Allowed

Punjab and Sind Bank v. Smt. Sukhwinder Kaur

DRT28 Aug 2024OA/1139/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab & Sind Bank for recovery of Rs. 22,59,153.88 from borrowers and guarantors who defaulted on a cash credit limit. The Tribunal reduced the claimed interest to 8% per annum and directed the issuance of a Recovery Certificate under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued for Rs. 22,59,153.88 plus 8% simple interest per annum; defendants to pay jointly and severally.

Punjab and Sind Bank versus Smt. Sukhwinder Kaur — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1139/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.09.2023 DATE OF DECISION: 28.08.2024 Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (Act No. 40 of 1980) carrying on the Banking Business and having its Head Office at 21, Rajendra Place, New Delhi and branches amongst other places, one at VPO Nadala, District Kapurthala-144624 through its Branch Manager Sh. Mandeep Singh.

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……..Applicant

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Versus

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1. Smt. Sukhwinder Kaur W/o Sh. Jaswant Singh, R/o Village Khanpur, PO Moddowal, Sub Tehsil Dhilwan, District Kapurthala144601 (Borrower)

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Sh. Lakhbir Singh S/o Sh. Bhan Singh, R/o Village Bamuwal, PO Moddowal, Sub Tehsil Dhilwan, District Kapurthala-144601

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Sh. Jagjit Singh S/o Sh. Balwinder Singh, R/o Village Khanpur, PO Moddowal, Sub Tehsil Dhilwan, District Kapurthala-144601

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(Guarantors) ….……Defendants

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Advocates:

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Argued by Ms. Sonal Chabra, Advocate proxy for Sh. Kamaldeep Singh Rishi, 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.22,59,153.88p (Rupees Twenty Two Lacs Fifty Nine Thousand One Hundred Fifty Three and Paisa Eighty Eight only). The Original Application has been filed through Sh. Mandeep Singh, Branch Manager of the applicant bank, who is competent to institute the

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Original Application vide General Power of Attorney dated 04.12.2018, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 had approached the applicant bank for the grant of Cash Credit Limit (KCC) of Rs.18.00 Lacs vide Loan application dated 19.01.2018. 3. The applicant Bank sanctioned the Cash Credit Limit (KCC) of Rs.18.00 Lacs, vide Sanction Letter dated 14.02.2018, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged her immovable properties i.e. total land measuring 23K-09M situated at revenue estate of Village Bamuwal, Sub Tehsil Dhilwan, District Kapurthala (Punjab) vide Declaration under Section 4 (1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act 1978 bearing vasika no.213/RC dated 0 9.02.2018, Non-Encumbrance Certificate dated 10.01.2018 and Jamabandi for the year 2014-2015 along with their Translations, which are Annexures A14 to A16 to this OA. Documents executed:- Voucher, Promissory Note Form 14 (R), Form 106, Form 159, Revised clause pertaining to rate of interest : Form 200, Form No. 201, Undertaking Form No. 199, Guarantee Form 256 (RR), Letters (Disclosure to CIBIL) all dated 14.02.2018, which are Annexures A3 to A8 & A10 to A13 to this OA; Hypothecation of Goods: Form No. 312 (R), which is Annexure A9 to this OA; Balance and Security Confirmation Letters dated 04.02.2021, which is Annexure A17 to this OA; Notice dated 02.06.2023, which is Annexure A18 to this OA and Account Statement along with Certificate, which is Annexure A19 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.22,59,153.88p, 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 19.07.2024.

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In support of the OA, affidavit of Sh. Mandeep Singh, Branch Manager, Punjab & Sind Bank has been filed. 8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A19 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.22,59,153.88p (Rupees Twenty Two Lacs Fifty Nine Thousand One Hundred Fifty Three and Paisa Eighty 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 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 @11.40%p.a. along with Penal Interest @2.00%p.a. with half yearly rests from 06.09.2023 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 @8.00%p.a. in

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.22,59,153.88p (Rupees Twenty Two Lacs Fifty Nine Thousand One Hundred Fifty Three and Paisa Eighty Eight 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 20.09.2024.

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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: 28.08.2024

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

Punjab and Sind Bank v. Smt. Sukhwinder Kaur

Case brief

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Punjab and Sind Bank v. Smt. Sukhwinder Kaur

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