Allowed

Punjab National Bank, v. Sh. Rahul Sharma

DRT3 Jan 2024OA/1039/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab National Bank against the defendant for recovery of a term loan of Rs. 23,35,780.00. The court awarded simple interest at 10% p.a. instead of claimed penal interest and directed issue of a recovery certificate.

What did the court decide?

Recovery of Rs. 23,35,780.00 with simple interest @ 10.00% p.a. from filing date till realization. Issue of Recovery Certificate. Liberty to recover amount from sale of hypothecated properties and per

Punjab National Bank, versus Sh. Rahul Sharma — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1039/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.06.2022

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DATE OF DECISION: 03.01.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and its Branch Office at Punjab National Bank, Model Town Branch, District Pathankot-145001, through its Authorised Representative, Sh. Raja Singh, Senior Manager, Punjab National Bank, Model Town Branch, District Pathankot-145001

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……..Applicant

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Versus Sh. Rahul Sharma S/o Sh. Vijay Kumar R/o House No.51, Ward No.11, Sunder Nagar, District Pathankot-145001

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….……Defendant

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate proxy for Sh. Krishan Kumar, Advocate for the applicant Defendant is 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 Rs.23,35,780.00 (Rupees Twenty Three Lacs Thirty Five Thousand Seven Hundred Eighty only). The Original Application has been filed through Sh. Raja Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.02.2019, 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 bank for the grant of Term Loan of Rs.17.50 Lacs for the purchase of Ashok Leyland Truck vide Loan application dated 06.08.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Term Loan of Rs.17.50 Lacs vide Sanction Letter dated 06.08.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had hypothecated his Movable Property i.e. Vehicle (Truck) having Chassis No. MBICTDYC4BPWB3523, Engine No. WBP111534 and Registration no.PB-06-N-2717 vide Letter of Hypothecation dated 06.08.2011 and Registration Certificate of Vehicle, which are Annexures A4 & A5 to this OA. Documents executed:- Balance and Confirmation Letter dated 03.06.2021, which is Annexure A6 to this OA; Recall Notice along with Postal Receipt dated 07.04.2022, which is Annexure A7 to this OA and Statement of account, which is Annexure A8 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.23,35,780.00, 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 06.11.2023. 7. In support of the OA, affidavit of Sh. Raja Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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

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Annexures A1 to A8 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.23,35,780.00 (Rupees Twenty Three Lacs Thirty Five Thousand Seven Hundred Eighty only) along with interest from the defendant, 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 bank in relief clause has claimed interest @12.00%p.a. along with @2%p.a. additional penal interest from the date of NPA i.e. 31.03.2012 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 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 @10.00%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.

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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.23,35,780.00 (Rupees Twenty Three Lacs Thirty Five Thousand Seven Hundred Eighty only), with costs, current and future simple interest @10.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.01.2024. 15. 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. Pronounced by me in the open Tribunal. Dated: 03.01.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank, v. Sh. Rahul Sharma

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Sh. Rahul Sharma

Case brief

What is this about?

What did the court decide?

What the court decided

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