Allowed

Punjab National Bank v. Sh. Banesh Kumar

DRT23 Aug 2023OA/1457/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Punjab National Bank for recovery of dues from Banesh Kumar. The court modified the claimed interest rate to 8% per annum and directed execution proceedings against mortgaged and personal assets.

What did the court decide?

Recovery of Rs. 20,86,908.38 plus 8% p.a. interest from sale of mortgaged/hypothecated property or personal assets.

Punjab National Bank versus Sh. Banesh Kumar — 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.1457/2022

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DATE OF INSTITUTION: 17.08.2022

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DATE OF DECISION: 23^rd DAY OF AUGUST, 2023

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

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…..Applicant Bank

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Versus

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Sh. Banesh Kumar s/o Sh. Virbhan R/o Village Yara, Tehsil Shahabad, District Kurukshetra, Haryana

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…..Defendant

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Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendant ex parte vide order dated 18.02.2023

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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 Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.20,86,908.38/- (Rupees Twenty Lacs Eighty Six Thousand Nine Hundred Eight and Thirty Eight Paisa Only) . It has been

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OA/1457/2022 PUNJAB NATIONAL BANK VS BANESH KUMAR 2

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filed through Sh. Baldev Raj, Chief Manager of the applicant bank stated to be competent to institute the Original Application vide power of attorney dated 04.09.2003, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendant had approached the applicant bank for grant of KCC facility of Rs.15 lacs vide loan application dated 16.01.2014, Annexure-A2 (colly) (copy).

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The applicant bank sanctioned aforesaid facility to the defendant vide sanction letter dated 16.01.2014, 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 dated 16.01.2014, Annexure-A3 (copy), letter dated 16.01.2014 regarding disclosure of information to CIBIL and supplementary agreement dated 16.01.2014, Annexure-A4 (colly) (copy).

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The aforesaid loan was further secured by creation of mortgage by the defendant in respect of agricultural land measuring 49 Kanals 02 Marlas situated in the revenue estate of Yara, Tehsil Shahabad, District Kurukshetra, Haryana, fully detailed in para No. 5.11 of the Original Application. Affidavit dated 14.01.2014 regarding mortgaged property, request letters dated 20.12.2012 and 15.01.2014 to the Tehsildar, Shahbad, for entry/mutation of mortgaged property and registered supplementary mortgage deed dated 15.01.2014, Annexure-A5 (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

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OA/1457/2022 PUNJAB NATIONAL BANK VS BANESH KUMAR 3

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financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared as NPA on 03.05.2022. The defendant executed balance and security confirmation letters dated 25.10.2017, 08.09.2018 and 08.09.2020, Annexure-A6 (colly) (copy). The applicant bank recalled the entire outstanding amount vide legal notices dated 07.11.2020 and 04.07.2022 along with its postal receipt, Annexure-A7 (colly) (copy), but to no avail. It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.20,86,908.38/- (Rupees Twenty Lacs Eighty Six Thousand Nine Hundred Eight and Thirty Eight Paisa Only) is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, Annexure-A8 (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 18.02.2023 . 8. In support of contents of the OA, affidavit of evidence of Sh. Baldev Raj, Principal Officer of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Ms Arpita Sonkar, Manager Law of the applicant bank and gone through the record carefully.

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OA/1457/2022 PUNJAB NATIONAL BANK VS BANESH KUMAR

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It was argued by Ms Arpita Sonkar, Manager Law 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 A8 , 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.20,86,908.38/- (Rupees Twenty

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Lacs Eighty Six Thousand Nine Hundred Eight and Thirty Eight

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Paisa Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @14% plus penal interest @2% per annum. In hypothecation agreement dated 16.01.2014, Annexure-A3 (copy), the rate of interest has been mentioned @BR+@2% 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 the 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

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OA/1457/2022 PUNJAB NATIONAL BANK VS BANESH KUMAR

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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 order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs declaring that the defendant is liable to pay to the applicant bank a sum of Rs.20,86,908.38/- (Rupees Twenty Lacs Eighty Six

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Thousand Nine Hundred Eight and Thirty Eight Paisa Only)

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with current and future simple interest @8% per annum w.e.f. 17.08.2022 , 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. 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 06.10.2023.

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

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Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Sh. Banesh Kumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Banesh Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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Case details

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