Allowed

Punjab National Bank v. Sh. Rohit

DRT21 Nov 2023OA/1407/2022

Case brief

AI extract

What is this about?

PNB filed an original application for recovery of Rs. 22.59 lakh against a defendant agronomist who failed to repay an agricultural loan secured by hypothecation and mortgage. Proceeding ex parte, the Tribunal allowed the application, approved interest at 8%, and issued a recovery certificate.

What did the court decide?

Recovery of Rs. 22,59,318.30 plus simple interest at 8% p.a. from 25.07.2022; issuance of Recovery Certificate.

Punjab National Bank versus Sh. Rohit — 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. 1407/2022

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DATE OF INSTITUTION: 25.07.2022

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DATE OF DECISION: 21^st DAY OF NOVEMBER, 2023

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Punjab National Bank , a body corporate and perpetual succession, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on Banking Business having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and one of its Branches amongst other places is known as Rajound, District Kaithal, Haryana, through Sh. Malkeet Singh Soday, Chief Manager, its Principal Officer and General Attorney

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…..Applicant

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Versus

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Sh. Rohit s/o Sh. Rajpal r/o Village Rajound, Tehsil Rajound, District Kaithal, Haryana

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....Defendant

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Argued by: Sh. Gaurav Thakur proxy counsel for Sh. Tarun Dhingra Advocate for the applicant bank Defendant ex parte vide order dated 29.08.2023

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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 Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.22,59,318.30/- (Rupees Twenty Two

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Lac Fifty Nine Thousand Three Hundred Eighteen and Thirty Paisa Only) . It has been filed through Sh. Malkeet Singh Soday, Chief Manager of the applicant bank stated to be competent to

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OA/1407/2022 PUNJAB NATIONAL BANK VS ROHIT 2

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institute the Original Application vide General Power of Attorney, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that defendant had approached the applicant bank for grant of KCC facility of Rs. 15 lac vide loan application Form dated 16.02.2017 for agricultural credit, Annexure-A2 (colly) (copy).

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The applicant bank sanctioned aforesaid credit facility to the defendant vide sanction letter dated 16.02.2017 Annexure-A2 (colly) (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 hypothecation agreement along with consent letter dated 21.02.2017, Annexure-A4 (colly) (copy).

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The aforesaid limit was further secured by creation of registered mortgage by the defendant in respect of agricultural land measuring 39 Kanal 1 Marla situated in the revenue estate of Rajound, Sub-Tehsil Rajound, District Kaithal, Haryana, fully detailed in para No. 5(5.9) of the OA. Registered mortgage deed dated 17.08.2012, supplementary/additional mortgage deed dated 08.09.2014, letter dated 08.09.2014 to the Sub-Tehsildar, Rajound, for entrance and confirmation of the property and declaration dated 20.02.2017 under Section 4(1) of theHaryana Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A3 (colly) (copy).

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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

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OA/1407/2022 PUNJAB NATIONAL BANK VS ROHIT 3

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becoming irregular and it being classified as NPA on 31.07.2021. Defendant executed balance and security confirmation letters dated 08.02.2016, 08.06.2018 and 07.05.2021, Annexure-A5 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal/recall notice dated 04.07.2022, Annexure-A6 (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.22,59,318.30/(Rupees Twenty Two Lac Fifty Nine Thousand Three Hundred Eighteen and Thirty Paisa Only), is recoverable against the defendant as per statement of account duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A7 (copy).

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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, thus, the defendant was proceeded against ex-parte vide order dated 29.08.2023 .

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In support of contents of the OA, affidavit of evidence of Sh.

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Malkeet Singh, Principal Officer, Chief 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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OA/1407/2022 PUNJAB NATIONAL BANK VS ROHIT 4

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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 A7 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant 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.22,59,318.30/- (Rupees Twenty Two Lac

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Fifty Nine Thousand Three Hundred Eighteen and Thirty Paisa Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @14% per annum plus penal interest @2%. In sanction letter dated 16.02.2017 AnnexureA2 (colly) (copy), the rate of interest has been mentioned @11.35% per annum.

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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 mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan 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

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OA/1407/2022 PUNJAB NATIONAL BANK VS ROHIT 5

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grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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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.22,59,318.30/- (Rupees Twenty Two Lac Fifty Nine Thousand Three Hundred Eighteen and Thirty Paisa Only) with current and future simple interest @8% per annum w.e.f. 25.07.2022 , 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 property 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, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendant. However, 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 01.01.2024.

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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) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Sh. Rohit

Case brief

What is this about?

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Punjab National Bank v. Sh. Rohit

Case brief

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