Allowed

Punjab National Bank v. Mrs. Manjit Kaur

DRT25 Mar 2025OA/596/2022

Case brief

AI extract

What is this about?

The DRT allowed an application by Punjab National Bank against two defendants for recovery of a loan debt of over Rs.27 lakhs. The court granted a recovery certificate and fixed interest at 8% p.a., allowing recovery from mortgaged or personal assets.

What did the court decide?

Recovery Certificate issued; defendants ordered to pay Rs.27,36,422.00 with interest @8% p.a. recovery enforceable by sale of mortgaged or personal assets.

Punjab National Bank versus Mrs. Manjit Kaur — Dowry and Cruelty | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.596/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.04.2022

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DATE OF DECISION: 25.03.2025

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi and a branch amongst at Punjab National Bank (erstwhile Oriental Bank of Commerce), VPO Kishanpura Kalan, Distt. Moga, Punjab through its General Power of Attorney Holder, Sh. Sandeep Kumar, Senior Manager, Punjab National Bank, Circle Sastra Moga, 1^st Floor, Pratap Road Branch, Moga,142001, Punjab who is duly authorized and Principal Officer of the Applicant Bank.

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……..Applicant

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Versus

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Mrs. Manjit Kaur W/o Sh. Lakhmir Singh

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Sh. Baltej Singh S/o Sh. Jaswant Singh

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Both residents of Village Kot Mohd. Khan, Tehsil and District Moga.

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……….Defendants

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Advocates:

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Argued by Sh. Mohinder Nath Sharma, Advocate for the applicant (through VC)

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None for Defendants

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ORIGINAL APPLICATION NO.596/2022 PUNJAB NATIONAL BANK VS MRS. MANJIT KAUR AND ANOTHER

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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.27,36,422.00 (Rupees Twenty Seven Lacs Thirty Six Thousand Four Hundred Twenty Two Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of OGC Limit (KCC) of Rs.15.00 Lacs vide Loan Application dated 03.08.2011, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned OGC Limit (KCC) of Rs.15.00 Lacs vide Sanction Letter dated 03.08.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged her immovable property i.e. Land measuring 34K-07M situated at Village Kot Mohammad Khan, H.B. No. 272, Tehsil and District Moga vide Registered Mortgaged Deed bearing vasika no.2564 dated 08.08.2011 along with its translation, which are Annexures A4 and A4T to this OA.

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Documents executed:-Notification dated 04.03.2020, which is Annexure A1A to this OA; Report on Title dated 03.08.2011, which is Annexure A5 to this OA; Affidavit by borrower dated 03.08.2011, which is Annexure A6 to this OA; Hypothecation Agreement & Agreement of Guarantee dated 10.08.2011, which are Annexures A7 & A8 to this OA; Balance and security confirmations dated 06.08.2014 & 05.08.2017, which are Annexures A9 & A10 to this OA;

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ORIGINAL APPLICATION NO.596/2022 PUNJAB NATIONAL BANK VS

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MRS. MANJIT KAUR AND ANOTHER

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Notice of Recall of Bank’s dues by the Advocate dated 17.03.2022, which is Annexure A11 to this OA and Statement of Account along with Certificate, which is Annexure A12 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.27,36,422.00, 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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The defendants were served notices to appear before this Tribunal. The defendants appeared through their counsel but did not file WS, therefore, opportunity to file WS by defendants was closed and defense was struck off on 20.12.2023.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior 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 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 A12 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.27,36,422.00 (Rupees Twenty Seven Lacs Thirty Six Thousand Four Hundred Twenty Two Only) along with interest from

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ORIGINAL APPLICATION NO.596/2022 PUNJAB NATIONAL BANK VS MRS. MANJIT KAUR AND ANOTHER

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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 @8.80%p.a. along with additional penal interest @2% with half yearly rests from 01.04.2022 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 @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 defendants are liable to pay to the applicant a total sum of Rs.27,36,422.00 (Rupees Twenty Seven Lacs Thirty Six Thousand Four Hundred Twenty Two Only) jointly and severally, with costs, current and future simple interest @08.00%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.

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ORIGINAL APPLICATION NO.596/2022 PUNJAB NATIONAL BANK VS

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MRS. MANJIT KAUR AND ANOTHER

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.04.2025.

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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 .

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Dated: 25.03.2025

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Mrs. Manjit Kaur

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Mrs. Manjit Kaur

Case brief

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What did the court decide?

What the court decided

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