Allowed

Punjab National Bank v. Manjit Singh

DRT16 Jun 2025OA/571/2025

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of outstanding dues of Rs. 26,62,704.90p from joint borrowers who defaulted on an KCC loan. The Tribunal fixed uniform simple interest at 8% per annum and ordered recovery from hypothecated/mortgaged properties under the SARFAESI Act.

What did the court decide?

Interest fixed at uniform simple interest @8.00%p.a. Defendants ordered to pay Rs.26,62,704.90p jointly and severally. Recovery to be effected from sale of mortgaged/mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.571/2025 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.05.2025

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DATE OF DECISION:16.06.2025

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Punjab National Bank, a body corporate and nationalized Bank under the provisions of the banking companies(Acquisition & Transfer of undertakings) Act, of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka New Delhi-110075 and amongst other a Branch Office at Village Mansuran, District Ludhiana (Punjab) through its Constituted Attorney and Deputy Manager Sh. Sukhpal Grewal son of Sh. Jagwinder Singh posted at Punjab National Bank, Circle Sastra, Ludhiana situated at First floor, site no.5, Ferozepur Road, Ludhiana, Punjab.

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… …..Applicant

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Versus

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Sh. Manjit Singh S/o Sh. Bhajan Singh R/o Village Chhokar P.O. Jodhan, District Ludhiana, Punjab 142029.

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Sh. Bhupinder Singh S/o Sh. Manjit Singh R/o Village Chhokar P.O. Jodhan, District Ludhiana, Punjab 142029.

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Sh. Rakesh Kumar S/o Sh. Sohan Lal, R/o House No.86, New Lajpat Nagar, Ludhiana, Punjab 141002.

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….……Defendants

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Advocates: Argued by Ms. Parmeet Kaur, Advocate proxy for Sh. Kanwar Harbir Singh Bath, 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.26,62,704.90p (Rupees Twenty Six Lacs Sixty Two Thousand Seven Hundred Four & Ninety Paise Only). The Original Application has been filed through Sh. Sukhpal Grewal , Deputy Manager of the applicant,

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2 OA NO.571-2025 PUNJAB NATIONAL BANK VS MANJIT SINGH AND OTHERS

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who is competent to institute the Original Application vide Power of attorney dated 11.09.2023, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of KCC Limit of Rs.18.00 Lacs vide Loan application dated 11.12.2010, which is Annexure A4 to this OA.

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The applicant sanctioned the KCC Limit of Rs.18.00 Lacs vide Sanction letter dated 01.12.2010, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had mortgaged his immovable property i.e. total land measuring 26K-07M situated at Village Choker, Hadbast no.300, Tehsil and District Ludhiana, Punjab v ide Registered Sale Deed bearing vasika no.8941 dated 06.12.2010 with its translation, which is Annexure A8 to this OA.

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Documents executed: -Collector, which is Annexure A1 to this OA; Amalgamation notification dated 04.03.2020, which is Annexure A3 to this OA; Hypothecation agreement, Agreement of guarantee both dated 11.12.2010, which are Annexures A6 & A7 to this OA; Renewal application dated 14.12.2020,which is Annexure A9 to this OA; Balance Confirmation letters dated 28.112013, 28.04.2015, 09.08.2018, 05.07.2021 & 28.06.2024, which are Annexures A10 to A14 to this OA; Legal notice dated 16.11.2024, which is Annexure A15 to this OA and Loan account statement with certificate, which is Annexure A16 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.26,62,704.90p, 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.

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3 OA NO.571-2025 PUNJAB NATIONAL BANK VS MANJIT SINGH AND OTHERS

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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 12.06.2025.

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In support of the OA, affidavit of Sh. Sukhpal Grewal , Deputy Manager, Punjab National Bank, h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 A16 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.26,62,704.90p (Rupees Twenty Six Lacs Sixty Two Thousand Seven Hundred Four & Ninety 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 @10.30%p.a. along with penal interest @2.00%p.a. with half yearly rests from12.12.2024 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 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

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OA NO.571-2025 PUNJAB NATIONAL BANK VS MANJIT SINGH AND OTHERS

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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.26,62,704.90p (Rupees Twenty Six Lacs Sixty Two Thousand Seven Hundred Four & Ninety 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 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 10.07.2025. 15. 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 .

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Dated: 16.06.2025

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

Punjab National Bank v. Manjit Singh

Case brief

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Punjab National Bank v. Manjit Singh

Case brief

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