Allowed

Punjab National Bank v. Sh. Pawan Singh

DRT9 Nov 2023OA/864/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal admitted the applicant bank's Original Application for recovery of Rs.26,13,682.58. While holding the loan and security valid, the Tribunal exercised discretion to reduce interest to 8% per annum and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; defendants ordered to pay Rs.26,13,682.58 with 8% simple interest from 24.05.2023.

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

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

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ORIGINAL APPLICATION NO.864/2023

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DATE OF INSTITUTION: 24.05.2023

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DATE OF DECISION: 09^th DAY OF NOVEMBER, 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 Delhi and one of its Branches, i.e. Punjab National Bank, Village Chaura, Tehsil Gharaunda, District Karnal, Haryana-132114, through its Authorised Representative, Sh. Subhash Chand, Chief Manager, Punjab National Bank, Circle Sastra, Sector-12, Karnal-132001

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…..Applicant

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Versus

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Sh. Pawan Singh s/o Sh. Khilla Ram r/o House No. 6, Near Devi Mandir, Village Lalupura, District Karnal, Haryana-132114

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Sh. Suresh s/o Sh. Pawan Singh r/o House No. 6, Near Devi Mandir, Village Lalupura, District Karnal, Haryana-132114

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…..Defendants

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Argued by: Sh. Rehan Chaudhary proxy counsel for Sh. Krishan Kumar counsel for the applicant bank Defendants ex parte vide order dated 05.08.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant

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bank under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.26,13,682.58/-

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OA/864/2023 PUNJAB NATIONAL BANK Vs PAWAN SINGH AND ANOTHER 2

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(Rupees Twenty Six Lac Thirteen Thousand Six Hundred Eighty Two and Fifty Eight Paisa Only) . It has been filed through Sh. Subhash Chand, Chief Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 30.12.2016, Annexure-A1 (copy).

¶17

The brief facts of the case of the applicant as per Original Application are that the defendants had approached the applicant bank for grant of KCC facility of Rs.1 lac and further approached for enhancement of KCC facility to Rs. 7 lac and again approached for enhancement of KCC facility to Rs. 18 lac vide loan application Forms dated 09.07.2002, 24.09.2013 and 09.05.2017 for agricultural credit, Annexures-A2, A5 and A8 (copy).

¶18

The applicant bank sanctioned aforesaid facility to the defendants vide sanction letters dated 09.07.2002, 01.10.2013 and 09.05.2017, Annexures-A3, A6 and A9 (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 agreement dated 20.05.2017, Annexure-A10 (copy).

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The aforesaid limit was further secured by creation of mortgage by defendant No. 1 in respect of agricultural land measuring 68 Kanal 08 Marla situated in the revenue estate of Sadarpur, Tehsil Gharaunda, District Karnal, Haryana, fully detailed in para No. 5(x) of the Original Application.

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OA/864/2023 PUNJAB NATIONAL BANK Vs PAWAN SINGH AND ANOTHER 3

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The documents relating to the mortgage are as under:

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i. Registered mortgage deeds dated 23.07.2002 and 03.10.2013 and request letters dated 23.07.2002 and 03.10.2013 to the Tehsildar, Gharaunda, for entry/mutation of mortgaged property, Annexures-A4 (colly) and A7 (colly) (copy).

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ii. Declaration dated 11.05.2017 under section 4(1) of the Haryana Agriculture Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A11 (copy).

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iii. Copy of ‘Jamabandi’ for the years 2012-2013, Annexure-A12 (copy).

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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 leading to the loan account becoming irregular and it being classified as NPA on 01.10.2022. The defendants executed balance and security confirmation letters dated 27.07.2018, 29.06.2019 and 18.06.2022, Annexure-A13 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 10.04.2023 along with its original postal receipts, Annexure-A14 (colly) , 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.26,13,682.58/(Rupees Twenty Six Lac Thirteen Thousand Six Hundred Eighty Two and Fifty Eight Paisa Only) , is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, 1891, Annexure-A15 (colly) (copy).

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OA/864/2023 PUNJAB NATIONAL BANK Vs PAWAN SINGH AND ANOTHER 4

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

¶30

Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants and thus, the defendants were proceeded against ex-parte vide order dated 05.08.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Subhash Chand, 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 and gone through the record carefully.

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It was argued by the learned proxy counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A15 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the 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.26,13,682.58/- (Rupees Twenty

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Six Lac Thirteen Thousand Six Hundred Eighty Two and Fifty Eight Paisa Only) from the defendants.

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OA/864/2023 PUNJAB NATIONAL BANK Vs PAWAN SINGH AND ANOTHER 5

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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 @10.25% per annum plus penal interest @2% per annum. In letter dated 09.05.2017 of sanction, Annexure-A9 (copy), rate of interest has been mentioned @MCLR+2.10% per annum.

¶37

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, 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 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.

¶38

In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.26,13,682.58/- (Rupees Twenty Six Lac Thirteen Thousand Six Hundred Eighty Two and Fifty Eight Paisa Only) with current and future simple interest @8% per annum w.e.f. 24.05.2023 , 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

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OA/864/2023 PUNJAB NATIONAL BANK Vs PAWAN SINGH AND ANOTHER 6

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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 defendants. 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 22.12.2023 .

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

Punjab National Bank v. Sh. Pawan Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Pawan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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