Allowed

Punjab National Bank, v. Smt. Sonia

DRT21 Aug 2023OA/387/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank against two defendants for recovery of a loan amount of Rs.33,42,244.04 along with interest. The court upheld the bank's claim based on documentary evidence and granted uniform simple interest at 10% p.a. The application to issue a recovery certificate was allowed.

What did the court decide?

Directing recovery of Rs.33,42,244.04 plus 10% p.a. simple interest; issuance of Recovery Certificate; liberty to enforce claim through due process of law.

Punjab National Bank, versus Smt. Sonia — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.387/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.12.2021

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DATE OF DECISION: 21.08.2023

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Act No.40 of 1980) having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi-110075 and branches amongst other Places at Circle Sastra, 2^nd Floor, BSNL Building Club Road, Sangrur through Sh. Gurmeet Singh, Senior Manager, Branch Office Circle Sastra, 2^nd Floor, BSNL Building Club Road, Sangrur, Punjab

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……..Applicant

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Versus

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Smt. Sonia W/o Sh. Pardeep Puri, R/o H. No.135, Street No.30, Opposite BSNL Quarters, Prem Basti, Sangrur-148001, Punjab

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(Borrower-cum-Mortgagor)

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Sh. Pardeep Puri S/o Sh. Tripta Nand, R/o H. No.135, Street No.30,

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Opposite BSNL Quarters, Prem Basti, Sangrur-148001, Punjab

(Guarantor)

….……Defendants

Advocates:

Argued by Sh. Sunil Salotra, counsel proxy for Sh. Manish Singla, 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.33,42,244.04p (Rupees Thirty Three Lacs Forty Two Thousand Two Hundred Forty Four and Four Paisa only). The Original Application has

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been filed through Sh. Gurmeet Singh, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2008, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of CC (Hypothecation) Limit of Rs.15.00 Lacs and further for its enhancement to Rs.25.00 Lacs vide Loan applications dated 06.08.2014 and 20.04.2015. 3. The applicant Bank sanctioned the CC (Hypothecation) Limit of Rs.15.00 Lacs and further enhanced it to Rs.25.00 Lacs vide Sanction Memorandums dated 06.08.2014 and 20.04.2015, which are Annexures A2 and A12 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged her immovable properties i.e. (a) Commercial property measuring 46 Sq. Yards situated at Abadi Prem Basti, Gali No.30, Sangrur, Punjab vide Sale Deed No.654 dated 23.05.2011 along with its translation, which is Annexure A10 to this OA;

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(b) Commercial property measuring 40 Sq. Yards situated at Prem Basti, Gali No.30, Sangrur, Punjab vide Sale Deed No.2958 dated 25.09.2012 along with its translation, which is Annexure A11 to this OA; and

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(c) Commercial Property measuring 72 Sq. Yards, situated at Prem Basti, Gali No.30, Sangrur, Punjab vide Transfer Deed No.7 dated 06.04.2015 along with its translation, which is Annexure A19 to this OA.

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Documents executed:- Letter of Undertaking, Master Undertaking, Hypothecation agreement, Guarantee deed, CIBIL Consent Clauses and Letter Evidencing deposit of Title Deeds Annexure 2A, all dated 16.08.2014, which are Annexures A3 to A9 to this OA; Letter of Undertaking, Master Undertaking, Hypothecation agreement, Guarantee deed, CIBIL Consent Clause, Letter Evidencing deposit of Title Deed and Letter of extension of mortgage, all dated 27.04.2015,

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which are Annexures A13 to A18 to this OA; Balance Confirmation Letters dated 22.04.2016, 22.10.2018 and 08.09.2021, which are Annexures A20 to A22 to this OA; Demand notice U/S 13(2) dated 30.04.2021, which is Annexure A23 to this OA and Statement of account duly certified under Banker’s Book Evidence Act, 1891, which is Annexure A24 to this OA and Valuation Reports, which is Annexure A25 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.33,42,244.04p, 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 16.08.2023. 7. In support of the OA, affidavit of Sh. Gurmeet Singh, 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 A25 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.33,42,244.04p (Rupees Thirty Three Lacs Forty Two Thousand Two Hundred Forty Four and Four Paisa only) along with interest from the defendants,

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jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank has claimed interest @11.00%p.a. along with @2%p.a. penal interest with monthly rests in the loan account from 11.12.2021 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 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 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.33,42,244.04p (Rupees Thirty Three Lacs Forty Two Thousand Two Hundred Forty Four and Four Paisa 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 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. 12. 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 30.08.2023.

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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: 21.08.2023

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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: 21.08.2023

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

Punjab National Bank, v. Smt. Sonia

Case brief

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Punjab National Bank, v. Smt. Sonia

Case brief

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