Allowed

Punjab National Bank v. Sh. Gurmel Singh @ Gurmail Singh

DRT22 Aug 2023OA/192/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's claim for recovery of a housing loan of Rs.24,55,899.80p from respondents jointly and severally, granting uniform simple interest at 8.50%p.a. and authorizing recovery through mortgaged properties under SARFAESI Act.

What did the court decide?

Prayer for recovery of Rs.24,55,899.80p with interest @8.50%p.a. allowed; Recovery Certificate issued.

Punjab National Bank versus Sh. Gurmel Singh @ Gurmail Singh — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.192/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.12.2021

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DATE OF DECISION: 22.08.2023

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and a Branch amongst others at Ferozepur Cantt. through its General Power of Attorney holder, Sh. Sandeep Kumar, Senior Manager, Circle Office, GT Road, Moga

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……..Applicant Versus 1. Sh. Gurmel Singh @Gurmail Singh S/o Sh. Gurcharan Singh, R/o H.No.189, Village Kohar Singh Wala, Ferozepur (Borrower/Mortgagor) 2. Sh. Darshan Singh S/o Sh. Sh. Gurcharan Singh, R/o VPO Kohar Singh Wala, Tehsil Guruharsahai, District Ferozepur (Co-Borrower) 3. Sh. Jagsir Singh S/o Sh. Gurcharan Singh, R/o VPO Kohar Singh Wala, Tehsil Guruharsahai, District Ferozepur (Co-Borrower) 4. Sh. Jasvinder Singh Sh. Gurcharan Singh, R/o VPO Kohar Singh Wala, Tehsil Guruharsahai, District Ferozepur (Co-Borrower) 5. Sh. Davinder Singh S/o Sh. Pal Singh, R/o Village Kohar Singh Wala, Ferozepur (Guarantor) ………Defendants Advocates: Argued by Ms. Lovedeep Kaur, counsel proxy for Ms. Puja Sharma, counsel for the applicant Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.24,55,899.80p (Rupees Twenty Four Lacs Fifty Five Thousand Eight Hundred Ninety Nine and Eighty Paisa only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants No.1 to 4 had approached the applicant bank for the grant of Housing loan for construction of house of Rs.20.00 Lacs.

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The applicant Bank sanctioned the Housing loan of Rs.20.00 Lacs vide Sanction Letter dated 20.05.2013, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 to 4 had mortgaged their immovable properties i.e. total land measuring 19K-18M situated at VPO Kohar Singh Wala, Tehsil Guru Har Sahai, District Ferozepur, Punjab vide Registered Mortgage Deed bearing Vasika No.559 dated 20.05.2013 along with its translation, which are Annexures A7 and A7-T to this OA.

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Documents executed:- I.D. proofs of defendants in File 3, which is Annexure A3 to this OA; Agreement of individual housing loan, undertaking, Agreement of guarantee, Common affidavit, Affidavits and Common agreement all dated 23.05.2013, which are Annexures A4 to A6 and A8 to A10 to this OA; Legal notice dated 18.11.2021, which is Annexure A11 to this OA and Statement of account, which is Annexure A12 to this OA.

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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.24,55,899.80p 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.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 17.08.2023.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A12 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 loan 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.24,55,899.80p (Rupees Twenty Four Lacs Fifty Five Thousand Eight Hundred Ninety Nine and Eighty 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 account.

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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 @8.50%p.a with half yearly rests along with @2%p.a. penal interest from 17.11.2021 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 loan 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 @8.50%p.a. in

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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.24,55,899.80p (Rupees Twenty Four Lacs Fifty Five Thousand Eight Hundred Ninety Nine and Eighty Paisa only) jointly and severally, with costs, current and future simple interest @8.50%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

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Tribunal on 30.08.2023.

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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: 22.08.2023

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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: 22.08.2023

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

Punjab National Bank v. Sh. Gurmel Singh @ Gurmail Singh

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Punjab National Bank v. Sh. Gurmel Singh @ Gurmail Singh

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