Allowed

Punjab National Bank, v. Messrs Shakti Industries and Others

DRT20 Dec 2023OA/999/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of Rs. 71,47,843/- against defaulting borrowers and guarantors. The tribunal granted uniform simple interest at 9.50% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 71,47,843/- with interest at 9.50% p.a., issuance of Recovery Certificate, and liberty to enforce via SARFAESI Act.

Punjab National Bank, versus Messrs Shakti Industries and… — Execution and Attachment | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.999/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.06.2022

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DATE OF DECISION: 20.12.2023

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on Banking business and having its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi-110075 and one of the branch office, amongst others, Patiala Circle SASTRA Centre, 2^nd Floor,Opposite Improvement Trust Building, Chotti Baradari, Patiala, Punjab-147101, through its Constituted attorney and Principal officer Sh. Gurcharan Singh, Senior Manager.

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……..Applicant

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Versus

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M/s Shakti Industries through its Prop. Sh. Pushpinder Kumar Bansal, C/o C-63, Industrial Focal Point, Patiala, Punjab-147001.

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Sh. Pushpinder Kumar Bansal S/o Sh. Sita Ram Bansal, Prop. M/s Shakti Indutries, R/o H No. 5132, Arorian Street, Near Naina Devi Mandir, Patiala, Punjab. (Borrowers)

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Smt. Sanjogita Bansal W/o Sh. Pushpinder Kumar Bansal, R/o H No. 5132, Arorian Street, Near Naina Devi Mandir, Patiala, Punjab.

(Guarantors)

….……Defendants

Advocates:

Argued by Ms. Anuradha Gupta, counsel of the applicant Defendants are ex-parte

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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 Banks and Financial Institutions Act, 1993, against the defendants for recovery of

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Rs.71,47,843.00 (Rupees Seventy One Lacs Forty Seven Thousand Eight Hundred and Forty Three only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 through its proprietor defendant no. 2 had approached the applicant bank for the grant of CC Limit of Rs.50.00 Lacs, Term Loan-I of Rs. 13.50 Lacs and Term Loan-II of Rs. 3.20 Lacs vide Loan applications. 3. The applicant Bank sanctioned the CC Limit of Rs.50.00 Lacs, Term Loan-I of Rs. 13.50 Lacs and Term Loan-II of Rs. 3.20 Lacs vide Loan Application Form cum Sanction Letters dated 01.11.2014, 19.12.2015 and 22.12.2016, which are Annexures A2, A12 and A18 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No. 2 had mortgaged his immovable property i.e. total land measuring 1 Bigha 00 Biswa situated at Village Hardaspur, District Patiala, Punjab vide Registered Mortgage Deed No. 15543 dated 10.03.2010 along with its translation, which are Annexures A13 and A13/T to this OA.

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Documents executed:- Hypothecation of Goods and Book Debts, Hypothecation of Assets to secure Tem Loan, Supplemental Agreement, Consent Clause, Undertaking, Letter, Letter of Undertaking and Agreement of Guarantee dated 01.11.2014, which are Annexures A3 and A11 to this OA; Jamabandi along with its Translation dated 24.07.2020, which are Annexures A14 and A14/T to this OA; Annexure IIA dated 21.12.2015, which is Annexures A15 to this OA; Annexure III dated 22.12.2015, which is Annexure A16 to this OA; Entry in EM Register dated 20.12.2015, which is Annexure A17 to this OA; Hypothecation of Assets to secure Term Loan dated 02.02.2017, which is Annexure A19 to this OA; Letter of Continuity dated 03.02.217, which is Annexure A20 to this OA; Balance

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Confirmation Letters dated 08.06.2017,05.03.2020, 05.05.2020 and 02.11.2019, which are Annexures A21 to A25 to this OA; Legal Notice along with its postal receipts dated 04.04.2022, which are Annexures A26 and A27 to this OA and Statement of accounts along with Certificates, Which are Annexures A28 to A30 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.71,47,843.00 which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 16.10.2023.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A30 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.71,47,843.00 (Rupees Seventy One Lacs Forty Seven Thousand Eight Hundred and Forty Three only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank has claimed interest @10.50%p.a. with monthly rests in CC Limit and @9.50%p.a. for Term Loan with monthly rests along with @2%penal interest in both the loan accounts from 01.06.2022 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 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 @9.50%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.71,47,843.00 (Rupees Seventy One Lacs Forty Seven Thousand Eight Hundred and Forty Three only) jointly and severally, with costs, current and future simple interest @9.50%p.a. in all the loan accounts 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 02.01.2024.

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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: 20.12.2023 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Messrs Shakti Industries and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Messrs Shakti Industries and Others

Case brief

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What did the court decide?

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