Allowed

Punjab National Bank v. Ranjit Singh and Others

DRT19 Oct 2024OA/1009/2023

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh decided an ex-parte OA instituted by Punjab National Bank for recovery of ₹34.87 lakhs from three defendants who had defaulted on a KCC loan secured by mortgaged and hypothecated properties. The Tribunal allowed the claim and fixed interest at 8% p.a.

What did the court decide?

Issued Recovery Certificate and directed recovery of principal sum along with simple interest at 8% p.a. from mortgaged properties and personal assets if necessary.

Punjab National Bank versus Ranjit Singh and Others — Execution and Attachment | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1009/2023

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 08.08.2023

¶5

DATE OF DECISION: 19.10.2024

¶6

Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and the successor of Oriental Bank of Commerce, by Scheme of Amalgamation of Oriental Bank of Commerce, passed by the Central Bank under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 and one of its Branch Office at Dosanjh Kalan, District Jalandhar, Punjab, through its General Power of Attorney Holder Mr. Surender Kumar S/o Sh. D.N. Arora, Chief Manager, Circle Sastra Centre, Jalandhar at First Floor, Punjab National Bank, Civil Lines, Jalandhar City-144001.

¶7

……..Applicant Bank

¶8

Versus

¶9

Sh. Ranjit Singh son of Sh. Sohan Singh, resident of Village Jandiali, Tehsil Banga, District S.B.S. Nagar

¶10

Sh. Sukhwinder Singh son of Sh. Parsan Singh, resident of Village Kot Grewal, Tehsil Phillaur, District Jalandhar

¶11

Sh. Ashwani Jain son of Sh. Yashpal Jain, resident of H.No.357, Urban Estate, Phagwara, District Kapurthala

¶12

………. Defendants

¶13

Advocates:

¶14

Argued by Sh. Gulshan Mehta, Advocate proxy for Ms. Shivya Sehgal, Advocate for the applicant Defendants are ex-parte

¶15

FINAL ORDER

¶16

Present Original Application was instituted by the applicant

¶17

under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of

¶18

¶19

Rs.34,87,619.77p (Rupees Thirty Four Lacs Eighty Seven Thousand Six Hundred Nineteen and Paise Seventy Seven Only). The Original Application has been filed through Mr. Surender Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 08.12.2006, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs.25.00 Lacs vide Loan Application dated 12.01.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.25.00 Lacs vide Sanction Letter dated 04.02.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

¶21

Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 14K-11M situated at Village Jandiali, Tehsil Banga, District S.B.S. Nagar vide Registered Mortgaged Deed bearing vasika No.2560 dated 25.01.2013 along with its translation, which is Annexure A5 to this OA.

¶22

Documents executed:-Hypothecation Agreement & Agreements of Guarantee all dated 04.02.2013, which are Annexures A4, A6 & A7 to this OA; Balance & Security Confirmation Letters dated 01.02.2016, 26.07.2018, 31.03.2020 & 27.09.2022, which are Annexures A8 to A11 to this OA; Legal Notice dated 05.09.2022 along with postal receipts, which is Annexure A12 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A13 to this OA.

¶23

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.34,87,619.77p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶24

¶25

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 15.10.2024.

¶26

In support of the OA, affidavit of Mr. Surender Kumar, Chief Manager, Punjab National Bank has been filed.

¶27

Heard arguments and perused record.

¶28

It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was 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 loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.34,87,619.77p (Rupees Thirty Four Lacs Eighty Seven Thousand Six Hundred Nineteen And Paise Seventy Seven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶29

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.50%p.a. along with penal interest @2%p.a. with half yearly rests from 17.07.2023 till the realization.

¶30

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 loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

¶31

¶32

exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in the loan account 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.34,87,619.77p (Rupees Thirty Four Lacs Eighty Seven Thousand Six Hundred Nineteen And Paise Seventy Seven Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 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 30.10.2024. 15. Copy of this order be given dasti to the applicant 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: 19.10.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Ranjit Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ranjit Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Uco Bank versus M/S Aryan Trading Co. and Others

Messrs Kamal Kunj Knitwears and Another versus Uco Bank and Another

Canara Bank versus M/S v Sun Industries and Others

Canara Bank versus Hardial Singh and Another

Indian Overseas Bank versus Messrs Sri Bhikshu International and Another

Icici Bank Limited versus Sushil Kumar and Another