Allowed

Punjab National Bank v. Sh. Rattan Singh

DRT12 Oct 2023OA/647/2023

Case brief

AI extract

What is this about?

This Tribunal allowed the Original Application filed by Punjab National Bank for recovery of Rs. 24,42,430.53/- along with future simple interest at 8% per annum from the date of filing against two defendants who failed to repay agricultural loan facilities.

What did the court decide?

Recovery of Rs. 24,42,430.53/- with future simple interest @ 8% p.a. w.e.f. 06.04.2023 and issuance of Recovery Certificate.

Punjab National Bank versus Sh. Rattan Singh — 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.647/2023

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DATE OF INSTITUTION: 06.04.2023

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DATE OF DECISION: 12^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, Sectort-10, Dwarka, New Delhi and Branch amongst other at Village Sagga, District Karnal132116, Haryana, through its Authorised Representative, Sh. Amit Jangra, Deputy Manager, Punjab National Bank, Circle Sastra, Sector12, Karnal-132001

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…..Applicant Bank

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Versus

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Sh. Rattan Singh s/o Sh. Harman Singh, r/o House No. 98, Village Sambhi, Block-1, Tehsil Nilokheri, District Karnal-132116

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Sh. Joga Singh s/o Sh. Rattan Singh, r/o House No. 98, Village Sambhi, Block-1, Tehsil Nilokheri, District Karnal-132116

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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 28.06.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant

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bank under Section 19 of the Recovery of Debts and Bankruptcy

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Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.24,42,430.53/-

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OA/647/2023 PUNJAB NATIONAL BANK Vs RATTAN SINGH AND ANOTHER 2

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(Rupees Twenty Four Lac Forty Two Thousand Four Hundred

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Thirty and Fifty Three Paisa Only) . It has been filed through Sh. Amit Jangra, Deputy Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 30.12.2016, Annexure-A1 (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 Rs. 7,50,000/- under KCC Scheme which was

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further enhanced to Rs. 16,00,000/- and term loan of Rs. 1,00,000/- vide loan application Forms for agricultural credit dated 01.10.2013 and 06.09.2018, Annexures-A2 and A5 (copy).

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The applicant bank sanctioned aforesaid facilities to the defendants vide sanction letters dated 04.10.2013 and 13.09.2018, Annexures-A3 and A6 (copy), 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 hypothecation agreement dated 20.09.2018, Annexure-A9 (copy).

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The aforesaid limit was further secured by creation of equitable mortgage by defendant No. 1 in respect of of agricultural land measuring 74 Kanal 5 Marla situated in the revenue estate of Sambhi, Sub-Tehsil Nighdu, Tehsil Nilokheri, District Karnal, Haryana, fully detailed in para No. 5(vii) of the OA.

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The documents related to mortgage are as under:

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i. Registered mortgage deed dated 07.10.2013, Annexure-A4 (copy).

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OA/647/2023 PUNJAB NATIONAL BANK Vs RATTAN SINGH AND ANOTHER 3

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ii. Letter dated 13.09.2018 to the Sub-Registrar, Nighdu, for entry/mutation of the mortgaged property, along with declaration dated 13.09.2018 under Section 4(1) of the Haryana Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A7 (colly) (copy).

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iii. Copy of ‘Jamabandi’ for year 2016-2017, Annexure-A8 (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 loan accounts becoming irregular and those being classified as NPA on 30.09.2022. Defendants executed balance and security confirmation letters dated 02.03.2021 and 06.08.2021, AnnexureA10 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice along with postal receipts dated 13.02.2023, along with original postal receipts, Annexure-A11 (colly) (copy), but to no avail. 7. It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of

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Rs.24,42,430.53/- (Rupees Twenty Four Lac Forty Two

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Thousand Four Hundred Thirty and Fifty Three Paisa Only) is recoverable against the defendants as per statements of accounts, certified under Bankers’ Books Evidence Act, 1891, along with account calculation sheet, Annexure-A12 (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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OA/647/2023 PUNJAB NATIONAL BANK Vs RATTAN SINGH AND ANOTHER 4

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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 28.06.2023.

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In support of contents of the OA, affidavit of evidence of Sh. Amit Jangra, Deputy 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 for the applicant bank and gone through the record carefully.

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It was argued by Ms Arpita Sonkar, Manager Law of the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A12 , it is clear that the defendants had approached the applicant bank for availing of the loan facilities which was 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 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

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Rs.24,42,430.53/- (Rupees Twenty Four Lac Forty Two Thousand Four Hundred Thirty and Fifty Three Paisa Only) from the defendants.

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In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @10.75% per annum plus penal interest @2% per annum. In

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OA/647/2023 PUNJAB NATIONAL BANK Vs RATTAN SINGH AND ANOTHER 5

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sanction letter dated 13.09.2018, Annexure-A6 (copy), rate of interest has been mentioned @10.45% per annum.

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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 mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan and 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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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.24,42,430.53/- (Rupees Twenty Four Lac Forty Two Thousand Four Hundred Thirty and Fifty Three Paisa Only) with current and future simple interest @8% per annum w.e.f. 06.04.2023 , till the date of realisation of the amount. The liability of the defendants shall be joined as well as several. 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

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OA/647/2023 PUNJAB NATIONAL BANK Vs RATTAN SINGH AND ANOTHER 6

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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 07.11.2023 .

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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. Rattan Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Rattan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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