Allowed

Punjab National Bank v. Sh. Dilbagh Singh

DRT11 Jun 2025OA/987/2024

Case brief

AI extract

What is this about?

In an original application filed by Punjab National Bank for recovery of a KCC loan, the DRT held the defendant liable for Rs. 31,78,848. Upon finding the case proved, the Tribunal allowed the application, reduced the interest rate to 8% p.a., and ordered issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued; Defendant liable to pay Rs. 31,78,848 with interest @ 8% p.a. from filing date; enforcement allowed via sale of mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.987/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.07.2024

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DATE OF DECISION: 11.06.2025.

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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 through one of its branch at Harpalpur, District Patiala Panjab through its constituted attorney and principal officer Sh. Gurcharan Singh Son of Sh. Niranjan Singh, Senior Manager, Circle Sastra Center, Patiala, Punjab.

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……..Applicant Versus

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Sh. Dilbagh Singh S/o Sh. Ajit Singh R/o Village Harpalpur, Sub tehsil Ghanaur, Tehsil Rajpura, District Patiala, Punjab-140401.

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….……Defendant

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Advocates:

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Argued by Sh. R.K. Bansal, Advocate proxy for Ms. Anuradha 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.31,78,848.00p (Rupees Thirty One Lacs Seventy Eight Thousand Eight Hundred Forty Eight Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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2 OA NO.987-2024 PUNJAB NATIONAL BANK VS DILBAGH SINGH

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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.20.00 Lacs vide Loan Application 07.08.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction letter dated 14.08.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgage his immovable properties i.e. total land measuring 19B-04B situated at Village Harpalpur, Tehsil Rajpura, District Patiala Punjab vide Declarations u/s 4(1) dated 19.01.2015 And Letter to Sub Registrar for Creation of Charge and Jamabandi for the year 2012-2013, which are Annexures A8 & A9 to this OA. Documents executed:- Agreement for hypothecation, Letter of Consent, Letter of undertaking & Supplementary agreement all dated 24.08.2015, which are Annexures A4 to A7 to this OA; Balance & Security confirmation letters dated 10.08.2018 & 06.08.2021, which are Annexures A10 & A11 to this OA; Legal notice dated 13.07.2024 Postal receipts, which are Annexures A12 & A13 to this OA and Statement of account with certificate, which is Annexure A14 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.31,78,848.00p, which is recoverable and the defendant 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 06.06.2025. 7. In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record

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3 OA NO.987-2024 PUNJAB NATIONAL BANK VS DILBAGH SINGH

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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 A14 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 bank. 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.31,78,848.00p (Rupees Thirty One Lacs Seventy Eight Thousand Eight Hundred Forty eight 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 bank in relief clause has claimed [email protected]%p.a. plus penal interest @2.00%p.a. with half yearly rests from 12.07.2024 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 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.31,78,848.00p (Rupees Thirty One Lacs Seventy Eight Thousand

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4 OA NO.987-2024 PUNJAB NATIONAL BANK VS DILBAGH SINGH

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Eight Hundred Forty eight 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 defendant 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 defendant. 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 03.07.2025. 15. Copy of this order be given Dasti to the applicant bank 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. Pronounced by me in the open Tribunal . Dated: 11.06.2025. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Dilbagh Singh

Case brief

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Punjab National Bank v. Sh. Dilbagh Singh

Case brief

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