Allowed

Punjab National Bank (Erstwhile known as Oriental Bank of Commerce) v. Sh. Gurpreet Singh and Another

DRT13 Sept 2023OA/295/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of Rs.24,95,444/- along with interest, holding defendants jointly and severally liable to pay dues due to non-payment of an overdraft facility.

What did the court decide?

Recovery certificate issued for Rs.24,95,444/- with simple interest @9.10% p.a.; enforcement via sale of hypothecated property or attachment of personal assets.

Punjab National Bank (Erstwhile known as Oriental Bank of… — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.295/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.01.2022

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DATE OF DECISION: 13.09.2023

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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 Dewatwal, Ludhiana, Punjab, through its General Power of Attorney Holder Sh. Sonu, Chief Manager of the Applicant Bank

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……..Applicant

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Versus

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Sh. Gurpreet Singh S/o Sh. Gurbax Singh R/o Village Jhamat, Post Office Ayali Kalan, Sub Tehsil Mullanpur Dakhan, Tehsil and District Ludhiana, Punjab

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(Borrower/Hypothecator-Mortgagor)

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Sh. Balwinder Singh S/o Sh. Mohan Singh R/o Village Sherpur

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Kalan, Post Office Moti Nagar, Tehsil and District Ludhiana, Punjab

(Guarantor)

….……Defendants

Advocates:

Argued by Sh. Anup Prajapati, counsel proxy for Sh. Brijesh Sharma, counsel for 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.24,95,444.00 (Rupees Twenty Four Lacs Ninety Five Thousand Four

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Hundred and Forty Four only). The Original Application has been filed through Sh. Sonu, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 22.11.2014, 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.15.00 Lacs vide Loan application-cum-Process Note dated 21.06.2010, 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 23.06.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 16K-10¾M situated at Village Basaimi, Hadbast No.134, Tehsil and District Ludhiana, Punjab vide Registered Mortgaged Deed No.587/1 dated 23.06.2010 along with its translation, which is Annexure A6 to this OA.

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Documents executed:- Hypothecation Agreement and Guarantee Agreement both dated 12.07.2010, which are Annexures A4 and A5 to this OA; Balance and Security Confirmation Letters dated 10.05.2013 and 27.04.2016, which is Annexure A7 to this OA; Legal Notice dated 19.10.2021, which is Annexure A8 to this OA and Statement of account along with the certificate, which is Annexure A9 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.24,95,444.00, 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.

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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 24.08.2023.

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In support of the OA, affidavit of Sh. Sonu, Chief 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 A9 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants 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.24,95,444.00 (Rupees Twenty Four Lacs Ninety Five Thousand Four Hundred and Forty Four 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 in relief clause has claimed interest @9.10%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 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

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just and appropriate to grant uniform simple interest @9.10%p.a. in the loan account from the date of filing of the OA till realization of the amounts 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.24,95,444.00 (Rupees Twenty Four Lacs Ninety Five Thousand Four Hundred and Forty Four only) jointly and severally, with costs, current and future simple interest @9.10%p.a. in the loan account from the date of filing of OA till the date of realization of the amounts. 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 19.09.2023.

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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 in open Tribunal.

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Dated: 13.09.2023

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

Punjab National Bank (Erstwhile known as Oriental Bank of Commerce) v. Sh. Gurpreet Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Erstwhile known as Oriental Bank of Commerce) v. Sh. Gurpreet Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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