Allowed

Punjab National Bank v. M/s Hemkunt Auto Fuels

DRT5 Dec 2023OA/455/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank to recover Rs.24,86,621 from borrowers. The court decreed restitution of the principal sum with costs and adjusted future interest to a uniform rate of 7.50% per annum.

What did the court decide?

The defendants declared liable to pay Rs.24,86,621 with costs, current and future simple interest @7.50%p.a. Recovery sought via sale of mortgaged properties.

Punjab National Bank versus M/s Hemkunt Auto Fuels — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.455/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.10.2022

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DATE OF DECISION: 05.12.2023

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Punjab National Bank, a body corporate, 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 and one of the Branch Office, amongst others, Circle Sastra Centre, Railway Road Moga (Punjab) through its constituted attorney and Principal Officer, Sh. Sandeep Kumar, Senior Manager

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……..Applicant Versus

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M/s Hemkunt Auto Fuels through its proprietor, Daroli Bhai Link road, VPO Ghal Kalan, Moga, Punjab- 142001 2. Sh. Nishi Manchanda, Proprietor M/s Hemkunt Auto Fuels R/o 135, Gali no.1, Basti Gobindgarh, Tehsil and District Moga, Punjab

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(Borrowers) … Defendants

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Advocates:

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Argued by Sh. Rakesh Gupta, Advocate proxy for Ms. Anuradha Gupta, Advocate 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.24,86,621.00 (Rupees Twenty Four Lacs Eighty Six Thousand Six Hundred Twenty One Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant bank,

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who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant no.2 on behalf of defendant no.1 had approached the applicant bank for the grant of Cash Credit Limit of Rs.20.00 Lacs. Later, the defendant no.2 on behalf of defendant no.1 again approached for WCTL limit of Rs.3.00 Lacs under GECL scheme vide Loan Application dated 09.09.2020, which is Annexure A10 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit of Rs.20.00 Lacs and WCTL limit of Rs.3.00 Lacs under GECL scheme vide Sanction Letters dated 24.02.2020 and 18.09.2020, which are Annexures A3 and A11 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 had mortgaged her immovable property i.e. land measuring 03 Kanal 00 Marla situated in the revenue estates of Village Ghal Kalan, Patti Dandu, Tehsil and District Moga, Punjab vide Sale deed dated 26.12.2019 and Jamabandi for the year 2013-2014 along with their translations, which are Annexures A7, A7/T, A8 and A8/T to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A1 to this OA, Agreement of Hypothecation of assets, Common Agreement and Sole proprietorship letter all dated 24.02.2020, which are Annexures A4 to A6 , LTR-21 dated 25.02.2020, which is Annexure A9 to this OA; Master Agreement, Agreement of WCTL, PNB-728 and Letter of continuity all dated 18.09.2020, which are Annexures A12 to A15 to this OA; Legal Notice dated 29.12.2021, which is Annexure A16 to this OA; Postal receipt dated 01.01.2022, which is Annexure A17 to this OA; Statements of Accounts along with the Certificate Under Banker’s Book of Evidence Act, which are Annexures A18 and A19 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was

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a debit of Rs.24,86,621.00, 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.

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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 17.10.2023. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager , Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. I t 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 A19 to this OA, it is proved that defendants approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.24,86,621.00 (Rupees Twenty Four Lacs Eighty Six Thousand Six Hundred Twenty One only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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10. I n so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @8.75%p.a. in Cash Credit and @7.50%p.a. in WCTL along with penal interest @2%p.a. with monthly rests from 19.01.2022 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

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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 @7.50%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,86,621.00 (Rupees Twenty Four Lacs Eighty Six Thousand Six Hundred Twenty One Only) with costs, current and future simple interest @7.50%p.a. in both the loan accounts 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.12.2023. 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. Pronounced by me in the open Tribunal. Dated: 05.12.2023

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

Punjab National Bank v. M/s Hemkunt Auto Fuels

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/s Hemkunt Auto Fuels

Case brief

What is this about?

What did the court decide?

What the court decided

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