Allowed

Punjab National Bank, v. Sh. Ajit Singh

DRT24 Aug 2023OA/720/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of outstanding dues of Rs 20,77,021.75. It ruled that the respondent must repay the principal sum with costs and simple interest at 10% per annum, enforced through execution of mortgaged properties.

What did the court decide?

Recovery of Rs. 20,77,021.75 with costs and simple interest at 10% per annum from the date of filing till realization via execution of mortgaged assets.

Punjab National Bank, versus Sh. Ajit Singh — Banking and Recovery | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.720/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 27.04.2022

¶5

DATE OF DECISION: 24.08.2023

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi and a branch office among others at Village Bhandal Bet, Sub-Tehsil Dhilwan, District Kapurthala

¶7

……..Applicant Versus

¶8

Sh. Ajit Singh S/o Sh. Hari Singh, (now deceased) through his following legal heir:-

¶9

a) Sh. Jasbir Singh S/o Sh. Ajit Singh S/o Sh. Hari Singh, R/o VPO Jatike, Tehsil and District Kapurthala

¶10

………Defendant

¶11

Advocates:

¶12

Argued by Sh. Amit Rishi, counsel proxy for Sh. Vinay Garg, counsel for the applicant Defendant is ex-parte

¶13

FINAL ORDER

¶14

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.20,77,021.75p (Rupees Twenty Lacs Seventy Seven Thousand Twenty One and Paisa Seventy Five only). The Original Application has been filed through Sh. Suresh Kumar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 24.09.2015, which is Annexure A1 to this OA.

¶15

¶16

The brief facts of the OA are that the defendant (since deceased) had approached the applicant bank for the grant of KCC Limit of Rs.13.00 Lacs vide Loan application dated 03.06.2016. 3. The applicant Bank sanctioned the KCC Limit of Rs.13.00 Lacs vide loan application-cum-Sanction Letter dated 03.06.2016, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant (since deceased) had mortgaged his immovable properties detailed as:a. Total land measuring 19K-19½M situated at Village Mand Jatikae, Tehsil and District Kapurthala; and b. Total land measuring 08K-00M situated at Village Sanjogla, Tehsil Dhilwan, District Kapurthala, Punjab; vide Declaration u/s 4(1) under the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978 dated 14.06.2016 and Letter to Sub-Registrar for creation of charge 29.06.2016, which are Annexures A3 and A4 to this OA. Documents executed:- Hypothecation agreement, Letter of undertaking and Consent letter all dated 09.08.2016, which are Annexures A5 to A7 to this OA; Lawyer notice dated 04.03.2020, which is Annexure A8 to this OA and Statement of account along with certificate under the Banker’s Books Evidence Act, which is Annexure A9 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.20,77,021.75p, 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. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and was proceeded exparte on 18.08.2023.

¶17

¶18

In support of the OA, affidavit of Sh. Suresh Kumar, Branch Manager, Punjab National Bank has been filed.

¶19

Heard ex-parte arguments and perused record.

¶20

It was argued by learned proxy 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 A9 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.20,77,021.75p along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.50%p.a. with yearly rests from the date of filing of this application till the realization.

¶21

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.

¶22

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of

¶23

¶24

Rs.20,77,021.75p (Rupees Twenty Lacs Seventy Seven Thousand Twenty One and Paisa Seventy Five 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 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.

¶25

Any other application pending stands disposed of.

¶26

Issue Recovery Certificate accordingly.

¶27

Parties to appear before Learned Recovery Officer of this Tribunal on 01.09.2023.

¶28

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.

¶29

Dated: 24.08.2023

¶30

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

¶31

Order dictated, signed and pronounced by me in the open Tribunal. Dated: 24.08.2023

¶32

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

Punjab National Bank, v. Sh. Ajit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Sh. Ajit Singh

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Indian Bank versus Sh. Gobinder Singh

Punjab National Bank versus Sh. Gurmel Singh @ Gurmail Singh

Punjab National Bank, versus Smt. Sonia

Punjab National Bank versus Sh. Balraj Gupta

Indian Bank versus Sh. Kulwinder Singh

M/S Panel Indus and Others versus Punjab National Bank