Allowed

Punjab National Bank, v. Sh. Gurnam Singh

DRT14 Aug 2024OA/122/2023

Case brief

AI extract

What is this about?

Punjab National Bank filed an application under Section 19 of the RDBFI Act for recovery of Rs. 24,00,126.30p loan dues. The Tribunal allowed the application ex-parte, directing issuance of Recovery Certificate and enforcement via sale of mortgaged properties or attachment of personal assets. Interest was standardized at 8.00% p.a.

What did the court decide?

Recovery of Rs. 24,00,126.30p with costs and uniform simple interest at 8.00% p.a. enforced via sale of mortgaged properties or attachment of personal assets. Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.122/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.01.2023

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DATE OF DECISION: 14.08.2024

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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, District 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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Sh. Gurnam Singh S/o Sh. Daya Singh, R/o VPO Khukhrain, Tehsil and District Kapurthala, Punjab

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….……Defendant

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.24,00,126.30p (Rupees Twenty Four Lacs One Hundred Twenty Six and Paisa Thirty 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 Authorization Letter dated 04.11.2016, 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 bank for the grant of KCC Limit of Rs.10.00 Lacs vide loan application dated 21.11.2014 and further for its enhancement to

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Rs.16.00 Lacs vide loan application dated 05.05.2017, which are Annexures A2 and A12 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 21.11.2014 and further enhanced it to Rs.16.00 Lacs vide Sanction Letter dated 30.05.2017, which are Annexures A4 and A13 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant had mortgaged his immovable property i.e. land measuring 31K-10M situated at Village Khukhrain, Tehsil and District Kapurthala, Punjab vide Declaration u/s 4(1) dated 08.12.2014 and 12.05.2017 and Letter to the Tehsildar for creation of charge dated 08.12.2014 and 12.05.2017 along with its English Translation, which are Annexures A5, A5T, A6, A14, A14T and A15 to this OA.

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Documents executed: - Simplified Confidential Report on Borrower/Guarantor dated 21.11.2014, which is Annexure A3 to this OA; Advocate Report on Title, Affidavit by Mr. Gurnam Singh both dated 04.12.2014, which are Annexures A7 & A8 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Consent all dated 16.12.2014, which are Annexures A9 to A11 to this OA; Advocate Report on Title, Affidavit by Mr. Gurnam Singh both dated 17.04.2017, which are Annexures A16 & A17 to this OA; Advocate Report on Title dated 02.05.2017, which is Annexure A18 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Declaration regarding Agricultural land by the Borrower all date 30.05.2017, which are Annexures A19 to A22 to this OA; Balance and Security Confirmation Letter dated 26.05.2020 and 24.08.2022, which are Annexures A23 & A24 to this OA; Notice of Recall of Bank’s dues by the Advocate dated 24.11.2022 with postal receipt, which is Annexure A25 to this OA and Statement of account, which is Annexure A26 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 loan account there was a debit of Rs.24,00,126.30p, which is recoverable and the defendant was

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served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 12.06.2024.

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

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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 Annexures A1 to A26 to this OA, it is proved that the defendant approached applicant bank 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 bank. 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 bank is entitled to recover a sum of Rs.24,00,126.30p (Rupees Twenty Four Lacs One Hundred Twenty Six and Paisa Thirty 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 bank in relief clause has claimed interest @8.50%p.a. plus penal interest @2.00%p.a. with half yearly rests from 20.01.2023 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 of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,00,126.30p (Rupees Twenty Four Lacs One Hundred Twenty Six and Paisa Thirty 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 bank 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 bank 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. 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 05.09.2024. 15. Copy of this order be given dasti to the applicant bank 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: 14.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Sh. Gurnam Singh

Case brief

What is this about?

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Punjab National Bank, v. Sh. Gurnam Singh

Case brief

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