Allowed

Punjab National Bank, v. Sh. Nirmal Singh and Another

DRT12 Sept 2023OA/1857/2022

Case brief

AI extract

What is this about?

The DRT allowed an application filed by Punjab National Bank for recovery of Rs. 28,72,044.14 p from two respondents. The court declared the respondents liable to pay the principal amount, costs, and uniform simple interest of 8.75% per annum from the filing date till realization, orderable via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Declaration of liability to pay Rs. 28,72,044.14 p with simple interest at 8.75% p.a.; entitlement to recovery via sale of mortgaged property or attachment of personal assets.

Punjab National Bank, versus Sh. Nirmal Singh and Another — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1857/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.11.2022

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DATE OF DECISION: 12.09.2023

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate office at Plot no.4, Sector 10, Dwarka, New Delhi110075 and having one of its branch office at Landran, District Mohali, Punjab, through Sh. Ravi Kumar, Chief Manager, Punjab National Bank, Circle Sastra Centre, Phase-2, Mohali, Principal Officer and duly constituted Attorney of the Applicant Bank

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……..Applicant

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Versus

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Sh. Nirmal Singh S/o Sh. Avtar Singh, R/o Village Sekhan Majra, Tehsil and District Mohali, Punjab-140307

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Smt. Mandeep Kaur W/o Sh. Nirmal Singh, R/o Village Sekhan Majra, Tehsil and District Mohali, Punjab-140307

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….……Defendants

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Advocates:

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Argued by Sh. P.S. Sobti, 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.28,72,044.14p (Rupees Twenty Eight Lacs Seventy Two Thousand Forty Four and Fourteen Paisa only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009 and Notification dated 04.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 03.08.2013. 3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Loan application cum Sanction Letter dated 03.08.2013, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.2 had mortgaged her immovable property i.e. land measuring 5 Bigha 10 Biswa 16 Biswasi situated in the revenue estate of Village Patton, Tehsil and District Mohali, Hadbast No.273, Punjab vide Registered Mortgage deed No.1470 dated 13.08.2013 and Jamabandi for the year 2007-08 along with their translations, which are Annexures A4, A4/A, A5 and A5/A to this OA. Documents executed:- Agreement of Hypothecation dated 19.08.2013, which is Annexure A3 to this OA; Legal Notice dated 04.07.2019, which is Annexure A6 to this OA; Notice along with its translation dated 02.03.2020, which are Annexures A7 and A7/A to this OA; Balance Confirmation letters dated 23.05.2016 and 20.05.2019, which is Annexures A8 and A9 to this OA and Statement of Account, which is Annexure A10 to this OA. 5. 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.28,72,044.14p, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 25.08.2023. 7. In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. 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 A10 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 loans 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.28,72,044.14p (Rupees Twenty Eight Lacs Seventy Two Thousand Forty Four and Fourteen Paisa only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @8.75%p.a. along with @2%p.a. penal interest with half yearly rests from 01.04.2022 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 loans 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 just and appropriate to grant uniform simple interest @8.75%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,72,044.14p (Rupees Twenty Eight Lacs Seventy Two Thousand

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Forty Four and Fourteen Paisa only) jointly and severally, with costs, current and future simple interest @8.75%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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.09.2023.

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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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Dated: 12.09.2023

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

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Order dictated, signed and pronounced by me in the open Tribunal.

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Dated: 12.09.2023

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

Punjab National Bank, v. Sh. Nirmal Singh and Another

Case brief

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Punjab National Bank, v. Sh. Nirmal Singh and Another

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