Allowed

Punjab National Bank v. Sh. Kawarjeet Singh

DRT9 Nov 2023OA/930/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Punjab National Bank's application under Section 19 of RDBFI Act 1993. The bank recovered Rs.28,01,033 with 8% uniform simple interest. Recovery is to be effected via sale of mortgaged property or attachment of personal assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.28,01,033 with interest @8% per annum; liberty to recover from sale of mortgaged property or personal assets.

Punjab National Bank versus Sh. Kawarjeet Singh — Execution and Attachment | DRT (2023)

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

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ORIGINAL APPLICATION NO. 930/2022 DATE OF INSTITUTION: 09.05.2022

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DATE OF DECISION: 09^th DAY OF NOVEMBER, 2023

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Punjab National Bank , a body corporate under Banking Companies (Acquisition & Transfer of Undertakings), Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075, having its Branches at different places including one at Ismailabad, District Kurukshetra, though its Attorney Holder and Officer, Sh. Baldev Raj, Chief Manager, Circle Shastra, Kurukshetra Circle

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…..Applicant Bank

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Versus

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Sh. Kawarjeet Singh s/o Sh. Gurdial Singh r/o Village Gogpur, Post Office Jhansa, Tehsil Thanesar, District Kurukshetra, Haryana

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....Defendant

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Argued by: Sh. Satpal Sharma counsel for the applicant bank Defendant ex parte vide order dated 04.07.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts due to the Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.28,01,033/- (Rupees Twenty Eight Lac One Thousand and Thirty Three Only) . It has been filed through Sh. Baldev Raj, Chief Manager of the applicant bank stated to be competent to institute the

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OA/930/2022 PUNJAB NATIONAL BANK VS KAWARJEET SINGH 2

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Original Application vide Power of Attorney dated 26.12.2019, 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 facility of Rs. 18.35 lac vide loan application dated 22.04.2015 for agricultural credit, Annexure-A2 (copy).

¶15

The applicant bank sanctioned aforesaid facility to the defendant vide sanction letter dated 22.04.2015, Annexure-A3 (colly) (copy), as per terms and conditions which were duly accepted by the defendant. Further interest portion of KCC facility was converted into term loan facility of Rs. 3.35 lac.

¶16

In order to secure the aforementioned credit facilities, the defendant executed various loans and security documents, i.e. hypothecation agreement dated 30.04.2015, Annexure-A4 (copy), undertaking letter dated 30.04.2015 regarding terms and conditions, Annexure-A5 (copy) and letter dated 30.05.2015 regarding calculation of subsidy, Annexure-A6 (copy).

¶17

The aforesaid loan were further secured by creation of mortgage by the defendant in respect of agricultural land measuring 37 Kanal situated in the revenue estate of Gogpur, Hadbast No. 275, Tehsil Thanesar, District Kurukshetra, Haryana, fully detailed in para No. 5(vi) of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered mortgaged deed dated 30.04.2015, Annexure-A7 (copy).

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ii. Request letter dated 30.04.2015 to the Tehsildar, Thanesar, for entry/mutation of mortgaged property, Annexure-A8 (copy).

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OA/930/2022 PUNJAB NATIONAL BANK VS KAWARJEET SINGH 3

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those were classified as NPA on 31.03.2021. The defendants executed balance and security confirmation letters dated 30.04.2021 and 24.05.2018, Annexure-A9 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 06.04.2022 along with its postal receipt, Annexure-A11 (colly) (copy), but to no avail.

¶23

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.28,01,033/-

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(Rupees Twenty Eight Lac One Thousand and Thirty Three Only), is recoverable against the defendant as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A10 (colly) (copy).

¶25

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

¶26

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 04.07.2023 .

¶27

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

¶28

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

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OA/930/2022 PUNJAB NATIONAL BANK VS KAWARJEET SINGH 4

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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 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

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Rs.28,01,033/- (Rupees Twenty Eight Lac One Thousand and Thirty Three Only) from the defendant.

¶32

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @10.50% per annum in KCC facility plus penal interest @2% per annum and @8.80% per annum in term loan facility. In sanction letter dated 22.04.2015, Annexure-A3 (colly) (copy), the rate of interest has been mentioned @12.25% per annum.

¶33

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, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and

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OA/930/2022 PUNJAB NATIONAL BANK VS KAWARJEET SINGH 5

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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.

¶36

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.28,01,033/- (Rupees Twenty Eight Lac One Thousand and Thirty Three Only) with current and future simple interest @8% per annum w.e.f. 09.05.2022 , 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. However, the applicant bank is at liberty to enforce the claim through due process of law.

¶37

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 defendant 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. Kawarjeet Singh

Case brief

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Punjab National Bank v. Sh. Kawarjeet Singh

Case brief

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