Allowed

Punjab National Bank v. Sh. Rameshwar

DRT22 Dec 2023OA/849/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of Rs. 22,08,312.87 outstanding against a defendant who failed to repay agricultural loan facilities secured by mortgage, ordering recovery of principal with uniform simple interest at 8% per annum.

What did the court decide?

Recovery certificate issued for Rs. 22,08,312.87 with simple interest at 8% p.a. w.e.f. 19.05.2023.

Punjab National Bank versus Sh. Rameshwar — 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.849/2023

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DATE OF INSTITUTION: 19.05.2023

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DATE OF DECISION: 22^nd DAY OF DECEMBER, 2023

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Punjab National Bank , a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at Plot No. 4, Sector 10, Dwarka, New Delhi and its Branch at Punjab National Bank, Hailey Mandi, District Gurgaon-122503, through its Authorised Representative, Sh. Parveen Kumar Sammi, Chief Manager, Punjab National Bank, Circle SASTRA Centre, Ground Floor, Plot No. 5, Institutional Area, Sector-32, Gurugram, Haryana-122001, email: [email protected], Mobile No. 9899901644

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…..Applicant

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Versus

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Sh. Rameshwar s/o Sh. Ram Narayan r/o Village Babra Bakipur, Tehsil Farrukhnagar, District Gurgaon-122502

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....Defendant

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Argued by: Sh. Rehan Chaudhary proxy counsel for Sh. Krishan Kumar, Advocate for the applicant bank Defendant ex parte vide order dated 04.12.2023

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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 and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.22,08,312.87/- (Rupees Twenty Two Lac Eight Thousand Three Hundred Twelve and Eighty Seven

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OA/849/2023 PUNJAB NATIONAL BANK VS RAMESHWAR 2

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Paisa Only) . It has been filed through Sh. Parveen Kumar Sammi, Chief Manager of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 12.03.1998, 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 KCC Limit of Rs. 2,50,000/- which was further enhanced to Rs. 10,50,000/- and term loan of Rs. 5,00,000/- for purchase of Tractor vide loan application Forms dated 12.06.2012 and 04.09.2015 for agricultural credit, Annexures-A2 and A5 (copy).

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The applicant bank sanctioned aforesaid facilities to the defendant vide sanction letters, Annexures-A3 and A6 (copy), 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 hypothecation agreement dated 25.09.2015, Annexure-A7 (copy).

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The aforesaid limits were further secured by creation of equitable mortgage by defendant in respect of agricultural land measuring 37 Kanal 14 Marla situated in the revenue estate of Babra Bakipur, Tehsil Farrukhnagar, District Gurgaon, Haryana, fully detailed in para No. 5(viii) of the OA.

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The documents related to mortgage are as under:

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i. Registered mortgage deed dated 27.06.2012, Annexure-A4 (copy).

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ii. Letter dated 24.09.2015 to the Tehsildar, Farrukh Nagar for entrance and confirmation of mutation, Annexure-A8 (copy).

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It is further the case of the applicant bank that the loan facilities

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were duly availed of by the defendant but he failed to maintain the

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OA/849/2023 PUNJAB NATIONAL BANK VS RAMESHWAR 3

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financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA on 29.12.2016. The defendant executed balance and security confirmation letters dated 09.08.2018 and 01.08.2021, Annexure-A9 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 16.01.2023 and postal receipts, Annexure-A10 (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.22,08,312.87/- (Rupees Twenty Two Lac Eight Thousand Three Hundred Twelve and Eighty Seven Paisa Only), is recoverable against the defendant as per statements of the accounts, duly certified under Bankers’ Books Evidence Act, 1891, AnnexureA11 (colly) (copy).

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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, thus, the defendant was proceeded against ex-parte vide order dated 04.12.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Parveen Kumar Sammi, Chief Manager of the applicant bank was filed.

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

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OA/849/2023 PUNJAB NATIONAL BANK VS RAMESHWAR 4

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It was argued by the learned proxy counsel for the applicant bank 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 A11 , it is clear that the defendant had approached the applicant bank for availing of the loan facilities which were 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.22,08,312.87/- (Rupees Twenty Two Lac

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Eight Thousand Three Hundred Twelve and Eighty Seven Paisa 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 @11.50% per annum plus penal interest @2% per annum. In sanction letter dated 04.09.2015, Annexure- A6 (copy), the rate of interest have been mentioned @BR+2% per annum for KCC facility and @BR+2%+0.5% for term loan.

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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 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, while exercising the discretion

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OA/849/2023 PUNJAB NATIONAL BANK VS RAMESHWAR 5

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vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% 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.22,08,312.87/- (Rupees Twenty Two Lac Eight Thousand Three Hundred Twelve and Eighty Seven Paisa Only) with current and future simple interest @8% per annum w.e.f. 19.05.2023 , 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 assets of the defendant. However, 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 14.02.2024.

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

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

Punjab National Bank v. Sh. Rameshwar

Case brief

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Punjab National Bank v. Sh. Rameshwar

Case brief

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