Allowed

Punjab National Bank (Erstwhile known as Oriental Bank of Commerce), v. Sh. Amritpal Singh

DRT26 Dec 2023OA/198/2022

Case brief

AI extract

What is this about?

The DRT-III allowed the applicant bank's original application for recovery of a loan of Rs. 25,92,684.52 against the defendant. The court fixed the interest rate at 10% p.a. and ordered the issuance of a recovery certificate for sale of mortgaged property or attachment of personal assets.

What did the court decide?

Owes Rs. 25,92,684.52 with 10% simple p.a. interest; Recovery Certificate issued for execution via sale of mortgaged property or attachment of personal assets.

Punjab National Bank (Erstwhile known as Oriental… — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.198/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2022

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DATE OF DECISION: 26.12.2023

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Punjab National Bank (Erstwhile known as 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 Delhi110075 and Branch Office at Gill Point, Sahnewal Road, Dehlon, District Ludhiana, Punjab, through its General Power of Attorney Holder, Shri Ravinder Kumar, Sr. Manager of the Applicant Bank

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……..Applicant

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Versus

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Sh. Amritpal Singh S/o Sh. Darshan Singh, R/o VPO Butaheri, Tehsil Dehlon, District Ludhiana, Punjab

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(Borrower-Hypothecator-Mortgagor)

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………Defendant

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Advocates:

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Argued by Sh. Anup Prajapati, counsel proxy for Sh. Brijesh Sharma, counsel for the applicant Defendant is 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 defendant for recovery of Rs.25,92,684.52p (Rupees Twenty Five Lacs Ninety Two Thousand Six Hundred Eighty Four and Fifty Two Paisa only). The Original Application has been filed through Shri Ravinder Kumar, Sr. Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.15.00 Lacs vide Loan Application cum Process Note dated 15.04.2011, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.15.00 Lacs vide Sanction Letter dated 15.04.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Agricultural land measuring 17 Kanal 04 Marlas situated at Village Butahari, Hadbast No.328, Tehsil and District Ludhiana, Punjab vide Registered Mortgage Deed No.141/1 dated 28.04.2011 along with its translation, which is Annexure A5 to this OA.

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Documents executed: - Hypothecation Agreement dated 16.05.2011, which is Annexure A4 to this OA; Balance Confirmation Letters dated 16.05.2016 and 01.03.2019, which is Annexure A6 to this OA; Legal Notice dated 05.01.2022, which is Annexure A7 to this OA and Statement of account, which is Annexure A8 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 debit of Rs.25,92,684.52p, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and was proceeded exparte on 19.07.2023.

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In support of the OA, affidavit of Shri Ravinder Kumar, Sr. Manager, Punjab National Bank has been filed. 8. 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,

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the applicant bank had proved its case. From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.25,92,684.52p (Rupees Twenty Five Lacs Ninety Two Thousand Six Hundred Eighty Four and Fifty Two Paisa only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.75%p.a. with half yearly rests from the date of filing of this OA 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 defendant, 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 @10.00%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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.25,92,684.52p (Rupees Twenty Five Lacs Ninety Two Thousand Six Hundred Eighty Four and Fifty Two Paisa only) with costs, current and

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future simple interest @10.00%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 defendant 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 defendant. 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.01.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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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Pronounced by me in the open Tribunal. Dated: 26.12.2023

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

Punjab National Bank (Erstwhile known as Oriental Bank of Commerce), v. Sh. Amritpal Singh

Case brief

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What did the court decide?

Punjab National Bank (Erstwhile known as Oriental Bank of Commerce), v. Sh. Amritpal Singh

Case brief

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