Allowed

Punjab National Bank v. Sh. Bant Singh

DRT24 Mar 2025OA/782/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab National Bank to recover Rs. 21,09,050.60 from the defendant who failed to repay a mortgage loan. The court granted a demand notice to enforce recovery from mortgaged properties.

What did the court decide?

Issued recovery certificate for Rs 21,09,050.60 with interest at 8% p.a. to be recovered from sale of hypothecated/mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.782/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.05.2023

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DATE OF DECISION: 24.03.2025

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Punjab National Bank, a body corporate, duly constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970, with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075 and one of the branch at Circle SASTRA, 2^nd Floor, SCO 43, Sector 54, Phase II, SAS Nagar (Mohali), Punjab-160055 through its Authorized Officer and General Attorney Sh. Mahinder Pal Singh, Chief Manager.

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……..Applicant

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Versus

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Sh. Bant Singh S/o Sh. Gajra Singh, R/o Village Rani Majra, SAS Nagar, Mohali, Punjab-140501

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….……Defendant

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Advocates:

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Argued by Sh. Sukhvinder Singh Chaudhary, Advocate proxy for Sh. Gaurav Gupta, Advocate for the applicant 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.21,09,050.60 (Rupees Twenty One Lacs Nine Thousand Fifty and Paisa Sixty only). The Original Application has been filed through Manager Sh. Mahinder Pal Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.02.1988, 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.3.00 Lacs vide Loan Application dated 05.06.2010, which is Annexure A2 to this OA and

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again requested the applicant for the enhancement of KCC Limit to Rs.12.00 vide loan Application dated 31.07.2015, which is Annexure A9 to this OA.

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The applicant sanctioned the KCC Limit of Rs.3.00 Lacs vide sanction letter dated 14.06.2010, which is Annexure A3 to this OA and further sanctioned its enhancement to Rs.12.00 Lacs vide Sanction letter dated 14.08.2015, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e land measuring 21 Bhigas situated at Village Rani Majra, Tehsil Dera Bassi, District SAS Nagar, Punjab. The jamabandi for the year 2020-21 along with its translation and verification report filed with IA No. 121/2025 on 24.01.2025 vide diary no. 1308 in the compliance of order dated 14.10.2024. Documents executed: - Agreement of Hypothecation, Letter of Undertaking and Letter of Consent all dated 21.06.2010, which are Annexures A4 to A6 to this OA; Mortgage Deed dated 15.06.2010 bearing vasika no. 3540 along with its Translation, which are Annexures A7 & A8 to this OA; Agreement of Hypothecation, Letter of Undertaking, Letter of Consent all dated 14.08.2015, which are Annexures A11 to A13 to this OA; Search Report dated 06.08.2015, which is Annexure A14 to this OA; Declaration u/s 4(1) along with and Charge dated 10.08.2015, which is Annexure A15 to this OA; Balance and Security Confirmation letter dated 26.12.2012, 31.10.2014, 27.07.2018 and 16.06.2021, which are Annexures A16 to A19 to this OA; Recall Notice dated 27.04.2023 along with Postal Receipt, which is Annexure A20 to this OA and Certificate under Banker Book of Evidence and Account Statement, which is Annexure A21 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.21,09,050.60, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount,

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 01.10.2024.

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In support of the OA, affidavit of Sh. Mahinder Pal Singh, Chief Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy 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 A21 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 applicant. 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.21,09,050.60 (Rupees Twenty One Lacs Nine Thousand Fifty and Paisa Sixty only) along with interest from the defendant, 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. plus Penal Interest @2.00%p.a. with half yearly rests from 16.05.2023 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

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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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.21,09,050.60 (Rupees Twenty One Lacs Nine Thousand Fifty and Paisa Sixty only), 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 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 22.04.2025. 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.

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Pronounced by me in the open Tribunal. Dated: 24.03.2025

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

Punjab National Bank v. Sh. Bant Singh

Case brief

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Punjab National Bank v. Sh. Bant Singh

Case brief

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