Allowed

Punjab National Bank v. Smt. Babita Rani

DRT6 Jun 2023OA/1526/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Punjab National Bank against four defendants for outstanding dues of Rs. 22,74,196.78/- arising from a KCC facility and mortgage. The court granted uniform simple interest at 7% per annum lower than claimed due to the pandemic situation before issuing the recovery certificate.

What did the court decide?

Recovery of Rs. 22,74,196.78/- with 7% per annum simple interest from 24.08.2022; issuance of Recovery Certificate.

Punjab National Bank versus Smt. Babita Rani — 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.1526/2022

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DATE OF INSTITUTION: 24.08.2022

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DATE OF DECISION: 6^th DAY OF JUNE, 2023

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Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1970, having its Head Office at Plot No-4, Sector-10, Dwarka, New Delhi110075, through one of its Branches having office at Dosarka, Tehsil Barara, District Ambala, through its Power of Attorney Holder, Sh. Baldev Raj

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…..Applicant Bank

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Versus

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Smt. Babita Rani W/o Sh. Nawab Singh

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Smt. Urmila Devi W/o Sh. Joginder Singh

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Sh. Dinesh S/o Sh. Joginder Singh

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All resident of Village Dhanouri, Sub-Tehsil Mullana, Tehsil Barara, District Ambala, Haryana

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Sh. Satish Kumar S/o Sh. Chaman Singh R/o House No. 2844, Near Janta School, Barara, Haryana

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…..Defendants

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Argued by: Sh. Tilak Raj Kapoor counsel for the applicant bank Defendants ex parte vide order dated 24.01.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant

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bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to

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OA/1526/2022 PUNJAB NATIONAL BANK Vs BABITA AND OTHERS 2

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as ‘the Act’ for brevity), against the defendants for recovery of

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Rs.22,74,196.78/- (Rupees Twenty Two lacs Seventy Four Thousand One Hundred Ninety Six and Seventy Eight Paisa

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Only) . It has been filed through Sh. Baldev Raj, Constituted Attorney of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 04.09.2003, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendants had approached the applicant bank for grant of KCC facility of Rs.20 lacs vide loan application dated 12.10.2015, Annexure-A2 (colly) (copy).

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The applicant bank sanctioned aforesaid credit facility to the defendants vide memorandum of sanction dated 12.11.2015, Annexure-A2 (colly) (copy) as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed hypothecation agreement dated 12.11.2015, Annexure-A3 (copy). PAN card of defendant No. 1 is Annexure-A9 (copy).

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The aforesaid loan was further secured by creation of registered mortgage by defendant No. 1 in respect of agricultural land measuring 16 Kanals 19 Marlas situated in the revenue estate of Dhanouri, Tehsil Barara, District Ambala, 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. Mortgage deed No. 1033 dated 15.10.2015, Annexure-A4 (copy).

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OA/1526/2022 PUNJAB NATIONAL BANK Vs BABITA AND OTHERS

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ii. Request letter dated 15.10.2015 to the Tehsildar, Mullana, for entry/mutation of mortgaged property, Annexure-A5 (copy).

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iii. Copy of ‘Jamabandi’ for the years 2016-17, AnnexureA6 .

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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 was declared as NPA because it became irregular. The defendants executed balance and security confirmation letters dated 09.11.2018 and 04.10.2021, Annexures-A7 and A8 (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.22,74,196.78/- (Rupees Twenty Two lacs Seventy Four Thousand One Hundred Ninety Six and Seventy Eight Paisa Only) is recoverable against the defendants as per statement of account, Annexure-A10 (copy) and interest chart dated 12.08.2022, Annexure-A11 (copy) certified under Bankers’ Books Evidence Act, Annexure-A12 (copy).

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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. 7. 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 24.01.2023 .

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OA/1526/2022 PUNJAB NATIONAL BANK Vs BABITA AND OTHERS

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In support of the contents of the OA, affidavit of evidence of

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Sh. Baldev Raj, Authorised Officer of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the learned counsel and gone through the record carefully.

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It was argued by the learned 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 A12 , it is clear 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. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,74,196.78/- (Rupees Twenty Two lacs

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Seventy Four Thousand One Hundred Ninety Six and Seventy Eight 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 rate of interest @12% per annum with half yearly rests plus @2% per annum penal interest. In hypothecation agreement dated 12.11.2015, Annexure-A3 (copy), rate of interest has been mentioned @12% 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

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OA/1526/2022 PUNJAB NATIONAL BANK Vs BABITA AND OTHERS

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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, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant Nos. 1 and 2 being ladies while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶47

In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum of Rs.22,74,196.78/- (Rupees Twenty Two lacs Seventy Four Thousand One Hundred Ninety Six and Seventy Eight Paisa Only) with current and future simple interest @7% per annum w.e.f. 24.08.2022 , 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 defendants 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 defendants. 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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OA/1526/2022 PUNJAB NATIONAL BANK Vs BABITA AND OTHERS

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Parties to appear before Recovery Officer concerned on 05.08.2023 .

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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. Smt. Babita Rani

Case brief

What is this about?

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Punjab National Bank v. Smt. Babita Rani

Case brief

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