Allowed

Punjab National Bank v. Smt. Paramjit Kaur

DRT17 Nov 2023OA/166/2022

Case brief

AI extract

What is this about?

In an ex-parte original application, the Debts Recovery Tribunal allowed the bank's claim for recovery of a mortgage loan of approximately Rs. 74.88 lakhs. The court ruled the defendants liable to pay the principal with interest at 10% p.a. and authorized recovery via hypothecated properties or personal assets.

What did the court decide?

Declaration of liability to pay Rs. 74,88,207.00 with interest at 10% p.a.; permission to recover from mortgaged/personal assets; direction to issue Recovery Certificate.

Punjab National Bank versus Smt. Paramjit Kaur — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.166/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.01.2022

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DATE OF DECISION: 17.11.2023

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Punjab National Bank (In which Oriental Bank of Commerce amalgamated w.e.f. 01.04.2020) a body corporate, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi- 110075 and one of the Branch at Sherpur Road, Jagraon, District Ludhiana, Punjab through its Authorized Officer and General Attorney, Sh. Navneen Setia, Senior Manager

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……..Applicant Versus

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Smt. Paramjit Kaur widow of Sh. Sadhu Singh, R/o Village Dholan, Tehsil Jagraon, District Ludhiana

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Sh. Boota Singh S/o Sh. Sadhu Singh, R/o Village Dholan, Tehsil Jagraon, District Ludhiana

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Sh. Shingara Singh S/o Sh. Sadhu Singh, R/o Village Dholan, Tehsil Jagraon, District Ludhiana

(Borrowers)

………Defendants

Advocates:

Argued by Sh. J.S. Sehgal, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.74,88,207.00 (Rupees Seventy Four Lacs Eighty Eight Thousand Two Hundred Seven only). The Original Application has been filed

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through Sh. Navneen Setia, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 08.06.2013, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of OGC Limit of Rs.32.00 Lacs vide Loan Application dated 27.03.2012, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.32.00 Lacs vide Sanction Letter dated 27.03.2012, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total land measuring 11B-9B-13B Pukhta situated at Village Dholan, Tehsil Jagraon, District Ludhiana, Punjab vide Registered Mortgage Deed bearing Vasika No.84 dated 09.04.2012 and Mutation/Rapat Certificate dated 10.04.2012 along with the translations, which are Annexures A6 to A9 to this OA.

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Documents executed:- Gazette Notification dated 01.04.2020, which is Annexure A1 to this OA; Agreement for Hypothecation of existing and future crops/ movable assets/ livestock to secure a cash credit account of Oriental Green Card dated 12.04.2012, which is Annexure A5 to this OA; Notices and postal receipts dated 28.01.2020, which are Annexures A10 and A11 to this OA; Balance and security confirmation letter dated 29.12.2020, which is Annexure A12 to this OA and Statement of account along with the certificate, which is Annexure A13 to this OA.

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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.74,88,207.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 06.07.2023.

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In support of the OA, affidavit of Sh. Navneen Setia, Senior Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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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 A13 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants 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.74,88,207.00 (Rupees Seventy Four Lacs Eighty Eight Thousand Two Hundred Seven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.50%p.a. along with @2%p.a. penal interest from 01.10.2021 till the realization.

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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 defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it

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just and appropriate to grant uniform simple interest @10.00%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 defendants are liable to pay to the applicant a total sum of Rs.74,88,207.00 (Rupees Seventy Four Lacs Eighty Eight Thousand Two Hundred Seven only) jointly and severally, with costs, current and future simple interest @10.00%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 defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.11.2023. 15. Copy of this order be given dasti to the applicant bank and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the Open Tribunal. Dated: 17.11.2023

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Smt. Paramjit Kaur

Case brief

What is this about?

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Punjab National Bank v. Smt. Paramjit Kaur

Case brief

What is this about?

What did the court decide?

What the court decided

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