Allowed

Punjab National Bank v. Mohinder Singh Alias Mahinder Singh Another

DRT19 Sept 2024OA/1155/2023

Case brief

AI extract

What is this about?

DRT allowed a recovery application filed by Punjab National Bank against two defendants for Rs.30,26,542.00 arising from an NPA. The Tribunal deems 8% p.a. simple interest just and appropriate given market rates. It ordered a Recovery Certificate and authorized execution against mortgaged properties under the SARFAESI Act.

What did the court decide?

The application allowed; defendants liable to pay Rs.30,26,542.00 with 8% p.a. interest; Recovery Certificate issued; recovery from salary and assets allowed.

Punjab National Bank versus Mohinder Singh Alias Mahinder… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1155/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.09.2023

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DATE OF DECISION: 19.09.2024

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Punjab National Bank, a body corporate with perpetual succession constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and a Branch Office, amongst others at Sangrur (SAFB) D-4873 through Sh. Gurcharan Singh, Senior Manager, Circle Sastra Center, Patiala being the officer of the Applicant Bank.

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… …..Applicant

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Versus

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Sh. Mahinder Singh @ Mohinder Singh S/o Sh. Ajmer Singh R/o Tehsil Lehragaga Fatehgarh phalera, Sunam, Distt Sangrur, Punjab 148031.

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Sh. Chamkaur Singh S/o Sh. Mohinder Singh R/o Tehsil Lehragaga Fatehgarh Phalera, Sunam, Distt Sangrur, Punjab 148031

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also at: H.no.54A, Fatehgarh, Tehsil Sunam Distt. Sangrur.

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……Defendants

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Advocates:

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Argued by Sh. Gautam Bhardwaj, 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.30,26,542.00 (Rupees Thirty Lacs Twenty Six Thousand Five Hundred And Forty Two Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant, who is

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competent to institute the Original Application vide Power of Attorney dated 14.09.2007, which is Annexure A1 tothis OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for grant of KCC Limit of Rs.12.00 Lacs and KSS Term Loan of Rs.1.00 Lacs vide Loan application dated 07.05.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.12.00 Lacs and KSS Term Loan of Rs.1.00 Lacs vide Sanction letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.2 had mortgaged his immovable properties i.e. total land measuring 19K-02M situated at Village Fatehgarh, Tehsil Lehragaga Sunam, Distt Sangrur, Punjab vide Registered Mortgaged Deed bearing v asika No.575 dated 2 9.05.2014 along with its Translation, which are Annexures A9 & A10 to this OA. Documents executed:- Agreement for Hypothecation and Letter of Consent both dated 30.05.2014, which are Annexures A4 & A6 to this OA; First Schedule to fifth Schedule, which is Annexure A5 to this OA; Mutation along with its translation dated 29.05.2014, which are Annexures A7 & A8 to this OA; Non-Encumbrance Certificate along with its Translation dated 27.05.2014, which are Annexures A11 & A12 to this OA; Balance and Confirmation Letter dated 25.02.2017 to 31.03.2021, which is Annexure A13 to this OA and Bank Account Statement, which is Annexure A14 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 both the loan accounts there was a debit of Rs.30,26,542.00 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 17.08.2024.

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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 A14 to this OA, it is proved that the defendants approached applicant 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 applicant. 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.30,26,542.00 (Rupees Thirty Lacs Twenty Six Thousand Five Hundred And Forty Two 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 in relief clause has claimed interest @11.50%p.a. along with penal interest @2%p.a. with monthly rests in both accounts 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 defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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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 defendants are liable to pay to the applicant a total sum of Rs.30,26,542.00 (Rupees Thirty Lacs Twenty Six Thousand Five Hundred And Forty Two 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 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.

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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 11.10.2024. 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.

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Pronounced by me in the open Tribunal.

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Dated: 19.09.2024

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

Punjab National Bank v. Mohinder Singh Alias Mahinder Singh Another

Case brief

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Punjab National Bank v. Mohinder Singh Alias Mahinder Singh Another

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