Allowed

Punjab National Bank v. Geeta Rani

DRT12 Sept 2024OA/107/2023

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed under Section 19 RDDBFI Act, 1993, decreeing the recovery of Rs. 25,86,637.86 plus interest. The Tribunal granted uniform simple interest at 8% p.a. and directed the issuance of a Recovery Certificate and execution proceedings under the SARFAESI Act.

What did the court decide?

Decree for recovery of Rs. 25,86,637.86 with 8% per annum simple interest; issuance of Recovery Certificate ordered;

Punjab National Bank versus Geeta Rani — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.107/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.01.2023

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DATE OF DECISION: 12.09.2024

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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 w.e.f. 01.04.2020 being the successor to Oriental Bank of Commerce in terms of Gazette of India Notification No. G.S.R.153(E) dated 04^th March,2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), the Central Government after Consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of Oriental Bank of Commerce into Punjab National Bank Scheme,2020. Therefore, the term “Applicant Bank”, wherever the context so warrants, would interchangeably mean the erstwhile Oriental Bank of Commerce and/or Punjab National Bank. The Erstwhile Oriental Bank of Commerce’s Branch Office at Zirakpur, Ambala Chandiagrh Highway, Zirakpur, District S.A.S. Nagar (Mohali), Punjab through its General Power of Attorney holder Sh. Ravi Kumar posted as Chief Manager of the Applicant Bank BO:- Circle Sastra, SCF No.43,Sector 54, Phase-II, SAS Nagar Mohali, Punjab.

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……..Applicant

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Versus

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Smt. Geeta Rani W/o Sh. Dharamveer Singh, R/o Plot No.9, Balaji Complex, Near Mohan Forgins, Saidpura, Luxmi International Park, Barwala Road, Derabassi, SAS Nagar Mohali, Sahibzada Ajit Singh Nagar-140507.

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2^nd Address : House No.1124, Ward No.15, Sector-17, Dhobi Mohalla, Derabassi, District SAS Nagar (Mohali), Punjab.

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3^rd Address : R/o Sadhu Nagar, Gali No.4, Ward No.5, Derabassi, District SAS Nagar (Mohali), Punjab. 4^th Address : R/o House No.953, Sector-12, Shakti Nagar, Tehsil Derabassi, District SAS Nagar (Mohali), Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. G.P. Bharti, Advocate proxy for Sh. Banni Thomas 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.25,86,637.86 (Rupees Twenty Five Lacs Eighty Six Thousand Six Hundred Thirty Seven Rupees And Eighty Six Paisa Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.11.2009 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 for the grant of Term Loan (Housing Loan) of Rs.24.00 Lcas vide Loan application dated 30.12.2019, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan (Housing Loan) of Rs.24,35,500.00 vide Sanction Letter dated 18.01.2020, 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 House no.953, measuring 100 Sq. Yards situated at Shakti Nagar, Sector 12,

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Village Bir Dhandrala, hadbast no. 8/1, Tehsil Derabassi, District SAS Nagar (Mohali) vide Equitable Mortgage of Sale Deed bearing vasika no.2019-20/14/1/5404 dated 28.01.2020 with its Translation, which is Annexure A13 to this OA.

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Documents executed:-Agreement of Individual Housing Loan, Common Agreement, Undertaking to execute the Agreement for Sale Deed, POA, Affidavit Borrower of Legal Heirs all dated 22.01.2020, which are Annexures A4 to A8 to this OA; LTR 21 dated 30.01.2020, which is Annexure A9 to this OA; Title Deed dated 28.01.2020, which is Annexure A10 to this OA; Document Register dated 22.01.2020, which is Annexure A11 to this OA; Title Investigation report dated 14.01.2020, which is Annexure A12 to this OA; Communication Letter dated 23.08.2022, which is Annexure A15 to this OA; Registered Postal Receipts dated 22.11.2022, which is Annexure A16 to this OA and Statement of account along with Banker’s Book Evidence Act, which is Annexure A17 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.25,86,637.86, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 03.08.2024. 7. In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard 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 had proved its case. From the perusal of all the

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Annexures A1 to A17 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that she had executed all the relevant documents in favour of the applicant. 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 is entitled to recover a sum of Rs.25,86,637.86 (Rupees Twenty Five Lacs Eighty Six Thousand Six Hundred Thirty Seven Rupees And Eighty Six Paisa Only) along with interest from the defendant, 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 @9.35%p.a. plus penal interest @2.00%p.a. with monthly rests from 01.01.2023 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 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 @08.00%p.a. in the loan accounts 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 defendant is liable to pay to the applicant a total sum of Rs.25,86,637.86 (Rupees Twenty Five Lacs Eighty Six Thousand Six Hundred Thirty Seven Rupees And Eighty Six Paisa Only)jointly and severally, with costs, current and future simple interest @08.00%p.a.

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in both the loan accounts 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 applicant 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 08.10.2024 15. 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. Pronounced by me in the open Tribunal. Dated: 12.09.2024.

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

Punjab National Bank v. Geeta Rani

Case brief

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Punjab National Bank v. Geeta Rani

Case brief

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