Allowed

Punjab National Bank v. Messrs Jagjit Singh and Co. and Others

DRT3 Aug 2024OA/108/2022

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Punjab National Bank against three defendants for recovery of Rs. 26,98,399.61 along with interest. The court adjusted the claimed interest rate to 8.00% p.a. and authorized recovery through mortgaged properties or personal assets via SARFAESI provisions.

What did the court decide?

Directing defendants to pay Rs.26,98,399.61 jointly and severally with costs and simple interest at 8% p.a.; issued Recovery Certificate; authorized enforcement via sale of hypothecated properties or

Punjab National Bank versus Messrs Jagjit Singh and Co. and… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.108/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2022

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DATE OF DECISION: 03.08.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and a Branch amongst at Sahnewal, District Ludhiana through General Power of Attorney holder Sh. Ravinder Kumar, Senior Manager, Punjab National Bank, Ludhiana

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……..Applicant

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Versus

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M/s Jagjit Singh Co. situated at Grain Market, Sahnewal, District Ludhiana through its proprietor Sh. Jagvir Singh @Jagbir Singh S/o Sh. Balwant Singh

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Sh. Harjit Singh S/o Sh. Balwant Singh, R/o H.No.44, Village Jhugian Bega, P.O. Chaunta, Sub Tehsil Koom Kalan, Tehsil and District Ludhiana

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Sh. Avtar Singh S/o Sh. Balwant Singh, R/o Village Jhugian Bega P.O. Chaunta, Sub Tehsil Koom Kalan, Tehsil and District Ludhiana (Guarantors/Mortgagor s )

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, 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.26,98,399.61p (Rupees Twenty Six Lacs Ninety Eight Thousand Three Hundred Ninety Nine and Sixty One Paisa only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the

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Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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2.	The brief facts of the OA are that the defendant No.1 had
approa	ched the applicant bank for the grant of Overdraft Limit of
Rs.25. the de reduct	00 Lacs and further for its enhancement to Rs.34.00 Lacs. Later fendant No.1 approached the applicant bank for its renewal cum ion to Rs.26.80 Lacs
3.	The applicant Bank sanctioned the Overdraft Limit of Rs.25.00
Lacs a	nd Further enhance it to Rs.34.00 Lacs. Thereafter renewed and
reduce	d overdraft limit to Rs.26.80 Lacs vide Sanction Letter dated
08.01. conditi	2019, which isAnnexure A18to this OA and the terms and ons were duly accepted by the defendants.
4.	Sh. Jagvir Singh (Proprietor) and Defendant Nos. 2 and 3 had
mortg a)	aged their immovable properties detailed as:- land measuring 04 Kanal 14 Marla situated at Village Jhugian
	Bega, Hadbast No.37, Sub Tehsil Koom kalan, Tehsil and
	District Ludhiana, Punjab owned by Sh. Jagvir Singh vide
	Equitable Mortgage of Sale Deed bearing Vasika No.273 dated 05.06.2009 along with its translation, which areAnnexures A6 and A6-Tto this OA;
b)	land measuring 03 Kanal 07 Marla situated at Village Jhugian
	Bega, Hadbast No.37, Sub Tehsil Koom kalan, Tehsil and
	District Ludhiana, Punjab owned by defendant No.2 vide
	Equitable Mortgage of Sale Deed bearing Vasika No.459 dated 08.07.2009 along with its translation, which areAnnexures A7 and A7-Tto this OA;
c)	land measuring 03 Kanal 12 Marla situated at Village Jhugian
	Bega, Hadbast No.37, Sub Tehsil Koom kalan, Tehsil and
	District Ludhiana, Punjab owned by defendant No.3 vide
	Equitable Mortgage of Sale Deed bearing Vasika No.1247 dated
	19.01.2009 along with its translation, which areAnnexures A8 and A8-Tto this OA;

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d) land measuring 02 Kanal 18 Marla situated at Village Jhugian Bega, Hadbast No.37, Tehsil and District Ludhiana, Punjab owned by Sh. Jagvir Singh Equitable Mortgage of Sale Deed bearing Vasika No.694 dated 12.09.2008 along with its translation, which are Annexures A9 and A9-T to this OA

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e) land measuring 03 Kanal 09 Marla situated at Village Jhugian Bega, Hadbast No.37, Tehsil and District Ludhiana, Punjab owned by defendant No.2 Equitable Mortgage of Sale Deed bearing Vasika No.1102 dated 12.10.2006 along with its translation, which are Annexures A10 and A10-T to this OA.

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Documents executed:- I.D. proof of defendants in File 3, which is Annexure A2 to this OA; Sole proprietorship letter, which is Annexure A3 to this OA; Agreement for overdraft and Agreement of hypothecation both dated 24.05.2010, which are Annexures A4 and A5 to this OA; Balance and security confirmation letter dated 04.09.2012, which is Annexure A11 to this OA; Sole proprietorship letter dated 22.03.2014, which is Annexure A12 to this OA; Supplemental agreement to secure credit facilities, Agreements of guarantee both dated 22.03.2014, which are Annexures A13, A14 and A15 to this OA; Letter of confirmation, which is Annexure A16 to this OA; Balance and security confirmation letters dated 07.10.2017 and 09.01.2019, which are Annexures A17 and A19 to this OA; Legal notice dated 22.12.2021 along with postal receipts, which is Annexure A19-A to this OA and Statement of account along with Certificate, which is Annexure A20 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.26,98,399.61p, 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.

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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 28.05.2024.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex parte arguments and perused record.

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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 Annexures A1 to A20 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.26,98,399.61p (Rupees Twenty Six Lacs Ninety Eight Thousand Three Hundred Ninety Nine and Sixty 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 @10.80%p.a. plus penal interest @2%p.a. with monthly rests from 01.01.2022 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.26,98,399.61p (Rupees Twenty Six Lacs Ninety Eight Thousand Three Hundred Ninety Nine and Sixty 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 27.08.2024.

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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: 03.08.2024

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

Punjab National Bank v. Messrs Jagjit Singh and Co. and Others

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Punjab National Bank v. Messrs Jagjit Singh and Co. and Others

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