Allowed

Punjab National Bank v. Sh. Harinder Pal Singh

DRT29 Aug 2023OA/723/2022

Case brief

AI extract

What is this about?

The DRT allowed a debt recovery application filed ex-parte against a borrower and guarantor for an OGC loan default. The Tribunal ordered recovery of the principal amount with modified simple interest at 10% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.25,31,633 with 10% simple interest; Issuance of Recovery Certificate; Authorization to execute against mortgaged/personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.723/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.12.2021

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DATE OF DECISION: 29.08.2023

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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, Previously Oriental Bank of Commerce and one of its Branch at Ajitwal, Moga and Circle SASTRA Moga, Tehsil & District Moga, Punjab through its General Power of Attorney holder Sh. Sandeep Kumar, Manager of the applicant bank

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……..Applicant Versus

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Sh. Harinder Pal Singh S/o Sh. Kunda Singh, R/o H.No.125, Ward No.2, New Dashmesh Nagar, Jagraon, Tehsil Jagraon, District Ludhiana, Punjab (Borrower)

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Sh. Baldev Singh S/o Sh. Nachhtar Singh, R/o VPO Chuhar Chak, Tehsil and District Moga, Punjab (Guarantor) ….……Defendants

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Advocates:

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Argued by Sh. Aseem Kataria, counsel for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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 defendants for recovery of Rs.25,31,633.00 (Rupees Twenty Five Lacs Thirty One Thousand Six Hundred and Thirty Three only). The Original Application has been filed through Sh. Sandeep Kumar, Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of OGC Loan facility of Rs.18.00 Lacs vide Loan application dated 28.08.2012, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the OGC Loan facility of Rs.18.00 Lacs vide Sanction Letter dated 19.09.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. Agricultural land measuring 38 Kanal 10 Marla situated at Village Chuhar Chak, Hadbast No.38, Tehsil and District Moga, Punjab vide Regsitered Mortgage Deed No.5108 dated 17.09.2012 and Jamabandi for the year 2011-12 along with their translations, which are Annexures A6, A6/T, A7 and A7-T to this OA. Documents executed:- Agreement of Hypothecation and Agreement of Guarantee both dated 20.09.2012, which are Annexures A4 and A5 to this OA; Balance and Security Confirmation Letters dated 19.08.2015 and 23.02.2018, which are Annexures A8 and A9 to this OA; Legal Notice and postal receipt dated 19.06.2021, which is Annexure A10 to this OA and Statement of account along with memorandum of unapplied interest, which is Annexure A11 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.25,31,633.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and were proceeded ex-parte on 18.08.2023.

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7.	In support of the OA, affidavit ofSh. Sandeep Kumar, Manager,
Punj	ab National Bankhas been filed.

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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 defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants 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.25,31,633.00 (Rupees Twenty Five Lacs Thirty One Thousand Six Hundred and Thirty Three only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank has claimed interest @10.80%p.a. with half yearly rests from 04.12.2021 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 defendants, quantum of loans 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 amounts ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,31,633.00 (Rupees Twenty Five Lacs Thirty One Thousand Six Hundred and Thirty Three only) jointly and severally, 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 amounts. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants 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 defendants. 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 06.09.2023.

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Copy of this order be given dasti to the applicant bank and be sent to defendants 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: 29.08.2023

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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: 29.08.2023

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

Punjab National Bank v. Sh. Harinder Pal Singh

Case brief

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Punjab National Bank v. Sh. Harinder Pal Singh

Case brief

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