Allowed

Punjab National Bank v. Sh. Ankit Tyagi

DRT13 Oct 2023OA/933/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs. 26,72,713.36 in principal along with interest. The court granted uniform simple interest at 8% per annum, modifying the claimed rate from the mortgage deed, and directed issuance of a Recovery Certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs.26,72,713.36 with uniform simple interest at 8% per annum from 07.06.2023 till realization.

Punjab National Bank versus Sh. Ankit Tyagi — 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. 933/2023

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DATE OF INSTITUTION: 07.06.2023 DATE OF DECISION: 13^th DAY OF OCTOBER, 2023

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Punjab National Bank (erstwhile Oriental Bank of Commerce) , a body corporate constitued under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 inter alia its Branch at Jharsaitley, Haryana, also Recovery Office at Circle Sastra Centre, Institutional Area, Plot No. 5, Sector 32, Gurugram, Haryana, through its Attorney Holder, Smt. Kiran Narula

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…..Applicant Bank

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Versus

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Sh. Ankit Tyagi s/o Sh. Sawai Keechak r/o House No. J-111, Sector 10, DLF Ballabgarh, Faridabad, Haryana

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....Defendant

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Argued by: Sh. Nikhil Khanna, Senior Manager Law for the applicant bank Defendant ex parte vide order dated 01.08.2023

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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 and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendant for recovery of Rs.26,72,713.36/- (Rupees Twenty Six Lac Seventy Two Thousand Seven Hundred

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Thirteen and Thirty Six Paisa Only) . It has been filed through Smt. Kiran Narula, attorney holder of the applicant bank stated to be

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OA/933/2023 PUNJAB NATIONAL BANK VS ANKIT TYAGI 2

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competent to institute the Original Application vide General Power of Attorney dated 30.01.2012, 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. 20 lac vide loan application Form for agricultural credit dated 29.08.2018, Annexure-A5 (colly) (copy).

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The applicant bank sanctioned aforesaid facility to the defendant vide loan application-cum-sanction dated 29.08.2018, Annexure-A5 (colly) (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 various loans and security documents, i.e hypothecation agreement dated 29.08.2018, Annexure-A6 (copy), letter dated 29.08.2018 of undertaking regarding terms and conditions, Annexure-A7 (copy) and letter dated 29.08.2017 of consent regarding facility availed of, Annexure-A8 (copy).

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The aforesaid loan was further secured by creation of mortgage by the defendant in respect of agricultural land measuring 35 Kanal 8 Marla situated in the revenue estate of Karnera, Tehsil Balabhgarh, District Faridabad, Haryana, fully detailed in para No. 5.1 of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered mortgage deed Nos. 18166, 12962 and 2124 dated 17.02.2012, 08.03.2013 and 04.06.2014, Annexures-A2, A3 and A4 (copy).

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OA/933/2023 PUNJAB NATIONAL BANK VS ANKIT TYAGI 3

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ii. Affidavit dated 29.08.2018 regarding mortgaged property, Annexure-A9 (copy).

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iii. Request letter dated 08.08.2018 to the Tehsildar, Ballabgarh, for entry/mutation of mortgaged property, Annexure-A10 (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 financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA on 30.09.2022. The defendants executed balance and security confirmation letter dated 17.08.2021, Annexure-A11 (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 12.01.2023 along with its postal receipt dated 14.01.2023, Annexure-A12 (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.26,72,713.36/- (Rupees Twenty Six Lac Seventy Two Thousand Seven Hundred Thirteen and Thirty Six Paisa Only)

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Only), is recoverable against the defendant as per statement of account, Annexure-A14 (copy), duly certified under section 2(A) of Bankers’ Books Evidence Act, 1891, Annexure-A13 (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,

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OA/933/2023 PUNJAB NATIONAL BANK VS ANKIT TYAGI 4

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thus, the defendant was proceeded against ex-parte vide order dated 01.08.2023 .

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In support of contents of the OA, affidavit of evidence of Smt. Kiran Narula, Chief Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Sh. Nikhil Khanna, Senior Manager Law of the applicant bank and gone through the record carefully.

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It was argued by Sh. Nikhil Khanna, Senior 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 A14 , 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.26,72,713.36/- (Rupees Twenty Six Lac Seventy Two Thousand Seven Hundred Thirteen and Thirty Six Paisa Only) from the defendant.

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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 @11.50% per annum. In mortgage deed No. 18166 dated 17.02.2012, Annexure-A3 (copy), the rate of interest has been

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OA/933/2023 PUNJAB NATIONAL BANK VS ANKIT TYAGI 5

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mentioned @7% per annum up to Rs. 3 lac and @PLR above Rs. 3 lac.

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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 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 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.26,72,713.36/- (Rupees Twenty Six Lac Seventy Two Thousand Seven Hundred Thirteen and Thirty Six Paisa

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Only) with current and future simple interest @8% per annum w.e.f. 07.06.2023 , 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

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OA/933/2023 PUNJAB NATIONAL BANK VS ANKIT TYAGI 6

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personal assets of the defendant. However, the applicant bank is at

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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 07.11.2023.

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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. Ankit Tyagi

Case brief

What is this about?

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Punjab National Bank v. Sh. Ankit Tyagi

Case brief

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