Drugs Tribunal upheld the bank's application for recovery of a loan Rs.44,75,891.50 from a non-performing account.
Recovery certificate issued; repayment of principal Rs.44,75,891.50 plus interest @9.10% p.a. ordered.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.161/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 22.12.2021
DATE OF DECISION: 01.12.2023
Punjab National Bank (erstwhile known as Oriental Bank of Commerce), a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and Branch at National Highway 95, Ahluwalia Colony, Jamalpur, Ludhiana, Punjab through its General Power of Attorney holder Sh. Ravinder Sharma, Senior Manager of the applicant bank.
……..Applicant
Versus
Sh. Prabhjot Singh S/o Sh. Darshan Singh, R/o Village Jiwanpur, PO Hawas, Sub Tehsil Koom Kalan, Tehsil and District Ludhiana, Punjab
………Defendant
Advocates:
Argued by Sh. Anup Prajpati, counsel proxy for Sh. Brijesh Sharma, counsel for the applicant Defendant is ex-parte
FINAL ORDER
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| Application Forms-cum-Process Notes dated 03.03.2006 and |
|---|
| 24.10.2009, which areAnnexures A2 and A7to this OA. |
| 3. The applicant Bank sanctioned the OGC Cash Credit Limit of |
| Rs.10.00 Lacs and further enhanced it to Rs.20.00 Lacs vide Sanction |
| Letters dated 03.03.2006 and 04.11.2009, which areAnnexures A3 and A8to this OA and the terms and conditions were duly accepted by |
| the defendant. |
| 4. Defendant had mortgaged his immovable properties detailed |
| as:- |
| a) Land measuring 37K-07M situated at Village Jiwanpur, H.B. No.57, Sub Tehsil Koom Kalan, District Ludhiana, Punjab vide Mortgage Deed bearing Vasika No.1674 dated 23.02.2006, which isAnnexure A6to this OAand b) Land measuring 13K-06M situated at Village Jiwanpur, H.B. No.57, Sub Tehsil Koom Kalan, District Ludhiana, Punjab vide Mortgage Deed bearing Vasika No.975 dated 04.11.2009 along with its translation, which isAnnexure A13to this OA. |
| Documents executed:- Common agreement, Agreement of |
| hypothecation both dated 03.03.2006, which areAnnexures A4 and |
| A5to this OA; Agreements of hypothecation, Supplementary |
| agreement all dated 23.11.2009, which areAnnexures A9 to A11to |
| this OA; Renewal application for agricultural loan dated 28.02.2013, which isAnnexure A12to this OA; Balance confirmation letter dated |
| 29.12.2007, 21.11.2009, 19.07.2012, 28.02.2013, 05.11.2015, |
| 29.04.2017 and 31.12.2019, which isAnnexure A14to this OA; Legal |
| notice dated 23.11.2021, which isAnnexure A15to this OA and |
| Statement of account along with the certificate under Bankers Books |
| Evidence Act, 1891, which isAnnexure A16to this OA. |
| 5. The loan account became irregular and was classified as NPA |
| and after adjusting debit and credit entries in loan account there was a |
| debit of Rs.44,75,891.50p, which is recoverable and the defendant was |
| served recall notice but he did not repay the outstanding amount, |
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therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 17.07.2023. 7. In support of the OA, affidavit of Sh. Ravinder Sharma, Senior 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 defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.44,75,891.50p (Rupees Forty Four Lacs Seventy Five Thousand Eight Hundred Ninety One and Paisa Fifty only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.10%p.a. with half yearly rests from the date of filing of this Application till the realization. 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 defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while
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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9.10%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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.44,75,891.50p (Rupees Forty Four Lacs Seventy Five Thousand Eight Hundred Ninety One and Paisa Fifty only) with costs, current and future simple interest @9.10%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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.
Pronounced by me in the Open Tribunal. Dated: 01.12.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
1 issue framed by the court
Whether the applicant bank is entitled to recovery of the outstanding loan amount secured by mortgage.
3 provisions across 3 enactments
Punjab National Bank
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
Mridulesh Kumar Singh
Parties & counsel
