Allowed

Punjab National Bank v. Sh.Joginder Singh and Others

DRT6 Oct 2023OA/353/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application ex-parte for recovery of Rs. 21.29 lakhs arising from an OGC loan, granting uniform interest at 10% p.a. The court awarded a recovery certificate and permitted sale of mortgaged properties.

What did the court decide?

Recovery of Rs. 21,29,140 with costs and simple interest at 10% p.a. via sale of mortgaged properties or attachment of personal assets.

Punjab National Bank versus Sh.Joginder Singh and Others — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.353/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.01.2022

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DATE OF DECISION: 06.10.2023

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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 the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 and Branch amongst others at Railway Road, Doraha, Ludhiana 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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Sh. Joginder Singh S/o Sh. Bhajan Singh, R/o Village Jaipura, Tehsil

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Payal, District Ludhiana (Borrower-Hypothecator-Mortgagor)

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Smt. Jasvir Kaur W/o Sh. Joginder Singh, R/o Village Jaipura, Tehsil

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Payal, District Ludhiana (Co-Obligant)

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Sh. Jagraj Singh S/o Sh. Joginder Singh, R/o Village Jaipura, Tehsil

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Payal, District Ludhiana (Co-Obligant)

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………Defendants

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Advocates:

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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.21,29,140.00 (Rupees Twenty One Lacs Twenty Nine Thousand One Hundred and Forty only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager of the applicant bank,

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who is competent to institute the Original Application vide General Power of Attorney, 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.13.00 Lacs vide Application Form-cum-Process Note dated 25.10.2012, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.13.00 Lacs vide Sanction Letter dated 25.10.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 and 2 had mortgaged their immovable properties i.e. total land measuring 12 Bighas 15 Biswas situated at Village Jaipura, Hadbast no.245 Tehsil Payal, District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika No.2627/1 dated 22.11.2012 along with its translation, which is Annexure A5 to this OA. Documents executed:- Agreement of Hypothecation dated 25.11.2012, which is Annexure A4 to this OA; Balance and security confirmation letters dated 17.11.2015, 10.07.2017 and 06.01.2020, which is Annexure A6 to this OA; Legal notice dated 05.01.2022, 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.21,29,140.00, 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. 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 12.09.2023.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior 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 A8 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.21,29,140.00 (Rupees Twenty One Lacs Twenty Nine Thousand One Hundred and Forty 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.75%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 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 defendants are liable to pay to the applicant a total sum of Rs.21,29,140.00 (Rupees Twenty One Lacs Twenty Nine Thousand One Hundred and Forty 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.

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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 13.10.2023. 15. 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 by me in the Open Tribunal. Dated: 06.10.2023

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

Punjab National Bank v. Sh.Joginder Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh.Joginder Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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