Allowed

Punjab National Bank v. Kulbir Singh

DRT17 Apr 2023OA/700/2022

Case brief

AI extract

What is this about?

The DRT-2, Chandigarh allowed the bank's original application for a recovery certificate. The court held the borrowers liable for the outstanding loan amount and directed payment with simple interest at 8% p.a. from the filing date.

What did the court decide?

Recovery Certificate issued directing payment of Rs.34,67,125/- with simple interest at 8% p.a. from 24.01.2022, executable against mortgaged or personal assets.

Punjab National Bank versus Kulbir Singh — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL 2, CHANDIGARH, PRESIDEDOVERBYM.M. DHONCHAK

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ORIGINAL APPLICATION NO.700/2022 DATE OF INSTITUTION: 24.03.2022 DATE OF DECISION:17th DAY OF APRIL, 2023

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Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisitions and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 44, Sector 10, Dwarka, New Delhi-110075, one of its Branches at Punjab National Bank, Saharanpur Road, District Yamuna Nagar, Haryana-135001, through Sh. Naresh Kumar Bheem, Senior Manager, Sastra

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....ApplicantBank

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Versus

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Sh. Kulbir Singh S/o Harbilas Singh, House No. 204, Village Lawana, PO Talakaur, Tehsil Mustafabad, Yamuna Nagar, Haryana-133103

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Sh. Hoshiar Singh S/o Harbilas Singh, House No. 349, Village Lawana, PO Talakaur, Tehsil Mustafabad, Yamuna Nagar, Haryana-133103

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……Defendants

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Argued by: Sh. J.S. Malhi proxy counsel for Sh. Krishan Kumar counsel for the applicant bank Defendants ex parte vide order dated 16.01.2023

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FINALORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity) against the defendants for recovery of Rs.34,67,125/- (Rupees Thirty Four lacs Sixty Seven Thousand One Hundred Twenty Five Only) . It has been filed through Sh. Naresh Kumar Bheem, Senior Manager of the applicant bank stated to

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OA 700/2023 PUNJAB NATIONAL BANK V/S KULBIR SINGH AND ANR 2

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be competent to institute the Original Application dated 05.02.2002, Annexure-A1 (copy).

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The brief facts as per the Original Application are that defendants had approached the applicant bank for grant of Housing Loan facility of Rs. 30 lacs vide loan application dated 01.10.2016, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid facility to the defendants vide sanction letter dated 10.10.2016, Annexure-A3 (copy) as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed agreement of housing loan dated 10.10.2016, Annexure-A4 (copy).

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The aforesaid loan was further secured by creation of mortgage by the defendants in respect of Plot Nos. 59 and 60 Measuring 273 Square Yards situated in the revenue estate of Mustafabad, Tehsil Jagadhari, District Yamuna Nagar, India, fully detailed in para No.5 (vii) of the Original Application. Transfer deed No. 1187 and sale deed No. 1188 dated 03.10.2016, Annexures-A5 and A6 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared NPA on 31.03.2021. The defendants executed balance and security confirmation letter dated 27.10.2021, Annexure-A7 (copy). The applicant bank recalled entire outstanding amount vide loan recall notice and notices under sections 13(4) and 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 dated 04.02.2022, 05.08.2021, 06.09.2021 and 22.12.2021, Annexures- A8, A9 and A10 (colly) (copy), but to no avail.

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OA 700/2023 PUNJAB NATIONAL BANK V/S KULBIR SINGH AND ANR 3

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It is further the case of the applicant bank that after adjusting debitand credit entries in the loan account, a sum of Rs.34,67,125/-

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(Rupees Thirty Four lacs Sixty Seven Thousand One Hundred

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Twenty Five Only) is recoverable against the defendants as per statement of account, Annexure-A11 (copy), duly certified under Bankers’ Books Evidence Act, 2000.

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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 RecoveryCertificate.

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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 16.01.2023 .

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In support of the contents of the OA, affidavit of evidence of Sh. Naresh Kumar Bheem, Senior Manager of the applicant bank was filed.

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This Tribunal has heard ex parte arguments advanced by the learned proxy counsel and gone through the record carefully.

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It was argued by the learned proxy counsel 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 A11 , it is clear that the defendants had approached the applicant bank for availing of the loan facility 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,

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OA 700/2023 PUNJAB NATIONAL BANK V/S KULBIR SINGH AND ANR 4

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it is proved that applicant bankis entitled to recover a sum of Rs.34,67,125/-(Rupees Thirty Four lacs Sixty Seven Thousand

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One Hundred Twenty Five 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 @9.35% per annum plus @2% per annum penal interest with monthly rests in term loan facility. In Sanction letter dated 10.10.2016, Annexure-A3 (copy), rate of interest has been mentioned @9.35% with monthly rests.

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This Tribunal is of the considered opinion that sometimes inappropriate 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 realization of the amount ordered vide this order. It is ordered accordingly. 12. In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum of Rs.34,67,125/-(Rupees Thirty Four lacs Sixty Seven Thousand One Hundred Twenty Five Only) with current and future simple interest @8% per annum w.e.f. 24.01.2022, 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

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OA 700/2023 PUNJAB NATIONAL BANK V/S KULBIR SINGH AND ANR

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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. 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

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05.06.2023.

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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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AnnouncedintheopenTribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Kulbir Singh

Case brief

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Punjab National Bank v. Kulbir Singh

Case brief

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