Allowed

Punjab National Bank v. Sh. Rajesh Kumar

DRT15 Dec 2023OA/396/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal, Chandigarh allowed an ex-parte application by Punjab National Bank against three respondents. The Tribunal issued a recovery certificate for Rs. 26,63,741.30 plus simple interest at 7% per annum from the date of filing, noting the agricultural purpose of the loan and the impact of the pandemic.

What did the court decide?

Recovery certificate issued for Rs. 26,63,741.30 with simple interest at 7% per annum w.e.f. 22.02.2023 till realization.

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

¶1

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

¶2

ORIGINAL APPLICATION NO.396/2023

¶3

DATE OF INSTITUTION: 22.02.2023

¶4

DATE OF DECISION: 15^th DAY OF DECEMBER, 2023

¶5

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, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and one of its Branches amongst other places is known as Uklana Branch, which comes under Circle Sastra (Recovery Cell) Hisar, District Hisar, Haryana, through Sh. Sunny Verma, Manager, its Principal Officer and General Attorney holder

¶6

…..Applicant

¶7

Versus

¶8

Sh. Rajesh Kumar s/o Sh. Gangadutt r/o Village Banbhori, Tehsil Barwala, District Hisar, Haryana

¶9

Sh. Surender Singh @ Surender Kaushik s/o Sh. Gangadutt r/o Village Banbhori, Tehsil Barwala, District Hisar, Haryana

¶10

Smt. Usha Rani @ Usha w/o Sh. Rajesh Kumar s/o Sh. Gangadutt r/o Village Banbhori, Tehsil Barwala, District Hisar, Haryana

¶11

…..Defendants

¶12

Argued by: Sh. Tarun Dhingra counsel for applicant bank (through VC) Defendants ex parte vide order dated 06.10.2023

¶13

FINAL ORDER

¶14

Present Original Application was instituted by the applicant

¶15

bank under Section 19(1) of the Recovery of Debts and

¶16

OA/396/2023 PUNJAB NATIONAL BANK Vs RAJESH KUMAR AND OTHERS 2 Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendants for recovery of Rs.26,63,741.30/- (Rupees Twenty Six Lac Sixty Three Thousand Seven Hundred Forty One and Thirty Paisa Only) . It has been filed through Sh. Sunny Verma, Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney, Annexure-A1 (copy).

¶17

The brief facts of the case of the applicant as per the Original Application are that defendant Nos. 1 and 2 had approached the applicant bank for grant of Cash Credit limit of Rs. 10,00,000/- and Term Loan of Rs. 30,00,000/- vide loan application Forms dated 20.02.2020 for agricultural loan, Annexure-A2 (colly) (copy). 3. The applicant bank sanctioned aforesaid facilities to the defendants vide sanction letters dated 20.02.2020, Annexure-A2 (colly) (copy), as per terms and conditions which were duly accepted by the defendants. 4. In order to secure the aforementioned credit facilities, the defendants executed declaration regarding agriculture land, process note dated 20.02.2020, interview-cum-assessment Form dated 20.02.2020, appraisal report of diary project and letter of acceptance, Annexure-A2 (colly) (copy), hypothecation agreement dated 20.02.2020 of current assets, hypothecation agreement dated 20.02.2020 of goods and book debts to secure cash credit facility, master agreement dated 20.02.2020 and deed of guarantee, Annexure-A3 (colly) (copy).

¶18

OA/396/2023 PUNJAB NATIONAL BANK Vs RAJESH KUMAR AND OTHERS 3

¶19

The aforesaid limits were further secured by creation of registered mortgage by the defendants in respect of agricultural land measuring 74 Kanal 15 Marla situated in the revenue estate of Bannbhori, Tehsil Barwala, District Hisar, Haryana, fully detailed in para No. 5.10 of the OA. Registered mortgage deed dated 14.02.2020 along with letter 13.02.2020 to the Tehsildar, Barwala, for entry/mutation of the property, Annexure-A4 (colly) (copy).

¶20

It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA on 04.05.2022. The applicant bank recalled entire outstanding amount vide legal notices dated 15.05.2022 and 02.11.2022, Annexure-A5 (colly) (copy), but to no avail.

¶21

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.26,63,741.30/- (Rupees Twenty Six Lac Sixty Three Thousand Seven Hundred Forty One and Thirty Paisa Only), is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, 1891, Annexure-A6 (colly) (copy).

¶22

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

¶23

Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the

¶24

OA/396/2023 PUNJAB NATIONAL BANK Vs RAJESH KUMAR AND OTHERS 4 defendants, thus, the defendants were proceeded against ex-parte vide order dated 06.10.2023 .

¶25

In support of contents of the OA, affidavit of evidence of Sh. Sunny Verma, Principal Officer of the applicant bank was filed.

¶26

This Tribunal has heard ex-parte arguments advanced by the learned counsel for the applicant bank and gone through the record carefully.

¶27

It was argued by the learned counsel of the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A6 , it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loans 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.26,63,741.30/- (Rupees Twenty Six Lac Sixty Three Thousand Seven Hundred Forty One and Thirty Paisa Only) from the defendants.

¶28

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause claimed rate of interest @14% per annum plus penal interest @2% per annum. In sanction letters

¶29

OA/396/2023 PUNJAB NATIONAL BANK Vs RAJESH KUMAR AND OTHERS 5 dated 20.02.2020, Annexure-A2 (colly) (copy), rate of interest has been mentioned @10.5% per annum.

¶30

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 mortgaged property, purpose of loan, i.e. agricultural , present conditions of economy based on agriculture, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 3 being a female, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶31

In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.26,63,741.30/- (Rupees Twenty Six Lac Sixty Three Thousand Seven Hundred Forty One and Thirty Paisa Only). with current and future simple interest @7% per annum w.e.f. 22.02.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants 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

¶32

OA/396/2023 PUNJAB NATIONAL BANK Vs RAJESH KUMAR AND OTHERS 6 of the bank still remain unsatisfied, the applicant bank shall be at

¶33

liberty to recover the same by attachment and sale of personal assets of the defendants. The applicant bank is at liberty to enforce the claim through due process of law.

¶34

Issue Recovery Certificate accordingly.

¶35

Parties to appear before Recovery Officer concerned on 06.02.2024 .

¶36

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

¶37

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

Punjab National Bank v. Sh. Rajesh Kumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Rajesh Kumar

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

V P Rasheed versus Tamilnad Mercantile Bank Limited

Icici Bank Limited versus Mr Arup Saikia

Ms Hotel Arya Lodging and Boarding versus Gandhibagh Sahakari Bank Ltd. Nagpur

Ms India Collection versus Cholamandalam Investment and Finance Company Ltd.

Hdfc Bank versus Sh. Krishan Kumar

Icici Bank Limited versus Pothireddy Prathap Reddy