Allowed

Punjab National Bank, v. Messrs Shakti Transformer Co. and Others

DRT26 Dec 2023OA/1003/2022

Case brief

AI extract

What is this about?

This judgment allowed the bank applicant to recover Rs.74,78,331.00 with simple interest and costs from respondents failing to repay sanctioned loans. The Tribunal authorized recovery via hypothecated properties, attachment of personal assets, and issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.74,78,331.00 with interests and costs via sale of hypothecated properties or attachment of personal assets; Recovery Certificate issued.

Punjab National Bank, versus Messrs Shakti Transformer Co. and… — Money Laundering | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1003/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.06.2022

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DATE OF DECISION: 26.12.2023

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on Banking business and having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi- 110075 and one of the Branch Office, amongst others, Patiala Circle Sastra Centre, 2^nd Floor, Opposite Improvement Trust Building, Chotti Baradari, Patiala, Punjab- 147101, through its Constituted Attorney and Principal officer, Sh. Gurcharan Singh, Senior Manager

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……..Applicant

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Versus

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M/s Shakti Transformer Co. through its Prop. Smt. Sanjogita Bansal W/o Sh. Pushpinder Kumar Bansal C/o C-63, Industrial Focal Point Patiala, Punjab- 147001

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Smt. Sanjogita Bansal W/o Sh. Pushpinder Kumar Bansal Prop. M/s Shakti Transformer Co. R/o H.No.5132, Arorian Street, Near Naina Devi Mandir Patiala, Punjab (Borrowers)

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Sh. Pushpinder Kumar Bansal S/o Sh. Sita Ram R/o H.No.5132, Arorian Street, Near Naina Devi Mandir, Patiala, Punjab

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Sh. Kunal Bansal S/o Sh. Pushpinder Kumar Bansal, R/o H.No.5132, Arorian Street, Near Naina Devi Mandir, Patiala, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Aseem Kataria, counsel proxy for Ms. Anuradha Gupta, counsel for the 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.74,78,331.00 (Rupees Seventy Four Lacs Seventy Eight Thousand Three Hundred and Thirty One only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its Proprietor defendant No.2 had approached the applicant bank for the grant of CC Limit of Rs.9.50 Lacs and further for its several enhancements till the maximum limit of Rs.50.00 Lacs and also for a WCTL under GECL scheme of Rs.10.00 Lacs.

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The applicant Bank sanctioned the CC Limit of Rs.9.50 Lacs and further enhanced it several times till the maximum limit of Rs.50.00 Lacs and also sanctioned a WCTL under GECL scheme of Rs.10.00 Lacs vide Loan Application cum Sanction Letters dated 22.11.2012, 26.10.2013, 09.09.2014, 06.03.2017, 17.05.2018 and 10.09.2020, which are Annexures A2, A6, A12, A20, A29 and A35 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.3 had mortgaged his immovable property i.e. total land measuring 1 Bigha 0 Biswa situated at Village Hardaspur, District Patiala, Punjab vide Registered Mortgage Deed No.15543 dated 10.03.2010 and Jamabandi for the year 2014-15 along with their translations, which are Annexures A25, A25/T, A26 and A26/T to this OA. Documents executed:- Hypothecation of Goods and Book debts to secure cash credit, Consent Clause and Undertaking dated 22.11.2012, which are Annexures A3 to A5 to this OA; Hypothecation of Goods and Book debts to secure cash credit, Supplementary Agreement, Consent Clause, Undertaking and Agreement of Guarantee all are

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dated 26.10.2013, which are Annexures A7 to A11 to this OA; Letter dated 09.09.2014, which is Annexure A13 to this OA; Hypothecation of Goods and Book debts to secure cash credit dated 10.09.2014, which is Annexure A14 to this OA; Supplementary Agreement, Letter of Undertaking, Undertaking and Consent Clause dated 09.09.2014, which are Annexures A15 to A18 to this OA; Agreement of Guarantee dated 10.09.2014, which is Annexure A19 to this OA; Hypothecation of Goods and Book debts to secure cash credit, Supplementary Agreement, Letter of Undertaking and Undertaking dated 06.03.2017, which are Annexures A21 to A24 to this OA; Letter of continuity and Copy of EM Register dated 07.03.2017, which are Annexures A27 and A28 to this OA; Hypothecation of Goods and Book debts to secure cash credit, Supplementary Agreement, Undertaking and Agreement of Guarantee all dated 04.08.2018, which are Annexures A30 to A33 to this OA; Letter of continuity dated 05.08.2018, which is Annexure A34 to this OA; Master Agreement, Agreement for Working Capital, Format of Authorization and Promissory Note all dated 10.09.2020, which are Annexures A36 to A39 to this OA; Balance and Security Confirmation Letters dated 03.11.2015, 09.11.2017 and 02.11.2020, which are Annexures A40 to A42 to this OA; Demand Notice dated 17.06.2021 along with postal receipt dated 03.07.2021, which are Annexures A43 and A44 to this OA; Legal Notice dated 04.04.2022 along with postal receipt dated 05.04.2022, which are Annexures A45 and A46 to this OA; Statement of accounts along with Certificates, which are Annexures A47 to A49 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.74,78,331.00, 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 ex-parte on 16.10.2023.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A49 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 loans 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.74,78,331.00 (Rupees Seventy Four Lacs Seventy Eight Thousand Three Hundred and Thirty One only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.50%p.a. in CC Limit and @9.50%p.a. in WCTL with monthly rests in both the loan accounts along with @2%p.a. penal interest from 01.06.2022 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 loans and prevalent market rates of interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9.50%p.a. in both 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.74,78,331.00 (Rupees Seventy Four Lacs Seventy Eight Thousand Three Hundred and Thirty One only) jointly and severally, with costs, current and future simple interest @9.50%p.a. in both 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. 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 03.01.2024. 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: 26.12.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Messrs Shakti Transformer Co. and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Messrs Shakti Transformer Co. and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

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Statutes considered

Parties & counsel

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