Allowed

Punjab National Bank v. Sh. Balraj Gupta

DRT24 Aug 2023OA/297/2022

Case brief

AI extract

What is this about?

The Tribunal allowed a recovery application filed by Punjab National Bank for an outstanding loan of Rs.23,18,397.00 against the borrowers and guarantor. The suit debt was proved as the defendants failed to appear. The Tribunal granted interest at 8.40 p.a. instead of the claimed penal rate.

What did the court decide?

Recovery Certificate directed. Defendants declared liable to pay Rs.23,18,397.00 jointly and severally with interest at 8.40 p.a.

Punjab National Bank versus Sh. Balraj Gupta — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.297/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.02.2022

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DATE OF DECISION: 24.08.2023

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Punjab National Bank, a body corporate and nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 1980 having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi-110075 through one of its branch office at Civil Lines, District Ludhiana, Punjab, through its Principal Officer, General Attorney, Sh. Mohammad Yamin son of Sh. Abdul Majeed, presently posted as Chief Manager, Punjab National Bank, Civil Lines, Ludhiana, Punjab

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	Versus	……..Applicant
1.	Sh. Balraj Gupta S/o Sh. Satyapal Gupta, R/o	House No.2630,
	Basant Avenue, Ludhiana, Punjab	(Borrower)
2.	Smt. Kiran W/o Sh. Balraj Gupta, R/o House	No.2630, Basant
	Avenue, Ludhiana, Punjab	(Co-Borrower)
	Second Address:1271, Ashok Nagar, Near Bus	Stand, Ludhiana,
	Punjab
3.	Sh. Sandeep Singh son of Sh. Rajinder Singh resi	dent of H.No.625,
	near Orient Cinema, Rajguru Nagar, Sunet,	backside Senior
	Secondary School, Ludhiana …	(Guarantor) .……Defendants

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Advocates:

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Argued by Sh. Amit Rishi, counsel proxy for Ms. Shivya Sehgal, counsel for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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

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Rs.23,18,397.00 (Rupees Twenty Three Lacs Eighteen Thousand Three Hundred and Ninety Seven only). The Original Application has been filed through Sh. Mohammad Yamin, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 20.09.2003, which is Annexure A2 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 Term loan (Car Loan) of Rs.20.00 Lacs vide Loan application dated 01.02.2019, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the Term loan (Car Loan) of Rs.20.00 Lacs vide Sanction Letter dated 05.02.2019, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had hypothecated his movable property i.e. Vehicle namely Toyota Innova Crysta Car bearing Registration No. PB 10-GZ-8921, Engine No. 1GDA271162 and Chassis No. MBJAA3EM400793214-0118 vide Letter of Hypothecation dated 05.02.2019, which is Annexure A6 to this OA.

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Documents executed:- Order dated 10.01.2022, which is Annexure A1 to this OA; Letter dated 06.02.2019 and 04.01.2020, which are Annexures A5 and A8 to this OA; Agreement of guarantee dated 05.02.2019, which is Annexure A7 to this OA; Recall notice and Letter of Guarantee dated 20.01.2022, which are Annexures A9 and A10 to this OA; Notice u/s 13(2) SARFAESI Act, 2002 dated 24.01.2022, which is Annexure A11 to this OA and Statement of account duly certified, which is Annexure A12 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.23,18,397.00, 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 were proceeded ex-parte on 22.08.2023.

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In support of the OA, affidavit of Sh. Mohammad Yamin, Chief 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 A12 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.23,18,397.00 (Rupees Twenty Three Lacs Eighteen Thousand Three Hundred and Ninety Seven 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 in relief clause has claimed interest @8.40%p.a. along with @2%p.a. penal interest with monthly rests from 01.02.2022 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 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 @8.40%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.

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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.23,18,397.00 (Rupees Twenty Three Lacs Eighteen Thousand Three Hundred and Ninety Seven only) jointly and severally, with costs, current and future simple interest @8.40%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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 02.09.2023.

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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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Dated: 24.08.2023

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

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Order dictated, signed and pronounced by me in the open Tribunal.

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Dated: 24.08.2023

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

Punjab National Bank v. Sh. Balraj Gupta

Case brief

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Punjab National Bank v. Sh. Balraj Gupta

Case brief

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