Allowed

Punjab and Sind Bank v. Sh. Baldev Singh and Another

DRT28 Jul 2025OA/746/2025

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 22.67 lakhs from borrowers who failed to repay a KCC limit. The tribunal granted uniform simple interest at 8% p.a. instead of the claimed 13.65% and issued a Recovery Certificate, directing sale of mortgaged properties if dues remain unsatisfied.

What did the court decide?

Recovery of Rs. 22,67,982.26p plus simple interest at 8% p.a.; Recovery Certificate issued; liberty to enforce via sale of mortgaged properties or attachment of personal assets.

Punjab and Sind Bank versus Sh. Baldev Singh and Another — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.746/2025

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.06.2025

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DATE OF DECISION: 28.07.2025

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Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its head office at Bank House, 21, Rajendra Place, New Delhi-110008 and amongst others places a Branch Office at Jagraon, Tehsil Jagraon, District Ludhiana through its chief manager & Duly constituted Attorney Sh. Jaswinder Singh.

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……..Applicant

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Versus

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Sh. Baldev Singh S/o Sh. Gurnam Singh R/o Village Dalla, Tehsil Jagraon, District Ludhiana, Punjab.

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Sh. Bahadar Singh S/o Sh. Chanan Singh R/o Village Dalla, Tehsil Jagraon, District Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by, Sh. Rajan Arora, Advocate for Applicant (through VC) 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 & Bankruptcy Act 1993, against the defendants for recovery of Rs.22,67,982.26p (Rupees Twenty Two Lacs Sixty Seven Thousand Nine Hundred Eighty Two & Twenty Six Paise only). The Original Application has been filed through

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Sh. Jaswinder Singh, Branch Manager o f the applicant, who is competent to institute the Original Application vide Power of attorney dated 27.03.2019, 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 KCC Limit of Rs.15.00 Lacs

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2 OA NO.746/2025

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PUNJAB AND SIND BANK VS SH. BALDEV SINGH AND ANOTHER

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vide Loan application dated 24.06.2014, which is Annexure A2 to this OA. Defendant no. 2 stood as guarantor.

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The applicant sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction dated 24.06.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 04Bigha 0Biswa 0Biswasi situated at Village Dalla-1, Hadbast No.141, Tehsil Jagraon, District Ludhiana Punjab vide Mortgaged Deed bearing vasika no.1284 dated 18.06.2014, which is Annexures A5 to this OA and jamabandi for the year 2009-10, along with its translation, which is Annexure A6 to this OA. Documents executed: -Valuation report dated 24.06.2014, which is Annexure A/A to this OA; Agreement of guarantee, Demand Promissory Note, Demand Promissory note delivery letter, Hypothecation of goods to secure demand cash credit, Revised clause pertaining to rate of interest, Form no.106, Form no.201, Consent clause to be executed by borrowers & Guarantor, Form No.199Undertaking all dated 24.06.2014, which are Annexures A4, A7 to A15 to this OA; Legal notice dated 27.05.2025 along with postal receipts, which are Annexures A16 to A18 to this OA; Statements of account along with certificate, which are Annexures A19 & A20 to this OA and Revival letters dated 09.06.2017, 20.05.2020 & 18.04.2023, which are Annexures A21 to A23 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.22,67,982.26p, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 24.07.2025.

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3 OA NO.746/2025

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PUNJAB AND SIND BANK VS SH. BALDEV SINGH AND ANOTHER

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In support of the OA, affidavit of Sh. Jaswinder Singh, Chief Manager, Punjab & Sind Bank, h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A23 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 applicant is entitled to recover a sum of Rs.22,67,982.26p (Rupees Twenty Two Lacs Sixty Seven Thousand Nine Hundred Eighty Two & Twenty Six 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 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 @11.65%p.a. along with penal interest @2%p.a. with half yearly rests from 01.04.2025 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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4 OA NO.746/2025

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PUNJAB AND SIND BANK VS SH. BALDEV SINGH AND ANOTHER

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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.22,67,982.26p (Rupees Twenty Two Lacs Sixty Seven Thousand Nine Hundred Eighty Two & Twenty Six Paise 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 assets of the defendants. 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 04.09.2025. 15. Copy of this order be given dasti to the applicant 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: 28.07.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Baldev Singh and Another

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Punjab and Sind Bank v. Sh. Baldev Singh and Another

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