Allowed

Punjab National Bank v. Harjinder Singh and Another

DRT23 Oct 2024OA/1256/2022

Case brief

AI extract

What is this about?

The DRT allowed the banks original application to recover a debt of Rs.30,66,778 from two defendants who failed to repay a secured loan. The application was heard ex-parte. The tribunal granted uniform simple interest at 8% p.a. and ordered the issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued for Rs.30,66,778 plus costs and simple interest at 8% p.a. from filing date till realization.

Punjab National Bank versus Harjinder Singh and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1256/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.07.2022

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DATE OF DECISION: 23.10.2024

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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 Delhi110075 and Branch amongst at Village Sudhar, Tehsil Raikot, Distt. Ludhiana through General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager and Constituent Attorney.

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……..Applicant

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Versus

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Sh. Harjinder Singh S/o Sh. Bhajan Singh R/o VPO Talwandi Rai, Tehsil Raikot, Distt. Ludhiana.

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Sh. Sukhpal Singh, S/o Sh. Bant Singh R/o VPO Talwandi Rai, Tehsil Raikot, Distt. Ludhiana.

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………. Defendants

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Advocates:

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Argued by Ms. Puja Sharma, Advocate for the applicant (through VC) 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.30,66,778.00 (Rupees Thirty Lacs Sixty Six Thousand Seven Hundred Seventy Eight Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, 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.16.00 Lacs vide Loan Application dated 25.10.2011, which is Annexure A2 to this OA.

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The applicant sanctioned OGC Limit of Rs.16.00 Lacs vide Sanction Letter dated 07.11.2011, 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 25K-10M situated in Village Talwandi Rai, Tehsil Raikot, Distt. Ludhiana vide Registered Mortgaged Deed bearing v asika No.3599 dated 0 1.11.2011 along with its translation, which are Annexures A7 & A7-T to this OA. Documents executed:-Voter ID of defendant no.1 in File 3, which is Annexure A3 to this OA; Agreement for Hypothecation & Agreement of Guarantee both dated 07.11.2011, which are Annexures A5 & A6 to this OA; Affidavits of mortgaged deed along with its translation, which are Annexures A8 & A8-T to this OA; Balance & Security Confirmation Letters dated 25.05.2017 & 07.02.2020, which are Annexures A9 & A10 to this OA; Legal Notice dated 26.11.2019 & 20.06.2022 with postal receipts, which are Annexures A11 & A11-A to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A12 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.30,66,778.00, 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.

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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 19.10.2024.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A12 to this OA, it is proved that the defendants approached applicant 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 is entitled to recover a sum of Rs.30,66,778.00 (Rupees Thirty Lacs Sixty Six Thousand Seven Hundred Seventy Eight 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 @8.50%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 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

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Rs.30,66,778.00 (Rupees Thirty Lacs Sixty Six Thousand Seven Hundred Seventy Eight 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.11.2024.

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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: 23.10.2024

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

Punjab National Bank v. Harjinder Singh and Another

Case brief

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Punjab National Bank v. Harjinder Singh and Another

Case brief

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