Allowed

Punjab National Bank v. Sh. Aamin Khan

DRT13 Sept 2023OA/749/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the bank's original application for recovery of an outstanding loan of Rs. 44,30,728/person. The court granted a uniform simple interest rate of 7% per annum, reduced from the contractual rate, and authorized recovery through sale of mortgaged property or attachment of assets.

What did the court decide?

Recovery certificate issued for Rs. 44,30,728/- plus future simple interest at 7% per annum; liberty granted to recover amount via sale of mortgaged property or attachment of assets.

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

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

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ORIGINAL APPLICATION NO. 749/2023

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DATE OF INSTITUTION: 24.04.2023

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DATE OF DECISION: 13^th DAY OF SEPTEMBER, 2023

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Punjab National Bank (erstwhile Oriental Bank of Commerce) , a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Corporate Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 inter alia a Branch at Nagina, District Mewat and also Recovery Office at Circle Sastra Centre, Sector 32, Institutional Area, Gurugram, Haryana, through its Attorney holder, Ms Kiran Narula

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…..Applicant Bank

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Versus

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Sh. Aamin Khan s/o Sh. Sawai Keechak r/o Village Manota, Punhana, District Mewat, Haryana

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....Defendant

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Argued by: Ms Arpita Sonkar, Manager Law for the applicant bank Defendant ex parte vide order dated 28.06.2023

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FINAL ORDER

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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 defendant for recovery of Rs.44,30,728/- (Rupees Forty Four Lacs Thirty Thousand

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Seven Hundred and Twenty Eight Only) . It has been filed through Ms Kiran Narula, Attorney Holder of the applicant bank

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OA/749/2023 PUNJAB NATIONAL BANK VS AAMIN KHAN 2

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stated to be competent to institute the Original Application vide General Power of Attorney dated 30.01.2012, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendant had approached the applicant bank for grant of term loan facility of Rs. 3 lacs and KCC facility of Rs. 3 lacs .

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The applicant bank sanctioned aforesaid facilities to the defendant, as per terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facilities, the defendant executed general power of attorney dated 17.02.2007, Annexure-A6 (copy), certificate of execution of documents dated 17.02.2007, Annexure-A7 (copy), agreement of term loan dated 17.02.2007, Annexure-A8 (copy), invoice and sale receipt dated 26.02.2007 of tractor purchased, Annexure-A9 (copy) and letter dated 26.02.2007 taken from borrower after delivery of vehicle, Annexure-A10 (copy).

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The aforesaid loan was further secured by creation of mortgage by the defendant in respect of two parcels of agricultural land measuring 57 Kanals 14 Marlas situated in the revenue estate of Manota, Tehsil Punhana, District Mewat, Haryana fully detailed in para No. 5.2 of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered mortgage deed Nos. 2786 and 2787 dated 15.02.2007, Annexures-A2 and A3 (copy).

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OA/749/2023 PUNJAB NATIONAL BANK VS AAMIN KHAN 3

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ii. Request letters dated 15.02.2007 to the Tehsildar, Punhana, for entry/mutation of mortgaged properties, Annexures-A4 and A5 (copy).

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA on 31.12.2011. The defendant executed balance and security confirmation letters dated 05.02.2010, 16.05.2012, 13.05.2015, 08.05.2018 and 04.05.2021, Annexure-A11 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 14.03.2023 along with its postal receipt, Annexure-A12 (colly) (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.44,30,728/- (Rupees Forty Four Lacs Thirty Thousand Seven Hundred and Twenty Eight Only) is recoverable against the defendant as per statements of accounts, Annexure-A14 (colly) (copy), duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A13 .

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

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant,

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OA/749/2023 PUNJAB NATIONAL BANK VS AAMIN KHAN 4

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thus, the defendant was proceeded against ex-parte vide order dated 28.06.2023 .

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In support of contents of the OA, affidavit of evidence of Ms. Kiran Narula, Chief Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Ms Arpita Sonkar, Manager Law of the applicant bank and gone through the record carefully.

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It was argued by Ms Arpita Sonkar, Manager Law that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A14 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant 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, it is proved that applicant bank is entitled to recover a sum of Rs.44,30,728/- (Rupees Forty Four Lacs Thirty Thousand Seven Hundred and Twenty Eight Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank has claimed rate of interest @13% per annum. In agreement of term loan dated 17.02.2007, Annexure-A8 (copy), the rate of interest has been mentioned @10.75% per annum in term loan facility.

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OA/749/2023 PUNJAB NATIONAL BANK VS AAMIN KHAN 5

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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 mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, area of place of abode of the defendant and 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 @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendant is liable to pay to the applicant bank a sum of Rs.44,30,728/- (Rupees Forty Four Lacs Thirty Thousand Seven Hundred and Twenty Eight Only) with current and future simple interest @7% per annum w.e.f. 24.04.2023 , 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 defendant 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

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OA/749/2023 PUNJAB NATIONAL BANK VS AAMIN KHAN 6

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assets of the defendant. However, the applicant bank is at liberty to

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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 12.10.2023.

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Copy of this order be sent to the applicant bank and the defendant through registered/speed post. This order be also uploaded on the official website of this Tribunal.

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Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Sh. Aamin Khan

Case brief

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Punjab National Bank v. Sh. Aamin Khan

Case brief

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