Allowed

Punjab National Bank, v. Sh. Vijay Kumar and Another

DRT23 Nov 2023OA/1512/2022

Case brief

AI extract

What is this about?

Allowed an Original Application under the RDBFI Act for recovery of a housing loan. The court fixed uniform simple interest at 7.80% p.a., declared the loan account NPA, and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery certificate issued; Defendants liable to pay Rs. 24,83,095.10 plus costs and simple interest at 7.80% p.a.; Order for possible sale of mortgaged or personal properties.

Punjab National Bank, versus Sh. Vijay Kumar and Another — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1512/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.08.2022

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DATE OF DECISION: 23.11.2023

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi110075 (A Government of India Undertaking) and having one of its Branch situated at Punjab National Bank, S.A.S. Nagar, Phase-3A, Mohali, Punjab through Sh. Ravi Kumar who is presently working as Chief Manager, Punjab National Bank, Circle Sastra, Phase-2, Mohali, Punjab constituted Power of Attorney Holder of the Bank and Principal Officer.

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……..Applicant

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Versus

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Sh. Vijay Kumar S/o Sh. Bhim Sen,

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Address:

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(i) #2360, Sector 24-C, Chandigarh,160036. (ii) #194-A, Ajit Enclave, Randhawa Road, Kharar,140301.

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Mrs. Rekha Devi W/o Mr. Vijay Kumar

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Address:

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(iii) #2360, Sector 24-C, Chandigarh,160036. (iv) #194-A, Ajit Enclave, Randhawa Road, Kharar,140301.

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….……Defendants

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Advocates:

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Argued by Sh. Surinder Nath Sharma, counsel of the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.24,83,095.10p (Rupees Twenty Four Lacs Eighty Three Thousand Ninety Five and Ten Paisa only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendant No.1 and 2 had approached the applicant bank for the grant of Housing Loan of Rs.22,78,000.00 vide Loan application, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Housing Loan of Rs.22,78,000.00 vide Sanction Letter dated 03.03.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 and 2 had mortgaged their immovable property i.e. House No. A-01, GF, 0-K -1.27 M, situated at Bains Building, Sante Majra, Hadbast No. 186, Tehsil Kharar, District Mohali, Punjab vide Registered Mortgage Deed No. 13705 along with its translation dated 12.03.2021, which are Annexures A7 and A7/T to this OA. Documents executed:-Notification dated 04.03.2020, which is Annexure A1-A to this OA; Agreement to Sell dated 25.01.2021, which is Annexure A4 to this OA; Agreement for Housing Loan dated 05.03.2021, which is Annexure A5 to this OA; Master Agreement dated 05.03.2021, which is Annexure A6 to this OA; Property Valuation Report dated 24.02.2021, which is Annexure A8 to this OA; Advocate Report on Title Deed dated 25.02.2021, which is Annexure A9 to this OA; Letter by the Borrower confirming Equitable Mortgage along with property Declaration Form and Authorization by the Borrower dated 15.03.2021, which is Annexure A10 to this OA; Letter Declaring Confirmation of Deposit of Title Deed dated 15.03.2021, which is Annexure A11 to this OA; Registration of Security Interest with CERSAI dated 20.03.2021, which is Annexure

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A12 to this OA; Letter of Tehsildar requesting for marking of Banks Lien/Charge dated 21.05.2021, which is Annexure A13 to this OA; Notice of Recall of Bank’s Dues by bank dated 01.09.2021, which is Annexure A14 to this OA; Notice of Recall of Bank’s dues by the Advocate dated 04.08.2022, which is Annexure A15 to this OA and Statement of accounts along with Certificates, Which is Annexure A16 to this OA.

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The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.24,83,095.10p which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 20.10.2023.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.24,83,095.10p (Rupees Twenty Four Lacs Eighty Three Thousand Ninety Five and Ten Paisa only) along with interest from the defendants, jointly and

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severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank has claimed interest @7.80%p.a.(along with @2%p.a. penal Interest) with monthly rests in the loan account from 01.08.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7.80%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,83,095.10p (Rupees Twenty Four Lacs Eighty Three Thousand Ninety Five and Ten Paisa only) jointly and severally, with costs, current and future simple interest @7.80%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the bank still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 02.12.2023. 15. Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned. Pronounced by me in the open Tribunal. Dated: 23.11.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Sh. Vijay Kumar and Another

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Punjab National Bank, v. Sh. Vijay Kumar and Another

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