Allowed

Punjab National Bank v. Hardeep Singh and Another

DRT8 Oct 2024OA/1163/2022

Case brief

AI extract

What is this about?

The DRT exercised its prayer power to reduce the claimed interest rate from 11.50% to 8% per annum and allowed the application, declaring the defendants liable to pay the principal sum of Rs.23,45,627.00 with future simple interest and granting a Recovery Certificate.

What did the court decide?

Recovery of Rs.23,45,627.00 with future simple interest @8.00%p.a. and issuance of a Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1163/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.04.2022

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DATE OF DECISION: 08.10.2024

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Punjab National Bank, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) act, 1970 having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi110075 and branch offices, amongst others at Lopo, Tehsil Nihal Singh Wala, District Moga (Punjab) through Sh. Sandeep Kumar, Senior Manager posted at Circle Office (SASTRA), District Moga (Punjab) of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Hardeep Singh S/o Sh. Gurdev Singh, R/o House No. 114, Village Mehron, Tehsil and District Moga (Punjab)

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Sh. Gurdeep Singh S/o Sh. Dalbara Singh, R/o Village Mehron, Tehsil and District Moga (Punjab)

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….……Defendants

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Advocates:

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Argued by Sh. Jatinder Kumar Sharma, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.23,45,627.00 (Rupees Twenty Three Lacs Forty Five Thousand Six Hundred and Twenty Seven only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.12.00 Lacs vide Loan Application dated 15.02.2013.

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The applicant sanctioned the Cash Credit Limit (KCC) of Rs.12.00 Lacs vide Loan Application with Sanction Letter dated 19.02.2013 and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged their immovable properties i.e. total land measuring 24K-13M situated at Village Mehron, Tehsil and Moga Patiala (Punjab) vide Registered Mortgaged Deed bearing v asika No.9996 dated 2 8.03.2013 along with its Translation, which is Annexure A5 to this OA.

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Documents executed:- Agreement of Hypothecation and Agreement of Guarantee both dated 11.04.2013, which are Annexures A3 & A4 to this OA; Balance and Security Letters dated 06.02.2019, which is Annexure A6 to this OA; Legal Notice dated 01.08.2019 and 10.11.2020 along with its translations and postal Receipts, which is Annexure A7 to this OA and Account Statement along with Computer Certificate, which is Annexure A8 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.23,45,627.00, 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 26.09.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A8 to this OA, it is proved that the defendants approached applicant for availing of the

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loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.23,45,627.00 (Rupees Twenty Three Lacs Forty Five Thousand Six Hundred and Twenty Seven 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. (inclusive of penal interest @2%p.a.) with half yearly rests from 15.03.2022 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 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.23,45,627.00 (Rupees Twenty Three Lacs Forty Five Thousand Six Hundred and Twenty Seven 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

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.10.2024.

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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: 08.10.2024

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

Punjab National Bank v. Hardeep Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Hardeep Singh and Another

Case brief

What is this about?

What did the court decide?

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