Allowed

Punjab National Bank (erstwhile Oriental Bank of Commerce), v. Smt. Karnail Kaur and Others

DRT30 Oct 2023OA/625/2022

Case brief

AI extract

What is this about?

In an ex-parte hearing under RDDBFI Act, 1993, the DRT allowed the applicant bank's application for recovery of Rs. 27.34 lacs, directing issuance of a Recovery Certificate and sale of mortgaged properties.

What did the court decide?

Recovery Certificate issued; respondents ordered to pay Rs. 27.34 lacs plus costs and simple interest at 10% p.a. via sale of mortgaged or personal assets.

Punjab National Bank (erstwhile Oriental Bank of… — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.625/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.04.2022

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DATE OF DECISION: 30.10.2023 Punjab National Bank (erstwhile Oriental Bank of Commerce), 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 inter-alia, one of its Branch office at Dehlon, District Ludhiana- (Punjab) through Sh. Ravinder Kumar, Authorized Person and General Attorney of the applicant bank ……..Applicant Versus 1. Smt. Karnail Kaur W/o Sh. Amar Singh, R/o VPO Shankar, Tehsil Ludhiana, District Ludhiana (Punjab) 2. Sh. Paramjeet Singh S/o Sh. Manjit Singh R/o VPO Shankar 14118, Tehsil Ludhiana, District Ludhiana (Punjab) (Borrower/Mortgagor) 3. Sh. Manjit Singh S/o Sh. Sucha Singh R/o VPO Shankar 14118, Tehsil Ludhiana, District Ludhiana (Punjab) (Guarantor) ….……Defendants Advocates: Argued by Ms. Sonia G. Singh Samber, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. 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

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Rs.27,34,421.00 (Rupees Twenty Seven Lacs Thirty Four Thousand Four Hundred Twenty One only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of OGC Loan of Rs.10.00 Lacs vide Loan application dated 08.03.2011, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the OGC Loan of Rs.10.00 Lacs vide Sanction Letter dated 09.03.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged her immovable properties i.e. total agricultural land measuring 18K-01M situated within the revenue estate of Village Shankar, Tehsil and District Ludhiana, Punjab vide Jamabandi for the year 2005-2006 and Registered Mortgaged Deed bearing vasika no.2590 dated 15.03.2011 along with their translations , which are Annexures A9, A-9T, A10 and A-10T to this OA.

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Documents executed:- Amalgamation Scheme/Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement, Schedule-I, Agreement of Manjeet Singh and Schedule-I of Manjeet Singh all dated 18.03.2011, which are Annexures A5 to A8 to this OA; Bank Statement, which is Annexure A11 to this OA; Legal Notices and Postal Receipts all dated 24.04.2017 and 15.09.2021, which are Annexures A12 to A15 to this OA and Certificate by the officer in charge of computer system dated 07.01.2022, which is Annexure A16 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.27,34,421.00, which is recoverable and the defendants

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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 29.09.2023.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned 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 A16 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.27,34,421.00 (Rupees Twenty Seven Lacs Thirty Four Thousand Four 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 account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.50%p.a. with half yearly rests from 01.04.2021 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 crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking

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of the defendants, quantum of loan 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 @10.00%p.a. in the loan account 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.27,34,421.00 (Rupees Twenty Seven Lacs Thirty Four Thousand Four Hundred Twenty One only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.11.2023. 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: 30.10.2023

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

Punjab National Bank (erstwhile Oriental Bank of Commerce), v. Smt. Karnail Kaur and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank (erstwhile Oriental Bank of Commerce), v. Smt. Karnail Kaur and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

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