Allowed

Punjab National Bank v. M/s Shubham Enterprises

DRT5 Dec 2023OA/200/2022

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed an application under S. 19 RDBFI Act filed by Punjab National Bank for recovery of Rs. 1.35 crore against borrowers who failed to repay loans. The court reduced interest rate to 9.85% and issued a recovery certificate.

What did the court decide?

Recovery Certificate issued; order to pay Rs. 1,35,23,586.42 with interest @9.85% p.a.; liberty to recover via sale of hypothecated properties or attachment of assets.

Punjab National Bank versus M/s Shubham Enterprises — Banking and Recovery | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.200/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 19.01.2022

¶5

DATE OF DECISION: 05.12.2023

¶6

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 a Branch amongst others at Dharampura, District Ludhiana through its General Power of Attorney holder, Sh. Ajay Pal Singh, Manager of the Applicant Bank

¶7

……..Applicant

¶8

Versus

¶9

M/s Shubham Enterprises, proprietor firm, having its business at B- XXX-1732, Near Railway Malgodown, Dhandori Kalan, Focal Point, Ludhiana, through its proprietor namely, Smt. Anjana Bahri W/o Sh. Sunil Bahri (Proprietorship Firm)

¶10

Smt. Anjana Bahri W/o Sh. Sunil Bahri R/o 75-C, Udham Singh Nagar, Civil Lines, Ludhiana (Borrower-Hypothecator)

¶11

………Defendants

¶12

Advocates:

¶13

Argued by Sh. Anup Prajapati, counsel proxy for Sh. Brijesh Sharma, counsel for the applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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.1,35,23,586.42p (Rupees One Crore Thirty Five Lacs Twenty Three Thousand Five Hundred Eighty Six and Paise Forty Two only). The Original Application has been filed through Sh. Ajay Pal Singh, Manager of the applicant bank, who is competent to institute the

¶16

¶17

Original Application vide Power of Attorney dated 29.02.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 through its proprietress defendant no.2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.60.00 Lacs under CGTMSE scheme and further for its enhancement/renewal to Rs.90.00 Lacs and also for a Term loan of Rs.18.91 Lacs under GECL scheme. 3. The applicant Bank sanctioned the Cash Credit Limit of Rs.60.00 Lacs under CGTMSE scheme and further enhanced/renewed it to Rs.90.00 Lacs and also sanctioned a Term loan of Rs.18.91 Lacs under GECL scheme vide Sanction Letters dated 27.12.2019, 23.01.2015, 30.12.2019 and 07.10.2020, which are Annexures A2, A6, A10 and A11 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had hypothecated their movable properties i.e. Stock of bed sheets, blankets and embroidery suits and clothes etc. and its receivables vide Agreement of hypothecation dated 17.12.2013, which is Annexure A4 to this OA. Documents executed:- Common agreement and Sole proprietorship letter both dated 17.12.2013, which are Annexures A3 and A5 to this OA; Supplemental agreement, Common agreement and Sole proprietor letter all dated 28.01.2015, which are Annexures A7 to A9 to this OA; Balance confirmation letters dated 29.07.2016, 22.03.2018 and 31.12.2019, which is Annexure A12 to this OA; Recall notice dated 05.01.2022, which is Annexure A13 to this OA and Statements of accounts along with the certificate of banker’s book of evidence Act, which are Annexures A14 and A15 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.1,35,23,586.42p, which is recoverable and the defendants were served recall notices but they did not repay the

¶18

¶19

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 they were proceeded ex-parte on 19.07.2023. 7. In support of the OA, affidavit of Sh. Ajay Pal Singh, Manager, Punjab National Bank has been filed. 8. 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 A15 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, 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.1,35,23,586.42p (Rupees One Crore Thirty Five Lacs Twenty Three Thousand Five Hundred Eighty Six and Paise Forty Two 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.25%p.a. in Cash Credit Limit and @9.85%p.a. in Term Loan with monthly rests in both, from the date of filing of this OA 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

¶20

¶21

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 @9.85%p.a. in both the loan accounts 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 defendants are liable to pay to the applicant a total sum of Rs.1,35,23,586.42p (Rupees One Crore Thirty Five Lacs Twenty Three Thousand Five Hundred Eighty Six and Paise Forty Two only) jointly and severally, with costs, current and future simple interest @9.85%p.a. in both the loan accounts 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 12.12.2023 15. 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. Pronounced by me in the open Tribunal. Dated: 05.12.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/s Shubham Enterprises

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Shubham Enterprises

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Ltd. versus Sh. Sukhmander Singh

Punjab National Bank versus Sh. Prabhjot Singh

The Federal Bank Limited versus Sh. Jaspinder Singh and Others

Union Bank of India versus Sh. Ranjit Singh

Union Bank of India versus M/s Shri Waheguru Industries

Punjab National Bank versus M/s Hemkunt Auto Fuels