Allowed

Punjab National Bank v. Amarjit Singh

DRT13 Nov 2024OA/1290/2022

Case brief

AI extract

What is this about?

In an original application under the RDBFI Act, 1993, Punjab National Bank sought recovery of Rs. 28,24,028 from Amarjit Singh for an NPAsaa. The Tribunal allowed the application, noting the defendant did not appear, and ordered simple interest at 8% per annum.

What did the court decide?

Recovery of Rs. 28,24,028 with costs and simple interest at 8% p.a. from the date of filing till realization, executable under SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1290/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.04.2022

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DATE OF DECISION: 13.11.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No V of 1980, having its Head Office at Punjab National Bank Plot No.4, Sector 10, Dwarka, New Delhi, through its Attorney/Authorized person, Mr. Lal Chand (Officer), Punjab National Bank, erstwhile Oriental Bank of Commerce, duly constituted attorney of the applicant bank duly authorized by the competent authority of the applicant.

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……..Applicant Versus Sh. Amarjit Singh S/o Sh. Karnail Singh, R/o Village Salh Kalan, Tehsil Banga and District Nawanshahr. ….……Defendant

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Advocates: Argued by Sh. Jas Bains, Nodal Officer of applicant Defendant is ex-parte

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FINAL ORDER 1. 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.28,24,028.00 (Rupees Twenty Eight Lacs Twenty Four Thousand and Twenty Eight Only). The Original Application has been filed through Mr. Lal Chand, Officer o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 14.11.2013, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 14.11.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. total land measuring 14K-10M-2½Sarsahie detailed as:a. land measuring 9K-5M-1½Sarsahie situated at Village Sal Kalan, H.B. no.48, Tehsil Banga, District S.B.S. Nagar b land measuring 5K-5M-1Sarsahie situated at Village Sal Kalan, H.B. no.48, Tehsil Banga, District S.B.S. Nagar vide Registered Mortgage of Deed bearing vasika no. 1593 dated 21.11.2013 and Jamabandi for the year 2010-2011 along with their translations, which are Annexures A6, A7 and 7A to this OA. Documents executed:-Hypothecation Agreement dated 22.11.2013, which is Annexure A4 to this OA; Balance & Security Confirmation Letters dated 30.06.2016, 18.11.2017 & 11.10.2019, which is Annexure A5 to this OA; Mutation Report dated 21.11.2019, which is Annexure A8 to this OA; Legal Notices dated 14.01.2019, 13.05.2019 & 18.09.2021 with certificate, which are Annexures A9/A to A9/C to this OA; Statement of Account along with the Banker’s Book Evidence Certificate, which is Annexure A10 to this OA And ID proof of defendant, which is Annexure A11 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.28,24,028.00, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 08.11.2024.

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In support of the OA, affidavit of Mr. Lal Chand, Officer, Punjab National Bank h as been filed.

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Heard arguments and perused record.

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It was argued by Nodal Officer of applicant 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 defendant approached applicant for availing of the loan facility which was granted to her 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 is entitled to recover a sum of Rs.28,24,028.00 (Rupees Twenty Eight Lacs Twenty Four Thousand And Twenty Eight Only) along with interest from the defendant, 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 @8.85%p.a. along with penal interest @2%p.a. from 16.03.2022 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 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 @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 defendant is liable to pay to the applicant a total sum of Rs.28,24,028.00 (Rupees Twenty Eight Lacs Twenty Four Thousand And Twenty Eight Only) 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 defendant 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.12.2024. 15. 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: 13.11.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Amarjit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Amarjit Singh

Case brief

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