Allowed

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

DRT23 Nov 2023OA/1996/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by a bank for recovery of Rs. 22,94,706 owing by two borrowers. The bank was declared entitled to recover the amount with simple interest at 10% p.a. via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 22,94,706.00 with simple interest at 10% p.a.; bank entitled to recover amount from sale of properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1996/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.11.2022

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DATE OF DECISION: 23.11.2023

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Punjab National Bank, a body corporate and a Nationalized Bank, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi-110075 and one of the Branch Office, amongst others, Patiala Circle Sastra Centre, 2^nd Floor, Opposite Improvement Trust Building, Chotti Barandari, Patiala, Punjab-147101, through its Constituted Attorney Sh. Gurcharan Singh, Senior Manager.

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……..Applicant

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Versus

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Sh. Balwinder Singh S/o Sh. Gurdeep Singh, R/o Village Devi Nagar, Post Office Karhali, Tehsil and District Patiala, Punjab147101.

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Sh. Gurdeep Singh S/o Sh. Nazar Singh, R/o Village Devi Nagar, Post Office Karhali, Tehsil and District Patiala, Punjab-147101.

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….……Defendants

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Advocates:

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Argued by Sh. R. K. Bansal, counsel of 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.22,94,706.00 (Rupees Twenty Two Lacs Ninety Four Thousand Seven Hundred and Six only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 had approached the applicant bank for the grant of Term Loan of Rs.15,50,000.00 for dairy farming vide Loan application dated 12.11.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Term Loan of Rs.15,50,000.00 for dairy farming vide Sanction Letter dated 19.11.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants on 20.11.2013.

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Defendant No.1 had mortgaged their immovable property i.e. total land measuring 16 Kanal 00 Marlas situated at Village Devi Nagar, Hadbast No. 174, Tehsil and District Patiala, Punjab vide Registered Mortgage Deed No.8308 dated 21.11.2013along with its translation, which are Annexures A8 and A9 to this OA.

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Documents executed:- Hypothecation agreement, Declaration Regarding Agriculture Land, Supplementary Agreement and Agreement of Guarantee dated 16.12.2013, which are Annexures A4 to A7 to this OA; Balance and Security Confirmation Letters dated 01.12.2016, 09.05.2018 and 01.10.2020, which are Annexures A10 to A12 to this OA; Recall Notice with postal receipt dated 11.04.2022, which are Annexures A13 and A14 to this OA; Statement of account along with Memorandum of Interest, Which are Annexures A15 and A16 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 accounts there was a debit of Rs.22,94,706.00 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 19.10.2023.

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

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Heard ex-parte arguments and perused record. 9. 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 A16 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,94,706.00 (Rupees Twenty Two Lacs Ninety Four Thousand Seven Hundred and Six 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 has claimed interest @10.30%p.a. with yearly rests in the loan account from 07.11.2022 till the realization. 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 @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.

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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.22,94,706.00 (Rupees Twenty Two Lacs Ninety Four Thousand Seven Hundred and Six only) jointly and severally, with costs, current and 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 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 02.12.2023.

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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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Pronounced by me in the open Tribunal. Dated: 23.11.2023

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

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

Case brief

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

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