Allowed

Punjab and Sind Bank v. Nishan Singh and Others

DRT2 Aug 2024OA/1144/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application by Punjab and Sind Bank to recover outstanding loan dues of Rs. 40,24,465.15 from three borrowers and a guarantor. The proceedings were conducted ex-parte as defendants did not appear. The Tribunal fixed interest at 8% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Declared defendants liable to pay Rs. 40,24,465.15 with 8% p.a. interest; issued Recovery Certificate; directed enforcement against mortgaged and personal assets.

Punjab and Sind Bank versus Nishan Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1144/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.08.2023

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DATE OF DECISION: 02.08.2024

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Punjab and Sind Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) act, 1980 (Act No. 40 of 1980) with its Head Office at 21, Rajindera Place, New Delhi and branches amongst other places, one at Samana, District Patiala, through Sh. Reekesh Kumar Roy, Senior Manager.

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……..Applicant

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Versus

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Sh. Nishan Singh S/o Sh. Rajwant Singh R/o village Bahadurgarh, Tehsil Samana, District Patiala, Punjab

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Sh. Mastan Singh S/o Sh. Rajwant Singh R/o village Bahadurgarh, Tehsil Samana, District Patiala, Punjab

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Sh. Maan Singh S/o Sh. Rajwant Singh R/o village Bahadurgarh, Tehsil Samana, District Patiala, Punjab

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Sh. Devinder Singh S/o Sh. Karnail Singh R/o village Mail Kalan, P.O. Kutbanpur, Tehsil Samana, District Patiala, Punjab

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….……Defendants

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Advocates: Argued by Sh. A.B.S. Sidhu, Advocate for the applicant (through VC) 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.40,24,465.15p (Rupees Forty Lacs Twenty Four Thousand Four Hundred Sixty Five and Paisa Fifteen only). The Original Application has been filed through Sh. Reekesh Kumar Roy, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Authorization Letter dated 27.07.2013 and General Power of

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Attorney dated 06.09.2019, which are Annexures A1 and A2 to this OA.

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The brief facts of the OA are that the defendants no.1 to 3 had approached the applicant bank for the grant of Cash Credit Limit (KCC) of Rs.25.00 Lacs vide Loan application dated 25.10.2017, which is Annexure A3 to this OA and further defendants no.1 to 3 had again approached the applicant bank for the grant of Term Loan of Rs.3.00 Lacs vide Loan Application dated 01.02.2018, which is Annexure A12 to this OA. Later defendants no.1 to 3 had once again approached the applicant bank for the grant of Covid Term Loan of Rs.50000.00 vide Loan Application dated 19.08.2020, which is Annexure A20 to this OA. Defendant no.4 stood as guarantor.

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The applicant Bank sanctioned the Cash Credit Limit (KCC) of Rs.25.00 Lacs vide Sanction Letter dated 16.11.2017, which is Annexure A4 to this OA and further applicant Bank Sanctioned a Term Loan of Rs.3.00 Lacs vide Sanction Letter dated 05.02.2018, which is Annexure A13 to this OA. Later applicant bank sanctioned Covid Term Loan of Rs. 50000.00 vide Sanction Letter dated 19.08.2020, which are Annexures A21 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 to 3 had mortgaged their immovable properties i.e. total land measuring 54K-2-1/2M situated at Village Bahadurgarh, Tehsil Samana, District Patiala (Punjab) vide Letter to Sub Registrar for creation of charge bearing vasika no.515 and Declaration under Section 4 (1) both dated 02.11.2017 along with self-declaration, which is Annexure A25 to this OA. Documents executed:- Form No.15-Demand Promissory Note, Form No.106, Form No.159, Form No.199, Form No.201 Form No.312, Guarantee Agreement all dated 16.11.2017, which are Annexures A5 to A11 to this OA; Demand Promissory Note, Form No. 106, Form No. 199, Form No. 201, Form No. 192 and Guarantee Agreement all dated 05.02.2018, which are Annexures A14 to A19 to this OA; Composite

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Agreement, Form No.199, Guarantee Agreement all dated 19.08.2020, which are Annexures A22 to A24 to this OA; Revival Letters dated 17.08.2020, which are Annexures A26 & A27 to this OA; Legal Notice dated 01.10.2021 with postal receipts, which is Annexure A28 to this OA and Statement of Account along with Certificates, which are Annexures A29 to A32 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 all the loan accounts there was a debit of Rs.40,24,465.15p, 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 27.05.2024.

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In support of the OA, affidavit of Sh. Reekesh Kumar Roy, Senior Manager, Punjab and Sind Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel (through Video Conferencing) 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 A32 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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 bank is entitled to recover a sum of Rs.40,24,465.15p (Rupees Forty Lacs Twenty Four Thousand Four Hundred Sixty Five and Paisa Fifteen only)along with interest from the defendants, jointly and severally, from the date of

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filing of the present Original Application till realization of all the accounts.

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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 @10.90%p.a. plus penal interest @2%p.a. with monthly rests from 01.08.2023 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 all 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.40,24,465.15p (Rupees Forty Lacs Twenty Four Thousand Four Hundred Sixty Five and Paisa Fifteen only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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 23.08.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 02.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Nishan Singh and Others

Case brief

What is this about?

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Punjab and Sind Bank v. Nishan Singh and Others

Case brief

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