Allowed

Punjab National Bank, v. Smt. Jaspreet Kaur

DRT16 Oct 2023OA/292/2022

Case brief

AI extract

What is this about?

In an ex-parte application under Section 19 of the RDBFI Act, the Tribunal declared the defendant liable to pay Rs.21,19,709.51 to the bank. The court fixed uniform simple interest at 9.10% p.a. and directed the issuance of a recovery certificate for enforcement against mortgaged or personal assets.

What did the court decide?

Declaratory order declaring defendant liable to pay Rs.21,19,709.51 plus interest; direction to issue Recovery Certificate; liberty to enforce against personal assets.

Punjab National Bank, versus Smt. Jaspreet Kaur — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.292/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.01.2022

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DATE OF DECISION: 16.10.2023

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Punjab National Bank (Erstwhile known as Oriental Bank of Commerce), a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and Branch at National Highway 95, Ahluwalia Colony, Jamalpur, Ludhiana, Punjab through its General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager of the Applicant Bank.

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……..Applicant

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Versus

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Smt. Jaspreet Kaur W/o Sh. Beant Singh, R/o H.No.3128, Sector-38, Jamalpur, 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.21,19,709.51p (Rupees Twenty One Lacs Nineteen Thousand Seven Hundred Nine and Paisa Fifty One only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manger o f 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 defendant approached the applicant bank for the grant of OGC Facility of Rs.10.00 Lacs vide

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Application form-cum-Process Note dated 01.12.2010, which is Annexure A2 to this OA (As per application form amount was Rs.15.00 Lacs).

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As stated in the original application the applicant Bank sanctioned the OGC Facility of Rs.10.00 Lacs vide Sanction Letter dated 07.12.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant (As per sanction letter amount was Rs.15.00 Lacs.

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Defendant had mortgaged her immovable property i.e. Land measuring 25K-16M situated at Village Dhanansu, Hadbast No.186, Sub-Tehsil Koom Kalan, District Ludhiana, Punjab vide M ortgage Deed bearing Vasika No.1474 dated 21.12.2010 along with its translation, which is Annexure A5 to this OA.

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Documents executed:- Agreement of hypothecation dated 21.12.2010, which is Annexure A4 to this OA; Balance and security confirmation letters dated 16.11.2012, 08.12.2015, 30.06.2018 and 15.04.2021, which is Annexure A6 to this OA; Legal notice dated 20.12.2021, 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 a debit of Rs.21,19,709.51p which is recoverable and the defendant was served recall notices but she 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 notices to appear before this Tribunal. Defendant appeared through her counsel but did not filed WS and her right to file WS was closed, defence was struck off and she was proceeded ex-parte on 22.09.2023. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank h as 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 A8 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to her and for that she 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.21,19,709.51p (Rupees Twenty One Lacs Nineteen Thousand Seven Hundred Nine and Paisa Fifty One 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 pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.10%p.a. with half yearly rests from the date of filing of this Application 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 @9.10%p.a. in 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 defendant is liable to pay to the applicant a total sum of Rs.21,19,709.51p (Rupees Twenty One Lacs Nineteen Thousand Seven Hundred Nine and Paisa Fifty One only) with costs, current and future simple interest @9.10%p.a. in 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.11.2023.

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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: 16.10.2023

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

Punjab National Bank, v. Smt. Jaspreet Kaur

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Smt. Jaspreet Kaur

Case brief

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What did the court decide?

What the court decided

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