Allowed

Punjab National Bank (Erstwhile Oriental Bank of Commerce) v. Sh. Dinesh Kumar

DRT20 Oct 2023OA/683/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of a defaulted loan of ₹31,17,598.91p against a defendant who failed to repay a KCC limit. The bank was granted permission to recover the amount with simple interest at 10% p.a. from the sale of mortgaged assets.

What did the court decide?

Order in favour of applicant bank declaring defendant liable to pay ₹31,17,598.91p with costs and simple interest at 10% p.a. Recovery to be effected from sale of hypothecated/mortgaged properties.

Punjab National Bank (Erstwhile Oriental Bank of Commerce)… — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.683/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2022

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DATE OF DECISION: 20.10.2023

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Punjab National Bank, (Erstwhile Oriental Bank of Commerce) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi-110075 and one of its branch office at Balachaur, District Nawanshahr, Punjab, through its Authorised Officer Sh. Des Raj.

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……..Applicant Versus

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Sh. Dinesh Kumar S/o Sh. Madan Lal, R/o Village Siana, Ward No. 13, Tehsil Balachaur, District SBS Nagar, Punjab.

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………Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, counsel for the applicant Defendant is ex-parte

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FINAL ORDER

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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 defendant for recovery of Rs.31,17,598.91p (Rupees Thirty One Lacs Seventeen Thousand Five Hundred Ninety Eight and Paisa Ninety One only). The Original Application has been filed through Sh. Des Raj, Authorized Officer of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.09.2003, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.18.00 Lacs vide Loan Application dated 31.03.2011, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.18.00 Lacs vide Sanction Letter dated 20.04.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Agricultural land measuring 22 Kanals 06 ½ Marlas situated at Village Balachaur, Tehsil Balachaur and District Shaheed Bhagat Singh Nagar, Punjab vide Registered Mortgage Deed No.252 dated 21.04.2011 along with their translations, which is Annexure A5 to this OA.

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Documents executed: - Hypothecation Deed dated 25.04.2011, which is Annexure A4 to this OA; Notice dated 25.01.2019, which is Annexure A6 to this OA; Balance Confirmation Letters dated 25.03.2014, 09.06.2016 and 25.03.2019, which are Annexures A7 to A9 to this OA and Statement of account along with Computer Certificate, which are Annexures A10 and A11 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 debit of Rs.31,17,598.91p, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and was proceeded exparte on 31.08.2023. 7. In support of the OA, affidavit of Sh. Des Raj, Authorized Officer, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A11 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was

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granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.31,17,598.91p (Rupees Thirty One Lacs Seventeen Thousand Five Hundred Ninety Eight and Paisa Ninety One only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

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In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @13.75%p.a. (inclusive of @2%p.a. penal interest) with yearly rests from dated 23.03.2022 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 defendant, 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 defendant is liable to pay to the applicant a total sum of Rs.31,17,598.91p (Rupees Thirty One Lacs Seventeen Thousand Five Hundred Ninety Eight and Paisa Ninety One only) 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

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amount from the sale of hypothecated/mortgaged properties of the defendant 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 defendant. 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 06.11.2023.

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Copy of this order be given dasti to the applicant bank and be sent to defendant 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.

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Dated: 20.10.2023

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

Punjab National Bank (Erstwhile Oriental Bank of Commerce) v. Sh. Dinesh Kumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank (Erstwhile Oriental Bank of Commerce) v. Sh. Dinesh Kumar

Case brief

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What did the court decide?

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