Allowed

Punjab National Bank v. Kulwinder Singh

DRT11 Dec 2024OA/1204/2022

Case brief

AI extract

What is this about?

This Recovery Tribunal allowed an original application by Punjab National Bank for recovery of debt. The court decreed the appellant to be paid Rs.30,05,735.71p along with current and future simple interest at 8% per annum. The judgment authorized recovery through sale of mortgaged properties or attachment of personal assets under SARFAESI Act.

What did the court decide?

Recovery of Rs.30,05,735.71p with costs and simple interest @8% p.a. from the date of filing of the OA.

Punjab National Bank versus Kulwinder Singh — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1204/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.02.2022

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DATE OF DECISION: 11.12.2024

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Punjab National Bank, a body corporate, having common seal and perpetual succession constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act ,1970, carrying on banking business and having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and one of the branch office, amongst others Circle Sastra SAS Nagar Mohali, 2^nd Floor, SCO-43, Phase-II, Sector-54, SAS Nagar Mohali, through its Attorney holder and authorized representatives Sh. Ravi Kumar.

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……..Applicant

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Versus

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Sh. Kulwinder Singh S/o Sh. Gurmukh Singh, R/o Naglian, Post Office Phantwan, Mohali, District Mohali-140110.

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….……Defendant

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Advocates:

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Argued by Sh. Amit Rishi, Advocate proxy for Sh. Kanwal Deep Sachdeva, Advocate for Applicant Defendants is 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.30,05,735.71p (Rupees Thirty Lacs Five Thousand Seven Hundred Thirty Five And Seventy One Paisa Only). The Original Application has been filed through Sh. Ravi Kumar, Attorney holder and authorized representatives of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.11.2024, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs and further for its enhancement to Rs.20.00 Lacs vide Loan Applications dated 08.03.2011 & 27.05.2014, which are Annexures A3 & A12 to this OA.

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The applicant sanctioned the KCC Limit of Rs.10.00 Lacs & further sanctioned its enhancement to Rs.20.00 Lacs vide Agriculture Finance & Joint Reference/sanction dated 26.04.2011 & 06.06.2014, which are Annexures A4 & A13 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total land measuring 17K-10M situated at Village Naglian, Hadbast No.88, Sub Tehsil Majri, Tehsil Kharar Dstrict SAS Nagar, Mohali vide Registered Mortgage Deeds bearing Vasika No.343 dated 20.04.2011 & vasika no. 827 dated 11.06.2014 with their translation, which are Annexures A9 & A11 to this OA.

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Documents executed:- Copy of Notification dated 04.03.2020, which is Annexure A2 to this OA. Hypothecation agreement, Letter of Undertaking, Letter of all dated 27.04.2011,which are Annexures 5 to A7 to this OA; Affidavit dated 03.06.2014, which is Annexure A8 to this OA; Title search report dated 19.04.2011, Which is Annexure A10 to this OA; Hypothecation agreement, Letter of Undertaking, Affidavit all dated 10.06.2014,which are Annexures A14 to A16 to this OA; Balance & security confirmation Letter dated 08.03.2014, 18.05.2017 & 01.01.2020, which is Annexure A17 to this OA; Recall Notice dated 30.12.2019, which is Annexure A18 to this OA and Statement of Account along with Certificate under Banker’s Books Evidence Act, which is Annexure A19 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 the loan account there was a debit of Rs.30,05,735.71p, which is recoverable and the defendant was served recall notices but they did not repay the

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outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 15.12.2023. 7. In support of the OA, affidavit of Sh. Ravi Kumar, Attorney holder and authorized representatives, 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 A19 to this OA, it is proved that the defendant 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 defendants 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.30,05,735.71p (Rupees Thirty Lacs Five Thousand Seven Hundred Thirty Five And Seventy One Paisa Only) along with interest from the defendant, 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 @8.85%p.a. with penal interest @2.00%p.a. with half yearly rests from 01.10.2021 till the realization. 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

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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 @08.00%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.30,05,735.71p (Rupees Thirty Lacs Five Thousand Seven Hundred Thirty Five 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. 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 27.01.2025. 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 . Dated: 11.12.2024

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

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Punjab National Bank v. Kulwinder Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Kulwinder Singh

Case brief

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What did the court decide?

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