Allowed

Punjab National Bank v. Sh.Gurwinder Singh Alias Gurbinder Singh

DRT7 Mar 2025OA/854/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of unpaid KCC loan dues. The respondents failed to appear, and the tribunal ordered repayment with reduced interest and issued a recovery certificate.

What did the court decide?

Application allowed; defendants liable to pay Rs.23,80,644.60 with 8% simple interest; Recovery Certificate issued; order given to Recovery Officer.

Punjab National Bank versus Sh.Gurwinder Singh… — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.854/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.07.2024

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DATE OF DECISION: 07.03.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka New Delhi 110075 and branch amongst others at Samrala, Ludhiana through its recovery vertical i.e. Circle Sastra Centre, Circle Office, 5, Ferozepur Road, Ludhiana, Punjab, 141012 through Sh. Ravinder Kumar, Senior Manager, Principle officer and duly constituted Attorney of the applicant.

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……..Applicant Versus

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Sh. Gurwinder Singh Alias Gurbinder Singh S/o Sh. Sukhdev Singh, #31/416, Part-2, VPO Mannupur, Tehsil Samrala, District Ludhiana Punjab-141114.

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Sh. Manpreet Singh S/o Sh. Jaswant Singh VPO Mannupur, Tehsil Samrala, District Ludhiana, Punjab 141114.

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….……Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.23,80,644.60p (Rupees Twenty Three Lacs Eighty Thousand Six Hundred Forty Four & Sixty Paise Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney, which is Annexure A1 to this OA.

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2. The brief facts of the OA that the defendant no.1 had approached the applicant bank for the grant of KCC Limit of Rs.17.50 Lacs vide Loan application dated 12.12.2013, which isAnnexure A2to this OA.
3. The applicant Bank sanctioned the KCC Limit of Rs.17.50 Lacs vide Sanction Letter dated 30.12.2013, which isAnnexure A3to this OA and the terms and conditions were duly accepted by the defendant.
4. Defendant No. 1 had mortgaged his immovable properties i.e.
total land measuring 17K-06Msituated at Village Manupur, Hadbast
No.173, Tehsil Samrala, District Ludhiana Punjab vide Registered
Mortgage Deed bearing vasika no.2634 dated 19.12.2013with its
translation, which isAnnexure A7to this OA.
Documents executed:- Hypothecation agreement, Letter of
Undertaking, deed of guarantee all dated 30.12.2013,which are
Annexure A4 & A6, A9to this OA; Affidavit dated 12.12.2023, which
isAnnexure A5to this OA; Balance & Confirmation Letter dated 26.10.2016, 23.09.2019 & 20.09.2022, which isAnnexures A8to this
OA; legal notice dated 05.03.2023, which isAnnexure A10to this OA and Statement of accounts along with certificate, which areAnnexures A11 & A12to 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.23,80,644.60p 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.
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 18.02.2025.
7. In support of the OA, affidavit ofSh. Ravinder Kumar, Senior
Manager, Punjab National Bankhas been filed.
8. Heard arguments and perused record

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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 A12 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 Rs.23,80,644.60p (Rupees Twenty Three Lacs Eighty Thousand Six Hundred Forty Four & Sixty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.85%p.a. with half yearly rests from 01.01.2024 till the realization. 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,80,644.60p (Rupees Twenty Three Lacs Eighty Thousand Six Hundred Forty Four & Sixty Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account

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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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2025. 15. Copy of this order be given Dasti to the applicant bank 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: 07.03.2025

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

Punjab National Bank v. Sh.Gurwinder Singh Alias Gurbinder Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh.Gurwinder Singh Alias Gurbinder Singh

Case brief

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What did the court decide?

What the court decided

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