Allowed

Punjab National Bank v. Smt. Sunita Rani Arora

DRT13 Sept 2023OA/345/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs.44,50,375 from Smt. Sunita Rani Arora. The court granted simple interest at 10% p.a. ordered recovery from mortgaged properties or attachment of personal assets.

What did the court decide?

Determination of liability to pay Rs.44,50,375 with 10% simple interest; entitlement to recover from sale of mortgaged properties or attach personal assets; issue of Recovery Certificate.

Punjab National Bank versus Smt. Sunita Rani Arora — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.345/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.02.2022

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DATE OF DECISION: 13.09.2023

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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 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110 075 and amongst others a Branch Office at Circle SASTRA, Moga, Punjab through its Constituted Attorney and Branch Manager, Sh. Sandeep Kumar son of Sh. Bhagwan Singh (Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant

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Versus

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Smt. Sunita Rani Arora wife of Sh. Rakesh Kumar resident of Village Fatehgarh Panjtur, Tehsil Moga, District Moga, Punjab

(Borrower/Mortgagor)

………Defendant

Advocates:

Argued by Ms. Sonal, counsel proxy for Sh. R.S. Bhatia, 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.44,50,375.00 (Rupees Forty Four Lacs Fifty Thousand Three Hundred Seventy Five only). The Original Application has been filed through Sh. Sandeep Kumar, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.43.80 Lacs for

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agriculture purpose vide Loan Application dated 21.09.2017, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.43.80 Lacs vide Sanction Letter dated 17.10.2017, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged her immovable properties i.e. total agricultural land measuring 24.454 Hectare (96.657 Bighas) detailed as below: (i) Land Measuring 19.184 Hect. = 75.826 Bighas situated at Village Singrasar, Tehsil and District Sri Ganganagar, Rajasthan; and (ii) Land Measuring 5.270 Hect. = 20.831 Bighas at Village Bachrara, Daidaspura, Tehsil and District Sri Ganganagar, Rajasthan; vide Declaration under Section 6(1) dated 10.10.2017, which is Annexure A7 to this OA.

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Documents executed: - Amalgamation notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement for hypothecation (DOC45), Common Agreement (DOC38) both dated 17.10.2017, which are Annexures A5 and A6 to this OA; Balance confirmation letter dated 15.10.2020, which is Annexure A8 to this OA and Statement of account duly certified, which is Annexure A9 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was debit of Rs.44,50,375.00, which is recoverable and the defendant was served recall notice but she did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 24.08.2023. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Branch Manager, Punjab National Bank has been filed. 8. 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 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.44,50,375.00 (Rupees Forty Four Lacs Fifty Thousand Three Hundred Seventy Five 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 pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.35%p.a. with half yearly rests from 18.01.2022 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 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 @10.00%p.a. in the 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.44,50,375.00 (Rupees Forty Four Lacs Fifty Thousand Three Hundred Seventy Five only) with costs, current and future simple

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interest @10.00%p.a. in the 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 21.09.2023.

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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. Pronounced in the Open Tribunal. Dated: 13.09.2023

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

Punjab National Bank v. Smt. Sunita Rani Arora

Case brief

What is this about?

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Punjab National Bank v. Smt. Sunita Rani Arora

Case brief

What is this about?

What did the court decide?

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