The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 58 lakhs plus interest. The court modified the claimed interest rate to 9% per annum, declaring the defendants jointly and severally liable.
Recovery of Rs. 58,40,746/- with simple interest @9% per annum from 07.03.2022 till realization; Recovery Certificate issued.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.536/2022
DATE OF INSTITUTION: 07.03.2022
DATE OF DECISION: 9th DAY OF JANUARY, 2023
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 Branches amongst others at Chandigarh Circle, Sastra Centre, 2nd Floor, Bank Square, PNB House, Sec 17-B Chandigarh, through Sh. Tejinder Pal Singh, Chief Manager, Principal Officer and constituted Attorney
....Applicant Bank
Versus
Flat No. 45, First Floor, LRC Homes (Sky Infrastructure Limited), Kishanpura, Zirakpur, Punjab-160104
.....Defendants
FINAL ORDER
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
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Act’ for brevity) against the defendants for recovery of Rs. 58,40,746/- (Rupees Fifty Eight lacs Forty Thousand Seven Hundred and Forty Six Only) . It has been filed through Sh. Tejinder Pal Singh, Chief Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 26.09.1997, Annexure-A1 (copy).
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The documents relating to the mortgages are as under:
iii. Registered Sale deed dated 21.07.2015, Annexure-A14 (copy) and its translation, Annexure-A14/T (copy).
iv. Jamabandi for years 2014-15, Annexure-A15 (copy) and its translation, Annexure-A15/T (copy).
vi. Acknowledgment/receipt dated 28.04.2016 issued by the bank in respect of title deed being deposited, Annexure-A17 (copy).
vii. Entry dated 22.08.2017 in Equitable Mortgage register, AnnexureA18 (copy).
Interest accrued during loan moratorium period due to COVID-19 w.e.f. March 2020 to Aug 2020, was converted into term loan facility of
Rs 2,93,661/- (Two Lac Ninety Three Thousand Six Hundred and
Sixty One Only) on date 04.09.2020 as per RBI guidelines, which was repayable in EMI of Rs 97887/- payable w.e.f. 01.01.21 to 31.03.21 .
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were declared as NPA because it became irregular. The defendants executed balance and security confirmation letter dated 24.09.2019, Annexure-A20 (copy). The applicant bank recalled entire outstanding amount vide notice dated 27.01.2022, Annexure-A21 (copy), along with its postal receipts, Annexure-A22 (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs. 58,40,746/(Rupees Fifty Eight lacs Forty Thousand Seven Hundred and Forty
Six Only) is recoverable against the defendants as per statement of accounts, Annexures-A23 and A24 (copy), duly certified under Banker’s Books Evidence Act, 2000.
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
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the loan facilities which were granted to them and for repayment of that defendant Nos.2, 3, 4 and 5 stood as guarantors. 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 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.
58,40,746/- (Rupees Fifty Eight lacs Forty Thousand Seven Hundred and Forty Six Only) from the defendants.
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 mortgage properties, purpose of loan, i.e. business, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, defendant No. 3 being a lady, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9% 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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Rs. 58,40,746/- (Rupees Fifty Eight lacs Forty Thousand Seven
Hundred and Forty Six Only) with current and future simple interest @9% per annum w.e.f. 07.03.2022 , till the date of realisation of the amount. The liability of 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 properties 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 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 defendants. The applicant bank is at liberty to enforce the claim through due process of law.
Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2,Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount along with interest from the defendants as guarantors and mortgagors.
Whether the claimed interest rate should be modified considering the pandemic impact and market rates.
2 provisions across 2 enactments
Punjab National Bank
M/s Balaji Enterprises
Pardeep Garg
Monika Garg
Sandeep Garg
Rajiv Mittal
M.M. Dhonchak
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
