Allowed

Punjab National Bank v. Sh. Satbir

DRT21 Dec 2023OA/1217/2023

Case brief

AI extract

What is this about?

In an ex-parte application filed by Punjab National Bank for recovery of outstanding dues of Rs.22,82,385.40/- arising from a loan under the Oriental Green Card Scheme, the Debt Recovery Tribunal allowed the application, fixing interest at 8% per annum and directed issuance of a recovery certificate.

What did the court decide?

Allowed recovery of Rs.22,82,385.40/- with interest at 8% per annum w.e.f. 23.08.2023; issued recovery certificate.

Punjab National Bank versus Sh. Satbir — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO.1217/2023 DATE OF INSTITUTION: 23.08.2023 DATE OF DECISION: 21^st DAY OF DECEMBER, 2023

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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 Delhi and its Branch at Punjab National Bank, Madina, Tehsil Meham, District Rohtak-124111, through its Authorised Representative, Sh. Vikram Singh, Senior Manager, Punjab National Bank, Madina, Tehsil Meham, District Rohtak-124111

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…..Applicant

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Versus

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Sh. Satbir s/o Sh. Bharat Singh @Bhartu r/o House No.971, Village Bharan, Tehsil Meham, District Rohtak-124111

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…..Defendant

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Argued by: Sh. Rehan Chaudhary proxy counsel for Sh. Krishan Kumar, Advocate for the applicant bank Defendant ex parte vide order dated 06.10.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debt and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.22,82,385.40/- (Twenty Two Lac Eighty Two Thousand Three Hundred Eighty Five Rupees and Forty Paisa Only). The OA has been filed through Sh. Vikram Singh, Senior Manager of the applicant bank, stated to be competent to institute the Original Application vide General Power of Attorney dated

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OA/1217/2023 PUNJAB NATIONAL BANK VS SH. SATBIR 2

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27.03.2008, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per the Original Application are that the defendant had approached the applicant bank for grant of loan under Oriental Green Card Scheme of Rs.15 lac vide loan application dated 04.08.2010, Annexure-A2 (copy).

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The applicant bank sanctioned the above said facility to the defendant vide sanction letter dated 04.08.2010, Annexures-A3 (copy), as per terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facility, the defendant executed agreement for hypothecation dated 16.08.2010 regarding existing and future crops to secure cash credit accounts of oriental green card, Annexure-A5 (copy).

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The aforesaid loan facility was further secured by registered mortgage by the defendant in respect of agricultural land admeasuring 149 Kanal 14 Marla situated in revenue estate of Village Bharan, Tehsil Meham, District Rohtak, Haryana, fully detailed in para No. 5 (v) of the Original Application. Registered mortgage deed dated 07.08.2010 along with request letter dated 09.08.2010, to the Tehsildar, Meham, for entry/mutation of mortgaged property is Annexure-A4 (colly) (copy).

¶17

It is further the case of the applicant bank that the loan facility was duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA on 31.03.2022 . Defendant executed balance and security confirmation letters dated

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OA/1217/2023 PUNJAB NATIONAL BANK VS SH. SATBIR 3

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26.10.2015, 23.08.2018 and 02.04.2021, Annexure-A6 (colly) (copy). The applicant bank recalled entire outstanding amount vide notice dated 11.07.2023, along with original postal receipt, Annexure-A7 (colly) (copy), but to no avail.

¶20

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.22,82,385.40/- (Twenty Two Lac Eighty Two Thousand Three Hundred Eighty Five Rupees and Forty Paisa Only), is recoverable against the defendant as per statement of account, Annexure-A8 (copy), certified under Bankers’ Books Evidence Act.

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Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant despite service, thus, the defendant was proceeded against ex parte vide order dated 06.10.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Vikram Singh, Senior Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the learned proxy counsel for the applicant bank and gone through the record carefully.

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It was argued by the learned proxy counsel for the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to

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OA/1217/2023 PUNJAB NATIONAL BANK VS SH. SATBIR

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A8 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him after he had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,82,385.40/- (Twenty Two Lac Eighty Two Thousand Three Hundred Eighty Five Rupees and Forty Paisa Only) from the defendant.

¶29

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause, has claimed rate of interest @11.50% per annum, plus penal interest @2%. In sanction letter dated 04.08.2010, Annexures-A3 (copy), the rate of interest has been mentioned @11.50%.

¶30

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, quantum of loan, purpose of loan, i.e. agricultural , present conditions of economy based on agriculture and prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.

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OA/1217/2023 PUNJAB NATIONAL BANK VS SH. SATBIR 5

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In the result, the Original Application is allowed with costs holding that the defendant is liable to pay to the applicant bank a sum of Rs.22,82,385.40/- (Twenty Two Lac Eighty Two Thousand Three Hundred Eighty Five Rupees and Forty Paisa Only) with current and future simple interest @8% per annum , w.e.f. 23.08.2023 , till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated properties of the defendant 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, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property of the defendant. The applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 12.02.2024 .

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Copy of this order be sent to the applicant bank and the defendant through registered/speed post. This order be uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak)

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Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Sh. Satbir

Case brief

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Punjab National Bank v. Sh. Satbir

Case brief

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