Allowed

Punjab National Bank v. Deepak Kumar and Another

DRT6 Aug 2024OA/121/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of a sanctioned KCC loan. Declaring the defendants liable for the principal sum with interest at 8% p.a., the court ordered the issuance of a Recovery Certificate to enable enforcement through asset sale.

What did the court decide?

Total sum of Rs. 24,41,257.27 with interest @ 8% p.a. declared recoverable. Recovery Certificate issued to enforce claim through sale of properties.

Punjab National Bank versus Deepak Kumar and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.121/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.01.2023

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DATE OF DECISION: 06.08.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank, VPO Bhandal Bet, Distt. Kapurthala, Punjab through Sh. Ankur Rawat who is presently working as Senior Manager, Punjab National Bank, Circle Sastra, PNB House, Satyanarayan Bazar, Near Natraj Hotel, Kapurthala, Punjab who is duly authorized and Principal Officer of the Applicant Bank.

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……..Applicant

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Versus

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Mr. Deepak Kumar S/o Sh. Krishan Gopal, R/o VPO Fattu Dhinga, District Kapurthala, Punjab (Borrower/Mortgagor)

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Sh. Krishan Gopal S/o Sh. Som Nath, R/o VPO Fattu Dhinga, Distt. Kapurthala, Punjab (Co-Borrower/Mortgagor)

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…Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for 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.24,41,257.27 (Rupees Twenty Four Lac Forty One Thousand Two Hundred Fifty Seven And Paisa Twenty Seven Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager o f the applicant bank, 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 had approached the applicant bank for the grant of KCC Limit of Rs.13.00 Lacs vide Loan Application dated 05.01.2016, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Loan of Rs.13.00 Lacs vide Sanction Letter dated 05.01.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged his immovable properties i.e. total land measuring 21 Kanal-10 Marla situated in Village Khanpur, Tehsil & District Kapurthala vide Declaration Under Section 4(1) of Punjab Agriculture Credit Operation Provisions (Bank) Act,1978 bearing vasika no.1066/RC and Letter to Tehsildar for creation of Charge both d ated 15.01.2016, which is Annexure A4 to this OA. Documents executed:- Advocate report on title dated 08.01.2016, which is Annexure A6 to this OA; Affidavits dated 09.01.2016, which are Annexure A7 & A8 to this OA; Hypothecation Agreement dated 27.01.2016, which is Annexure A9 to this OA; Letter of undertaking, Letter of Consent ( Revised ) both dated 28.01.2016, which are Annexure A10 & A11 to this OA; Balance and Security Confirmation Letters dated 02.01.2019 and 10.12.2021, which are Annexure A12 & A13 to this OA; Notice of Recall of Bank’s dues dated 24.11.2022 with postal receipts, which is Annexure A14 to this OA and Statement of account with certificate, which is Annexure A15 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.24,41,257.27.00 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.

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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 22.05.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard ex parte arguments and perused record.

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It was argued by learned proxy 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 Annexure A1 to A15 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.24,41,257.27 (Rupees Twenty Four Lac Forty One Thousand Two Hundred Fifty Seven And Paisa 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 bank in relief clause has claimed [email protected]%p.a. plus penal interest @2.00%p.a. with half yearly rests from 20.01.2023 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

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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.24,41,257.27 (Rupees Twenty Four Lac Forty One Thousand Two Hundred Fifty Seven And Paisa 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 29.08.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 06.08.2024.

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

Punjab National Bank v. Deepak Kumar and Another

Case brief

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Punjab National Bank v. Deepak Kumar and Another

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