Allowed

Punjab National Bank, v. Sh.Surjit Singh and Others

DRT30 Oct 2023OA/850/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of a defaulted OGC loan. Ordering a Recovery Certificate, the court granted uniform simple interest at 8.50% p.a. due to falling market rates, allowing enforcement against mortgaged or personal assets.

What did the court decide?

Recovery Certificate issued; Defendants ordered to pay Rs.25,79,109.80 jointly and severally with simple interest at 8.50% p.a.

Punjab National Bank, versus Sh.Surjit Singh and Others — Cheque Dishonour | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.850/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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	DATE OF INSTITUTION: 01.06.2022 DATE OF DECISION: 30.10.2023
Pu	njab National Bank, a body corporate constituted under the Banking
Co	mpanies (Acquisition and Transfer of Undertakings) Act, 1980,
ha	ving its Head Office at Plot no.4, Sector-10, Dwarka, New Delhi-
11	0075 and the successor of Oriental Bank of Commerce, by Scheme
of	Amalgamation of Oriental Bank of Commerce, passed by the Central
Ba	nk under Section 9 of the Banking Companies (Acquisition and
Tr	ansfer of Undertakings) Act, 1980 and one of its branch office at
Dh	alle Ke, District Moga, Punjab, through its General Power of
At of	torney Sh. Sandeep Kumar S/o Sh. Bhagwan Singh, Senior Manager the Applicant Bank ……..Applicant Versus
1.	Sh. Surjit Singh S/o Sh. Darshan Singh, R/o VPO Lohke Kalan, Tehsil Zira, District Ferozepur, Punjab (Mortgagor/Borrower)
2.	Sh. Gursewak Singh S/o Sh. Surjit Singh, R/o VPO Lohke Kalan, Tehsil Zira, District Ferozepur, Punjab (Co- Borrower)
3.	Sh. Gurmail Singh S/o Sh. Jaswant Singh, R/o VPO Chohla, Tehsil
	Zira, District Ferozepur, Punjab (Guarantor) ….……Defendants
Ad Ar co De	vocates: gued by Ms. Meena Malhotra, counsel proxy for Ms. Shivya Sehgal, unsel for the applicant fendants are ex-parte
	FINAL ORDER
1. un	Present Original Application was instituted by the applicant bank der Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.25,79,109.80p (Rupees Twenty Five Lacs Seventy Nine Thousand One Hundred Nine and Eighty Paisa only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide 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 Limit of Rs.20.00 Lacs vide Loan application dated 10.11.2011, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.20.00 Lacs vide Sanction Letter dated 17.11.2011, 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 properties i.e. total land measuring 63 Kanals 02 Marlas situated at Village Lohke Kalan, Tehsil Zira, District Ferozepur, Punjab vide Registered Mortgage Deed No.4052 dated 14.12.2011 along with its translation, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation agreement dated 21.12.2011, which is Annexure A4 to this OA; Agreement of Guarantee dated 21.12.2012, which is Annexure A6 to this OA; Balance Confirmation Letters dated 19.05.2014, 11.01.2017, 22.05.2019 and 17.12.2020, which are Annexures A7 to A10 to this OA; Legal Notices dated 10.01.2022, which are Annexures A11 and A12 to this OA and Statement of account duly certified under Banker’s Book Evidence Act, 1891, which is Annexure A13 to this OA.

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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.25,79,109.80p, which is recoverable and the defendants

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were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 13.09.2023.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A13 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.25,79,109.80p (Rupees Twenty Five Lacs Seventy Nine Thousand One Hundred Nine and Eighty Paisa 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 in relief clause has claimed interest @8.50%p.a. along with @2%p.a. penal interest from 22.05.2022 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

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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 @8.50%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.

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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.25,79,109.80p (Rupees Twenty Five Lacs Seventy Nine Thousand One Hundred Nine and Eighty Paisa only) jointly and severally, with costs, current and future simple interest @8.50%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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.11.2023. 15. 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. Pronounced by me in the open Tribunal. Dated: 30.10.2023

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

Punjab National Bank, v. Sh.Surjit Singh and Others

Case brief

What is this about?

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Punjab National Bank, v. Sh.Surjit Singh and Others

Case brief

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