This DRT allowed an application filed by Punjab National Bank for recovery of Rs. 25,13,306 from a defendant who defaulted on an agricultural loan. The tribunal decreed the principal amount with uniform simple interest at 8% per annum from the date of filing.
Issuance of Recovery Certificate for Rs. 25,13,306 with simple interest at 8% per annum from 15.09.2022.
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO. 1704/2022
DATE OF INSTITUTION: 15.09.2022
DATE OF DECISION: 26th DAY OF DECEMBER, 2023
Punjab National Bank , a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and Branches all over India including one at Naraingarh (e-OBC Branch), District Ambala, Haryana, (presently account is at Circle Sastra Centre, Kurukshetra, as per arrangement of the bank for handling NPA accounts) through its Constituted Attorney/Manager, Sh. Baldev Raj
…..Applicant
Versus
Sh. Ajaib Singh s/o Sh. Prem Chand r/o Village Kundi, Tehsil and District, Panchkula, Haryana
....Defendant
Argued by: Sh. Hemant Hans proxy counsel for Sh. Bhushan Bhatia counsel for the applicant bank Defendant ex parte vide order dated 18.10.2023
FINAL ORDER
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), a gainst the defendant for recovery of Rs.25,13,306/- (Rupees Twenty Five Lac Thirteen Thousand Three Hundred and Six Only) . It has been filed through Sh. Baldev Raj, Constituted Attorney/Manager of the applicant bank stated to be competent to institute the Original
OA/1704/2022 PUNJAB NATIONAL BANK VS AJAIB SINGH 2
Application vide power of attorney dated 04.09.2003, Annexure-A1 (copy).
OA/1704/2022 PUNJAB NATIONAL BANK VS AJAIB SINGH 3
01.01.2020, Annexure-A7 (copy). The applicant bank recalled entire outstanding amount vide notice dated 20.07.2022 along with its postal receipt, Annexure-A6 (colly) (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.25,13,306/(Rupees Twenty Five Lac Thirteen Thousand Three Hundred and Six Only) , is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A8 (colly) (copy).
Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1704/2022 PUNJAB NATIONAL BANK VS AJAIB SINGH 4
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.25,13,306/- (Rupees Twenty Five Lac Thirteen Thousand Three Hundred and Six Only) from the defendant.
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 the mortgaged property, 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.
OA/1704/2022 PUNJAB NATIONAL BANK VS AJAIB SINGH
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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.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount from the defendant.
What rate of interest should be granted on the recovered amount.
1 provisions across 1 enactments
Punjab National Bank
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
