Allowed

Punjab National Bank v. Sh. Major Singh

DRT11 Mar 2025OA/634/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application for recovery of an agricultural loan of Rs. 30.50 Lakhs. It observed that market interest rates have declined and, in the exercise of discretion, ordered simple interest at 8% per annum. The respondents were liable to pay jointly and severally from the sale of mortgaged properties.

What did the court decide?

Order declaring liability to pay Rs. 30.50,270.57 with 8% simple interest and Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.634/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.12.2021

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DATE OF DECISION: 11.03.2025

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka New Delhi110075 and through one of its branch office at Bhagsar, Tehsil and District Muktsar and through its General Power of Attorney Holder Sh. Paramjit Singh, Senior Manager presently posted at Circle Shastra Fazilka of the applicant.

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……..Applicant

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Versus

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Sh. Major Singh S/o Sh. Jaswant Singh, R/o House No.153, School Wali Firni Wali Gali, Village Badhai, Tehsil and District Muktsar.

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Smt. Sukhchain Kaur W/o Sh. Jaswant Singh R/o House No.153, School Wali Firni Wali Gali, Village Badhai, Tehsil and District Muktsar.

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….……Defendants

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Advocates:

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Argued by Sh. Manu Loona, Advocate for Applicant (through VC) Defendants are ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,50,270.57p (Rupees Thirty Lacs Fifty Thousand Two Hundred Seventy & Fifty Seven Paisa Only). The Original Application has been filed through Sh. Paramjit Singh, Senior Manager o f the applicant bank,

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who is competent to institute the Original Application vide General Power of Attorney dated 12.03.2018, which isAnnexure A1to this OA.
2. The brief facts of the OA that the defendant nos.1 & 2 had
approached the applicant bank for the grant of KCC Limit of Rs.18.00
Lacs vide Loan Application dated 17.10.2012, which isAnnexure A2to
this OA.
3. The applicant Bank sanctioned the KCC Limit of Rs.18.00 Lacs
vide Sanction Letter dated 19.1.02012, which isAnnexure A3to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant No. 1 & 2 had mortgaged his immovable properties i.e. total land measuring 69K-0Msituated at Village Chak Badhai Hadbast No.113 Tehsil and District Muktsar Sahib vide Registrar Mortgage Deed
bearing vasika no.3299 dated 23.10.2012 & 25.10.2012, with its
translation, which areAnnexures A8 & A9to this OA.
Documents executed:- Agreement for hypothecation for crops, Letter of undertaking, Supplementary agreement & Letter of consent all dated
01.11.2012,which areAnnexure A4 to A7to this OA; The Copy of
legal search report & The Copy of no encumbrance both dated
23.10.2012, which areAnnexure A10 & A11to this OA; The copy of
legal notice dated 18.05.2021, which isAnnexure A12to this OA; A
copy of debit Balance confirmation dated 28.06.2021, which is
Annexure A13to this OA and Certificate copy of Statement of account, which areAnnexures A14 & A15to this OA.
5. 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.30,50,270.57p which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,
therefore, the applicant bank 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 01.03.2025

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In support of the OA, affidavit of Sh. Paramjit Singh Senior Manager, Punjab National Bank has 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 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 bank. The defendant 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 Rs.30,50,270.57p (Rupees Thirty Lacs Fifty Thousand Two Hundred & Seventy & Fifty Seven Paisa 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.50%p.a. along with penal interest @2.00%p.a. with half yearly rests from 01.10.2021 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.30,50,270.57p (Rupees Thirty Lacs Fifty Thousand Two Hundred & Seventy & Fifty Seven Paisa 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 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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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 14.04.2025. 15. Copy of this order be given Dasti to the applicant bank 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: 11.03.2025

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

Punjab National Bank v. Sh. Major Singh

Case brief

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Punjab National Bank v. Sh. Major Singh

Case brief

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