Allowed

Punjab National Bank v. Nirmaljit Singh

DRT20 Dec 2024OA/1148/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank against the defendant for recovery of an NPA loan of Rs.29.92 lacs. The court modified the claimed interest to a uniform simple interest of 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs.29,92,382.71p plus costs and uniform simple interest @8.00%p.a. from the date of filing; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1148/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.09.2023

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DATE OF DECISION: 20.12.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and amongst others a Branch Office at Sangrur (SAFB) D-4873 through Shri Gurcharan Singh, Senior Manager and attorney holder, presently posted at Circle Sastra Centre, Patiala.

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……..Applicant Versus

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Sh. Nirmaljit Singh S/o Sh. Major Singh R/o Village Dhindsa, Sangrur Punjab, 148033.

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….……Defendant

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Iqbal Mohammed, Advocate for the applicant Defendant 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 defendant for recovery of Rs.29,92,382.71p (Rupees Twenty Nine Lacs Ninety Two Thousand Three Hundred Eighty Two and Seventy One Paisa Only). The Original Application has been filed through Shri Gurcharan Singh, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.23.00 Lacs vide Loan application dated 20.12.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.23.00 Lacs vide Sanction Letter dated 20.12.2014, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 35K-15M situated at Village Dhindsa Tehsil Moonak, Distt. Sangrur Punjab vide Letter to Sub Registrar for creating the charge and Declaration under section 4(1) bearing dated 23.12.2014 along with its Translation, which are Annexures A5 & A6 to this OA. Documents executed: - Agreement for Hypothecation dated 30.12.2014, which is Annexure A4 to this OA; Non-Encumbrance certificate dated 12.12.2014 along with its translation, which are Annexures A7 & A8 to this OA; Balance and confirmation letter dated 21.03.2017, 06.08.2019 and 04.08.2022, which is Annexure A9 to this OA; Bank Account Statement and Legal Notice, which is Annexure A10 to this OA. 5. 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.29,92,382.71p, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 17.12.2024.

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In support of the OA, affidavit of Shri Gurcharan Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant

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approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.29,92,382.71p (Rupees Twenty Nine Lacs Ninety Two Thousand Three Hundred Eighty Two And Seventy One Paisa Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. with penal interest @2.00%p.a. with monthly rests from 25.08.2023 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 defendant, 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 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 defendant is liable to pay to the applicant a total sum of Rs.29,92,382.71p (Rupees Twenty Nine Lacs Ninety Two Thousand Three Hundred Eighty Two And Seventy One Paisa Only) 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.

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Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.02.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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 .

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Dated: 20.12.2024

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

Punjab National Bank v. Nirmaljit Singh

Case brief

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Punjab National Bank v. Nirmaljit Singh

Case brief

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