Allowed

Punjab National Bank v. Parminder Singh and Another

DRT26 Sept 2024OA/1273/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application for recovery of Rs. 40,53,887 against two defendants who defaulted on a cash credit limit of Rs. 25 lacs with mortgaged property. The Tribunal issued a recovery certificate, ordered uniform simple interest at 8% p.a., and granted execution proceedings under the SARFAESI Act.

What did the court decide?

Recovery certificate issued; declaration of liability to pay principal Rs. 40,53,887 with future interest at 8% p.a. until realization; liberty to enforce through execution proceedings.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1273/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.04.2022

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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 Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075 previously Oriental Bank of Commerce and one of its branch at Raikot, Ludhiana and Circle SASTRA, Ludhiana East, Tehsil and District Ludhiana (Punjab) through its General Power of Attorney holder Sh. Ramesh Kumar Aggarwal, Deputy Manager of the applicant bank.

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……..Applicant

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Versus

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Sh. Parminder Singh S/o Sh. Mukhtiar Singh 2. Sh. Sukhraj Singh S/o Sh. Bant Singh

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Both are residents of village and Post Office Gobindgarh, Tehsil Raikot, District Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Aseem Kataria, 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.40,53,887.00 (Rupees Forty Lacs Fifty Three Thousand Eight Hundred and Eighty Seven only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, Deputy Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 24.09.2013, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant nos.1 & 2 had approached the applicant for the grant of Cash Credit Limit (KCC) of

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Rs.25.00 Lacs vide Loan application dated 22.12.2010, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit (KCC) of Rs.25.00 Lacs vide Sanction Letter dated 29.12.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 36K-00M situated at Village Gobindgarh, Tehsil Raikot, District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing v asika No.3805 dated 2 2.12.2010 and Jamabandi for the year 2012-2013 along with their Translations, which are Annexures A6, A6t, A7 & A7T to this OA.

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Documents executed:- Hypothecation Agreement, Agreement of Guarantee both dated 29.12.2010, which are Annexures A4 & A5 to this OA; Balance and Security Confirmation Letter dated 25.11.2013, 18.07.2016 and 08.07.2019, which are Annexures A8 to A10 to this OA; Legal Notice dated 21.02.2022 along with its translations and postal Receipts, which is Annexure A11 to this OA and Statement of Account with certificate, 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.40,53,887.00, 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 22.08.2024. 7. In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Deputy Manager, Punjab National Bank h as 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,

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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 applicant. 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.40,53,887.00 (Rupees Forty Lacs Fifty Three Thousand Eight Hundred and Eighty Seven 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 @10.80%p.a. with half yearly rests from 26.03.2022 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 @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 defendants are liable to pay to the applicant a total sum of Rs.40,53,887.00 (Rupees Forty Lacs Fifty Three Thousand Eight Hundred and Eighty Seven only) jointly and severally, 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.

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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 applicant 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 18.10.2024.

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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 . Dated: 26.09.2024

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

Punjab National Bank v. Parminder Singh and Another

Case brief

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Punjab National Bank v. Parminder Singh and Another

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