Allowed

Punjab National Bank, v. Sh. Swaran Singh and Another

DRT25 Sept 2023OA/637/2022

Case brief

AI extract

What is this about?

DRt-III, Chandigarh allowed an application under Section 19 of the RDBFI Act 1993 for recovery of Rs. 21,22,742.89. The court ex-parte noted the defendants' failure to repay, homologated the principal sum and costs, and ordersimple interest at 10% p.a. instead of the claimed 12.5%. A Recovery Certificate was issued.

What did the court decide?

Recovery of Rs. 21,22,742.89 plus costs and simple interest at 10% p.a. Issuance of Recovery Certificate.

Punjab National Bank, versus Sh. Swaran Singh and Another — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.637/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2022 DATE OF DECISION: 25.09.2023 Punjab National Bank, a body corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and a branch office amongst others at Village Deepanwali, Tehsil Sultanpur Lodhi, District Kapurthala

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……..Applicant Versus 1. Sh. Swaran Singh S/o Sh. Banta Singh (Borrower) 2. Sh. Amandeep Singh Sh. Swaran Singh (Co-Borrower) Both residents of Village Karamjitpur, P.O. Rampur Jagir, Tehsil Sultanpur Lodhi, District Kapurthala ….……Defendants Advocates: Argued by Ms. Pavneet Sonia Singh, counsel proxy for Ms. Harleen Kaur, counsel 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 Rs.21,22,742.89p (Rupees Twenty One Lacs Twenty Two Thousand Seven Hundred Forty Two and Paisa Eighty Nine only). The Original Application has been filed through Sh. Hemant Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 27.05.2019, 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 KCC Limit of Rs.16.00 Lacs vide Loan application for agriculture credit dated 04.07.2014. 3. The applicant Bank sanctioned the KCC Limit of Rs.16.00 Lacs vide Loan application dated 04.07.2014 and Memorandum for sanction of cash credit/short term loan dated 16.07.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 29K-10M situated at Village Karamjitpur, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab vide Registered Mortgage Deed bearing Vasika No.667 dated 15.07.2014 along with its translation, which are Annexures A3 and A3/A to this OA. Documents executed:- Hypothecation agreement, Letter of undertaking and Letter of consent all dated 23.07.2014, which are Annexures A4 to A6 to this OA; Lawyer notice dated 24.03.2022, which is Annexure A7 to this OA; Balance confirmation letters dated 30.03.2016, 25.02.2019 and 04.02.2022, which are Annexures A8 to A10 to this OA and Statement of account along with the certificate under the Banker’s Book Evidence Act, which is Annexure A11 to this OA. 5. 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.21,22,742.89p, 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. 6. 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 05.09.2023. 7. In support of the OA, affidavit of Sh. Hemant Kumar, Branch Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It 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 A11 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.21,22,742.89p (Rupees Twenty One Lacs Twenty Two Thousand Seven Hundred Forty Two and Paisa Eighty Nine 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 @12.50%p.a with yearly rests from the date of filing of this OA 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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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Rs.21,22,742.89p (Rupees Twenty One Lacs Twenty Two Thousand Seven Hundred Forty Two and Paisa Eighty Nine 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.10.2023.

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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.

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Pronounced by me in the Open Tribunal. Dated: 25.09.2023

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

Punjab National Bank, v. Sh. Swaran Singh and Another

Case brief

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Punjab National Bank, v. Sh. Swaran Singh and Another

Case brief

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