Allowed

Punjab National Bank v. Kamlesh Raghav and Anr.

DRT24 Jan 2023OA/714/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan of approximately Rs. 37.84 lakhs. The court reduced the claimed interest to a uniform rate of 7% per annum from the filing date and declared the defendants jointly and severally liable. A recovery certificate was issued.

What did the court decide?

Directed defendants to pay Rs. 37,84,388.62 with 7% annual interest from filing date; issued Recovery Certificate.

Punjab National Bank versus Kamlesh Raghav and Anr. — Contract and Commercial Disputes | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO. 714/2022

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DATE OF INSTITUTION: 16.03.2022

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DATE OF DECISION: 24^th DAY OF JANUARY, 2023

¶5

Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075, through one of its Branches having office at Main Branch, Yamuna Nagar, Tehsil Jagadhri, District Yamuna Nagar, through Sh. Nar Singh Shankarwal, Branch Manager and Power of Attorney Holder

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....Applicant Bank

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Versus

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Smt. Kamlesh Raghav W/o Sh. Dinesh Raghav

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Sh. Dinesh Raghav S/o Sh. Mahi Pal Raghav

¶10

Ms Shiksha Raghav D/o Sh. Dinesh Raghav

¶11

All are residents of House No. C-6/1007/1, Sawanpuri, Jagdhri, Tehsil Jagadhri, District Yamuna Nagar, Haryana

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.....Defendants

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Argued by: Sh. Tilak Raj Kapoor counsel for the applicant bank Defendants ex parte vide order dated 27.10.2022

¶14

FINAL ORDER

¶15

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.37,84,388.62p (Rupees Thirty Seven lacs Eighty Four Thousand Three Hundred Eighty Eight and Sixty Two Paisa Only) . It has been filed through Sh. Nar Singh Shankarwal, Branch Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 24.09.2001, Annexure-A1 (copy).

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OA/714/2022 PUNJAB NATIONAL BANK Vs KAMLESH RAGHAV AND ORS

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¶18

The brief facts as per the Original Application are that defendants had approached the applicant bank for grant of Term loan facility of Rs.10 lacs and OD facility of Rs 25 lacs vide loan applications dated 20.09.2015, Annexures-A2 and A3 (copy).

¶19

The applicant bank sanctioned aforesaid facilities to the defendants vide sanction letters dated 30.09.2015, Annexures-A4 and A5 (copy) as per the terms and conditions which were duly accepted by the defendants.

¶20

In order to secure the aforementioned credit facilities, the defendants executed various loan and security documents, i.e. agreement of housing loan dated 30.09.2015, Annexure-A6 (copy), agreement of overdraft facility for housing loan dated 30.09.2015, Annexure-A7 (copy) and Voter Id card of defendant No.1, Annexure-A18 (copy).

¶21

The aforesaid loans were further secured by creation of mortgage of residential property in respect of defendant No. 1, all part and parcel of house bearing property No. C-6/1007/1 measuring 246.5 Square Yards situated in the revenue estate of Garhi-Mundo, Mosumma-Sawanpuri, Tehsil Jagadhri, District Yamunanagar, Haryana, fully detailed in para Nos. 3A and 5.4 of the Original Application.

¶22

The documents relating to the mortgage are as under:

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i. Sale deed No. 9570 dated 30.03.2011 registered with Sub-Registrar Jagadhri, Annexure-A8 (copy).

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ii. Entry dated 05.10.2015 in the title deed register, Annexure-A9 (copy).

¶25

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 and resultantly, the loan accounts became irregular and those were declared NPA on 13.09.2020. The defendants executed balance and security confirmation letters dated

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OA/714/2022 PUNJAB NATIONAL BANK Vs KAMLESH RAGHAV AND ORS

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15.03.2018, 29.10.2020, 05.03.2018 and 29.10.2020, Annexures-A10 to A13 (copy).

¶29

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.37,84,388.62p (Rupees Thirty Seven lacs Eighty Four Thousand Three Hundred Eighty Eight and Sixty Two Paisa Only) is recoverable against the defendants as per statements of accounts dated 28.02.2022, AnnexuresA14 and A15 (copy), interest chart dated 15.03.2022, Annexure-A16 and certificate under Banker’s Books Evidence Act, 2000, Annexure-A17 .

¶30

Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

¶31

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 27.10.2022 .

¶32

In support of the contents of the OA, affidavit of evidence of Sh. Nar Singh Shankarwal, Branch Manager of the applicant bank was filed.

¶33

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

¶34

It was argued by the learned 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 A18 , it is clear that the defendants had approached the applicant bank for availing of the loan facilities which were 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

¶35

OA/714/2022 PUNJAB NATIONAL BANK Vs KAMLESH RAGHAV AND ORS

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¶37

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 Rs.37,84,388.62p (Rupees Thirty Seven lacs Eighty Four Thousand Three Hundred Eighty Eight and Sixty Two Paisa Only) from the defendants.

¶38

In so far as pendente lite and future interest is concerned, the applicant bank, in relief clause, has claimed rate of interest @10% per annum plus @2% per annum penal interest with monthly rests in term loan facility and @10.50% per annum plus @2% per annum penal interest with monthly rests OD facility. In agreement for housing loan and agreement of overdraft facility dated 30.09.2015, Annexures-A6 and A7 (copy), rate of interest has been mentioned @10% per annum with monthly rests in term loan facility and @10.50% per annum with monthly rests in OD facility.

¶39

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 the mortgage property, purpose of loan, i.e. housing, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant Nos. 1 and 3 being ladies while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶40

In the result, the Original Application is allowed with costs declaring that the defendants are liable to pay to the applicant bank a sum Rs.37,84,388.62p (Rupees Thirty Seven lacs Eighty Four Thousand Three Hundred Eighty Eight and Sixty Two Paisa Only) with current

¶41

OA/714/2022 PUNJAB NATIONAL BANK Vs KAMLESH RAGHAV AND ORS

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¶43

and future simple interest @7% per annum w.e.f. 16.03.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint 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 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.

¶44

Issue Recovery Certificate accordingly.

¶45

Parties to appear before Recovery Officer concerned on 21.02.2023.

¶46

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.

¶47

Announced in the open Tribunal (M.M. Dhonchak)

¶48

Presiding Officer DRT-2,Chandigarh

Punjab National Bank v. Kamlesh Raghav and Anr.

Case brief

What is this about?

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Punjab National Bank v. Kamlesh Raghav and Anr.

Case brief

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