Allowed

Punjab National Bank v. Sh. Rajeev Sharma

DRT17 Jul 2023OA/1478/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for issuance of a Recovery Certificate. The court directed the defendant to pay the outstanding sum of Rs. 24,83,045/- along with simple interest at 8% per annum, exercisable against mortgaged assets or personal property.

What did the court decide?

Issuance of Recovery Certificate directing respondent to pay applicant Rs. 24,83,045/- plus simple interest @8% p.a. from 10.08.2022, recoverable from sale of security or personal assets.

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

¶1

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

¶2

ORIGINAL APPLICATION NO.1478/2022

¶3

DATE OF INSTITUTION: 10.08.2022

¶4

DATE OF DECISION: 17^th DAY OF JULY, 2023

¶5

Punjab National Bank , a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and Branches all over India including one at Samalkha, District Panipat, Haryana, presently account is being handled by Circle Sastra Centre Panipat, Haryana, as per arrangement of the Bank for handling NPA accounts, through its Constituted Attorney/Manager, Sh. Subhash Chander

¶6

…..Applicant Bank

¶7

Versus

¶8

Sh. Rajeev Sharma S/o Sh. Sita Ram R/o House No. 150, Block No 1, Village Jorashi-Khalsa, Tehsil Samalkha, District Panipat, Haryana132101

¶9

…..Defendant

¶10

Argued by: Ms Priyanka Gupta, Chief Manager Law for the applicant bank Defendant ex parte vide order dated 06.06.2023

¶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

¶13

OA/1478/2022 PUNJAB NATIONAL BANK VS RAJEEV SHARMA 2

¶14

Rs.24,83,045/- (Rupees Twenty Four Lacs Eighty Three Thousand and Forty Five Only) . It has been filed through Sh. Subhash Chander, Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 01.06.2007, Annexure-A1 (copy).

¶15

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.19.90 lacs vide loan application dated 19.11.2014, Annexure-A2 (copy).

¶16

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

¶17

In order to secure the aforementioned credit facility, the defendant executed hypothecation agreement dated 29.12.2014, Annexure-A4 (copy).

¶18

The aforesaid loan was further secured by creation of mortgage by the defendant in respect of agricultural land measuring 47 Kanals 6 Marlas situated in the revenue estate of Jaurasi-Sarf-Khas, Tehsil Samalkha, District Panipat, Haryana, fully detailed in para No. 5.6 of the Original Application. Mortgage Deed dated 17.12.2014, Annexure-A5 (copy).

¶19

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 19.02.2022. The defendant executed balance and security confirmation letters dated 18.12.2017, 03.09.2020 and 01.02.2022, Annexures-A7, A8

¶20

OA/1478/2022 PUNJAB NATIONAL BANK VS RAJEEV SHARMA 3

¶21

and A9 (copy). The applicant bank recalled the entire outstanding amount vide legal notice dated 29.06.2022 along with its postal receipt, Annexure-A6 (colly) (copy), but to no avail.

¶22

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.24,83,045/- (Rupees Twenty Four Lacs Eighty Three Thousand and Forty Five Only) is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, Annexure-A10 (copy).

¶23

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

¶24

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 06.06.2023 .

¶25

In support of contents of the OA, affidavit of evidence of Sh. Subhash Chander, Manager of the applicant bank was filed.

¶26

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

¶27

It was argued by Ms Priyanka Gupta, Chief 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 A10 , it is clear that the defendant had approached the applicant

¶28

OA/1478/2022 PUNJAB NATIONAL BANK VS RAJEEV SHARMA 4

¶29

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.24,83,045/- (Rupees Twenty Four Lacs Eighty Three Thousand and Forty Five Only) from the defendant.

¶30

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @8.50% per annum plus penal interest @2% per annum. In loan agreement dated 29.12.2014, Annexure-A4 (copy), the rate of interest has been mentioned @12.25% per annum.

¶31

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 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.

¶32

¶33

OA/1478/2022 PUNJAB NATIONAL BANK VS RAJEEV SHARMA

¶34

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.24,83,045/- (Rupees Twenty Four Lacs Eighty Three Thousand and Forty Five Only) with current and future simple interest @8% per annum w.e.f. 10.08.2022 , 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.

¶35

Issue Recovery Certificate accordingly.

¶36

Parties to appear before Recovery Officer concerned on 15.09.2023.

¶37

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.

¶38

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

Punjab National Bank v. Sh. Rajeev Sharma

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Rajeev Sharma

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

Coram

Case details

Similar cases

State Bank of India versus M/S Sanika Trading Company and Another

Punjab and Sind Bank versus M/S Azad Mobile Enterprises

Bank of India versus M/S Moni Enterprises

Bank of India versus Rbs Ent Udyog

State Bank of India versus M/S Bharat Tractors

Punjab National Bank versus Narinderjit Singh