The Debt Recovery Tribunal allowed the applicant bank's application for recovery of Rs. 24,09,475.42 with simple interest at 5% p.a. from the filing date, mitigating the claimed higher rate.
Recovery of Rs. 24,09,475.42 with simple interest @ 5% p.a. from 28.06.2022 till realisation, subject to legal heirs' liability being confined to the extent of the estate.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 1144/2022
DATE OF INSTITUTION: 28.06.2022
DATE OF DECISION: 15th DAY OF DECEMBER, 2023
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 Delhi and its Branch at: Punjab National Bank, Chaura, Tehsil Gharaunda, District Karnal-132114, through its Authorised Representative, Sh. Vinod, Senior Manager, Punjab National Bank, Circle Sastra, Sector-12, Karnal-132001, Ph. No: 8929370404, [email protected]
…..Applicant
Versus
....Defendants
Argued by: Sh. Rehan Chaudhary proxy counsel for Sh. Krishan Kumar, Advocate for the applicant bank (through VC)
OA/1144/2022 PUNJAB NATIONAL BANK VS SATISH KUMAR AND OTHERS 2
Defendant No. 1 ex parte vide order dated 22.11.2022 LRs of defendant No. 2 ex parte vide order dated 17.11.2023
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendants for recovery of Rs.24,09,475.42/- (Rupees Twenty Four Lac Nine Thousand Four Hundred Seventy Five and Forty Two Paisa Only) . It has been filed through Sh. Vinod, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide general power of attorney dated 30.11.2015, Annexure-A1 (copy).
OA/1144/2022 PUNJAB NATIONAL BANK VS SATISH KUMAR AND OTHERS 3
The documents related to mortgage are as under:
i. Registered Mortgage deed dated 03.03.2016, Annexure-A8 (copy).
ii. Copy of the ‘ Jamabandi ’ for the years 2013-14, Annexure-A9 .
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.24,09,475.42/- (Rupees Twenty Four Lac Nine Thousand
Four Hundred Seventy Five and Forty Two Paisa Only) , is recoverable against the defendants as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, AnnexureA12 (colly) (copy).
OA/1144/2022 PUNJAB NATIONAL BANK VS SATISH KUMAR AND OTHERS 4
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
Rs.24,09,475.42/- (Rupees Twenty Four Lac Nine Thousand
OA/1144/2022 PUNJAB NATIONAL BANK VS SATISH KUMAR AND OTHERS 5
Four Hundred Seventy Five and Forty Two Paisa Only) from the defendants.
This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and death of defendant No.2, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @5% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
OA/1144/2022 PUNJAB NATIONAL BANK VS SATISH KUMAR AND OTHERS 6
Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law. However, it is clarified here that there should not be any ambiguity that the liability of the defendants by virtue of their being the legal heirs of the deceased borrower shall remain confined only to the extent of the estate of the deceased borrower if it is inherited by legal heirs and not beyond that. The recovery proceedings shall proceed only after the Recovery Officer is fully satisfied on the aspect of the estate being inherited by the Legal Representatives/Heirs and the liability being incurred accordingly .
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendants.
Whether interest @ 8.85% per annum plus penal interest @ 2% per annum shall be granted or reduced.
1 provisions across 1 enactments
Punjab National Bank
Satish Kumar
Jasbir Singh
M.M. Dhonchak
As recorded by the court registry
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