Allowed

Punjab National Bank v. Sh. Ashok Kumar Raheja

DRT17 Oct 2023OA/567/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of outstanding dues of approximately Rs. 29.88 lakrs against two respondents who availed housing and overdraft facilities. The court issued a Recovery Certificate allowing execution against mortgaged or personal assets.

What did the court decide?

Recovery Certificate issued for Rs. 29,87,969/- with 8% annual interest enforceable against mortgaged or personal assets.

Punjab National Bank versus Sh. Ashok Kumar Raheja — Contract and Commercial Disputes | DRT (2023)

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

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ORIGINAL APPLICATION NO. 567/2023

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DATE OF INSTITUTION: 31.03.2023

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DATE OF DECISION: 17^th DAY OF OCTOBER, 2023

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Punjab National Bank , a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and Branch amongst others at Circle Sastra Centre, Panipat, Haryana, through its General Power of Attorney Holder, Sh. Ramesh Chander, Senior Manager of the Applicant Bank

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…..Applicant Bank

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Versus

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Sh. Ashok Kumar Raheja s/o Sh. Ram Saran Raheja r/o House No. 35, Hari Bagh Colony, Asandh Road, Near Luxmi Narayan Mandir, Panipat-132103

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Sh. Gourav Raheja s/o Sh. Niti Pal r/o House No. 35, Hari Bagh Colony, Asandh Road, Near Luxmi Narayan Mandir, Panipat-132103

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....Defendants

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Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendants ex parte vide order dated 21.06.2023

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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 and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendants for recovery of Rs.29,87,969/- (Rupees Twenty Nine

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Lac Eighty Seven Thousand Nine Hundred and Sixty Nine Only) .

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OA/567/2023 PUNJAB NATIONAL BANK VS ASHOK KUMAR RAHEJA AND OTHERS 2

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It has been filed through Sh. Ramesh Chander, Senior Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney, Annexure-A2 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendants had approached the applicant bank for grant of housing loan facility Rs. 4.50 lac and overdraft facility of Rs. 20 lac vide loan application form dated 30.01.2016, Annexure-A3 (copy).

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The applicant bank sanctioned above said credit facilities vide sanction letter dated 30.01.2016, Annexure-A4 (copy) to the defendants as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facilities, the defendants executed agreement dated 30.01.2016 for housing loan, Annexure-A5 (copy) and supplementary agreement dated 19.09.2018, Annexure-A7 (copy).

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The aforesaid loan was further secured by creation of mortgage by defendant No. 2 in respect of residential property measuring 155 Square Yards situated at House No. 35, Abadi Hari Bagh Colony near Assand Road, Panipat, Haryana, fully detailed in para No.

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5.7 of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered sale deed No. 1732/1 dated 30.05.2008, AnnexureA6 (copy).

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ii. Valuation report dated 28.01.2016, Annexure-A1 (copy).

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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

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OA/567/2023 PUNJAB NATIONAL BANK VS ASHOK KUMAR RAHEJA AND OTHERS 3

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loan accounts becoming irregular and those being classified as NPA on 31.03.2021. The defendants executed balance and security confirmation letter dated 19.09.2018, Annexure-A8 (copy). The applicant bank recalled entire outstanding amount vide notice dated 12.05.2021 under section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, Annexure-A9 (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 accounts, a sum of Rs.29,87,969/(Rupees Twenty Nine Lac Eighty Seven Thousand Nine Hundred

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and Sixty Nine Only) is recoverable against the defendants as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexures-A10 and A11 (colly) (copy).

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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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Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex parte vide order dated 21.06.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Subhash Chander, Senior Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Ms Arpita Sonkar, Manager Law of the applicant bank and gone through the record carefully.

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It was argued by Ms Arpita Sonkar, Manager Law for the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the

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OA/567/2023 PUNJAB NATIONAL BANK VS ASHOK KUMAR RAHEJA AND OTHERS 4

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defendants for recovery of the amount sought. From perusal of Annexures-A1 to A11 , 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 loan as per terms and conditions of the agreements 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.29,87,969/(Rupees Twenty Nine Lac Eighty Seven Thousand Nine Hundred and Sixty Nine Only) from the defendants.

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In so far as pendent lite and future interest is concerned, the applicant bank has claimed rate of interest @8.55% per annum in housing loan facility and @10.90% per annum in overdraft facility. In sanction letter dated 30.01.2016, Annexure-A4 (copy) the rate of interest has been mentioned @9.60% per annum in housing loan facility.

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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. housing, quantum of loan, 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/567/2023 PUNJAB NATIONAL BANK VS ASHOK KUMAR RAHEJA AND OTHERS 5

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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.29,87,969/- (Rupees Twenty Nine Lac Eighty Seven Thousand Nine Hundred and Sixty Nine Only) with current and future simple interest @8% per annum w.e.f. 31.03.2023 , 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 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. However, 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 08.11.2023.

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

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

Punjab National Bank v. Sh. Ashok Kumar Raheja

Case brief

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Punjab National Bank v. Sh. Ashok Kumar Raheja

Case brief

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