Allowed

Punjab National Bank v. Smt. Vidya Devi

DRT22 May 2023OA/794/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an ex-parte application filed by Punjab National Bank against loan defaulters and guarantors. The Tribunal directed recovery of the principal amount along with a modified rate of simple interest.

What did the court decide?

Recovery of Rs. 21,22,635.79 with simple interest at 7% per annum from 02.05.2022; liberty to recover via sale of mortgaged property or attachment of personal assets.

Punjab National Bank versus Smt. Vidya Devi — 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. 794/2022 DATE OF INSTITUTION: 02.05.2022 DATE OF DECISION: 22^nd DAY OF MAY, 2023

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Punjab National Bank , a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi and its Branch at Punjab National Bank, Village Rampura-Dhillon, Tehsil Nathusari-Chopta, District Sirsa, Haryana-125110, through its Authorised Representative, Sh. Jawahar Lal, Chief Manager, Sastra, Punjab National Bank, Solitaire Tower, I^st Floor, Barnala Road, Sirsa, Haryana-125055

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....Applicant Bank

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Versus

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Smt. Vidya Devi W/o Sh. Ram Sawrup R/o House No. 160, Village Gusaiana, District Sirsa, Haryana-125110

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Sh. Heera Lal S/o Sh. Hemraj R/o Village Gusaiana, District Sirsa, Haryana-125110

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…...Defendants

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Argued by: Ms Harpreet Kaur proxy counsel for Sh. Krishan Kumar counsel for the applicant bank Defendants ex parte vide order dated 16.12.2022

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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 (herein after referred to as ‘the Act’ for brevity) against the defendants for recovery of Rs.21,22,635.79/- (Rupees Twenty One lacs Twenty Two

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OA/794/2022 PUNJAB NATIONAL BANK Vs SMT. VIDYA DEVI

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Thousand Six Hundred Thirty Five and Seventy Nine Paisa Only) .

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It has been filed through Sh. Jawahar Lal, Chief Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 20.09.2003, Annexure-A1 (copy).

¶16

The brief facts of the case of the applicant as per Original Application are that the defendant No. 1 had approached the applicant bank for grant of KCC facility of Rs. 2 lacs further approached for enhancement of KCC facility to Rs. 5 lacs and again approached for enhancement of KCC facility to Rs. 10 lacs vide loan applications dated 30.08.2008, 27.09.2010 and 07.10.2010, Annexures-A2, A4 and A7 (copy). Defendant No. 2 stood as a guarantor for repayment of the loan.

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The applicant bank sanctioned aforementioned credit facility to the defendants vide sanction letters dated 30.08.2008, 27.09.2010 and 07.10.2010, Annexures-A3, A5 and A8 (copy) as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed hypothecation agreements dated 07.10.2010 and 02.07.2012, Annexures-A6 and A10 (copy). Defendant No. 2 executed deed of guarantee dated 02.07.2012, Annexure-A9 (copy).

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The aforesaid loan was further secured by creation of mortgage by defendant No. 1 in respect of agricultural land measuring 140 Kanals 10 Marlas situated in the revenue estate of Gusaina, Tehsil and District, Sirsa, Haryana, fully detailed in para No.5(x) of the Original Application.

¶20

The documents relating to mortgage are as under:

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i. Registered mortgaged deed dated 22.06.2012, Annexure-A11

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OA/794/2022 PUNJAB NATIONAL BANK Vs SMT. VIDYA DEVI

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(copy).

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ii. Copy of ‘Jamabandi’ for the years 2007-08, Annexure-A12.

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared as NPA on 07.04.2017. The defendants executed balance and security confirmation letter dated 18.03.2020, Annexure-A13 (copy). The applicant bank recalled the entire outstanding amount vide recall notice dated 15.04.2022 along with original postal receipt, Annexure-A14 (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.21,22,635.79/- (Rupees Twenty One lacs Twenty Two Thousand Six Hundred Thirty Five and Seventy Nine Paisa Only) is recoverable against the defendants as per statement of account, Annexure-A15 (copy), duly certified under Bankers’ Books Evidence Act.

¶28

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 16.12.2022 .

¶29

In support of the contents of the OA, affidavit of evidence of Sh. Jawahar Lal, Chief Manager of the applicant bank was filed.

¶30

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

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It was argued by the learned counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had

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OA/794/2022 PUNJAB NATIONAL BANK Vs SMT. VIDYA DEVI

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proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A15 , it is clear that defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that 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 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.21,22,635.79/- (Rupees Twenty One lacs Twenty Two Thousand Six Hundred Thirty Five and Seventy Nine Paisa Only) from the defendants.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed, rate of interest @8.85% per annum plus @2% per annum penal interest with half yearly rests. In hypothecation agreement dated 07.10.2010, Annexure-A6 (copy), rate of interest has been mentioned @11.75% per annum.

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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, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 1 being a lady, while exercising the discretion vested in this Tribunal, deems it just and appropriate to grant uniform simple interest @7% per

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OA/794/2022 PUNJAB NATIONAL BANK Vs SMT. VIDYA DEVI

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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 of Rs.21,22,635.79/- (Rupees Twenty One lacs Twenty Two Thousand Six Hundred Thirty Five and Seventy Nine Paisa Only) with current and future simple interest @7% per annum w.e.f. 02.05.2022, 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

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 26.07.2023.

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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.

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Announced in the open Tribunal

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(M.M. Dhonchak) Presiding Officer

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DRT-2, Chandigarh

Punjab National Bank v. Smt. Vidya Devi

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Smt. Vidya Devi

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

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