Allowed

Punjab National Bank v. Jasraj Singh

DRT26 Sept 2024OA/1218/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application for recovery of Rs.23,97,390.47 plus costs. While noting the defendant failed to appear, the Tribunal exercised discretion to grant uniform simple interest at 8.00% p.a. instead of the claimed 11.50% p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.23,97,390.47 with costs and simple interest at 8.00% p.a. declared; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1218/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.10.2023

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DATE OF DECISION: 26.09.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No. 4, Sector-10, Dwarka, New Delhi110075 and w.e.f. 01.04.2020 being the successor to Oriental Bank of Commerce in terms of Gazette of India Notification No. G.S.R. 153 (E) dated 04.03.2020 issued by the Central Government of India in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) act, 1980 (40 of 1980), after consultation with the Reserve Bank of India, notified the scheme of Amalgamation of the erstwhile Oriental Bank of Commerce into Punjab National Bank, Lakhewali, Tehsil and District Shri Muktsar Sahib (Punjab). Later the account has been maintained by Punjab National Bank, Circle Sastra, Fazilka (Punjab) through its Senior Manager Sh. Ravinder Mohan Goyal who is constituted Attorney and Principal Officer. ……..Applicant Versus

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Sh. Jasraj Singh S/o Sh. Baljinder Singh, R/o Village Chak Chibranwali, Tehsil and District Shri Muktsar Sahib (Punjab)

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….……Defendant

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Advocates:

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Argued by Sh. P.K. Khurana, Advocate for the applicant Defendant 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.23,97,390.47p (Rupees Twenty Three Lacs Ninety Seven Thousand

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Three Hundred Ninety and Paisa Forty Seven only). The Original Application has been filed through Sh. Ravinder Mohan Goyal, Senior Manager o f the applicant who is competent to institute the Original Application vide General Power of Attorney dated 16.03.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.19.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.19.00 Lacs vide Memorandum, of Sanction dated 11.04.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendant.

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4. Defendant had mortgaged his immovable property i.e. land
measuring 50K-15Msituated at Village Chak Chibranwali, Hadbast
no.43, Tehsil and District Shri Muktsar Sahib Punjab vide Registered
Mortgage Deed bearing vasika no. 12 dated 07.04.2014 along with its
English Translation, which isAnnexure A3to this OA.
Documents executed: - Legal Search Report, which isAnnexure A4to
this OA; Hypothecation Agreement, Letter of Undertaking, Letter of
Consent, Consent Letter all dated 11.04.2014, which areAnnexures
A5 to A8to this OA; Letters/ Communications dated 13.06.2016,
26.04.2017, 11.12.2017, 01.06.2019, 01.07.2019, 19.08.2019 and
13.10.2022 along with their translations, which isAnnexure A9to
this A Balance and Security Confirmation Letter dated 26.12.2016,
07.06.2019 and 05.05.2022, which areAnnexures A10 to A12to
this OA and Statement of account, interest chart taken from the record
and account books and certified under Bankers Book of Evidence Act,
1891 dated 29.09.2023, which isAnnexure A13 (colly.)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.23,97,390.47p, which is recoverable and the defendant was
served recall notice but he did not repay the outstanding amount,

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 07.09.2024. 7. In support of the OA, affidavit Sh. Ravinder Mohan Goyal, Senior Manager, Punjab National Bank has been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A13 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 defendant 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.23,97,390.47p (Rupees Twenty Three Lacs Ninety Seven Thousand Three Hundred Ninety and Paisa Forty Seven only) along with interest from the defendant, 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. with half yearly rests from 01.08.2023 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

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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 @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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.23,97,390.47p (Rupees Twenty Three Lacs Ninety Seven Thousand Three Hundred Ninety and Paisa Forty Seven 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.10.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 26.09.2024

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

Punjab National Bank v. Jasraj Singh

Case brief

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Punjab National Bank v. Jasraj Singh

Case brief

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