Allowed

Punjab National Bank v. Satnam Singh

DRT18 Feb 2025OA/642/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's original application to recover a loan of Rs. 28,60,531.71 plus costs from the defendant. The Tribunal reduced the claimed interest from 13.5% to a uniform 8% per annum and ordered the issuance of a Recovery Certificate.

What did the court decide?

Defendant declared liable to pay Rs.28,60,531.71 plus costs and simple interest at 08% p.a.; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.642/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.05.2023

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DATE OF DECISION: 18.02.2025

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank, B.O. Kapurthala, Sultanpur Road, Kapurthala, Punjab through Sh. Ankur Rawat who is presently working as Senior Manager, Punjab National Bank, Circle Sastra, PNB House, Satyanarayan Bazar, Near Natraj Hotel, Kapurthala, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant Versus

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Sh. Satnam Singh S/o Sh. Sh. Bhajan Singh, R/o Village Mujahadpur, Tehsil and District Kapurthala, Punjab.

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….……Defendant

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Advocates: Argued by Sh. Mohinder Nath Sharma, Advocate for the applicant (through VC) Defendant is 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 defendant for recovery of Rs.28,60,531.71p (Rupees Twenty Eight Lacs Sixty Thousand Five Hundred Thirty One and Paise Seventy One Only). The Original Application has been filed through Sh. Ankur Rawat, 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 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 24.05.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 24.05.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 30K-10M situated at Village Mujahadpur, H.B. No.92, Tehsil and District Kapurthala, Punjab vide Mortgaged Deed bearing vasika no.1008 dated 06.06.2014 along with its translation, which are Annexures A5 & A5T to this OA. Documents executed:-Advocate report on title deed dated 02.06.2014, which is Annexure A4 to this OA; Affidavit by defendant dated 03.06.2014 & 12.06.2014, which are Annexures A6 & A7 to this OA; Hypothecation Agreement & Declaration Regarding Agricultural Land both dated 14.06.2014, which are Annexures A8 & A9 to this OA; Balance and Security Confirmation Letters dated 08.09.2016, 04.09.2019 & 02.09.2022, which are Annexures A10 to A12 to this OA; Notice of Recall of Bank’s dues by the Advocate dated 17.03.2023, which is Annexure A13 to this OA and Statement of Account duly certified, which is Annexure A14 to 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.28,60,531.71p, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 28.06.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, 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 A14 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that he 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 defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.28,60,531.71p (Rupees Twenty Eight Lacs Sixty Thousand Five Hundred Thirty One and Paise Seventy One Only) along with interest from the defendant, 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 @11.50%p.a. along with penal interest @2.00%p.a. with half rests from 01.04.2023 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 defendant, 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

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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 defendant is liable to pay to the applicant a total sum of Rs.28,60,531.71p (Rupees Twenty Eight Lacs Sixty Thousand Five Hundred Thirty One and Paise Seventy One 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 defendant 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 defendant. 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 20.03.2025.

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Copy of this order be given dasti to the applicant and be sent to defendant 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: 18.02.2025

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

Punjab National Bank v. Satnam Singh

Case brief

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Punjab National Bank v. Satnam Singh

Case brief

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