Allowed

Punjab National Bank v. Sh. Pargat Singh

DRT6 Mar 2025OA/919/2024

Case brief

AI extract

What is this about?

The Tribunal allowed a bank's recovery application against borrowers for Rs. 24.50 lakhs incurred on NPA terms. The order reduced the claimed interest rate to 8% p.a. and directed issuance of a recovery certificate for execution.

What did the court decide?

Recovery of Rs. 24,50,069.00 plus interest at 8% p.a.; Issuance of Recovery Certificate; Liberty to enforce through SARFAESI Act provisions.

Punjab National Bank versus Sh. Pargat Singh — Execution and Attachment | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.919/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.07.2024

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DATE OF DECISION: 06.03.2025

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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 Delhi110075 and Branch office amongst at Branch office at Payal District Ludhiana Punjab and Circle Office Circle Sastra Centre Ludhiana Punjab, through its General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager of the Applicant.

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……..Applicant

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Versus

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Sh. Pargat Singh S/o Sh. Harbans Singh, R/o Village Malhipur, Ludhiana Punjab-141421.

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Sh. Gurpreet Singh S/o Sh. Harbans Singh, R/o Village Malhipur, Ludhiana Punjab-141421.

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….……Defendants

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Advocates:

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Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Pancham Sharma, 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.24,50,069.00p (Rupees Twenty Four Lacs Fifty Thousand Sixty Nine Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager, 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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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.19.00 Lacs & Term Loan of Rs.9.00 Lacs vide Loan Application dated 03.04.2015 & 15.10.2016, which are Annexures A2 & A7 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.19.00 Lacs & Term Loan of Rs.9.00 Lacs vide Sanction Letter dated 15.10.2016, which is Annexure A8 to 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 12Bigha–05Biswa situated at Village Bishanpur, Hadbast No.238, Tehsil Payal, District Ludhiana Punjab vide Declaration u/s 4(1) dated15.04.2015, with its translation, and Letter to Sub Registrar for Creation of Charge, which is Annexure A6 to this OA. Documents executed:- Hypothecation agreement, Letter of Undertaking, Letter of Consent all dated 18.04.2015, which are Annexure A3 to A5 to this OA; Letter of hypothecation, Copy of registration certificate, Agreement of guarantee all dated 15.10.2016, which are Annexure A9 to A11 to this OA; Balance & Security Confirmation Letters dated 28.03.2018 & 24.07.2019, which is Annexure A12 to this OA; Legal Notice dated 02.07.2024, which is Annexure A13 to this OA and Statement of Accounts, which are Annexures A14 & A15 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.24,50,069.00p, 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 17.02.2025.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record 9. 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 A15 to this OA, it is proved that the defendants 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 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.24,50,069.00p (Rupees Twenty Four Lacs Fifty Thousand Sixty Nine Only) along with interest from the defendants, 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 @11.10%p.a. with Monthly rests from 01.07.2024 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 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 defendants are liable to pay to the applicant a total sum of Rs.24,50,069.00p (Rupees Twenty Four Lacs Fifty Thousand Sixty Nine

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Only) 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 08.04.2025. 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: 06.03.2025

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

Punjab National Bank v. Sh. Pargat Singh

Case brief

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Punjab National Bank v. Sh. Pargat Singh

Case brief

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