Allowed

Punjab National Bank v. Sh. Makhan Singh S/o Karnail Singh

DRT11 Mar 2025OA/872/2022

Case brief

AI extract

What is this about?

In an application for recovery of dues filed under Section 19 of the RDBFI Act, 1993, the Tribunal, proceeding ex-parte against defaulting legal heirs of a mortgagee borrower, allowed the recovery of principal and interest. The Tribunal reduced the claimed interest rate from 10.30% to 8.00% per annum and authorized recovery from mortgaged and personal assets.

What did the court decide?

Recovery of Rs.37,83,459.95p plus simple interest @8% p.a. from the date of filing, recoverable from mortgaged or personal property, with issuance of Recovery Certificate.

Punjab National Bank versus Sh. Makhan Singh S/o Karnail Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.872/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.04.2022

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DATE OF DECISION: 11.03.2025

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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 the successor of Oriental Bank of Commerce, by scheme of Amalgamation of Oriental Bank of Commerce dated 04.03.2020, passed by the Central Government under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having one of its Branch office at Ikolaha, Ludhiana, Punjab, through Sh. Dharam Pal Malik, Senior Manager, Punjab National Bank Circle Sastra Centre, Ludhiana East, Ferozepur Road, Ludhiana, Principal Officer and duly constituted Attorney of the applicant.

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……..Applicant Versus

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Sh. Makhan Singh S/o Karnail Singh, since deceased now represented through his legal heirs namely:

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i. Smt. Gurdeep Kaur W/o Late Sh. Makhan Singh resident of Village Bhadal Thua, Tehsil Amloh, Dist. Fatehgarh Sahib

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ii. Sh. Sukhwant Singh S/o Late Sh. Makhan Singh resident of village Bhadal Thua, Tehsil Amloh, Dist. Fatehgarh Sahib

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iii. Ms. Jasvir kaur D/o Late Sh. Makhan Singh resident of Village Bhadal Thua, Tehsil Amloh, Dist. Fatehgarh Sahib

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Sh. Jagpreet Singh S/o Sh. Avtar Singh resident of Village Ikolaha, Tehsil Khanna, District Ludhiana.

………. Defendants

Advocates:

Argued by Sh. Amandeep Singh Sobti, Advocate proxy for Sh. P.S. Sobti, Advocate for applicant (through VC) 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.37,83,459.95p (Rupees Thirty Seven Lacs Eighty Three Thousand Four Hundred Fifty Nine And Paise Ninety Five Only). The Original Application has been filed through Sh. Dharam Pal Malik, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.02.2003, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) and 2 had approached the applicant for grant of OGC Limit of Rs.25.00 Lacs vide Loan Application dated 10.06.2011. 3. The applicant sanctioned OGC Limit of Rs.25.00 Lacs vide Sanction Letter dated 10.06.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no. 1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 24Bighe-00Biswe situated in revenue estate of Village Bhadal khua, Tehsil Amloh, District Fatehgarh Sahib vide Registered Mortgaged Deed bearing v asika No.466 dated 31.05.2011 along with its translation, which are Annexures A5 & A- 5A to this OA and Fard Jamabandi along with its translation dated 31.05.2011, which are Annexures A6 & A-6A to this OA. Documents executed:- Gazette Notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement of Hypothecation and Agreement of Guarantee both dated 10.06.2011, which are Annexures A4 and A7 to this OA; Balance Confirmation letters dated 03.06.2014, 26.05.2016 and 17.12.2020, which are Annexures A8, A9 and A12 to this OA; Authorization Letter dated 26.05.2016, which is Annexure A10 to this OA; Payment Voucher dated 18.12.2017, which is

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Annexure A11 to this OA; Notice dated 16.11.2020, which is Annexure A13 to this OA; Statement of Account and Memoranda with certificate, which are Annexures A14 & A15 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.37,83,459.95p, 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.

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The legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 28.02.2025.

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In support of the OA, affidavit of Sh. Dharam Pal Malik, Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 A15 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2 approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendant no.1 (since deceased) and defendant no.2 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1 (since deceased) and defendant no.2 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,83,459.95p (Rupees Thirty Seven Lacs Eighty Three Thousand Four Hundred Fifty Nine And Paise Ninety Five Only) along with interest from the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii)

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and defendant no.2, 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 @10.30%p.a. along with penal interest @2.00%p.a. with half yearly rests from 24.03.2022 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 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. 11. In the result, the application is allowed declaring that the legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2 are liable to pay to the applicant a total sum of Rs.37,83,459.95p (Rupees Thirty Seven Lacs Eighty Three Thousand Four Hundred Fifty Nine And Paise Ninety Five 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 legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2 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 legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2. 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 14.04.2025. 15. Copy of this order be given dasti to the applicant and be sent to legal heirs of deceased defendant no.1 i.e. 1(i), 1(ii), 1(iii) and defendant no.2 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 .

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Dated: 11.03.2025

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

Punjab National Bank v. Sh. Makhan Singh S/o Karnail Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Makhan Singh S/o Karnail Singh

Case brief

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