Allowed

Punjab National Bank v. Sh. Kuldeep Singh

DRT6 Oct 2023OA/1583/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's original application for issuance of a Recovery Certificate. The court ordered recovery of the principal amount along with uniform simple interest at 8% per annum from the date of filing, granting measure of the Pandemic impact, and authorized recovery from mortgaged properties.

What did the court decide?

Issuance of Recovery Certificate for Rs. 26,51,452.01 with simple interest at 8% per annum from 26.08.2022; liberty to recover via sale of mortgaged property or attachment of personal assets.

Punjab National Bank versus Sh. Kuldeep Singh — Execution and Attachment | DRT (2023)

¶1

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

¶2

ORIGINAL APPLICATION NO. 1583/2022

¶3

DATE OF INSTITUTION: 26.08.2022

¶4

DATE OF DECISION: 06^th DAY OF OCTOBER, 2023

¶5

Punjab National Bank , Village Padha, District Karnal-132036, through Authorised Representative, Sh. Vinod, Senior Manager, Punjab National bank, Circle Sastra, Sector-12, Karnal-132001, Phone No. 9991039995, Email: [email protected]

¶6

…..Applicant Bank

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Versus

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Sh. Kuldeep Singh s/o Sh. Ishwar Singh r/o House No. 416, Urban Estate, Sector 8-9, Part 2, Karnal-132001

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Also at:

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House No.143, Village Kurlan, Block 2, Tehsil Assandh, District Karnal-132046

¶11

Pan Card: BHSPS8149G

¶12

....Defendant

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Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendant ex parte vide order dated 25.04.2023

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.26,51,452.01/-

¶16

(Rupees Twenty Six Lac Fifty One Thousand Four Hundred

¶17

OA/1583/2022 PUNJAB NATIONAL BANK VS SH. KULDEEP SINGH 2

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Fifty Two and Zero One Paisa Only) . It has been filed through Sh. Vinod, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 30.11.2015, Annexure-A1 (copy).

¶19

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. 5 lac which was further enhanced to Rs. 20 lac vide loan application, Annexure-A2 (copy) and loan application dated 08.03.2016, Annexure-A5 (copy).

¶20

The applicant bank sanctioned aforesaid facility to the defendant vide sanction letters, Annexures-A3 and A6 (copy) as per terms and conditions which were duly accepted by the defendant.

¶21

In order to secure the aforementioned credit facility, the defendant executed hypothecation agreements dated 25.08.2009 and 21.03.2016, Annexures-A4 and A7 (copy). 5. The aforesaid loan was further secured by creation of equitable mortgage by defendant in respect of agricultural land measuring 131 Kanal 08 Marla situated in the revenue estate of Kurlan, Sub-Tehsil Ballah, District Karnal, Haryana, fully detailed in para No. 5(viii) of the Original Application.

¶22

The documents relating to the mortgage are as under:

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i. Registered Supplementary deed of mortgage dated 14.03.2016,

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Annexure-A8 (copy).

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ii. Copy of ‘Jamabandi’ for the years 2013-2014, Annexure-A9 (copy).

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OA/1583/2022 PUNJAB NATIONAL BANK VS SH. KULDEEP SINGH 3

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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 leading to the loan account becoming irregular and it being classified as NPA on 02.01.2022. The defendant executed balance and security confirmation letter dated 25.11.2021, Annexure-A10 (copy). The applicant bank recalled entire outstanding amount vide notice dated 28.07.2022, along with original postal receipts, Annexure-A11 (colly) (copy), but to no avail.

¶28

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.26,51,452.01/(Rupees Twenty Six Lac Fifty One Thousand Four Hundred Fifty Two and Zero One Paisa Only), is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, AnnexureA12 (copy).

¶29

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

¶30

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 25.04.2023 . 8. In support of contents of the OA, affidavit of evidence of Sh. Vinod, Senior Manager of the applicant bank was filed.

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OA/1583/2022 PUNJAB NATIONAL BANK VS SH. KULDEEP SINGH 4

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

¶33

It was argued by Ms Arpita Sonkar, Manager Law 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 A12 , 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.26,51,452.01/(Rupees Twenty Six Lac Fifty One Thousand Four Hundred Fifty Two and Zero One Paisa Only) from the defendant.

¶34

In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @8.85% per annum plus penal interest @2% per annum with monthly rests. In sanction letter, Annexure-A3 (copy), the rate of interest has been mentioned @11% 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

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OA/1583/2022 PUNJAB NATIONAL BANK VS SH. KULDEEP SINGH 5

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Covid-19 affecting businesses, 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, 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.

¶38

In the result, the Original Application is allowed with costs holding that the defendant is liable to pay to the applicant bank a sum of Rs.26,51,452.01/- (Rupees Twenty Six Lac Fifty One Thousand Four Hundred Fifty Two and Zero One Paisa Only) with current and future simple interest @8% per annum w.e.f. 26.08.2022 , 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. However, the applicant bank is at liberty to enforce the claim through due process of law.

¶39

Issue Recovery Certificate accordingly.

¶40

Parties to appear before Recovery Officer concerned on 02.11.2023.

¶41

OA/1583/2022 PUNJAB NATIONAL BANK VS SH. KULDEEP SINGH 6

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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.

¶43

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

Punjab National Bank v. Sh. Kuldeep Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Kuldeep Singh

Case brief

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