Allowed

Punjab National Bank v. Om Parkash Since Deceased through Lrs

DRT10 Apr 2023OA/1467/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's Original Application for recovery of Rs. 26,33,424.39p with simple interest, ordering legal heirs to pay jointly and severally, subject to liability limited to the inherited estate.

What did the court decide?

Recovery of Rs. 26,33,424.39p with simple interest @5% p.a. from date of filing till realization, enforceable against mortgaged property and personal assets.

Punjab National Bank versus Om Parkash Since Deceased through… — 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.1467/2022

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DATE OF INSTITUTION: 17.08.2022

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DATE OF DECISION: 10^th DAY OF APRIL, 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 and having its Head Office at Plot No. 44, Sector 10, Dwarka, New Delhi-110075, one of its Branches amongst other places is known as Amin, 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. Om Parkash S/o Sh. Ram Kishan since deceased through LR’s i) Ms Kusum W/o Sh. Om Parkash

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ii) Sh. Sashin S/o Sh. Om Parkash

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iii) Sh. Gourav S/o Sh. Om Parkash

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Sh. Gourav S/o Sh. Om Parkash All Rs/o Village Samani, Tehsil Thanesar, District Kurukshetra, Haryana

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.....Defendants

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Argued by: Sh. Gaurav Thakur proxy counsel for Sh. Tarun Dhingra counsel for the applicant bank Defendant ex parte vide order dated 16.01.2023

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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 defendants for recovery of Rs.26,33,424.39p (Rupees Twenty Six lacs Thirty Three Thousand Four Hundred Twenty Four and Thirty Nine Paisa Only) . It has been filed through Sh. Baldev Raj, Chief Manager of the applicant bank stated

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OA/1467/2022PUNJAB NATIONAL BANKVsOM PARKASH SINCE DECEASED THORUGH LRS ANDANR

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

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The brief facts as per the Original Application are that the defendants had approached the applicant bank for grant of credit facility of Rs.18 lacs vide loan application dated 09.10.2017, Annexure-A2 (colly) (copy).

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The applicant bank sanctioned aforementioned credit facility to the defendants vide sanction letter dated 09.10.2017, Annexure-A2 (colly) (copy) as per the terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendant executed hypothecation agreement and supplementary agreement dated 11.10.2017, Annexure-A3 (colly) (copy). 5. The aforesaid loan was further secured by creation of mortgage by the defendants in respect of property measuring 87 Kanals 14 Marlas situated in the revenue estate of Samani, Tehsil Thanesar, District Kurukshetra, fully detailed in para No. 5.10 of the Original Application. Declaration under section 4(1) of the Haryana Agricultural Credit Operations and Miscellaneous Provisions (banks) Act, 1973, is Annexure-A4 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared NPA on 02.05.2022. The defendants executed balance and security confirmation letters dated 25.02.2019 and 23.09.2021, Annexure-A5 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notices dated 10.01.2019 and 18.07.2022 along with postal receipts, Annexure-A6 (colly) (copy), but to no avail.

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OA/1467/2022PUNJAB NATIONAL BANKVsOM PARKASH SINCE DECEASED THORUGH LRS ANDANR

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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.26,33,424.39p

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(Rupees Twenty Six lacs Thirty Three Thousand Four Hundred

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Twenty Four and Thirty Nine Paisa Only) is recoverable against the defendants as per statement of account, Annexure-A7 (copy), certified under Bankers' Books Evidence Act.

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

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Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex parte vide order dated 16.01.2023 .

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In support of the contents of the OA, affidavit of evidence of Sh. Baldev Raj, 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 and gone through the record carefully.

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It was argued by the learned proxy counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A7 , it comes out that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. Sh. Om Parkash had died, leaving behind defendant Nos. 1(i) to 1(iii) as his legal heirs who have been impleaded as defendants statedly

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OA/1467/2022PUNJAB NATIONAL BANKVsOM PARKASH SINCE DECEASED THORUGH LRS ANDANR

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4 being beneficiaries of the property and estate of the deceased. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.26,33,424.39p (Rupees Twenty Six lacs Thirty Three Thousand Four Hundred Twenty Four and Thirty Nine Paisa Only) from the defendants.

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In so far as pendent lite and future interest is concerned, the applicant bank, in relief clause, has claimed @14% per annum plus @2% per annum penal interest.

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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 mortgage property, purpose of loan, i.e. agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, death of the borrower and defendant No. 1(i) being a lady 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.

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In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum Rs.26,33,424.39p (Rupees Twenty Six lacs Thirty Three Thousand Four Hundred Twenty Four and Thirty Nine Paisa Only) with current and future simple interest @5% per annum w.e.f. 17.08.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. 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

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OA/1467/2022PUNJAB NATIONAL BANKVsOM PARKASH SINCE DECEASED THORUGH LRS ANDANR

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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 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 estate of the deceased borrower if it is inherited by them and not beyond that or otherwise. 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 .

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 23.05.2023.

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Copy of this order be sent to the applicant bank and the defendants 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. Om Parkash Since Deceased through Lrs

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Om Parkash Since Deceased through Lrs

Case brief

What is this about?

What did the court decide?

What the court decided

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