Allowed

Punjab National Bank v. Sajjan Singh

DRT12 Dec 2024OA/101/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's claim to recover Rs.26,11,851.52p from the defendant, who failed to repay a sanctioned KCC loan. The court adjusted the interest rate to 8.00%p.a., authorized recovery via mortgaged property or asset attachment, and directed the issue of a Recovery Certificate.

What did the court decide?

Recovery of Rs.26,11,851.52p plus interest @8.00%p.a. from loan filing date till realization via sale of mortgaged properties or attachment of personal assets.

Punjab National Bank versus Sajjan Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.101/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.09.2023

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DATE OF DECISION: 12.12.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10 Dwarka, New Delhi 110075 and amongst others a branch at Mallian Tehsil and District Tarn Taran through Sh. Mohit, Senior Manager and Attorney Holder posted at Circle Sastra Centre Amritsar.

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……..Applicant

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Versus

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Sh. Sajjan Singh Son of Sh. Mohan Singh resident of Village Naurangabad, Tehsil and District Tarn Taran, Punjab.

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….……Defendant

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Advocates: Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. Manish Singla, Advocate for Applicant Defendant is ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.26,11,851.52p (Rupees Twenty Six Lacs Eleven Thousand Eight Hundred Fifty One And Fifty Two Paisa Only). The Original Application has been filed through Sh. Mohit, Senior Manager and Attorney Holder of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.05.00 Lacs and further for

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enhancement of KCC limit to Rs. 20.00 vide Loan Application dated 27.02.2018 & 23.03.2015, which are Annexures A2 & A5 to this OA. 3. The applicant sanctioned KCC Limit of Rs.5.00 Lacs and further sanctioned the enhancement of KCC Limit to Rs.20.00 Lacs vide Sanction Letter dated 15.04.2015 filed in compliance of the order dated 10.09.2024 vide diary no.19266 dated 10.12.2024 and the terms and conditions were duly accepted by the defendants.

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Defendant had mortgaged his immovable property i.e. total land measuring 40K-0M situated at Village Naurangabad, H.B. No. 95, Tehsil and District Tarn Taran, Vasika vide Registered mortgage deed bearing vasika no. 4702 dated 05.03.2010 with its translation, which is Annexures A4 to this OA and Letter to Sub Registrar for creating the charge and Declaration under section 4(1) dated 01.04.2015, which is Annexure A9 to this OA. Documents executed:- Agreement of hypothecation dated 19.03.2010 & 15.04.2015, which are Annexures A3 & A6 to this OA; Letter of Undertaking, Letter of consent (revised) dated 15.04.2015, which are Annexures A7 & A8 to this OA; Balance confirmation letters dated 09.11.2017, 30.06.2020 & 02.12.2022, which is Annexure A10 to this OA; Recall notice dated 06.03.2023, which is Annexure A11 to this OA and Statement of Account duly certified, which is Annexure A12 to this OA.

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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.26,11,851.52p which is recoverable and the defendant was 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.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 31.07.2024.

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In support of the OA, affidavit of Sh. Mohit, Senior Manager and Attorney Holder, Punjab National Bank h as been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy 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 A12 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he 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 defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.26,11,851.52/(Rupees Twenty Six Lacs Eleven Thousand Eight Hundred Fifty One And Fifty Two Paisa Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed interest @09.85%p.a. plus penal interest @2%p.a. with half yearly rests from 17.08.2023 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 defendant, 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 @8.00%p.a.in 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.26,11,851.52p (Rupees Twenty Six Lacs Eleven Thousand Eight Hundred Fifty One And Fifty Two Paisa Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.01.2025.

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Copy of this order be given Dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal . Dated: 12.12.2024

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

Punjab National Bank v. Sajjan Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sajjan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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