Allowed

Punjab National Bank v. Sh. Amarjit Singh

DRT11 Jul 2025OA/700/2025

Case brief

AI extract

What is this about?

In an original application under the Recovery of Debts and Bankruptcy Act, 1993, the Nationalized Bank sought recovery of a loan classified as NPA. The Tribunal, noting the defendant's default and unmolested documentary evidence, allowed the application, decreed the liability, and adjusted the interest rate to 8% p.a., directing issuance of a recovery certificate.

What did the court decide?

Allowed recovery of Rs.61,71,300.23 with interest @08% p.a.; issued recovery certificate; authorized enforcement via sale of mortgaged/personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.700/2025

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 18.05.2025

¶5

DATE OF DECISION: 11.07.2025

¶6

Punjab National Bank, a body corporate and nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Plot No. 4, Sector10, Dwarka, New Delhi- 110075 and amongst other a Branch Office at Mullanpur, District Ludhiana (Punjab) through its Constituted Attorney and Senior Manager Sh. Navin Kumar Bansal son of Sh. Ram Rattan posted at Punjab National Bank, ARM branch, Ludhiana situated at first floor, Site No.5, Ferozepur Road, Ludhiana, Punjab.

¶7

……. Applicant Versus

¶8

Sh. Amarjit Singh S/o Sh. Tarlok Singh R/o h. No. 353/1, V.P.O. Daad, District Ludhiana, (Punjab) -142022

¶9

……. Defendant

¶10

Advocates:

¶11

Argued by: Sh. Kanwar Harbir Singh Bath, Advocate for Applicant Defendant is already ex-parte

¶12

FINAL ORDER

¶13

Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993, against the defendant for recovery of Rs.61,71,300.23p (Rupees Sixty One Lacs Seventy One Thousand Three Hundred and Paise Twenty Three Only). The Original Application has been filed through Sh. Navin Kumar Bansal, Senior Manager of applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

¶14

The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs. 45.00 Lacs vide Loan Application dated 10.09.2011, which is Annexure A2 to this OA.

¶15

2 OA NO.700/2025 PUNJAB NATIONAL BANK VS AMARJIT SINGH

¶16

The applicant sanctioned KCC Limit of Rs.45.00 Lacs vide Sanction Letter dated 10.09.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. Total land measuring 74K-01M detailed as under: (a) Land measuring 24K-18M situated in Revenue Estate of Village Talwandi Rai-I, Tehsil Raikot and District Ludhiana,

¶17

(b) L and measuring 49K-03M situated in Re venue Estate of Village Talwandi Rai-II, Tehsil Raikot and District Ludhiana, vide R egistered Mortgage Deed vasika no. 2999 d ated 16.09.2011 along with its translation, which is Annexure A5 to this OA. Documents executed:- Hypothecation Agreement dated 16.09.2011, which is Annexure A4 to this OA; Balance and Security Confirmation Letter dated 07.04.2014, 05.04.2017, 19.09.2019 and 27.05.2022, which are Annexure A6 to A9 to this OA; Legal Notice dated 03.11.2023, which is Annexure A10 to this OA; Loan Account Statement, which is Annexure A11 to this OA.

¶18

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.61,71,300.23p, which is recoverable and the defendant was served recall notices but he 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 09.07.2025. 7. In support of the OA, affidavit Sh. Navin Kumar Bansal, of Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. 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

¶19

3 OA NO.700/2025 PUNJAB NATIONAL BANK VS AMARJIT SINGH

¶20

Annexures A1 to A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him 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.61,71,300.23p (Rupees Sixty One Lacs Seventy One Thousand Three Hundred and Paise Twenty Three 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.

¶21

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.85%p.a. with half yearly rests from 02.05.2025 till the realization.

¶22

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 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.

¶23

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.61,71,300.23p (Rupees Sixty One Lacs Seventy One Thousand Three Hundred and Paise Twenty Three 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

¶24

4 OA NO.700/2025 PUNJAB NATIONAL BANK VS AMARJIT SINGH

¶25

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 applicant 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. 12. Any other application pending stands disposed of . 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 31.07.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 11.07.2025

¶26

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

Punjab National Bank v. Sh. Amarjit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Amarjit Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Canara Bank versus Messrs Jaskirat Textiles and Others

Axis Bank Limited versus Messrs Jaskirat Knitwear and Another

Hdfc Bank Ltd. versus Labhpreet Singh and Others

Axis Bank Ltd. versus Late Sh. Buta Singh and Another

State Bank of India versus Sh. Makhan Singh

State Bank of India versus Sh. Pal Singh