Allowed

Punjab and Sind Bank, v. Sh.Shingara Singh and Another

DRT6 Oct 2023OA/346/2022

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed a Punjab and Sind Bank application for recovery of Rs.28.31 lakhs granted to two borrowers under KCC limit. The court confirmed the bank's claim and directed recovery from mortgaged or personal assets.

What did the court decide?

Declaring defendants liable to pay Rs.28,31,706.50p with interest @10.00%p.a.; directing recovery from mortgaged/personal assets; issuing Recovery Certificate.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.346/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 24.01.2022

¶5

DATE OF DECISION: 06.10.2023

¶6

Punjab and Sind Bank, a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act No.40 of 1980 with its Head Office at 21, Rajindra Place, New Delhi and amongst other branch offices, a branch office at Majari-SBS Nagar through its authorized officer, Sh. Pardeep Kumar, Branch Manager B/o Majri

¶7

……..Applicant

¶8

Versus

¶9

Sh. Shingara Singh S/o Sh. Swaran Singh, R/o Village Atal Majara, Tehsil Balachaur, District SBS Nagar

¶10

Sh. Sarwan Singh S/o Sh. Sohan Singh, R/o Village Majara, Tehsil Balachaur, District SBS Nagar

¶11

………Defendants

¶12

Advocates:

¶13

Argued by Sh. Jasneet Singh, counsel for the applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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.28,31,706.50p (Rupees Twenty Eight Lacs Thirty One Thousand Seven Hundred Six and Paisa Fifty only). The Original Application has been filed through Sh. Pardeep Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide Authorization Letter dated 25.11.2021 and Power of Attorney dated 05.07.2018, which are Annexures A1 and A2 to this OA.

¶16

¶17

The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs.

¶18

The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 24.07.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶19

Defendant No.1 had mortgaged his immovable property i.e. land measuring 31K-00M situated at Village Uttal Majara, H.B. No.236, Tehsil Balachaur, District SBS Nagar, Punjab vide Declaration u/s 4(1) dated 17.07.2017 and Mutation confirmation report, which are Annexures A14 and A15 to this OA.

¶20

Documents executed:- Form No.14(R), Form No.106, Form No.200, Form No.201, Form No.199, Form No.312-R, Form No.159 and Deed of guarantee all dated 24.07.2017, which are Annexures A4 to A10 and A13 to this OA; CIBIL by borrower dated 03.07.2017, which is Annexure A11 to this OA; CIBIL by guarantor dated 29.07.2017, which is Annexure A12 to this OA; Revival letter dated 28.04.2020, which is Annexure A16 to this OA; Legal notice dated 09.06.2021, which is Annexure A17 to this OA and Statement of account, which is Annexure A18 to this OA.

¶21

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.28,31,706.50p, 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. 6. 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 30.08.2023. 7. In support of the OA, affidavit of Sh. Pardeep Kumar, Branch Manager, Punjab and Sind Bank h as been filed.

¶22

¶23

Heard ex-parte arguments and perused record.

¶24

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 A18 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.28,31,706.50p (Rupees Twenty Eight Lacs Thirty One Thousand Seven Hundred Six and Paisa Fifty 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.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.15%p.a. along with @2%p.a. penal interest with half yearly rests from 01.10.2021 till the realization.

¶26

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 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.

¶27

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

¶28

¶29

Rs.28,31,706.50p (Rupees Twenty Eight Lacs Thirty One Thousand Seven Hundred Six and Paisa Fifty only) jointly and severally, with costs, current and future simple 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 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.

¶30

Any other application pending stands disposed of.

¶31

Issue Recovery Certificate accordingly.

¶32

Parties to appear before Learned Recovery Officer of this Tribunal on 12.10.2023.

¶33

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.

¶34

Pronounced by me in the Open Tribunal. Dated: 06.10.2023

¶35

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

Punjab and Sind Bank, v. Sh.Shingara Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab and Sind Bank, v. Sh.Shingara Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Sh. Dalip Singh and Another

Union Bank of India versus Smt.Gurpreet Kaur and Another

Hdfc Bank Ltd., versus Sh. Manpreet Singh and Others

Punjab National Bank versus Sh.Joginder Singh and Others

Punjab National Bank, versus Sh. Amrik Singh and Others

Canara Bank versus M/S Akaal Videos and Others