Allowed

Punjab National Bank v. Sh. Jatinder Gupta and Another

DRT27 Oct 2025OA/699/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal examined an application by Punjab National Bank for recovery of a housing loan defaulting at Rs.28,69,553.00. The defendants failed to appear. The Tribunal allowed the application, declared the defendants liable for the principal, costs, and interest @8.00%p.a., and issued a Recovery Certificate.

What did the court decide?

Defined the defendants as jointly and severally liable to pay Rs.28,69,553.00 with costs and simple interest @8.00%p.a.; issued Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.699/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.05.2025

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DATE OF DECISION: 27.10.2025

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Punjab National Bank, a body corporate and Nationalized Bank under provisions of the banking companies (Acquisition & Transfer of Undertakings) Act of 1970 with its head office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and amongst others a branch office at sector-32A, Chandigarh Road, Ludhiana, District Ludhiana, Punjab through its Constituted Attorney and Senior Manager Sh. Sukhjeet Singh S/o Sh. Gurcharan Singh posted at Punjab National Bank, Assets Recovery Management Branch Ludhiana situated at First Floor, Site no.5, Ferozepur Road, Ludhiana Punjab.

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……..Applicant

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Versus

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Sh. Jatinder Gupta S/o Sh. Mahinder Prashad Gupta R/o House No.114, Ramandeep Colony, Near Bhaiman Khurd, Near 33 Feet Road, Mundian Kalan, District Ludhiana, Punjab.

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2^nd address: House No.110, J.P. Enclave, Petrol Pump, Mundian Kalan, District Ludhiana, Punjab.

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M/s Gaurav Land Developers and Colonizers Private Limited, with Registered Office at Adj Garden Colony, Village Bholapur, Chandigarh Road, Ludhiana through its Managing Director/Directors/Principal Officer/Authorized Person.

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….……Defendants

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Advocates:

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Argued by, Sh. Kanwar Harbir Singh Bath, Advocate for Applicant Defendants already 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 and Bankruptcy Act, 1993,

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2 OA/699/2025 PUNJAB NATIONAL BANK VS SH. JATINDER GUPTA AND ANOTHER

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against the defendants for recovery of Rs.28,69,553.00p (Rupees Twenty Eight Lacs Sixty Nine Thousand Five Hundred Fifty Three Only). The Original Application has been filed through Sh. Sukhjeet Singh, Branch Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 08.03.2024, 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 the grant of Housing Loan of Rs.27.00 Lacs vide Loan application dated 12.11.2021, which is Annexure A2 to this OA. Defendant no. 2 is the developer/builder who is the recipient of the loan amount.

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The applicant sanctioned Housing Loan of Rs.27.00 Lacs vide Sanction letter dated 17.11.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no. 1.

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The defendant no. 1 had mortgage immovable property in the project of defendant no. 2 i.e. Flat no. 306, (Carpet area 645.5 sq. ft., built-up area 840 sq. ft., super area 1130 sq. ft.), Floor No. 3^rd , Tower no. Clearance , 10 Project name The Eastern Park by Garav Basera, situated at Adjoining Garden City, Village Bholapur, Chandigarh Road, Ludhiana, Punjab vide Tripartite agreement dated 22.11.2021, which is Annexure A8 to this OA; Letter to permission to mortgage dated 24.11.2021, which is Annexure A9 to this OA; Agreement to sale dated 16.11.2021, which is Annexure A10 to this OA; Provisional allotment letter dated 16.11.2021, which is Annexure A11 to this OA.

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As per the OA, the defendant no. 2 has not completed the project and has not delivered the physical possession of the flat to the defendant no. 1. The defendant no. 2 has also not executed the title deed/conveyance deed of the flat in favour of defendant no. 1, thus it is also liable to the applicant.

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3 OA/699/2025 PUNJAB NATIONAL BANK VS SH. JATINDER GUPTA AND ANOTHER

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Documents executed: - Demand Promissory note, Housing loan agreement, Supplementary housing loan agreement, Master agreement, all dated 22.11.2021, which are Annexures A4 to A7 to this OA; CERSAI search report dated 24.11.2021, which is Annexure A12 to this OA; Balance and security confirmation letter dated 05.06.2024, which is Annexure A13 to this OA; Recall notice dated 12.09.2024, which is Annexure A14 to this OA; Demand Notice dated 19.09.2024 u/s 13 (2) SARFAESI Act, which is Annexure A15 to this OA and Loan account statement, which is Annexure A16 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.28,69,553.00p, 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.

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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 08.07.2025.

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In support of the OA, affidavit of Sh. Sukhjeet Singh, Manager, Punjab National Bank h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 the Annexures A1 to A16 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

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4 OA/699/2025 PUNJAB NATIONAL BANK VS SH. JATINDER GUPTA AND ANOTHER

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applicant is entitled to recover a sum of Rs.28,69,553.00p (Rupees Twenty Eight Lacs Sixty Nine Thousand Five Hundred Fifty Three Only) along with interest 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 @10.70%p.a. with 2% penal interest with monthly rests from 02.05.2025 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.

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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.28,69,553.00p (Rupees Twenty Eight Lacs Sixty Nine Thousand Five Hundred Fifty Three Only) jointly and severally, with costs, current 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

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5 OA/699/2025 PUNJAB NATIONAL BANK VS SH. JATINDER GUPTA AND ANOTHER

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assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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12. 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 06.11.2025

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

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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: 27.10.2025.

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(MRIDULESH KUMAR SINGH)

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Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Jatinder Gupta and Another

Case brief

What is this about?

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Punjab National Bank v. Sh. Jatinder Gupta and Another

Case brief

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