Allowed

Punjab National Bank v. Nachhatar Kaur and Another

DRT9 Jan 2025OA/754/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank against two defendants for recovery of a loan of Rs. 33,79,719. The defendants were proceeded ex-parte for non-appearance. The Tribunal directed recovery from mortgaged properties and fixed interest at 8% p.a.

What did the court decide?

Recovery of Rs. 33,79,719 with costs and future simple interest @8% p.a.; issuance of Recovery Certificate; attachment and sale of personal assets if mortgaged properties yield insufficient proceeds.

Punjab National Bank versus Nachhatar Kaur and Another — Banking and Recovery | DRT (2025)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.754/2023

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 09.11.2022

¶5

DATE OF DECISION: 09.01.2025

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and one of its Branch Situated at Sidhwan Khurd, (erstwhile Oriental Bank of Commerce) Distt. Ludhiana, Punjab through its Attorney Holder Sh. Ravinder Kumar, Authorized Officer, Presently Posted at Circle Sastra Centre, Ludhiana, Punjab.

¶7

……..Applicant

¶8

Versus

¶9

Smt. Nachhatar Kaur W/o Late Sh. Balvir Singh R/O VPO Aligarh, District Ludhiana.

¶10

Sh. Avninder Singh S/o Late Sh. Balvir Singh R/O VPO Aligarh, District Ludhiana.

¶11

………. Defendants

¶12

Advocates:

¶13

Argued by Sh. Iqbal Mohammed, Advocate for the applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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 defendants for recovery of Rs.33,79,719.00 (Rupees Thirty Three Lacs Seventy Nine Thousand Seven Hundred Nineteen Only). The Original Application has been filed through Sh. Ravinder Kumar, Authorized Officer o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

¶16

The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for grant of OGC Limit of Rs.12.00 Lacs vide

¶17

¶18

Loan Application dated 27.07.2010, which is Annexure A2 to this OA to this OA.

¶19

The applicant sanctioned OGC Limit of Rs.12.00 Lacs vide Sanction Letter dated 04.08.2010, 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 31K-05M situated at Village Aligarh urf Shaheed Rachhpal Singh Nagar, H.B. No.119, Tehsil Jagraon, District Ludhiana, vide Mortgaged Deed bearing vasika no.2151 dated 02.08.2010 along with its translation, which is Annexure A6 to this OA.

¶20

Documents executed:-Hypothecation Agreement & Guarantee Agreement dated 04.08.2010, which are Annexures A4 & A5 to this OA; Search Report dated 02.08.2010, which is Annexure A7 to this OA; Non Encumbrance Certificate dated 28.07.2010, which is Annexure A8 to this OA; Encumbrance Affidavit dated 03.08.2010, which is Annexure A9 to this OA; Mutation Certificate dated 02.08.2010, which is Annexure A10 to this OA; Balance Confirmation Letters dated 08.05.2012, 21.03.2014, 31.12.2016 & 16.12.2019, which are Annexures A11 to A14 to this OA; Recall Notice dated 21.07.2022, which is Annexure A15 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which are Annexures A16 & A17 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.33,79,719.00, 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 06.01.2025.

¶21

¶22

In support of the OA, affidavit of Sh. Ravinder Kumar, Authorized Officer, Punjab National Bank h as been filed.

¶23

Heard arguments and perused record.

¶24

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 A17 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 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.33,79,719.00 (Rupees Thirty Three Lacs Seventy Nine Thousand Seven Hundred Nineteen 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.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.25%p.a. along with penal interest @2.00%p.a. with yearly rests from 01.04.2022 till the realization.

¶26

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.

¶27

¶28

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.33,79,719.00 (Rupees Thirty Three Lacs Seventy Nine Thousand Seven Hundred Nineteen 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 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.

¶29

Any other application pending stands disposed of.

¶30

Issue Recovery Certificate accordingly.

¶31

Parties to appear before Learned Recovery Officer of this Tribunal on 19.02.2025.

¶32

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.

¶33

Pronounced by me in the open Tribunal . Dated: 09.01.2025

¶34

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

Punjab National Bank v. Nachhatar Kaur and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Nachhatar Kaur and Another

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

Indian Bank versus Gurdev Singh

Bank of India versus Kaur Singh and Another

Icici Bank Limited versus Jaj Singh and Others

Punjab and Sind Bank versus Jasbir Kaur and Others

Bank of Baroda versus Krishna and Others

Punjab National Bank versus Harbhajan Singh