Allowed

Punjab National Bank v. Sh. Davinder Singh

DRT24 Jul 2024OA/1158/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application for recovery of Rs.31,88,631.90 from defendant borrowers classified as NPA. While drafting the order is for uniform simplicity, the court reduced future interest rates to 8% p.a. and issued a Recovery Certificate.

What did the court decide?

Ordered recovery of principal sum Rs.31,88,631.90 plus costs and simple interest @8% p.a.; issued Recovery Certificate for attachment/sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1158/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.08.2023

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DATE OF DECISION: 24.07.2024

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Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Chohla Sahib, District Tarn Taran, Punjab through Smt. Manpreet Kaur, Manager and Attorney Holder, posted at Punjab National Bank, Chohla Sahib, District Tarn Taran, Punjab

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……..Applicant

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Versus

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1. Sh. Davinder Singh S/o Sh. Harbhajan Singh R/o House No.111, Village Chohla Sahib, Tehsil & District Tarn Taran, Punjab, Pin Code 143408. (Borrower/Mortgagor)

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Sh. Ranbir Singh S/o Sh. Davinder Singh R/o House No.157, Village Chohla Sahib, Tehsil & District Tarn Taran, Punjab, Pin Code 143408. (Co-Borrower)

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….……Defendants

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Advocates: Argued by Sh. Tarun Bhutani, Nodal Officer of 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.31,88,631.90p (Rupees Thirty One Lacs Eighty Eight Thousand Six Hundred Thirty One And Ninety Paise Only). The Original Application has been filed through Smt. Manpreet Kaur, Manager o f the applicant

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bank, who is competent to institute the Original Application vide Power of Attorney dated 29.02.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Kissan Gold Scheme KCC Limit of Rs.17.00 Lacs vide Loan application dated 20.08.2014, which is Annexure A2 to this OA. 3. The applicant Bank enhancement of KCC Loan of Rs.17.00 Lacs vide Sanction letter filed in compliance of the order dated 13.06.2024 vide diary no.10688 dated 12.07.2024 and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 40K-15M situated in Village Ratoke, Tehsil & District Tarn Taran, v ide Registered Mortgage Deed bearing Vasika No.601, dated 25.08.2014 a long with its translation, which are Annexures A6 & A6T to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent all dated 29.08.2014 which are Annexures A3 to A5 to this OA; Balance & Security Confirmation Letters dated 14.08.2017, 28.05.2020 & 31.12.2022, which are Annexures A7 to A9 to this OA; Notice dated 17.07.2021, which is Annexure A10 to this OA and Statement of Account with certificate dated 13.08.2023, which is Annexure A11 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.31,88,631.90, 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 10.06.2024.

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In support of the OA, affidavit of Smt. Manpreet Kaur, Manager, Punjab National Bank h as been filed.

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Heard ex-parte arguments and perused record. 9. It was argued by Nodal Officer 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 A11 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.31,88,631.90 (Rupees Thirty One Lacs Eighty Eight Thousand Six Hundred Thirty One And Ninety Paise 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 @11.50%p.a. plus penal interest @2%p.a. with half yearly rests 01.04.2023 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 @8.0%p.a. in the

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loan account 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.31,88,631.90 (Rupees Thirty One Lacs Eighty Eight Thousand Six Hundred Thirty One And Ninety Paise Only) jointly and severally, with costs, current and future simple interest @8.0%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 14.08.2024.

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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: 24.07.2024

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

Punjab National Bank v. Sh. Davinder Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Davinder Singh

Case brief

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