Allowed

Punjab National Bank v. Sakinder Singh and ANother

DRT11 Nov 2024OA/1098/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under Section 19 RDBFI Act. It declared the appellants liable to pay the outstanding loan of Rs. 26,31,406.98 with costs and uniform simple interest at 8% p.a., adhering to a lesser rate due to market conditions, and permitted recovery via hypothecated properties.

What did the court decide?

Debt of Rs. 26,31,406.98 with costs and 8% simple interest to be recovered jointly and severally from the defendants.

Punjab National Bank versus Sakinder Singh and ANother — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1098/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.07.2023

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DATE OF DECISION: 11.11.2024

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Punjab National Bank, a body corporate, constituted under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and amongst other a Branch Office at Baran, Tehsil and District Patiala represented through its Constituted Attorney and principal officer Sh. Gurcharan Singh, Senior Manager posted at Circle Sastra Centre, Patiala.

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……..Applicant

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Versus

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Sh. Sakinder Singh son of Sh. Nachhatar Singh resident of Village Baran, District Patiala-147004.

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Sh. Bharpur Singh S/o Sh. Arjun Singh resident of Village Baran,

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District Patiala-147004.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Singla, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.26,31,406.98p (Rupees Twenty Six Lacs Thirty One Thousand Four Hundred Six and Paise Ninety Eight Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 11.10.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of Vehicle Loan of Rs.6.50 Lacs vide Loan Application dated 21.10.2014, which is Annexure A2 to this OA. Further, defendant no.1 had again approached the applicant for grant of KCC Limit of Rs.14.50 Lacs and Debt Swap Term Loan of Rs.1.00 Lacs vide Loan Application dated 02.12.2015, which is Annexure A8 to this OA.

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The applicant sanctioned the Vehicle Loan of Rs.6.50 Lacs vide Sanction Letter dated 21.10.2014, which is Annexure A3 to this OA. Further, applicant again sanctioned KCC Limit of Rs.14.50 Lacs and Debt Swap Term Loan of Rs.1.00 Lacs vide Sanction letter dated 09.12.2015, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant no.1 had Mortgaged/hypothecated their immovable/movable properties i.e. (i) Vehicle namely Maruti Swift Dzire bearing Registration no.PB11BR6400, Engine no.D13A2458230 and Chassis no.MA3FJEB1S00623205 vide Registration Certificate, which is Annexure A7 to this OA. (ii) Agriculture land measuring 13 Bigha 10 Biswa situated in the Revenue Estate of Village Baran, Tehsil & District Patiala vide Declaration under Section 4(1) dated 18.12.2015 with its translation, which is Annexure A14 to this OA.

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Documents executed:- Letter of Hypothecation & Agreement of Guarantee both dated 21.10.2014, which are Annexures A4 & A6 to this OA; Letter of Vehicle hypothecation dated 22.10.2014, which is Annexure A5 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Consent & Supplementary Agreement all dated 24.12.2015, which are Annexures A10 to A13 to this OA; Balance & Security Confirmation Letters dated 03.11.2016, 27.07.2018, 15.01.2019, 23.01.2020, 23.06.2021 & 24.06.2021, which are

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Annexures A15 to A22 to this OA; Notice dated 19.06.2021, which is Annexure A23 to this OA and Statement of Accounts duly certified, which are Annexures A24 to A26 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.26,31,406.98p, 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 06.11.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned 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 Annexures A1 to A26 to this OA, it is proved that the defendants approached applicant for availing of the loans 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,31,406.98p (Rupees Twenty Six Lacs Thirty One Thousand Four Hundred Six and Paise Ninety Eight Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @11.40%p.a. with monthly rests in Vehicle Loan, interest @13.00%p.a. with half yearly rests in KCC and @13.50%p.a. with half yearly rests in Debt Swap account along with penal interest @2%p.a. penal interest from 01.04.2023 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 @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.

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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.26,31,406.98p (Rupees Twenty Six Lacs Thirty One Thousand Four Hundred Six and Paise Ninety Eight Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 03.12.2024. 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: 11.11.2024

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

Punjab National Bank v. Sakinder Singh and ANother

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Punjab National Bank v. Sakinder Singh and ANother

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