Allowed

Punjab National Bank v. Sh. Mukesh Kumar

DRT14 Jun 2023OA/1502/2022

Case brief

AI extract

What is this about?

DRT-2 Chandigarh allowed an application by Punjab National Bank for recovery of dues from Sh. Mukesh Kumar. The tribunal reduced the claimed interest rate to 8% per annum and authorized recovery via sale of mortgaged/hypothecated property or attachment of personal assets.

What did the court decide?

Recovery certificate issued; amount of Rs.20,64,311.84/- with interest at 8% per annum from 12.08.2022; liberty to recover via sale of mortgaged property or attachment of personal assets.

Punjab National Bank versus Sh. Mukesh 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.1502/2022

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DATE OF INSTITUTION: 12.08.2022

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DATE OF DECISION: 14^th DAY OF JUNE, 2023

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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 at Bhagwangarh, Tehsil Jagadhri, District Yamunanagar, through its Power of Attorney holder, Sh. Bakshi Ram Saini

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…..Applicant Bank

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Versus

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Sh. Mukesh Kumar S/o Sh. Jai Parkash R/o House No. 1685, Johripura Mohalla, Jagadhri, Tehsil Jagadhri, District Yamunanagar, Haryana

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…..Defendant

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Argued by: Ms Arpita Sonkar, Manager Law along with Sh. Kunal Goyal, Law Officer for the pplicant bank Defendant ex parte vide order dated 23.01.2023

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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 defendant for recovery of Rs.20,64,311.84/- (Rupees Twenty lacs Sixty Four Thousand

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Three Hundred Eleven and Eighty Four Only) . It has been filed through Sh. Bakshi Ram Saini, Power of Attorney holder of the

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OA/1502/2022 PUNJAB NATIONAL BANK Vs MUKESH KUMAR

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applicant bank stated to be competent to institute the Original Application.

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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.16.50 lacs vide application form for agricultural credit dated 14.01.2014, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid credit facility to the defendant vide letter of sanction dated 14.01.2014, AnnexureA3 (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 14.01.2014, Annexure-A4 (copy).

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The aforesaid loan was further secured by creation of registered mortgage by the defendant in respect of agricultural land measuring 26 Kanals 19 Marlas situated in the revenue estate of Odri, Tehsil Jagadhri, District Yamunanagar, Haryana, fully detailed in para No. 5.4 of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered mortgage deed No. 6572 dated 13.01.2014, Annexure-A5 (copy).

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ii. Request letter dated 14.01.2014 to the Tehsildar, Jagadhri, for entry/mutation of mortgaged property, Annexure-A6 (copy).

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iii. Copy of ‘Jamabandi’ for the Years 2012-2013, AnnexureA7 (copy).

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OA/1502/2022 PUNJAB NATIONAL BANK Vs MUKESH KUMAR

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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 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 29.12.2016, 17.06.2019 and 31.12.2021, Annexures-A8, A9 and A10 (copy).

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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.20,64,311.84/- (Rupees Twenty lacs Sixty Four Thousand Three Hundred Eleven and Eighty Four Only) is recoverable against the defendant as per statement of account dated 06.08.2022, Annexure-A12 (copy) and interest chart dated 08.08.2022, Annexure-A13 (copy) duly certified under Bankers’ Books Evidence Act dated 08.08.2022, Annexure-A14 (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 23.01.2023 .

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In support of the contents of the OA, affidavit of evidence of Sh. Bakshi Ram Saini, Power of Attorney Holder of the applicant bank was filed.

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OA/1502/2022 PUNJAB NATIONAL BANK Vs MUKESH KUMAR

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

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It was argued by Ms Arpita Sonkar, Manager Law along with Sh. Kunal Goyal, Law Officer 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 10 and A12 to A14 , 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.20,64,311.84/- (Rupees Twenty lacs Sixty

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Four Thousand Three Hundred Eleven and Eighty Four Only) from the defendant.

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In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @13.25% per annum with monthly rests. In letter of sanction dated 14.01.2014, Annexure-A3 (copy), rate of interest has been mentioned @13.25% 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

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OA/1502/2022 PUNJAB NATIONAL BANK Vs MUKESH KUMAR

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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.

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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.20,64,311.84/- (Rupees Twenty lacs Sixty Four

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Thousand Three Hundred Eleven and Eighty Four 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 10.08.2023.

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OA/1502/2022 PUNJAB NATIONAL BANK Vs MUKESH KUMAR

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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. Mukesh Kumar

Case brief

What is this about?

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Punjab National Bank v. Sh. Mukesh Kumar

Case brief

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