Allowed

Punjab National Bank v. Jagir Ram

DRT19 Aug 2024OA/1068/2023

Case brief

AI extract

What is this about?

The DRT allowed the application by Punjab National Bank for recovery of Rs.25.29 lacs from the defaulting borrower. The debtor, who did not appear, was liable to repay the principal along with simple interest at 8% per annum, enforceable through sale of mortgaged or personal assets under the SARFAESI Act.

What did the court decide?

Order recovery of Rs.25.29 lacs with simple interest at 8% p.a.; issue Recovery Certificate; authorize sale of mortgaged and personal assets.

Punjab National Bank versus Jagir Ram — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1068/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.08.2023

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DATE OF DECISION: 19.08.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office situated at Plot No.-4, Sector-10, Dwarka, New Delhi-110075 and having its branch offices throughout India, having one of its branch office situated at Punjab National Bank-SASTRA Circle, near Natraj Hotel, Kapurthala, Punjab-144601; represented through its Deputy Manager and GPA holder Sh. Baljit Kumar.

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……..Applicant

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Versus

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Sh. Jagir Ram S/o Sh. Ram Lal, R/o village Hedon Bet P.O. Mutton, Teh Balachaur, District SBS Nagar-144521.

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….……Defendant

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Advocates:

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Argued by Sh. Abhay Gupta, 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 defendant for recovery of Rs.25,29,000.00 (Rupees Twenty Five Lacs Twenty Nine Thousand only). The Original Application has been filed through Sh. Baljit Kumar, Deputy Manager and GPA holder o f the applicant bank, who is competent to institute the Original Application vide Resolution/ Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.10.00 Lacs vide loan application dated 07.01.2013.

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The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 07.01.2013, which is Annexure A2 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 23K-19M situated at Village Haido/448, Tehsil Balachaur, District SBS Nagar, Punjab vide Registered Mortgage Deed bearing vasika no.4236 dated 28.12.2012 and Non-Encumbrance Certificate dated 22.11.2012 along with their English Translation, which are Annexures A3 & A4 to this OA.

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Documents executed: Recall Notice dated 08.01.2018 with postal receipt, which is Annexure A5 to this OA; Balance and Security Confirmation dated 29.07.2015, 19.05.2018 and 04.05.2021, which are Annexures A7 to A9 to this OA and Statement of accounts along Banker’s Book Certificate dated 18.07.2023, which are Annexures A6 & A10 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.25,29,000.00, 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 12.07.2024.

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In support of the OA, affidavit of Sh. Baljit Kumar, Deputy Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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

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Annexures A1 to A10 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.25,29,000.00 (Rupees Twenty Five Lacs Twenty Nine Thousand 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 @11.50%p.a. with half yearly rests from date of filing this OA 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 @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 defendant is liable to pay to the applicant a total sum of Rs.25,29,000.00 (Rupees Twenty Five Lacs Twenty Nine Thousand 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

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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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.09.2024. 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: 19.08.2024

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

Punjab National Bank v. Jagir Ram

Case brief

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What did the court decide?

Punjab National Bank v. Jagir Ram

Case brief

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What did the court decide?

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