Allowed

Punjab National Bank (Oriental Bank of Commerce) v. Sh. Gurmukh Singh

DRT7 Jun 2023OA/1754/2022

Case brief

AI extract

What is this about?

DT-2 allowed the original application filed by Punjab National Bank for recovery of Rs.21,03,673.89/- from three respondents. The bank proved the loan, mortgage, and default. The court issued a Recovery Certificate and fixed simple interest at 8% per annum.

What did the court decide?

Issuance of Recovery Certificate for Rs.21,03,673.89/- with simple interest @8% p.a. from 17.09.2022 recoverable via sale of mortgaged property or attachment of personal assets.

Punjab National Bank (Oriental Bank of Commerce) versus Sh… — Banking and Recovery | DRT (2023)

¶1

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

¶2

ORIGINAL APPLICATION NO.1754/2022

¶3

DATE OF INSTITUTION: 17.09.2022

¶4

DATE OF DECISION: 7^th DAY OF JUNE, 2023

¶5

Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi110075 and the successor of Oriental Bank of Commerce, by Scheme of Amalgamation of Oriental Bank of Commerce, passed by the Central Government under Section 9 of the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1980, through one of its Branches at Naraingarh, Tehsil Naraingarh, District Ambala, through its Power of Attorney Holder, Sh. Baldev Raj

¶6

…..Applicant Bank

¶7

Versus

¶8

Sh. Gurmukh Singh S/o Sh. Jai Singh

¶9

Sh. Suresh Pal S/o Sh. Jai Singh

¶10

Sh. Pawan Kumar S/o Sh. Jai Singh

¶11

All residents of Village Nanduwali, Tehsil Naraingarh, District Ambala, Haryana

¶12

…..Defendants

¶13

Argued by: Ms Priyanka Gupta, Chief Manager-Law along with Smt. Arpita Sonkar, Manager-Law for the applicant bank Defendants ex parte vide order dated 06.02.2023

¶14

FINAL ORDER

¶15

Present Original Application was instituted by the applicant

¶16

bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to

¶17

OA/1754/2022 PUNJAB NATIONAL BANK Vs GURMUKH SINGH AND OTHERS

¶18

¶19

as ‘the Act’ for brevity), against the defendants for recovery of Rs.21,03,673.89/- (Rupees Twenty One lacs Three Thousand

¶20

Six Hundred Seventy Three and eighty Nine Paisa Only) . It has been filed through Sh. Baldev Raj, Constituted Attorney of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 04.09.2003, Annexure- A2 (copy).

¶21

The brief facts of the case of the applicant as per Original Application are that the defendants had approached the applicant bank for grant of KCC facility of Rs.14 lacs vide loan application dated 11.07.2017, Annexure-A3 (copy).

¶22

The applicant bank sanctioned aforesaid credit facility to the defendants vide sanction letter dated 24.07.2017, Annexure-A4 (copy) as per terms and conditions which were duly accepted by the defendants.

¶23

In order to secure the aforementioned credit facility, the defendants executed hypothecation agreement dated 24.07.2017, Annexure-A5 (copy).

¶24

The aforesaid loan was further secured by creation of registered mortgage by defendant No. 1 in respect of agricultural land measuring 32 Kanals situated in the revenue estate of Nannduwali, Tehsil Naraingarh, District Ambala, Haryana, fully detailed in para No. 5.4 of the Original Application.

¶25

The documents relating to the mortgage are as under:

¶26

OA/1754/2022 PUNJAB NATIONAL BANK Vs GURMUKH SINGH AND OTHERS

¶27

¶28

i. Declaration dated 24.07.2017 under section 4(1) of the Haryana Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A6 (copy).

¶29

ii. Copy of ‘Jamabandi’ for the years 2011-12, AnnexureA7 .

¶30

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 NPA on 01.07.2021. The defendants executed balance and security confirmation letter dated 16.12.2019, Annexure-A8 (copy).

¶31

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.21,03,673.89/- (Rupees Twenty One lacs Three Thousand Six Hundred Seventy Three and eighty Nine Paisa Only) is recoverable against the defendants as per statement of account dated 19.07.2022, Annexure-A10 (copy) and interest chart, Annexure-A11 (copy) certified under Bankers’ Books Evidence Act, Annexure-A12 (copy).

¶32

Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate. 7. Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex-parte vide order dated 06.02.2023 .

¶33

OA/1754/2022 PUNJAB NATIONAL BANK Vs GURMUKH SINGH AND OTHERS

¶34

¶35

In support of the contents of the OA, affidavit of evidence of

¶36

Sh. Baldev Raj, Power of Attorney Holder of the applicant bank was filed.

¶37

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

¶38

It was argued by Ms Priyanka Gupta, Chief 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-A2 to A8 and A10 to A12 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants 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.21,03,673.89/- (Rupees Twenty One lacs Three Thousand Six Hundred Seventy Three and eighty Nine Paisa Only) from the defendants.

¶39

In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @8.45% per annum with half yearly rests plus @2% per annum penal interest. In sanction letter dated 24.07.2014, Annexure-A4 (copy), rate of interest has been mentioned @8.45% per annum.

¶40

OA/1754/2022 PUNJAB NATIONAL BANK Vs GURMUKH SINGH AND OTHERS

¶41

¶42

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.

¶43

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.21,03,673.89/- (Rupees Twenty One lacs Three Thousand Six Hundred Seventy Three and eighty Nine Paisa Only) with current and future simple interest @8% per annum w.e.f. 17.09.2022 , 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 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, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.

¶44

OA/1754/2022 PUNJAB NATIONAL BANK Vs GURMUKH SINGH AND OTHERS

¶45

¶46

Issue Recovery Certificate accordingly.

¶47

Parties to appear before Recovery Officer concerned on 07.08.2023 .

¶48

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.

¶49

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

Punjab National Bank (Oriental Bank of Commerce) v. Sh. Gurmukh Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Oriental Bank of Commerce) v. Sh. Gurmukh Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

M/S Ramdeo Traders Proprietor Uday Subhaschandra Bothra versus Icici Bank Limited

Smt Kokila Wo Gajananrao Shete versus Indian Bank

Punjab National Bank versus Smt. Babita Rani

Mustaaq Ahmad Seikh versus Jammu and Kashmir Bank Limited

Punjab National Bank (Oriental Bank of Commerce) versus Sh. Kushi Ram

State Bank of India versus Sh. Shamsher Singh