Allowed

Punjab National Bank v. Sh. Sardool Singh

DRT31 Aug 2023OA/714/2022

Case brief

AI extract

What is this about?

In an ex-parte Original Application under Section 19 of the RDBFI Act, 1993, the Chandigarh DRT allowed the bank's claim for recovery of an agricultural loan of Rs. 31,04,413.62p. The Tribunal granted simple interest at 8.85% p.a. and ordered the issuance of a Recovery Certificate against the defendant's mortgaged and personal assets.

What did the court decide?

Declared liability to pay Rs. 31,04,413.62p with 8.85% p.a. interest; ordered issuance of Recovery Certificate; permitted recovery from sale of mortgaged and personal assets.

Punjab National Bank versus Sh. Sardool Singh — Contract and Commercial Disputes | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.714/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.12.2021

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DATE OF DECISION: 31.08.2023

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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, Sector 10, Dwarka, New Delhi110075 through one of its Branch Office at Bhagsar, Tehsil and District Muktsar and through its General Power of Attorney holder Sh. Paramjit Singh, Senior Manager, presently posted at Circle Sastra, District Fazilka, Punjab, of the Applicant Bank

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……..Applicant Versus Sh. Sardool Singh S/o Sh. Sarvan Singh, R/o House No.219, Village Bhagsar, Tehsil and District Muktsar, Punjab

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………Defendant

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Advocates:

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Argued by Sh. Manu Loona, 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.31,04,413.62p (Rupees Thirty One Lacs Four Thousand Four Hundred Thirteen and Sixty Two Paisa only). The Original Application has been filed through Sh. Paramjit Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 12.03.1998, 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.19.00 Lacs for

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agriculture purpose vide Loan Application dated 05.12.2012, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.19.00 Lacs vide Sanction Letter dated 05.12.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total agricultural land measuring 65 Kanals 11 Marlas situated in the revenue estate of Village Bhagsar, Tehsil and District Muktsar Sahib, Punjab vide Registered Mortgage Deed dated 17.12.2012 along with its translation and affidavit, which are Annexures A10 and A11 to this OA. Documents executed: - Agreement for Hypothecation of Crops, Letter of Undertaking, Supplementary Agreement, Letter of Consent, Letter of Request to be obtained from KCC and Declaration Regarding Agricultural land dated 20.12.2012, which are Annexures A4 to A9 to this OA; Legal Search Report, which is Annexure A12 to this OA; Non-Encumbrance Certificate along with its receipt dated 16.12.2012, which is Annexure A13 to this OA; Mutation Certificate dated 18.12.2012, which is Annexure A14 to this OA; Legal Notice dated 19.05.2021, which is Annexure A15 to this OA and Statement of account along with the certificate, which are Annexures A16 and A17 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.31,04,413.62p, 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 23.08.2023.

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In support of the OA, affidavit of Sh. Paramjit Singh, Senior 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 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 A17 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was 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.31,04,413.62p (Rupees Thirty One Lacs Four Thousand Four Hundred Thirteen and Sixty Two Paisa 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 @8.85%p.a. along with @2%p.a. penal interest with half 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 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 @8.85%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 defendant is liable to pay to the applicant a total sum of Rs.31,04,413.62p (Rupees Thirty One Lacs Four Thousand Four Hundred Thirteen and Sixty Two Paisa only) with costs, current and future simple interest @8.85%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 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 09.09.2023.

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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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Dated: 31.08.2023

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

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Order dictated, signed and pronounced by me in the open Tribunal. Dated: 31.08.2023

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

Punjab National Bank v. Sh. Sardool Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Sardool Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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