Allowed

Punjab National Bank v. Surjit Singh and Another

DRT12 Sept 2024OA/105/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of an outstanding loan amount of Rs. 31,21,854.00 from two respondents, who failed to repay their loan and guarantees. The Tribunal granted uniform simple interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery ofRs. 31,21,854.00 jointly and severally with simple interest at8% p.a.; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.105/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.01.2023

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DATE OF DECISION: 12.09.2024

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Punjab National Bank, a body corporate under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075, and having its Branch Office at different places including one at Kot Ise Khan, District Moga through its Attorney holder & Officer Sh. Sandeep Kumar, Senior Manager, Circle Sastra Moga Circle.

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……..Applicant

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Versus

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Sh. Surjit Singh S/o Sh. Karnail Singh, residents of H.No. 6, Village Behram Ke, Sub Tehsil Kot Ise Khan, Tehsil Dharamkot, District Moga, Punjab.

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Sh. Rajiv Sood S/o Sh. Ram Kishan R/o H.No. 146, Village Kot Ise Khan, Sub Tehsil Kot Ise Khan, Tehsil Dharamkot, District Moga, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Raghav Sharma, Advocate for the applicant ( through VC ) Defendants are 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 defendants for recovery of Rs.31,21,854.00 (Rupees Thirty One Lacs Twenty One Thousand Eight Hundred Fifty Four Only). The Original Application has been filed through Mr. Sandeep Kumar, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 had approached the applicant for the grant of OGC Limit of Rs.23.00 Lacs vide loan application dated 20.01.2012, which is Annexure A2 to this OA and further approached the applicant for the renewal of KCC/OGC limit vide application letter dated 11.11.2016. Defendant No.2 stood as guarantor.

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The applicant sanctioned the OGC Limit of Rs.23.00 Lacs vide Sanction Letter dated 21.01.2012 which is Annexure A3 to this OA and further renewed the KCC/OGC limit vide renewed sanction letter dated 11.11.2016 which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant No.1 had mortgaged his immovable property i.e. land measuring 71K-17M situated at Village Behram Ke, Tehsil Dharamkot, District Moga, Punjab, vide Registered Mortgage deed bearing vasika no.385 dated 23.01.2012 and j amabandi of year 2005-06 along with their translations , which are Annexures A6 and A7 to this OA. Documents executed:- Hypothecation Agreement, Agreement of Guarantee both dated 23.01.2012, which are Annexures A4 & A5 to this OA; Balance and security confirmation letter dated 17.12.2014, 11.11.2016, 09.08.2019 & 27.03.2020, which is Annexure A9(colly) to this OA; Statement of account with certificate, which is Annexure A10 (colly) to this OA and Legal notices dated 18.12.2020, 14.06.2021, & 06.01.2022 along with postal receipts, which is Annexure A11 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.31,21,854.00, 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.

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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 02.08.2024.

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In support of the OA, affidavit of Mr. Sandeep Kumar, Senior Manager, Punjab National Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A11 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.31,21,854.00 (Rupees Thirty One Lacs Twenty One Thousand Eight Hundred Fifty Four 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.

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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 @9.25%p.a. along with penal interest @2%p.a. with yearly rests from 01.10.2022 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 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

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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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.31,21,854.00 (Rupees Thirty One Lacs Twenty One Thousand Eight Hundred Fifty Four 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 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 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 08.10.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 12.09.2024

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

Punjab National Bank v. Surjit Singh and Another

Case brief

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Punjab National Bank v. Surjit Singh and Another

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