Allowed

Punjab National Bank v. Davinder Singh and Another

DRT26 Sept 2024OA/1053/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for Recovery of Debts under Section 19 RDBFI Act. The court upheld the debt claim and fixed uniform simple interest at 8.00%p.a., authorizing recovery from mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued; respondents liable to pay Rs.22,14,214.71 with 8% simple interest from filing till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1053/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.08.2023

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DATE OF DECISION: 26.09.2024

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Punjab National Bank, constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its H.O. at Plot No-4, Sector-10, Dwarka, New Delhi and inter alia a Branch office Chandigarh Road, Lalru, through its Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank, SASTRA Centre, SAS Nagar, Mohali.

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……..Applicant

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Versus

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Sh. Davinder Singh, S/o Sh. Sakattar Singh, R/o House No.4, Village Dangdehra, Tehsil Derabassi, District Mohali 140103.

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Smt. Manjit Kaur W/o Sh. Sakattar Singh R/o House No.4, Village Dangdehra, Tehsil Derabassi, District Mohali 140103.

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….……Defendants

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Advocates:

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Argued by Sh. R.S. Bhatia, Advocate for the applicant Defendants are 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.22,14,214.71p (Rupees Twenty Two Lac Fourteen Thousand Two Hundred Fourteen and Seventy One Paisa Only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.02.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant No.1 & 2 had approached the applicant bank for the grant of KCC Limit of Rs.3.00 Lacs and further for its enhancement to Rs.11.00 Lacs vide Loan

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applications dated 30.07.2012 & 09.10.2015, which are Annexures A2 & A8 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.3.00 Lacs vide Sanction Letter dated 24.08.2012, which is Annexure A3 to this OA and further enhanced it to Rs.11.00 Lacs vide Sanction Letter, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 2 had mortgaged the immovable properties i.e. total land measuring 12Bigha-0Biswa situated in Village Dangdehra, Hadbast No.150, Tehsil Derabassi, District SAS Nagar Mohali vide Registered Mortgage Deed bearing Vasika No.7866 dated 16.08.2012, Letter to Registrar for creation of Charge and Declaration under Section 4(1) dated 20.10.2015, which are Annexures A7 to A7T & A13 to A14 to this OA. Documents executed:-Copy of Agreement, Copy of Letter of Undertaking, Copy of Letter of Consent all dated 24.08.2012, which are Annexures A4 to A6 to this OA; Copy of Hypothecation Agreement, Copy of Letter of Undertaking, Copy of Letter of Consent all dated 29.10.2015, which are Annexures A10 to A12 to this OA; Copy of the Legal Notice dated 04.05.2021, which is Annexure A15 to this OA; Acknowledgment debt of KCC all dated 11.07.2015, 06.07.2018, 08.06.2021, which are Annexures A16 to A18 to this OA and Copy of the Statements of Account with certificate, which is Annexure A19 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.22,14,214.71, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 21.08.2024.

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In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief Punjab National Bank h as been filed.

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Heard arguments and perused record. 9. 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 A19 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs.22,14,214.71 (Rupees Twenty Two Lac Fourteen Thousand Two Hundred Fourteen Rupees and Seventy One Paisa 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 bank in relief clause has claimed interest @13.50%p.a. with monthly rests from 09.06.2023 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 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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Rs.22,14,214.71 (Rupees Twenty Two Lac Fourteen Thousand Two Hundred Fourteen Rupees and Seventy One 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 defendants 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.10.2024.

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Copy of this order be given dasti to the applicant bank 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 . Dated: 26.09.2024

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

Punjab National Bank v. Davinder Singh and Another

Case brief

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Punjab National Bank v. Davinder Singh and Another

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