Allowed

Punjab National Bank v. Gurpreet Singh and Another

DRT13 Nov 2024OA/1253/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application filed by Punjab National Bank for recovery of Rs. 25,10,235.50p from two borrowers who failed to repay an OGC loan. The Tribunal issued a recovery certificate and granted uniform simple interest at 8% p.a. instead of the claimed rate.

What did the court decide?

Recovery of Rs. 25,10,235.50p jointly and severally with costs and uniform simple interest @ 8% p.a.; issue Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1253/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.04.2022

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DATE OF DECISION: 13.11.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and amongst others branch at Nihal Singh Wala, Moga, Punjab through Sh. sSandeep Kumar Senior Manager and Attorney Holder presently posted at Circle SASTRA Centre Moga, 1^st Floor, Pratap Road Moga, Punjab.

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……..Applicant

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Versus

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Sh. Gurpreet Singh son of Sh. Nahar Singh, R/o of VPO Kangar, Tehsil Rampura Phool, District Bathinda, Punjab.

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Sh. Harjinder Singh son of Sh. Gurjit Singh, R/o of VPO Kargon, Near MLA Sh. Gurpreet Singh House, Tehsil Phool, District Bathinda, Punjab

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………. Defendants

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Advocates:

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Argued by Ms. Rajni Narula, Advocate for the applicant Defendants are 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 defendants for recovery of Rs.25,10,235.50p (Rupees Twenty Five Lacs Ten Thousand Two Hundred Thirty Five And Paisa Fifty Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager and Attorney Holder o f the applicant, who is competent to institute the Original

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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 defendant no.1 had approached the applicant for grant of OGC Limit of Rs.22.50 Lacs vide Loan Application dated 20.04.2013, which is Annexure A3 to this OA. 3. The applicant sanctioned OGC Limit of Rs.15.00 Lacs for 1^st year and to be enhanced upto Rs.21,96,150.00 for 5^th year vide Sanction Letter dated 20.04.2013, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 37K-06M situated in Village Kangar, Tehsil Rampura Phool, District Bathinda vide Registered Mortgaged Deed bearing v asika No.642 dated 0 9.05.2013 along with its translation, which is Annexure A7 to this OA.

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Documents executed:- Notification of Amalgamation dated 04.03.2020, which is Annexure A2 to this OA; Agreement for Hypothecation and Agreement of Guarantee both dated 16.05.2013, which are Annexures A5 & A6 to this OA; Balance & Security Confirmation Letters dated 21.03.2016 & 18.02.2019, which are Annexures A8 & A9 to this OA; Notice dated 29.07.2021, which is Annexure A10 to this OA and Statement of Account with certificate, which is Annexure A11 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.25,10,235.50p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. 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 11.11.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar Senior Manager and Attorney Holder, Punjab National Bank h as been filed. 8. Heard arguments and perused record.

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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 A11 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 is entitled to recover a sum of Rs.25,10,235.50p (Rupees Twenty Five Lac Ten Thousand Two Hundred Thirty Five And Paisa Fifty 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 in relief clause has claimed interest @9.40%p.a. along with penal interest @2%p.a. with half yearly rests from 01.04.2022 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 @08.00%p.a. in

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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 defendants are liable to pay to the applicant a total sum of Rs.25,10,235.50p (Rupees Twenty Five Lac Ten Thousand Two Hundred Thirty Five And Paisa Fifty Only) jointly and severally, with costs, current and future simple interest @08.00%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 defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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.

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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 06.12.2024.

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Copy of this order be given dasti to the applicant 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.

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Pronounced by me in the open Tribunal .

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Dated: 13.11.2024.

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

Punjab National Bank v. Gurpreet Singh and Another

Case brief

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Punjab National Bank v. Gurpreet Singh and Another

Case brief

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