Allowed

Punjab National Bank v. Sh. Malkiat Singh @ Malkit Singh

DRT14 Jul 2025OA/541/2024

Case brief

AI extract

What is this about?

DRT allowed Original Application filed by Punjab National Bank for recovery of Rs.22,74,737.41p against defendant for default on KCC loan. Tribunal directed recovery from mortgaged properties and modified interest rate to 8% p.a.

What did the court decide?

Recovery of Rs.22,74,737.41p with costs and interest @ 8% p.a. granted; Recovery Certificate issued; release to Recovery Officer.

Punjab National Bank versus Sh. Malkiat Singh @ Malkit Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.541/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.03.2024

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DATE OF DECISION: 14.07.2025 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 having its Head Office at Plot No.4, Scetor-10, Dwarka, New Delhi 110075 and amongst others a Branch Office at Sultanpur Road, Kapurthala Punjab through its Constituted Attorney & Principal Officer Sh. Ankur Rawat, Senior manager posted at Punjab National Bank, Circle Sastra Centre Kapurthala, Punjab. … …..Applicant Versus

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Sh. Malkiat Singh @ Malkit Singh Son of Sh.Bhajan Singh R/o House No.8, Majahadpur, Tehsil and District Kapurthala, Punjab. ….……Defendant

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Advocates: Argued by Sh. Manish Singla, Advocate for the Applicant Defendant is ex parte

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FINAL ORDER 1. 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.22,74,737.41p (Rupees Twenty Two Lacs Seventy Four Thousand Seven Hundred Thirty Seven & Forty One Paisa Only). The Original Application has been filed through Sh. Ankur Rawat Senior Manager of the applicant, who is competent to institute the Original Application vide Power of attorney dated 04.11.2016, which is Annexure A1 to this OA.

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OA/541/2024 PUNJAB NATIONAL BANK V/S SH. MALKIAT SINGH

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application Form dated 24.05.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs and the terms and conditions were duly accepted by the defendant. 4. Defendants had mortgaged his immovable properties i.e. total land measuring 30K-19M situated at Village Majahadpur, Tehsil and District Kapurthala, Punjab vide Registered Mortgaged Deed bearing vasika no.1009 dated 06.06.2014, which is Annexure A4 to this OA.

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Documents executed:- Agreement for hypothecation dated 07.06.2014, which is Annexure A3 to this OA; BC Letters dated 08.09.2016, 15.07.2019 & 13.07.2022, which are Annexures A5 to A7 to this OA; Notice dated 24.05.2021, which is Annexure A8 to this OA and Statements of account, which is Annexure A9 to this OA.

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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.22,74,737.41p, which is recoverable and the defendant were 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 23.09.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat Senior Manager, Punjab National Bank, h as been filed. 8. Heard 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 A9 to this OA, it is proved that the defendant

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OA/541/2024 PUNJAB NATIONAL BANK V/S SH. MALKIAT SINGH

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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.22,74,737.41p (Rupees Twenty Two Lacs Seventy Four Thousand Seven Hundred Thirty Seven & Forty One Paisa 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 @11.50%p.a. with half yearly plus penal interest @ 2% p.a. from 12.12.2023 till the date of 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.22,74,737.41p (Rupees Twenty Two Lacs Seventy Four Thousand Seven Hundred Thirty Seven & Forty One Paisa Only) with costs, current and future simple interest @08.00%p.a. in the loan account

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OA/541/2024 PUNJAB NATIONAL BANK V/S SH. MALKIAT SINGH

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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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.08.2025.

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Copy of this order be given Dasti to the applicant bank 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.

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Pronounced by me in the open Tribunal .

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Dated: 14.07.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Malkiat Singh @ Malkit Singh

Case brief

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Punjab National Bank v. Sh. Malkiat Singh @ Malkit Singh

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