Allowed

Punjab National Bank v. Sh. Amit Kumar

DRT24 Jul 2023OA/867/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an ex-parte application by Punjab National Bank against Amit Kumar for recovery of Rs.21,58,112 outstanding from a sanctioned loan facility. The Tribunal reduced the claimed interest to a uniform 8% per annum and issued a Recovery Certificate authorizing asset realization.

What did the court decide?

Recovery of Rs.21,58,112 with 8% p.a. simple interest; issuance of Recovery Certificate; liberty to recover via sale of secured or personal assets.

Punjab National Bank versus Sh. Amit Kumar — Cheque Dishonour | DRT (2023)

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

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ORIGINAL APPLICATION NO.867/2022

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DATE OF INSTITUTION: 02.05.2022

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DATE OF DECISION: 24^th DAY OF JULY, 2023

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075, and its Branch at Punjab National Bank, Ismailabad, Tehsil Pehowa, District Kurukshetra-136129, through its Authorised Representative, Sh. Naresh Kumar Bheem, Senior Manager, Sastra, Chattha Complex, Pipli Road, District Kurukshetra-136118

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…..Applicant Bank

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Versus

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Sh. Amit Kumar S/o Sh. Subhash Chand R/o Village Ismailabad, SubTehsil Ismailabad, District Kurukshetra-136129

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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 01.03.2023

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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), a gainst the defendant for recovery of Rs.21,58,112/(Rupees Twenty One Lacs Fifty Eight Thousand One Hundred and Twelve Only) . It has been filed through Sh. Naresh Kumar Bheem, Senior Manager of the applicant bank stated to be competent to institute

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OA/867/2022 PUNJAB NATIONAL BANK VS AMIT KUMAR 2 the Original Application vide General Power of Attorney dated 05.03.2002, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that defendant had approached the applicant bank for grant of KCC facility of Rs. 7 lacs which was further enhanced to Rs. 17 lacs vide loan applications dated 14.02.2012 and 14.05.2015, Annexures-A2 and A5 (copy).

¶15

The applicant bank sanctioned aforesaid facility to the defendant vide sanction letters dated 14.02.2012 and 14.05.2015, 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 facility, the defendant executed hypothecation agreements dated 22.02.2012 and 26.05.2015, Annexures-A4 and A7 (copy).

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The aforesaid loan was further secured by creation of mortgage by defendant in respect of agricultural land measuring 53 Kanals 17 Marlas situated in the revenue estate of Ismailabad, Sub-Tehsil Ismailabad, District Kurukshetra, fully detailed in para No. 5(viii) of the Original Application.

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The documents related to mortgage are as under:

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a. Registered supplementary mortgage deed dated 26.05.2015 along with letter dated 26.05.2015 to the Tehsildar, Ismailabad, for entry/mutation of the mortgaged property, Annexure-A8 (colly) (copy).

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b. Copy of ‘Jamabandi’ for the years 2013-2014, Annexure-A9 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendant but he failed to maintain the

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OA/867/2022 PUNJAB NATIONAL BANK VS AMIT KUMAR

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3 financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared as NPA on 01.07.2021. The defendant executed balance and security confirmation letter dated 12.02.2021, Annexure-A10 (copy). The applicant bank recalled entire outstanding amount vide notice dated 24.03.2022, Annexure-A11 (copy) but to no avail.

¶24

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.21,58,112/-

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(Rupees Twenty One Lacs Fifty Eight Thousand One Hundred and

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Twelve Only) is recoverable against the defendant as per statement of account along with interest calculation sheet, certified under Bankers’ Books Evidence Act, Annexure-A12 (copy).

¶27

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

¶28

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 01.03.2023 .

¶29

In support of contents of the OA, affidavit of evidence Sh. Naresh Kumar Bheem, Senior Manager of the applicant bank was filed.

¶30

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

¶31

It was argued by Ms Arpita Sonkar, Manager Law of 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

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OA/867/2022 PUNJAB NATIONAL BANK VS AMIT KUMAR

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A12 , 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.21,58,112/- (Rupees Twenty One Lacs Fifty Eight Thousand One Hundred and Twelve Only) from the defendant.

¶35

In so far as pendent lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @8.85% per annum and penal interest @2% per annum. In sanction letter dated 14.05.2015, Annexure- A6 (copy), rate of interest has been mentioned @12.25% 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 mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan 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 @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶37

In the result, the Original Application is allowed with costs declaring that the defendant is liable to pay to the applicant bank a sum

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OA/867/2022 PUNJAB NATIONAL BANK VS AMIT KUMAR 5

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of Rs.21,58,112/- (Rupees Twenty One Lacs Fifty Eight Thousand One Hundred and Twelve Only) with current and future simple interest @8% per annum w.e.f. 02.05.2022 , 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. The applicant bank is at liberty to enforce the claim through due process of law.

¶40

Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 25.09.2023 .

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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.

¶43

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

Punjab National Bank v. Sh. Amit Kumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Amit Kumar

Case brief

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What did the court decide?

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