Allowed

Punjab National Bank v. Sh. Rishi Pal

DRT21 Jul 2023OA/1475/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 24.71 lakhs plus interest. The APA holder argued for 12.25% interest but the tribunal, considering pandemic effects and agricultural nature of the loan, awarded 8% uniform simple interest.

What did the court decide?

Recovery certificate issued for Rs. 24,71,616.76 plus simple interest at 8% per annum from 12.08.2022 till realization.

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

¶1

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

¶2

ORIGINAL APPLICATION NO.1475/2022

¶3

DATE OF INSTITUTION: 12.08.2022

¶4

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

¶5

Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075, through one of its Branches having Office at Deodhar, Tehsil Partap Nagar, District Yamunanagar, Haryana, through its Power of Attorney holder, Sh. Bakshi Ram Saini

¶6

…..Applicant Bank

¶7

Versus

¶8

Sh. Rishi Pal S/o Sh. Sadhu ram R/o Village Nathanpur, Tehsil Chhachhrauli, District Yamunanagar

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…..Defendant

¶10

Argued by: Ms Arpita Sonkar, Manager Law (GPA holder) for the applicant bank Defendant ex parte vide order dated 28.02.2023

¶11

FINAL ORDER

¶12

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.24,71,616.76/- (Rupees Twenty Four Lacs Seventy One Thousand Six Hundred Sixteen and Seventy Six Paisa Only) . It has been filed through Sh. Bakshi Ram Saini, power of attorney holder of the

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¶14

OA/1475/2022 PUNJAB NATIONAL BANK VS RISHI PAL

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applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 10.09.2004, Annexure-A1 (copy).

¶16

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. 5 lacs which was further enhanced to Rs. 19 lacs vide loan applications dated 12.08.2008 and 13.02.2014, Annexures-A2 and A4 (copy).

¶17

The applicant bank sanctioned aforesaid facility to the defendant vide sanction letter dated 12.08.2008, Annexure-A3 (copy) and sanction memorandum dated 13.02.2014, Annexure-A5 (copy) as per terms and conditions which were duly accepted by the defendant.

¶18

In order to secure the aforementioned credit facility, the defendant executed hypothecation agreements dated 02.09.2008 and 18.02.2014, Annexures-A6 and A7 (copy).

¶19

The aforesaid loan was further secured by creation of mortgage by defendant in respect of agricultural land measuring 22 Kanals 11 Marlas situated in the revenue estate of Nathanpur, Tehsil Chhachhrauli, District Yamunanagar, fully detailed in para No. 5.4 of the Original Application.

¶20

The documents related to mortgage are as under:

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a. Registered mortgage deeds dated 28.08.2008 and 13.02.2014, Annexures-A8 and A11 (copy).

¶22

b. Letters dated 28.08.2008 and 13.02.2014 to the Tehsildar, Chhachhrauli, for entry/mutation of the mortgaged property, Annexures-A9 and A12 (copy).

¶23

c. Copy of ‘Jamabandis’ for the years2005-2006 and 2010-2011, Annexures-A10 and A13 (copy).

¶24

OA/1475/2022 PUNJAB NATIONAL BANK VS RISHI PAL

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¶26

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 and resultantly, the loan account became irregular and it was declared as NPA on 31.03.2022. The defendant executed balance and security confirmation letters dated 23.08.2011, 07.02.2017 and 04.01.2020, Annexures-A14 to A16 (copy).

¶27

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.24,71,616.76/- (Rupees Twenty Four Lacs Seventy One Thousand Six Hundred Sixteen and Seventy Six Paisa Only) is recoverable against the defendant as per statement of account, certified under Bankers’ Books Evidence Act, Annexure-A18 (copy), interest chart, Annexure-A19 (copy) and certificate under Bankers’ Books Evidence Act, Annexure-A20 (copy).

¶28

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

¶29

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 28.02.2023 . 8. In support of contents of the OA, affidavit of evidence Sh. Bakshi Ram Saini, power of attorney holder of the applicant bank was filed. 9. This Tribunal has heard ex-parte arguments advanced by Ms Arpita Sonkar, Manager Law for the applicant bank and gone through the record carefully.

¶30

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OA/1475/2022 PUNJAB NATIONAL BANK VS RISHI PAL

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It was argued by Ms Arpita Sonkar, Manager Law of 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 A20 , 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

¶33

Rs.24,71,616.76/- (Rupees Twenty Four Lacs Seventy One Thousand Six Hundred Sixteen and Seventy Six Paisa Only) from the defendant.

¶34

In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @12.25% per annum and penal interest @2% per annum with monthly rests. In hypothecation agreement dated 18.02.2014, Annexure- A7 (copy), rate of interest has been mentioned @12.25% per annum.

¶35

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 grant

¶36

OA/1475/2022 PUNJAB NATIONAL BANK VS RISHI PAL

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5 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.

¶38

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.24,71,616.76/- (Rupees Twenty Four Lacs Seventy One Thousand Six Hundred Sixteen and Seventy Six Paisa Only) with current and future simple interest @8% per annum w.e.f. 12.08.2022 , 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.

¶39

Issue Recovery Certificate accordingly.

¶40

Parties to appear before Recovery Officer concerned on 21.09.2023 .

¶41

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.

¶42

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

Punjab National Bank v. Sh. Rishi Pal

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Rishi Pal

Case brief

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What did the court decide?

What the court decided

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