Allowed

Punjab National Bank v. Sh. Krishan Kumar

DRT3 Oct 2023OA/37/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application for issuance of a recovery certificate. The defendant failed to appear. The Tribunal fixed uniform simple interest at 8% per annum from the date of filing.

What did the court decide?

Issuance of recovery certificate. Defendant to pay Rs. 29,51,188.46 with simple interest at 8% per annum from 07.11.2022 until realization. Liberty to recover from sale of mortgaged/hypothecated prope

Punjab National Bank versus Sh. Krishan Kumar — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO. 37/2023

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DATE OF INSTITUTION: 07.11.2022

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DATE OF DECISION: 03^rd DAY OF OCTOBER, 2023

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Punjab National Bank , a body corporate and perpetual succession, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on Banking business and having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075, one of its Branches amongst other places is known as Gumthala-Rao, District Yamunanagar, Haryana, through Sh. Varinder Kumar Tewari, Senior Manager, its Principal Officer and General Attorney presently posted at Circle Sastra Centre, Sector-12, Karnal, PNB

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…..Applicant Bank

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Versus

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Sh. Krishan Kumar s/o Sh. Amir Chand r/o Village Gumthala-Rao, Tehsil Radaur, District Yamunanagar, Haryana

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....Defendant

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Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendant ex parte vide order dated 29.04.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.29,51,188.46/- (Rupees Twenty Nine Lac Fifty One Thousand One Hundred Eighty Eight and Forty Six Paisa

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OA/37/2023 PUNJAB NATIONAL BANK VS KRISHAN KUMAR 2

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Only) . It has been filed through Sh. Varinder Kumar Tewari, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendant had approached the applicant bank for grant of OGC facility of Rs. 29 lacs vide loan application Form-cum-process note for OGC facility dated 28.02.2013, Annexure-A2 (colly) (copy).

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The applicant bank sanctioned aforesaid facility to the defendant vide sanction letter dated 01.03.2013, Annexure-A2 (colly) (copy) as per terms and conditions which were duly accepted by the defendant. 4. In order to secure the aforementioned credit facility, the defendant executed agreement dated 13.03.2013 for hypothecation of existing and future crops/ movable assets/livestock to secure a cash credit account of oriental green card, Annexure-A3 (copy). 5. The aforesaid loan was further secured by creation of mortgage by the defendant in respect of agricultural land measuring 47 Kanal 18 Marla situated in the revenue estate of Gumthala, SubTehsil Radaur, Tehsil Jagadhari, Haryana, fully detailed in para No. 5.10 of the Original Application. Registered supplementary mortgage deed dated 13.03.2013 and request letter dated 05.03.2013 to the Tehsildar, Radaur, for entry/mutation of mortgaged property is Annexure-A4 (colly) (copy).

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OA/37/2023 PUNJAB NATIONAL BANK VS KRISHAN KUMAR 3

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA on 13.09.2021. The defendants executed balance and security confirmation letters dated 11.03.2016 and 01.05.2021, Annexure-A5 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 06.10.2022, Annexure-A6 (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.29,51,188.46/- (Rupees Twenty Nine Lac Fifty One Thousand One Hundred Eighty Eight and Forty Six Paisa Only), is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A7 (colly) (copy).

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Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant, thus, the defendant was proceeded against ex-parte vide order dated 29.04.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Varinder Kumar Tewari, Principal Officer of the applicant bank was filed.

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OA/37/2023 PUNJAB NATIONAL BANK VS KRISHAN KUMAR 4

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This Tribunal has heard ex-parte arguments advanced by Ms Arpita Sonkar, Manager Law of the applicant bank and gone through the record carefully.

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It was argued by Ms Arpita Sonkar, Manager Law that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A7 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.29,51,188.46/- (Rupees Twenty

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Nine Lac Fifty One Thousand One Hundred Eighty Eight and Forty Six Paisa Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @14% per annum plus penal interest @2% per annum. In sanction letter dated 01.03.2013, Annexure-A2 (colly) (copy), the rate of interest has been mentioned @13.75% per annum.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property,

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OA/37/2023 PUNJAB NATIONAL BANK VS KRISHAN KUMAR 5

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purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendant is liable to pay to the applicant bank a sum of Rs.29,51,188.46/- (Rupees Twenty Nine Lac Fifty One Thousand One Hundred Eighty Eight and Forty Six Paisa Only) with current and future simple interest @8% per annum w.e.f. 07.11.2022 , till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendant in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendant. However, the applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 01.11.2023.

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OA/37/2023 PUNJAB NATIONAL BANK VS KRISHAN KUMAR 6

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Copy of this order be sent to the applicant bank and the defendant through registered/speed post. This order be also uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Sh. Krishan Kumar

Case brief

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Punjab National Bank v. Sh. Krishan Kumar

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