Allowed

Punjab National Bank v. Sh. Mukhtiar Singh and Another

DRT2 Aug 2024OA/1191/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of an outstanding loan of approx Rs 20.86 lakhs. The court affirmed lenders' right to recover dues with adjusted simple interest at 8% p.a. and authorized recovery from mortgaged properties.

What did the court decide?

Recovery of Rs.20,86,412.65p plus costs and simple interest @8.00%p.a.; issuance of Recovery Certificate and liberty to enforce via sale of mortgaged or personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1191/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 18.10.2023

¶4

DATE OF DECISION: 02.08.2024

¶5

Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075, through one of its Branch at Moonak, District Sangrur, Punjab through its Constituted Attorney and Principal Officer Sh. Gurcharan Singh, Senior Manager, Circle SASTRA Centre, Patiala

¶6

……..Applicant

¶7

Versus

¶8

1. Sh. Mukhtiar Singh S/o Sh. Nishabar Singh, R/o Near Wada Gurudawara, Ward No.11, Near Old Hospital, Moonak, Tehsil Moonak, District Sangrur-148033, Punjab

¶9

(Borrower and Mortgagor)

¶10

Sh. Gurvinder Singh S/o Sh. Mukhtiar Singh, R/o H.No.120, Ward No.11, Moonak, Tehsil Moonak, District Sangrur-148033, Punjab

(Borrower)

….……Defendants

Advocates:

Argued by Ms. Anuradha Gupta, Advocate for the applicant Defendants are ex-parte

¶15

FINAL ORDER 1. 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.20,86,412.65p (Rupees Twenty Lacs Eighty Six Thousand Four Hundred Twelve and Sixty Five Paisa only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

¶16

¶17

The brief facts of the OA are that defendants had approached the applicant bank for the grant of KCC Limit of Rs.15.00 Lacs vide Application Form dated 29.12.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.15.00 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.1 had mortgaged his immovable property i.e. total land measuring 40 Kanal 00 Marla detailed as:a. land measuring 16 Kanal 00 Marla situated at Village Moonak B, Tehsil Moonak, District Sangrur, Punjab b. l and measuring 24 Kanal 00 Marla situated at village Phuld, Tehsil Moonak, District Sangrur, Punjab vide Letter to sub-Registrar for creation of charge bearing mutation no.1063 dated 11.01.2016, Declaration u/s 4(1) and Jamabandi for the year 2011-12 along with its translation, which are Annexures A5 and A6 to this OA. Documents executed:- Agreement of hypothecation dated 15.01.2016, which is Annexure A4 to this OA; Balance and security confirmation letters dated 03.05.2018 and 01.05.2021, which are Annexures A7 and A8 to this OA; Legal notice dated 02.09.2023 with Postal receipts, which are Annexure A9 and A10 to this OA and Statement of account along with Certificate under Banker’s Book of Evidence Act, which is Annexure A11 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.20,86,412.65p, 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 02.04.2024.

¶18

¶19

In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed.

¶20

Heard ex parte arguments and perused record. 9. It was argued by learned counsel 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.20,86,412.65p (Rupees Twenty Lacs Eighty Six Thousand Four Hundred Twelve and Sixty Five Paisa 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.

¶21

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.65%p.a. along with penal interest @2%p.a. with half yearly rests from 19.08.2023 till the realization.

¶22

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.

¶23

¶24

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.20,86,412.65p (Rupees Twenty Lacs Eighty Six Thousand Four Hundred Twelve and Sixty Five Paisa 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 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.

¶25

Parties to appear before Learned Recovery Officer of this Tribunal on 23.08.2024.

¶26

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.

¶27

Pronounced by me in the open Tribunal . Dated: 02.08.2024

¶28

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

Punjab National Bank v. Sh. Mukhtiar Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Mukhtiar Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Idbi Bank Limited versus Amanjot Singh and Another

Hdfc Bank Limited versus M/S Lakshmi Traders and Others

Hdfc Bank Limited versus M/S Raman Gupta and Bros and Others

Hdfc Bank Limited versus Paramjeet Singh and Others

Punjab and Sind Bank versus Nishan Singh and Others

Punjab National Bank versus Sukhchain Singh