Allowed

Punjab National Bank v. M/S Daya Chand Basawa Ram

DRT12 Jul 2023OA/1666/2022

Case brief

AI extract

What is this about?

DRT allowed the bank's application for recovery of approximately Rs. 45 lakhs advanced as a loan against security. The court adjusted future interest to 10% per annum and directed issuance of a Recovery Certificate against all defendants jointly and severally.

What did the court decide?

Recovery Certificate issued for Rs. 44,99,212.64 with future simple interest @ 10% p.a. w.e.f. 08.09.2022, with liberty to enforce against secured and personal assets.

Punjab National Bank versus M/S Daya Chand Basawa Ram — Banking and Recovery | DRT (2023)

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

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ORIGINAL APPLICATION NO.1666/2022

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DATE OF INSTITUTION: 08.09.2022

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DATE OF DECISION: 12^th DAY OF JULY, 2023

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No. 5 of 1970 and having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075, (hereinafter referred to as the said Bank) and amongst many Branches, one at Dhamtan Sahib, District Jind, through Sh. Malkeet Singh Soday, duly constituted Attorney of Circle SASTRA Centre, Jind

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…..Applicant Bank

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Versus

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M/s Daya Chand Basawa Ram , Shop No. 35, Grain Market, Dhamtan Sahib, Tehsil Narwana, District Jind, Haryana, through its Proprietor, Sh. Ram Mehar

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Sh. Ram Mehar S/o Sh. Basawa Ram R/o Shop No. 35, Grain Market, Dhamtan Sahib, Tehsil Narwana, District Jind, Haryana

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Sh. Basawa Ram S/o Sh. Daya Chand R/o Jagga-Patti, Dhamtan Sahib, Tehsil Narwana, District Jind, Haryana

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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 03.02.2023

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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

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OA/1666/2022 PUNJAB NATIONAL BANK VS M/S DAYA CHAND BASAWA 2

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Act’ for brevity), against the defendants for recovery of

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Rs.44,99,212.64/- (Rupees Forty Four Lacs Ninety Nine Thousand Two Hundred Twelve and Sixty Four Paisa only) . The OA has been filed through Sh. Malkeet Singh Soday, constituted Attorney of the applicant bank, stated to be competent to institute the Original Application vide General Power of Attorney, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per the Original Application are that defendant No.1 through defendant No. 2 had approached the applicant bank for grant of CC limit of Rs. 12 lacs

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which was further enhanced to Rs. 35 lacs .

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The applicant bank sanctioned the above said loan facility to the defendants vide sanction letter dated 12.02.2015, Annexure-2 (copy) as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed hypothecation of goods and book debts to secure cash credit facility, Annexure-A3 (copy) and agreement of guarantee, Annexure-A4 (copy).

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The aforesaid loan was further secured by creation of mortgage by defendant No. 3 in respect of agricultural land measuring 110 Kanals 11 Marlas situated in the revenue estate of Dhamtan Sahib, Tehsil Narwana, District Jind, fully detailed in para No. 5.7 of the Original Application.

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The documents related to mortgage are as under:

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i. Registered supplementary mortgage deed dated 17.03.2015,

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Annexure-A5 (copy).

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OA/1666/2022 PUNJAB NATIONAL BANK VS M/S DAYA CHAND BASAWA 3

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ii. Request letter to Sub-Registrar, Narwana, for entry/mutation

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of mortgaged property, Annexure-A6 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared as NPA on 22.01.2021. The applicant bank recalled entire outstanding amount vide notices dated 01.06.2022 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Annexure-A7 (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 accounts, a sum of Rs.44,99,212.64/- (Rupees Forty Four Lacs Ninety Nine Thousand Two Hundred Twelve and Sixty Four Paisa only) , is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, Annexure-A8 (copy).

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

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Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants despite service, thus, the defendants were proceeded against ex parte vide order dated 03.02.2023 .

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OA/1666/2022 PUNJAB NATIONAL BANK VS M/S DAYA CHAND BASAWA 4

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In support of contents of the OA, affidavit of evidence of Sh. Malkeet Singh Soday, Principal Officer, Attorney holder of the applicant bank was filed.

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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.

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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 A8 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them after they had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants 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.44,99,212.64/- (Rupees Forty Four Lacs Ninety Nine Thousand Two Hundred Twelve and Sixty Four Paisa only) from the defendants.

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In so far as pendent elite and future interest is concerned, the applicant bank has claimed rate of interest @14% per annum with monthly rests. In sanction letter dated 12.02.2015, Annexure-2 (copy), the rate of interest has been mentioned 12.50% per annum.

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OA/1666/2022 PUNJAB NATIONAL BANK VS M/S DAYA CHAND BASAWA 5

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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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In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum of Rs.44,99,212.64/- (Rupees Forty Four Lacs Ninety Nine Thousand Two Hundred Twelve and Sixty Four Paisa only) with current and future simple interest @10% per annum , w.e.f. 08.09.2022 , 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, applicant bank shall be at liberty to recover the same by attachment and sale of personal assets/property of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.

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OA/1666/2022 PUNJAB NATIONAL BANK VS M/S DAYA CHAND BASAWA 6

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 12.09.2023

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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.

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

Punjab National Bank v. M/S Daya Chand Basawa Ram

Case brief

What is this about?

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Punjab National Bank v. M/S Daya Chand Basawa Ram

Case brief

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