Allowed

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

DRT22 Dec 2023OA/2157/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 of the RDBFI Act, 1993, directing the defendants to repay a principal sum of Rs. 28,76,300.83p with interest at 10% per annum. The court granted a uniform interest rate, authorized recovery from mortgaged properties, and ordered the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 28,76,300.83p with 10% simple interest; Rehabilitation of mortgage; Issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2157/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.12.2022

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DATE OF DECISION: 22.12.2023

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Punjab National Bank, a body corporate under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst other a Branch Office at Kakrala, Tehsil Samana District Patiala, Punjab through its Constituted Attorney and Principal officer Sh. Manish Kumar, Senior Manager posted at Punjab National Bank, Patran, Patiala, Punjab. (Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant

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Versus

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Sh. Tehal Singh S/o Sh. Mahinder Singh R/o Village Attalan, Kakrala, Samana, Patiala, Punjab. (Borrower/Mortgagor)

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Sh. Lakhwinder Singh S/o Sh. Mahinder Singh, R/o Village Attalan,

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Kakrala, Samana, Patiala, Punjab

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(Borrower/Mortgagor)

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….……Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate 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.28,76,300.83p (Rupees Twenty Eight Lacs Seventy Six Thousand Three Hundred and Eighty Three Paise only). The Original Application has been filed through Sh. Manish Kumar, Senior Manager o f the

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applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.05.2019, 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 OGC Limit of Rs.4.00 Lacs and Term Loan of Rs. 3.50 Lacs for agriculture implements vide Loan application dated 09.06.2010, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.4.00 Lacs and Term Loan of Rs. 3.50 Lacs for agriculture implements vide Sanction Letter dated 11.06.2010, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable property i.e. land measuring 32 Kanal situated at Village Attalan, Kakrala, Samana, Patiala, Punjab vide Registered Mortgaged Deed bearing vasika no.1325 dated 15.06.2010 along with its translation, which is Annexure A8 to this OA.

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Documents executed: - Amalgamation Notification, which is Annexure A2 to this OA; Agreement for Hypothecation and Agreement of Term Loan both dated 21.06.2010, which are Annexures A5 & A6 to this OA; Common Agreement dated 21.06.2010, which is Annexure A7 to this OA; Balance Confirmation Letters dated 03.01.2013, 01.01.2016 02.06.2018 and 20.12.2019, which are Annexures A9 to A12 to this OA; Notice dated 31.01.2022, which are Annexures A13 and A14 to this OA and Statement of accounts duly certified, which are Annexures A15 and A16 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.28,76,300.83p, 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 they were proceeded ex-parte on 03.11.2023.

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In support of the OA, affidavit of Sh. Manish Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A16 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, account 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.28,76,300.83p (Rupees Twenty Eight Lacs Seventy Six Thousand Three Hundred and Eighty Three Paise 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 has claimed interest @10.80%p.a.for OGC Limit with half yearly rests and @13%p.a. for Term loan with monthly rests plus @2%p.a. penal interest in both the loan accounts from 30.09.2022 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 loan and prevalent market rates of

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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 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.28,76,300.83p (Rupees Twenty Eight Lacs Seventy Six Thousand Three Hundred and Eighty Three Paise only) jointly and severally, with costs, current and future simple interest @10.00%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 02.01.2024. 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: 22.12.2023

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

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

Case brief

What is this about?

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

Case brief

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