this OA.

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The applicant sanctioned the KCC limit of Rs.15.00 Lacs and Term Loan Rs. 3.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. land measuring 20K-06M situated at Village Ratnana, Hadbast no. 275, Tehsil Nawanshahr, District SBS Nagar Punjab vide declaration u/s 4(1) dated 06.03.2017 and letter to the Sub-Registrar dated 07.03.2017, which is Annexure A5 to this OA.

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Documents executed: - Hypothecation Agreement Loan Agreement dated 09.03.2017, which is Annexure A4 to this OA; Notice dated 07.05.2024, which is Annexure A6 to this OA; BC Letters dated 20.05.2019, 07.05.2021 & 09.10.2023, which are Annexures A7 to A7/2 to this OA and Statement of Account, along with certificate regarding computer system which is Annexure A8 to this OA.

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Term loan account stands adjusted by the defendant. The KCC account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.27,96,471.00, which is recoverable and the defendant 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 23.07.2025.

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7.	In support of the OA, affidavit of Sh. Vishal Kumar Mehandiratta,
Bran	ch Manager, Punjab Gramin Bankhas been filed.
8.	Heard ex-parte arguments and perused record.

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3 OA NO.508/2025 PUNJAB GRAMIN BANK VS. RAJ KUMAR

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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 A8 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the KCC loan as per terms and conditions of the agreement between the parties. Subsequently, KCC 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.27,96,471.00 (Rupees Twenty Seven Lakh Ninety Six Thousand and Four Hundred Seventy One 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 in relief clause has claimed interest @11.25%p.a. with half yearly rest with penal interest @2%p.a. from 26.03.2025 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 @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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.27,96,471.00

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OA NO.508/2025 PUNJAB GRAMIN BANK VS. RAJ KUMAR

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(Rupees Twenty Seven Lakh Ninety Six Thousand and Four Hundred Seventy One Only) 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 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 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 03.09.2025 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: 25.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab Gramin Bank v. Sh. Raj Kumar

Case brief

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Punjab Gramin Bank v. Sh. Raj Kumar

Case brief

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