Allowed

Punjab National Bank v. Sh. Gurdeep Singh and Another

DRT4 Apr 2024OA/1122/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application by Punjab National Bank to recover a debt of Rs. 23,40,591/- from two defendants. It declared the defendants liable jointly and severally, fixed simple interest at 10% p.a., and ordered the issuance of a Recovery Certificate for enforcement via sale of mortgaged or personal assets.

What did the court decide?

Directing respondents to pay Rs. 23,40,591/- with simple interest at 10% p.a. from filing date. Recovery Certificate issued for sale of mortgaged/personal assets.

Punjab National Bank versus Sh. Gurdeep Singh and Another — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1122/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 19.05.2022

¶5

DATE OF DECISION: 04.04.2024

¶6

Punjab National Bank, a body corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and Branch Offices, amongst others at Lopo, Tehsil Nihal Singh wala, District Moga (Punjab) through Sh. Sandeep Kumar, Senior Manager posted at Circle office (SASTRA), District Moga, Punjab.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Gurdeep Singh S/o Sh. Mehar Singh R/o Village and Post Office Mehron Tehsil and District Moga, Punjab

¶10

Sh. Sukhdev Singh S/o Sh. Mehar Singh R/o Village and Post Office Mehron Tehsil and District Moga, Punjab

¶11

………Defendants

¶12

Advocates:

¶13

Sh. Jatinder Kumar Sharma, Advocate for the Applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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.23,40,591/- (Rupees Twenty Three Lacs Forty Thousand Five Hundred and Ninety One only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

¶16

¶17

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of OGC Limit of Rs.12.00 Lacs vide Loan application dated 02.01.2012.

¶18

The applicant Bank sanctioned the OGC Limit of Rs.12.00 Lacs vide Loan Sanction Letter dated 13.01.2012, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 16K-03M situated at Village Mehron, Tehsil and District Moga, Punjab vide Mortgage Deed bearing vasika no 8846 with Mutation dated 09.01.2012, which is Annexure A5 to this OA. Documents executed: - Agreement of Hypothecation and Agreement of Guarantee both dated 13.01.2012, which are Annexures A3 and A4 to this OA; Balance and Security Letters dated 30.06.2017, which is Annexure A6 to this OA; Legal Notice dated 21.12.2018 along with Postal Receipt, which is Annexure A7 to this OA; Account Statement with computer certificate dated 14.03.2022, which is Annexure A8 to this OA.

¶19

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.23,40,591/-, 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 02.03.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Senior 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,

¶20

¶21

the applicant bank had proved its case. From the perusal of all the Annexures A1 to A8 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 Rs.23,40,591/(Rupees Twenty Three Lacs Forty Thousand Five Hundred and Ninety One 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.

¶22

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. (inclusive of additional Interest @2%p.a.) with half yearly rests from the date of institution of this OA till the realization.

¶23

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 @10.00%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.

¶24

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,40,591/- (Rupees Twenty Three Lacs Forty Thousand Five Hundred and Ninety One only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account from the

¶25

¶26

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.

¶27

Parties to appear before Learned Recovery Officer of this Tribunal on 12.04.2024 .

¶28

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.

¶29

Pronounced by me in the Open Tribunal. Dated: 04.04.2024

¶30

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

Punjab National Bank v. Sh. Gurdeep Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Gurdeep Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Bank of India versus Sh. Balkaran Singh and Another

Punjab National Bank versus Smt. Charanjit Kaur and Others

Punjab National Bank versus M/s Spintex Woolen Mills and Others

Canara Bank versus Parteek Jain

Central Bank of India versus M/S Nandha Brick Kiln and Others

Icici Bank Ltd. versus M/s Sadhu Ram Industries and Others