Allowed

Punjab and Sind Bank v. Amritpal Kaur and Other

DRT11 Jun 2025OA/83/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues totaling Rs. 37,23,147.10. Upon an ex parte hearing due to defendant absence, the court rejected the claimed higher interest rates and uniformly ordered simple interest at 8% p.a. until realization.

What did the court decide?

Recovery Certificate issued against defendants for sum of Rs. 37,23,147.10 plus joint liabilities for simple interest @ 8% p.a. from filing date till realization.

Punjab and Sind Bank versus Amritpal Kaur and Other — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.83/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.12.2022

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DATE OF DECISION: 11.06.2025

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Punjab and Sind Bank, Zonal Office Faridkot, a body corporate, Constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act No. 40 of 1980 with its Head Office at 21 Rajindra Place, New Delhi and amongst other branch offices a Branch office at Nathuwala Jadid, Distt. Moga through its authorized officer Sh. Balbir Singh, Branch Manager B/O Nathuwala Jadid Distt. Moga.

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……..Applicant Versus 1. Amritpal Kaur W/o Sh. Jagtar Singh, R/o Village Rania, Tehsil Nihal Singh Wala, Distt. Moga.

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2. Sukhwinder Kaur W/o Gurmeet Singh R/o Rania, Tehsil Nihal Singh Wala, District Moga.

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….……Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, Advocate proxy for Sh. Jasneet Singh, Advocate for Applicant Defendants are 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 defendants for recovery of Rs.37,23,147.10p (Rupees Thirty Seven Lacs Twenty Three Thousand One Hundred Forty Seven and Paise Ten Only). The Original Application has been filed through Mr. Balbir Singh, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.12.2018, which is Annexure A2 to this OA and Authorization Letter dated 15.11.2022, which is Annexure A1 to this OA.

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2 OA NO.83-2023

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PUNJAB AND SIND BANK VS AMRITPAL SINGH AND ANOTHER

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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.10.00 Lacs and Housing Loan of Rs.2.00 Lacs and further for Term Loan of Rs.3.00 Lacs.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs & Housing Loan of Rs.2.00 Lac and further Sanctioned Term Loan of Rs.3.00 Lacs vide Sanction Letters both dated 29.12.2014 and 02.01.2015, which are Annexures A3, A14 and A23 to this OA and the terms and conditions were duly accepted by the defendants.

¶17

Defendant No.1had mortgaged his immovable property total land measuring 26Kanal-16Marla situated at Village Rania 2, Tehsil Nihal Singh Wala, Distt. Moga vide Registered Mortgage Deed is attached as Annexure A32 and confirmation of mutation by bank’s counsel is Annexure A33 to this OA.

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Documents executed:-Form No.14(R), Form No.106, Form No.201, Form No.200, Form No.159, Form No.312, Form No.199, Deed of Guarantee all dated 29.12.2024, which are Annexures A4 to A13 and A15 to this OA; Form No.14(R), Form No.106, Form No.201, Form No.200, Form No.192(RR), Form No.199, Consent Letter by Borrower, Consent Letter by Guarantor and Deed of Guarantee all dated 29.12.2024, which are Annexures A16 to A22 to this OA; D.P Note, Form No.106, Form No.200, Form No.192, Form No.199, Consent Letter by Borrower, Consent Letter by Guarantor and Deed of Guarantee all dated 02.01.2015, which are Annexure A24 to A31 to this OA; Copy of Revival Letters all dated 23.11.2017, 17.11.2020, 22.11.2017, 17.11.2020, 22.11.2017 and 17.11.2020, which are Annexures A34 to A39 to this OA; Demand Legal Notice dated 09.12.2021, which is Annexure A40 to this OA and Statements of Accounts with certificates, which are Annexures A41 (colly) to this OA.

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3 OA NO.83-2023 PUNJAB AND SIND BANK VS AMRITPAL SINGH AND ANOTHER

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs. 37,23,147.10p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 09.06.2025.

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In support of the OA, affidavit of Mr. Balbir Singh , Branch Manager, Punjab & Sind Bank has been filed.

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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 bank had proved its case. From the perusal of all the Annexure A1 to A41(colly) to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.37,23,147.10p (Rupees Thirty Seven Lacs Twenty Three Thousand One Hundred Forty Seven and Paise Ten Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.20% p.a. in KCC Limit, interest @9.70% in Housing Loan and interest

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4 OA NO.83-2023 PUNJAB AND SIND BANK VS AMRITPAL SINGH AND ANOTHER

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@12.20%p.a. in Term Loan plus penal interest @2.00%p.a. from 01.10.2022 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 just and appropriate to grant uniform simple interest @08.00%p.a. in all the loan accounts 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 defendants are liable to pay to the applicant a total sum of Rs. 37,23,147.10p (Rupees Thirty Seven Lacs Twenty Three Thousand One Hundred Forty Seven and Paise Ten Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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 bank 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.

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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

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Tribunal on 03.07.2025.

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5 OA NO.83-2023

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PUNJAB AND SIND BANK VS AMRITPAL SINGH AND ANOTHER

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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: 11.06.2025.

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

Punjab and Sind Bank v. Amritpal Kaur and Other

Case brief

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Punjab and Sind Bank v. Amritpal Kaur and Other

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