Allowed

Punjab National Bank v. Sh. Surjit Singh and Another

DRT9 Jun 2025OA/595/2022

Case brief

AI extract

What is this about?

The DRT allowed the recovery application filed by Punjab National Bank against two borrowers for Rs. 28.62 lakhs. The court observed the loan was proved via documentary evidence and granted relief for principal sum with modified interest rates.

What did the court decide?

Declaration for recovery of Rs. 28,62,472.00 jointly and severally with simple interest at 8% p.a., enforcement via sale of mortgaged or personal assets, and issuance of Recovery Certificate.

Punjab National Bank versus Sh. Surjit Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.595/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.02.2022

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DATE OF DECISION: 09.06.2025

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Punjab National Bank, erstwhile Oriental Bank of Commerce a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act having its Head Office at Sector-10, Dwarka, New Delhi and one of its Branch Office amongst other at District Moga through its General Power of Attorney Holder.

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……..Applicant

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Versus

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1. Sh. Surjit Singh S/o Sh. Bant Singh R/o VPO Kokri Butran, Tehsil Dharamkot, District Moga Punjab.

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2. Sh. Inderjit Singh S/o Sh. Major Singh R/o VPO Kokri Buttran, Tehsil Dharamkot, District Moga Punjab.

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….……Defendants

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Advocates:

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Present Sh. Arunjeet Singh Kakkar, Advocate proxy for Sh. K.H.S. Bath, Applicant 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.28,62,472.00p (Rupees Twenty Eight Lacs Sixty Two Thousand Four Hundred Seventy Two only). The Original Application has been filed through Sh. Sandeep Kumar, Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A13 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 OGC Limit of Rs.15.00 Lacs vide Application for Loan dated 24.08.2012, which is Annexure A1 to this OA.

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2 OA NO.595-2022 PUNJAB NATIONAL BANK VS SURJIT SINGH AND ANOTHER

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The applicant sanctioned the OGC Limit of Rs.15.00 Lacs vide Sanction letter dated 24.08.2012, which is Annexure A2 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 18K-16½M situated at Kokri Buttran, Tehsil Dharamkot, District Moga Punjab vide Registered Mortgaged Deed bearing vasika no.1855 dated 21.09.2012 with its translations , which is Annexure A3 to this OA.

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Documents executed: - Affidavit dated 27.09.2012, which is Annexure A4 to this OA; Agreement for Hypothecation, Agreement of guarantee both dated 28.09.2012, which are Annexures A5 & A6 to this OA; Balance Security Confirmations dated 07.09.2015, 30.12.2017 & 22.12.2020, which are Annexures A7 to A9 to this OA; Legal notice dated 08.06.2018, which is Annexure A10 to this OA; Account statement along with Computation chart of Interest, which are Annexures A11 & A12 to this OA; Certificate under Banker’s Books Evidence, which is Annexure A14 to this OA and Copy of ID Proof, which is Annexure A15 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.28,62,472.00p, 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 05.06.2025. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Branch Manager, Punjab National Bank, h as been filed. 8. Ld. proxy counsel for applicant present has not advanced any arguments. Perused record.

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3 OA NO.595-2022

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PUNJAB NATIONAL BANK VS SURJIT SINGH AND ANOTHER

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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 A15 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.28,62,472.00p (Rupees Twenty Eight Lacs Sixty Two Thousand Four hundred seventy Two only) rest 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 @13.90%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.01.2022 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,62,472.00p (Rupees Twenty Eight Lacs Sixty Two Thousand Four hundred seventy Two only) jointly and severally, with costs, current

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4 OA NO.595-2022

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PUNJAB NATIONAL BANK VS SURJIT SINGH AND ANOTHER

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.07.2025. 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. Pronounced by me in the open Tribunal . Dated: 09.06.2025.

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

Punjab National Bank v. Sh. Surjit Singh and Another

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Punjab National Bank v. Sh. Surjit Singh and Another

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