Allowed

Punjab National Bank v. M/s Bansal Rice Mill and Others

DRT24 Apr 2024OA/1216/2022

Case brief

AI extract

What is this about?

Punjab National Bank filed an Original Application under Section 19 of the RDBFI Act to recover Rs.7.79 crore from borrowers and guarantors who defaulted on term loans and cash credit facilities. The defendants appeared in absentia. The Tribunal allowed the application, standardized the interest rate to 10% p.a., and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.7,79,63,230.40 plus simple interest @10% p.a. from filing date; directions to issue Recovery Certificate and attach/sell mortgaged or personal assets.

Punjab National Bank versus M/s Bansal Rice Mill and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1216/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.06.2022

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DATE OF DECISION: 24.04.2024

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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 Delhi-110075 and the successor of Oriental Bank of Commerce/United Bank of India, by scheme of Amalgamation of Oriental Bank of Commerce/United Bank of India, passed by the Central Government under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, through one of its Branch/Depeartment/Division, having offices, one at Lehragaga, District Sangrur (Punjab) through Sh. Gurmeet Singh, General Attorney and Principal Officer of Punjab National Bank, Circle SASTRA Centre, Sangrur

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……..Applicant

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Versus

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1. M/s Bansal Rice Mill, Jhaloor Road, Bhutan Kalan, Lehargaga- 148031, District Sangrur through its partners Sh. Sandeep Kumar and Sh. Amandeep Bansal

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1. Sh. Sandeep Kumar S/o Sh. Kedar Nath, R/o H.No.138/2, Ward No.5, Bhutalia Mohalla, Lehargaga, District Sangrur, Punjab

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1. Sh. Amandeep Bansal S/o Sh. Badri Parsad, R/o H.No.258, Jakhal Road, Near Bhoja Da Hospital, Ward No.4, Sunam, Punjab (Borrowers)

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1. Smt. Manju Bansal W/o Sh. Amandeep Bansal, R/o H.No.258, Jakhal Road, Near Bhoja Da Hospital, Ward No.4, Sunam, Punjab

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1. Smt. Nirmala Rani W/o Sh. Kedar Nath, R/o H.No.138/2, Ward No.5, Bhutalia Mohalla, Lehargaga, District Sangrur, Punjab

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Smt. Maya Bansal W/o Sh. Badri Parsad, R/o H.No.258, Jakhal Road, Near Bhoja Da Hospital, Ward No.4, Sunam, Punjab 7. Sh. Pawan Kumar S/o Sh. Jagan Nath, R/o Master Colony, Ward No.5, Lehragaga, District Sangrur 8. Sh. Badri Parsad S/o Sh. Brij Lal, R/o H.No.258, Jakhal Road, Near Bhoja Da Hospital, Ward No.4, Sunam, Punjab (Guarantors) ………Defendants Advocates: Argued by Sh. Arpit Chawla, counsel for the applicant Defendants are ex-parte 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.7,79,63,230.40p (Rupees Seven Crores Seventy Nine Lacs Sixty Three Thousand Two Hundred Thirty and Forty Paisa only). The Original Application has been filed through Sh. Gurmeet Singh, General Attorney and Principal Officer o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2008, which is Annexure A1 to this OA. 2. The brief facts of the OA are that defendants were already availing certain credit facilities in shape of CC Limit and Term Loans from the applicant bank and defendant No.1 through its partners i.e. defendant Nos.2 and 3 had approached the applicant bank from time to time for the renewal of CC Limit of Rs.550.00 Lacs and review of Term Loan-I of Rs.40.00 Lacs and Term Loan-II of Rs.300.00 Lacs. Defendant No.1 through its partners i.e. defendant Nos.2 and 3 had approached the applicant bank for renewal of CC Limit of Rs.550.00 Lacs and fresh Working Capital Term Loan (GECL-WCTL) of Rs.110.00 Lacs vide Loan Applications dated 15.03.2020 and 30.05.2020, which are Annexures

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A4 an (PNB-	d A15to this OA and further for the grant of Overdraft facility CECF) of Rs.55.00 Lacs.
3.	The applicant Bank renewed the CC Limit of Rs.550.00 Lacs and
review	ed Term Loan-I of Rs.40.00 Lacs and Term Loan-II of Rs.300.00
Lacs	and further sanctioned fresh Working Capital Term Loan (GECL-
WCTL	) of Rs.110.00 Lacs and Overdraft facility (PNB-CECF) of Rs.55.00
Lacs v	ide Sanction Letters dated 28.11.2016, 30.03.2019, 15.03.2020,
29.08	.2020 and 28.10.2020, which areAnnexures A2, A3, A5, A16,
A28	and A29to this OA and the terms and conditions were duly
accep	ted by the defendants. Term Loan-I of Rs.40.00 Lacs and Term Loan-II of Rs.300.00 Lacs
were l	ater on adjusted by the defendants.
4.	Defendants had mortgaged their immovable properties detailed
as:- a)	Factory/Sheller building measuring 16 Kanal 01 Marla situated at Village Bhutal Kalan, Tehsil Lehra, District Sangrur, Punjab owned by defendant Nos.2 and 3vide equitable mortgage of Gift Deed No.33dated 25.04.2007 along with its translation and Copy of equitable mortgage register, LTR 22/18.2 revised-2004 and
	Letter of continuity, which areAnnexures A36 (colly) and A36-Tto this OA;
b)	Residential property measuring 00 Kanal 08 Marla situated at
	near Happy Nursing Home, Jakhal Road, Sunam, District
	Sangrur, Punjab owned by defendant No.8vide equitable
	mortgage of Sale Deed No.2473dated 16.12.1983 along with its translation and Copy of equitable mortgage register, LTR 22/18.2
	revised-2004 and Letter of continuity, which areAnnexures A37 (colly) and A37-Tto this OA;
c)	Commercial shop/property measuring 160 Sq. Yards situated at Opposite Main Gate, (1^st), New Grain Market, Kacha Paha, Jakhal
	Road, Sunam, District Sangrur, Punjab owned by defendant
	Nos.4 and 6vide equitable mortgage of Sale Deed No.2026dated

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15.07.2011 along with its translation and Copy of equitable mortgage register, LTR 22/18.2 revised-2004 and Letter of continuity, which are Annexures A38 (colly) and A38-T to this OA;

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d) Residential house measuring 190 Sq. Yards situated at Ward No.5, Master Colony, Lehra, District Sangrur, Punjab owned by defendant No.7 vide equitable mortgage of Gift Deed No.1212 dated 03.01.2002 along with its translation and Copy of equitable mortgage register, LTR 22/18.2 revised-2004 and Letter of continuity, which are Annexures A39 (colly) and A39-T to this OA

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e) Commercial property measuring 0 Kanal 16 Marla situated at Pandit Da Petrol Pump, Jakhal Road, Sunam, District Sangrur, Punjab owned by defendant Nos.4 and 6 vide equitable mortgage of Sale Deed No.3616 dated 20.12.2007 along with its translation and Copy of equitable mortgage register, LTR 22/18.2 revised2004 and Letter of continuity, which are Annexures A40 (colly) and A40-T to this OA;

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f) Residential property measuring 120.55 Sq. Yards situated at Ward No.5, Bhutalia Mohalla, Lehra, District Sangrur, Punjab owned by defendant No.5 vide equitable mortgage of Transfer Deed No.1303 dated 07.12.2015 along with its translation and Copy of equitable mortgage register, LTR 22/18.2 revised-2004 and Letter of continuity, which are Annexures A41 (colly) and A41-T to this OA.

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Documents executed:- Agreement of hypothecation of assets, Common agreement, Guarantee deeds all dated 21.03.2020, which are Annexures A6 to A14 to this OA; D.P. note, Master agreement, Agreement for loan/cash credit/overdraft, Agreement of hypothecation of goods and book debts, Letters of continuity for extension of charge on the mortgage property and Guarantee deed all dated 04.09.2020, which are Annexures A17 to A27 to this OA; D.P. note, Master

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agreement, Agreement for working capital term loan, Master agreement, Agreement of hypothecation of goods and book debts, Letter of acceptance and undertaking of terms and conditions of sanction all dated 28.10.2020, which are Annexures A30 to A35 to this OA; Notice dated 03.06.2021, which is Annexure A42 (colly) to this OA and Statements of accounts with Certificate under Bankers Books of Evidence Act, which are Annexures A43 and A45 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.7,79,63,230.40p, 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 12.03.2024.

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In support of the OA, affidavit of Sh. Gurmeet Singh, General Attorney and Principal Officer, Punjab National Bank has been filed. 8. 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 A45 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.7,79,63,230.40p (Rupees Seven Crores Seventy Nine Lacs Sixty Three Thousand Two Hundred Thirty and Forty Paisa only) along with interest from the defendants, jointly and

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severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @10.75%p.a. with monthly rests, in all, from 01.05.2022 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 @10.00%p.a. in all the loan accounts 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.7,79,63,230.40p (Rupees Seven Crores Seventy Nine Lacs Sixty Three Thousand Two Hundred Thirty and Forty Paisa only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in all the loan accounts 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 01.05.2024.

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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. Pronounced by me in the Open Tribunal.

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Dated: 24.04.2024

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

Punjab National Bank v. M/s Bansal Rice Mill and Others

Case brief

What is this about?

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Punjab National Bank v. M/s Bansal Rice Mill and Others

Case brief

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