Allowed

Punjab National Bank v. Sh. Karam Singh

DRT30 Jul 2024OA/1037/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank against a defendant for recovery of Rs.20.41 lakhs. The debtor appeared, no one represented the defendant. The court ordered uniform simple interest at 8%p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Declaratory that defendant is liable to pay Rs.20,41,737.00 plus interest at 8.00%p.a.; Recovery Certificate to be issued for enforcement.

Punjab National Bank versus Sh. Karam Singh — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1037/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 13.08.2023

¶5

DATE OF DECISION: 30.07.2024

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Morinda, through recovery vertical at Circle Sastra, SAS Nagar, Punjab 160055 through Sh. Mahinder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the applicant bank.

¶7

……..Applicant Versus Sh. Karam Singh S/o Sh. Pal Singh, R/o #39, Village Kalaran, PO Morinda, Tehsil Morinda, District Rupnagar, Punjab 140101.

¶8

….……Defendant

¶9

Advocates:

¶10

Argued by Sh. Anirudh Gupta, Advocate for the applicant Defendant is ex-parte

¶11

FINAL ORDER

¶12

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 defendant for recovery of Rs.20,41,737.00 (Rupees Twenty Lacs Forty One Thousand Seven Hundred and Thirty Seven only). The Original Application has been filed through Sh. Mahinder Pal Singh, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 27.10.1997, which is Annexure A1 to this OA.

¶13

¶14

The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.15.00 Lacs vide Loan application dated 11.07.2019, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 30K-01M situated at Village Kalaran, Hadbast No. 275, Tehsil Morinda, District Rupnagar, Punjab vide Declaration u/s 4(1) and Letter of Creation of Charge both dated 15.07.2019 along with its English Translation, which are Annexures A10 & A11 to this OA. Documents executed:-Hypothecation Agreement,Letter of Undertaking, Declaration, Consent cum Declaration Form all dated 18.07.2019, which are Annexures A4 to A7 to this OA; Affidavit dated 15.07.2019, which is Annexure A8 to this OA; Legal Opinion dated 09.07.2019, which is Annexure A9 to this OA; Balance Confirmation Letter dated 08.11.2021, which is Annexure A12 to this OA; Recall Notice dated 07.01.2013 and 03.04.2023, which are Annexures A13 & A14 to this OA; Legal Notice dated 23.05.2023, which is Annexure A15 to this OA Statement of account along with certificate dated 03.08.2023, which are Annexures A16 & A17 to this OA. 5. 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.20,41,737.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 21.05.2024.

¶15

¶16

In support of the OA, affidavit of Sh. Mahinder Pal Singh, Chief Manager, Punjab National Bank has been filed.

¶17

Heard ex-parte arguments and perused record.

¶18

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 A17 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 defendant 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.20,41,737.00 (Rupees Twenty Lacs Forty One Thousand Seven Hundred and Thirty Seven only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶19

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.75%p.a. alongwith penal interest @2%p.a. from 19.07.2023 till the realization.

¶20

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 loan 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 account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶21

¶22

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.20,41,737.00 (Rupees Twenty Lacs Forty One Thousand Seven Hundred and Thirty Seven only), 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.

¶23

Any other application pending stands disposed of.

¶24

Issue Recovery Certificate accordingly.

¶25

Parties to appear before Learned Recovery Officer of this Tribunal on 20.08.2024.

¶26

Copy of this order be given dasti to the applicant bank 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.

¶27

Pronounced by me in the open Tribunal. Dated: 30.07.2024

¶28

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

Punjab National Bank v. Sh. Karam Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Karam Singh

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

Punjab National Bank versus Sh. Baldev Singh and Others

Punjab National Bank versus Sh. Kewal Chand

Canara Bank versus Sh. Kulwant Singh and Others

Punjab National Bank versus Jagdev Singh and Another

Icici Bank Limited versus Sh. Sukhwinder Singh and Others

Icici Bank Limited versus Punjab Agro Implements Industries and Others