Allowed

Punjab National Bank v. Sh. Ashok Kumar Chauhan

DRT19 Sept 2023OA/1840/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the bank's application for recovery of an outstanding loan of approximately 20.73 lakhs secured by a mortgage. The court granted a Recovery Certificate and fixed future interest at 7% per annum, overruled the bank's penal claim, and authorized recovery against mortgaged or personal assets.

What did the court decide?

Recovery Certificate issued; Defendants ordered to pay Rs. 20,73,172.97 with future simple interest at 7% p.a. from filing date.

Punjab National Bank versus Sh. Ashok Kumar Chauhan — Specific Performance | DRT (2023)

¶1

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

¶2

ORIGINAL APPLICATION NO. 1840/2022

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DATE OF INSTITUTION: 30.09.2022

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DATE OF DECISION: 19^th DAY OF SEPTEMBER, 2023

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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 its Branch at Punjab National Bank, Kohand, District Karnal-132114, through its Authorised Representative, Sh. Vinod, Senior Manager, Punjab National Bank, Circle Sastra, Sector-12, Karnal-132001

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…..Applicant Bank

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Versus

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Sh. Ashok Kumar Chauhan s/o Sh. Rafiq Ahmed r/o House No. 2148, Sector 13-17, New Housing Board Colony HUDA, Panipat132103

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Smt. Suman w/o Sh. Ashok Kumar Chauhan r/o House No. 2148, Sector 13-17, New Housing Board Colony, HUDA, Panipat132103

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....Defendants

¶11

Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendants ex parte vide order dated 20.05.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of

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OA/1840/2022 PUNJAB NATIONAL BANK VS ASHOK KUMAR CHAUHAN AND ANOTHER 2

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Rs.20,73,172.97/(Rupees Twenty Lac Seventy Three Thousand One Hundred Seventy Two and Ninety Seven Paisa Only) . It has been filed through Sh. Vinod, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 30.11.2015, Annexure-A1 (copy).

¶16

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 housing term loan facility of Rs. 2 lac and overdraft loan facility of Rs. 18 lac .

¶17

The applicant bank sanctioned aforesaid facilities to the defendants vide sanction letters dated 08.06.2017, Annexures-A2 and A3 (copy) as per terms and conditions which were duly accepted by the defendants. 4. In order to secure the aforementioned credit facilities, the defendants executed agreement for housing loan dated 08.06.2017, Annexure-A4 (copy) and agreement dated 08.06.2017 of overdraft facility for housing loan, Annexure-A5 (copy).

¶18

The aforesaid loans were further secured by creation of mortgage by defendant No. 1 in respect of residential House No. 2148, LIG measuring 40.04 Square Yards situated at Sector 13-17, Housing Board Colony, Panipat, Haryana, fully detailed in para No. 5(vi) of the Original Application. Registered conveyance deed No. 12285 dated 08.03.2011 is Annexure-A6 (copy).

¶19

It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to

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OA/1840/2022 PUNJAB NATIONAL BANK VS ASHOK KUMAR CHAUHAN AND ANOTHER 3

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maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA on 31.03.2022. The defendants executed balance and security confirmation letters dated 31.10.2019, Annexure-A7 (colly) (copy). The applicant bank recalled entire outstanding amount vide notice dated 20.04.2022 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Annexure-A8 (copy), but to no avail.

¶22

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.20,73,172.97/(Rupees Twenty Lac Seventy Three Thousand One Hundred Seventy Two and Ninety Seven Paisa Only), is recoverable against the defendants as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A9 (colly) (copy).

¶23

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 20.05.2023 .

¶24

In support of contents of the OA, affidavit of evidence of Sh. Vinod, Senior Manager of the applicant bank was filed.

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OA/1840/2022 PUNJAB NATIONAL BANK VS ASHOK KUMAR CHAUHAN AND ANOTHER 4

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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.

¶27

It was argued by Ms Arpita Sonkar, Manager Law 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 A9 , it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were 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.20,73,172.97/(Rupees Twenty Lac Seventy Three Thousand One Hundred Seventy Two and Ninety Seven Paisa Only) from the defendants.

¶28

In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @8.60% per annum plus penal interest @2% per annum. In sanction letter dated 08.06.2017, Annexure-A2 (copy), the rate of interest has been mentioned @8.60% per annum in housing term loan facility.

¶29

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

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OA/1840/2022 PUNJAB NATIONAL BANK VS ASHOK KUMAR CHAUHAN AND ANOTHER 5

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Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. housing, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 2 being a female, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶32

In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.20,73,172.97/- (Rupees Twenty Lacs Seventy Three Thousand One Hundred Seventy Two and Ninety Seven Paisa Only) with current and future simple interest @7% per annum w.e.f. 30.09.2022 , 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. However, the applicant bank is at liberty to enforce the claim through due process of law.

¶33

Issue Recovery Certificate accordingly.

¶34

Parties to appear before Recovery Officer concerned on 16.10.2023.

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OA/1840/2022 PUNJAB NATIONAL BANK VS ASHOK KUMAR CHAUHAN AND ANOTHER 6

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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.

¶37

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

Punjab National Bank v. Sh. Ashok Kumar Chauhan

Case brief

What is this about?

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Punjab National Bank v. Sh. Ashok Kumar Chauhan

Case brief

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What did the court decide?

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