Allowed

Punjab National Bank v. Sh. Jeet Singh

DRT6 Jun 2023OA/413/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed a recovery application filed by Punjab National Bank against Jeet Singh for Rs.25,20,086.38. The Tribunal decreed the bank's claim for the principal amount with future simple interest at 8% per annum from the date of filing, as a discretionary adjustment from the claimed rate.

What did the court decide?

Recovery of Rs.25,20,086.38 plus simple interest @8% p.a. from the date of filing of the Original Application till realization, enforceable through sale of mortgaged/hypothecated property or personal

Punjab National Bank versus Sh. Jeet Singh — 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.413/2023

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DATE OF INSTITUTION: 16.02.2023

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DATE OF DECISION: 6^th DAY OF JUNE, 2023

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Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act of 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi, and its Branch at Punjab National Bank, Ismailabad, Tehsil Pehowa, District Kurukshetra, Haryana-136129, through its Authorised Representative Sh. Naresh Kumar Bheem, Senior Manager, Circle Sastra, Punjab National Bank, Chattha Complex, Pipli Road, District Kurukshetra-136118

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…..Applicant Bank

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Versus

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Sh. Jeet Singh S/o Sh. Sardara Singh R/o House No. 39, Village Shekhpura-Majra, Chammu (Miranpur), Sub-Tehsil Ismailabad, District Kuruksetra, Haryana-136129

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…..Defendant

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Argued by: Sh. Rehan Chaudhary proxy counsel Sh. Krishan Kumar counsel for the applicant bank Defendant ex parte vide order dated 02.06.2023

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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.25,20,086.38/(Rupees Twenty Five lacs Twenty Thousand Eighty Six and Thirty Eight Paisa Only) . It has been filed through Sh. Naresh Kumar Bheem, Senior Manager of the

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OA/413/2023 PUNJAB NATIONAL BANK Vs JEET SINGH

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applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 05.03.2002, 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 KCC facility of Rs.18 lacs vide loan application dated 04.02.2015, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid credit facility to the defendant vide sanction letter dated 04.02.2015, Annexure-A3 (copy) as per terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facility, the defendant executed hypothecation agreement dated 10.02.2015, Annexure-A4 (copy).

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The aforesaid loan was further secured by creation of registered mortgage by the defendant in respect of two parcels of agricultural land measuring 79 Kanals 6 Marlas situated in the revenue estates of Shekhpur-Chammu and Chammu, District Kurukshetra, Haryana, fully detailed in para No. 5(vi) of the Original Application. Mortgage deed dated 06.02.2015 and letter dated 10.02.2015 to Tehsildar, Ismailabad, for entry/mutation of mortgaged property, AnnexureA5 (colly) (copy).

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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 and resultantly, the loan account became irregular and it was declared NPA on 29.07.2022. The defendant executed balance and security confirmation letters

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OA/413/2023 PUNJAB NATIONAL BANK Vs JEET SINGH

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dated 04.01.2018 and 31.12.2020, Annexure-A6 (colly) (copy). The applicant bank recalled the entire outstanding amount vide notice dated 04.01.2023 along with original postal receipt, Annexure-A7 (colly) (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.25,20,086.38/(Rupees Twenty Five lacs Twenty Thousand Eighty Six and Thirty Eight Paisa Only) is recoverable against the defendant as per statement of account, Annexure-A8 (copy) duly certified under Bankers’ Books Evidence Act.

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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 02.06.2023 .

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In support of the contents of the OA, affidavit of evidence of Sh. Naresh Kumar Bheem, Senior Manager of the applicant bank was filed.

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

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It was argued by the learned proxy counsel 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 A8 , it is clear

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OA/413/2023 PUNJAB NATIONAL BANK Vs JEET SINGH

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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.25,20,086.38/- (Rupees Twenty Five lacs

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Twenty Thousand Eighty Six and Thirty Eight Paisa Only) from the defendant.

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In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @8.85% per annum with half yearly rests. In sanction letter dated 04.02.2015, Annexure-A3 (copy), rate of interest has been mentioned @12.25% 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, 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, 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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OA/413/2023 PUNJAB NATIONAL BANK Vs JEET SINGH

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In the result, the Original Application is allowed with costs declaring that the defendant is liable to pay to the applicant bank a sum of Rs.25,20,086.38/- (Rupees Twenty Five lacs Twenty Thousand Eighty Six and Thirty Eight Paisa Only) with current and future simple interest @8% per annum w.e.f. 16.02.2023 , 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. 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 05.08.2023.

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

Punjab National Bank v. Sh. Jeet Singh

Case brief

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Punjab National Bank v. Sh. Jeet Singh

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