Allowed

Punjab National Bank v. Sh. Deepak Singla

DRT19 Jun 2023OA/1545/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs. 27,46,903 from the respondent. An ex parte order was passed admitting the bank's claim based on unrefuted documentary evidence regarding an overdraft facility and mortgage.

What did the court decide?

Recovery of Rs. 27,46,903 plus simple interest at 10% per annum from the date of filing. Issue of Recovery Certificate.

Punjab National Bank versus Sh. Deepak Singla — Contract and Commercial Disputes | DRT (2023)

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

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ORIGINAL APPLICATION NO.1545/2022

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DATE OF INSTITUTION: 30.08.2022

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DATE OF DECISION: 19^th DAY OF JUNE, 2023

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Punjab National Bank , a body corporate, having common seal and perpetual succession, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, carrying on business and having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and its Branch Office at Court Road, Ambala city, Haryana, through its duly constituted attorney and Senior Manager, Sh. Madan Lal, presently posted at Circle Sastra Centre, Kurukshetra, Haryana

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…..Applicant Bank

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Versus

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Sh. Deepak Singla S/o Sh. Sohan Lal Singla R/o House No. 70-71 E, Ram Bagh, Ambala Cantt-133001, Haryana

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…..Defendant

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Argued by: Sh. Kunal Goyal, Law Officer for the applicant bank

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Defendant ex parte vide order dated 27.01.2023

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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

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and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity) against the defendant for recovery of Rs.

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27,46,903/- (Rupees Twenty Seven lacs Forty Six Thousand

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Nine Hundred and Three Only) . It has been filed through Sh. Madan Lal, Senior Manager of the applicant bank stated to be

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OA NO.1545/2022 PUNJAB NATIONAL BANK VS SH. DEEPAK SINGLA 2

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competent to institute the Original Application vide General Power of Attorney dated 01.01.2007, Annexure-A1 (copy).

¶19

The brief facts of the case of the applicant as per the Original Application are that defendant had approached the applicant bank for grant of Overdraft facility of Rs. 34 lacs vide loan application, Annexure-A2 (colly) (copy).

¶20

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

¶21

In order to secure the aforementioned credit facility, defendant executed overdraft agreement dated 29.09.2017, Annexure-A4 (copy) and irrevocable power of attorney dated 29.09.2017, Annexure-A5 (copy). Rent deed is Annexure-A2 (colly) (copy).

¶22

The aforesaid loan was further secured by creation of extension of mortgage by defendant in respect of immovable property measuring 240 Square Yards situated in Bengali Mohalla, Ambala. Registered title deed dated 30.05.2016 and acknowledgment letter by bank are Annexure-A6 (colly) (copy).

¶23

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 10.09.2021. The defendant executed balance and security confirmation letter dated 09.07.2020, Annexure-A8 (copy). The applicant bank recalled the entire outstanding amount vide legal notice dated

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OA NO.1545/2022 PUNJAB NATIONAL BANK VS SH. DEEPAK SINGLA 3

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02.04.2022 along with original postal receipt, Annexure-A7 (colly) (copy), but to no avail.

¶26

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs. 27,46,903/- (Rupees Twenty Seven lacs Forty Six Thousand Nine Hundred and Three Only) is recoverable against the defendant as per statement of account duly certified under Bankers’ Books Evidence Act, Annexure-A9 (copy) and summary of recoverable dues, Annexure-A10 (copy).

¶27

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

¶28

Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant despite service, thus, the defendant was proceeded against ex parte vide order dated 21.07.2023 .

¶29

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

¶30

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

¶31

It was argued by Sh. Kunal Goyal, Law Officer of the applicant bank 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

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OA NO.1545/2022 PUNJAB NATIONAL BANK VS SH. DEEPAK SINGLA 4

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to A10 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him after he 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. 27,46,903/- (Rupees Twenty Seven lacs Forty Six Thousand Nine Hundred and Three Only) from the defendant.

¶34

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest of @9.85% per annum plus penal interest of @2% per annum. In sanction note, Annexure-A3 (copy), the rate of interest has been mentioned @10.90% per annum.

¶35

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 mortgaged property, purpose of loan, i.e. business, 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 @10% per annum from the date of filing of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.

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OA NO.1545/2022 PUNJAB NATIONAL BANK VS SH. DEEPAK SINGLA 5

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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. 27,46,903/- (Rupees Twenty Seven lacs Forty Six Thousand Nine Hundred and Three Only) with current and future simple interest @ 10% per annum , w.e.f. 30.08.2022 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, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property 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 19.08.2023.

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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.

¶41

Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer

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DRT-2, Chandigarh

Punjab National Bank v. Sh. Deepak Singla

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Deepak Singla

Case brief

What is this about?

What did the court decide?

What the court decided

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