Allowed

Punjab National Bank v. Shri Priyankar Shree Gyan

DRT14 Sept 2023OA/153/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the recovery application filed by Punjab National Bank against two respondents for an outstanding housing loan debt of Rs. 31,57,655.66/-, issuing a recovery certificate after observing that future interest would be 7% per annum.

What did the court decide?

Issued Recovery Certificate for Rs. 31,57,655.66/- with simple interest @7% p.a. from the filing date until realisation.

Punjab National Bank versus Shri Priyankar Shree Gyan — Consumer Protection | DRT (2023)

¶1

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

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ORIGINAL APPLICATION NO.153/2023

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DATE OF INSTITUTION: 04.01.2023

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

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Punjab National Bank , a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Corporate Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and its substitution being the Transferee Bank to the then Applicant Bank, i.e. erstwhile Oriental bank of Commerce by virtue of Order of the Central Government published in the Gazette Notification No.153(E) dated 04.03.2020, Oriental bank of Commerce have been amalgamated with Punjab National Bank under Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980 and Branch amongst others at Circle Office, Circle SASTRA Centre, Gurgaon, through its General Power of Attorney holder, Sh. Kuldeep Singh Rana, Chief Manager of the Applicant Bank

¶6

…..Applicant Bank

¶7

Versus

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Sh. Priyankar Shree Gyan s/o Sh. Santosh Kumar Gupta r/o House No. 154, Sector-15, Part-I, Gurgaon, Haryana

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II^nd Address: Quarter No. 5120, Sector 4/F, Near Apna Bazar, Sector 4, Bokaro Steel City, Jharkhand-827004

¶10

M/s Dwarkadhish Projects Private Limited, Village Maheshwari, Sector-22, Dharuhera, District Rewari, a Company incorporated

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OA/153/2023 PUNJAB NATIONAL BANK Vs PRIYANKAR SHREE GYAN AND ANOTHER 2

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under the provisions of the Companies Act, 1956, having its Registered Office at PD-4A, Pitampura, New Delhi-110088

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II^nd Address: Corporate Office at: Suite #17, II^nd Floor, Ninex City Mart, Sohna Road, Gurgaon, Haryana-122018

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III^rd Address: 711, 7^th Floor, Pearl Omaxe, Plot No. B1, Netaji Subash Place, Delhi-110034

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…..Defendants

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Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendants ex parte vide order dated 01.04.2023

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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 as ‘the Act’ for brevity), against the defendants for recovery of Rs.31,57,655.66/- (Rupees Thirty One Lacs Fifty Seven Thousand Six Hundred and Fifty Five and Sixty Six Paisa

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Only) . It has been filed through Sh. Kuldeep Singh Rana, Chief Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney, Annexure-A1 (copy).

¶21

The brief facts of the case of the applicant as per Original Application are that defendant No. 1 had approached the applicant bank for grant of housing loan facility of Rs. 38.50 lacs .

¶22

The applicant bank sanctioned aforesaid facility to defendant No. 1 vide sanction letter dated 11.09.2015, Annexure-A2 (copy), as per terms and conditions which were duly accepted by the defendant.

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OA/153/2023 PUNJAB NATIONAL BANK Vs PRIYANKAR SHREE GYAN AND ANOTHER 3

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In order to secure the aforementioned credit facility, the defendant No.1 executed agreement of individual loan dated 09.11.2015, Annexure-A3 (copy), common agreement dated 09.11.2015, Annexure-A4 (copy), tripartite agreement with defendant No. 2 dated 09.11.2015, Annexure-A5 (copy), allotment letter dated 27.03.2015, Annexure-A6 (copy) and agreement dated 19.08.2015 to sell between defendant No. 1 and defendant No. 2, Annexure-A7 (copy).

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The aforesaid loan was further secured by creation of mortgage by defendant No. 1 in respect of Flat No. 54 measuring 1225 Square Feet, Fifth Floor, Casa Romana, situated in the revenue estate of Maheshwari, Sector 22, Tehsil Dharuhera, District Rewari, Haryana, fully detailed in para No. 5.9 of the Original Application. Tripartite agreement with defendant No. 2 dated 09.11.2015 is Annexure-A8 (copy).

¶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 leading to the loan account becoming irregular and it being classified as NPA on 01.03.2022. The applicant bank recalled entire outstanding amount vide legal notice dated 13.07.2022 along with its postal receipts, Annexure-A9 (colly) (copy), but to no avail.

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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.31,57,655.66/- (Rupees Thirty One Lacs Fifty Seven Thousand Six Hundred and Fifty Five and Sixty Six Paisa Only) is recoverable against the defendants as per statement of

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OA/153/2023 PUNJAB NATIONAL BANK Vs PRIYANKAR SHREE GYAN AND ANOTHER 4

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account, certified under Bankers’ Books Evidence Act, 1891, Annexure-A10 (colly) (copy).

¶30

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

¶31

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 01.04.2023 .

¶32

In support of contents of the OA, affidavit of evidence of Sh. Kuldeep Singh Rana, Chief Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Ms Arpita Sonkar, Manager Law for the applicant bank and gone through the record carefully.

¶34

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 defendants for recovery of the amount sought. From perusal of Annexures-A1 to A10 , it is clear that the defendant 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. It is also clear that tripartite agreement with defendant No. 2 dated 09.11.2015, Annexure-A5 (copy) was executed between the parties. Unfortunately, the defendants failed

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OA/153/2023 PUNJAB NATIONAL BANK Vs PRIYANKAR SHREE GYAN AND ANOTHER 5

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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.31,57,655.66/- (Rupees Thirty One Lacs Fifty Seven Thousand Six Hundred and Fifty Five and Sixty Six Paisa Only) from the defendants.

¶37

In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @7.25% per annum plus penal interest @2% per annum. In sanction letter dated 11.09.2015, Annexure-A2 (copy), rate of interest has been mentioned @9.90% per annum.

¶38

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. housing, quantum of loan, 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 @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶39

In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.31,57,655.66/- (Rupees Thirty One Lacs Fifty Seven Thousand Six Hundred and Fifty Five and Sixty Six Paisa Only) with current and future simple interest @7% per annum

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OA/153/2023 PUNJAB NATIONAL BANK Vs PRIYANKAR SHREE GYAN AND ANOTHER 6

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w.e.f. 04.01.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. 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. However, the applicant bank is at liberty to enforce the claim through due process of law.

¶42

Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 13.10.2023 .

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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.

¶45

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

Punjab National Bank v. Shri Priyankar Shree Gyan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shri Priyankar Shree Gyan

Case brief

What is this about?

What did the court decide?

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