DRT-III, Chandigarh allowed the applicant bank's original application for recovery of dues against joint defendants who defaulted on housing loans, granting a reduced uniform interest rate.
Directing defendants to pay Rs.54,15,244.05 with 8% simple interest; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.612/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.02.2023
DATE OF DECISION: 17.02.2025
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 with its Head Office at Plot No.4, Sector 10, Dwarka New Delhi 110075 and amongst others a branch at Overlock, Road, Ludhiana, Punjab through Sh. Amit Thind Deputy Manager, and Attorney Holder Presently posted at Circle SASTRA Centre, Ludhiana.
….……Defendants Advocates: Argued by Sh. Sunpreet Singh, Advocate proxy for Sh. Manish Singla, Advocate for Applicant Defendants are ex parte FINAL ORDER 1. 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.54,15,244.05p (Rupees Fifty Four Lacs Fifteen Thousand Two Hundred Forty Four & Five Paise only). The Original Application has been filed through Sh. Amit Thind, Deputy Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 to 3 had approached the applicant for the grant of Housing Loan of Rs.25.00 Lacs
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and Housing OD Limit of Rs.25.00 Lacs vide Loan Application, which is Annexure A2 to this OA.
Documents executed :- Evidencing Acceptance of terms & conditions, agreement of housing loan both dated 08.11.2017, which are Annexures A4 & A5 to this OA; Agreement of overdraft dated 18.11.2017, which is Annexure A7 to this OA; Deposit of title deed dated 21.11.2017, which is Annexure A10 to this OA; Valuation report dated 06.11.2017, which is Annexure A11 to this OA; Balance & security Confirmation dated 30.10.2020, which are Annexures A12 & A14 to this OA; Notice U/s 13(2) of SARFAESI Act dated 16.02.2022, which is Annexure A13 to this OA and statements of accounts along with duly certified, which are Annexures A15 & A16 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.54,15,244.05p, 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. Sh. Mandeep Singh, defendant no.2 appeared in person before Registrar on 02.12.2023 and submitted that he is ready to upgrade the account. Thereafter Mrs. Gurpreet Kaur W/o defendant.2 appeared before Registrar on 09.03.2024 and submitted that negotiations for
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| settlement are going on. Thereafter Ms. Puru Gupta, advocate appeared for all the defendants and filed her Memo of Appearance on 09.10.2024 |
|---|
| but thereafter neither she filed her Power of Attorney nor anyone |
| appeared for defendants. Due to the non appearance all the defendants were proceeded ex-parte on 03.02.2025. |
| 7. In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager, and Attorney Holder, Punjab National Bank has been filed. |
| 8. Heard arguments and perused record. |
| 9. 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 theAnnexures |
| A1 to A16to this OA, it is proved that the defendants approached |
| applicant for availing of the loan facilities which were 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, |
| accounts of the defendants were classified as NPA. From the |
| documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.54,15,244.05p (Rupees Fifty Four Lacs |
| Fifteen Thousand Two Hundred Forty Four & Five 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 accounts. |
| 10. In so far as pendent elite and future rate of interest is concerned, |
| the applicant in relief clause has claimed interest @9.55%p.a. & interest @10.72%p.a. along with penal interest @2.00%p.a. with monthly rests |
| in both from 01.02.2023 till the realization. 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 |
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appropriate to grant uniform simple interest @8.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.
on 19.03.2025.
Pronounced by me in the open Tribunal .
Dated: 17.02.2025
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the defendants are liable to repay the outstanding loan amount along with interest.
Whether interest rate should be modified considering market rates.
1 provisions across 1 enactments
Punjab National Bank
Shri Gurcharan Singh
Sh. Mandeep Singh
Sh. Hardeep Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
