Allowed

Punjab National Bank v. Sohan Singh

DRT2 Sept 2024OA/130/2024

Case brief

AI extract

What is this about?

Applicant bank filed an OA under RDDBFI Act, 1993 for recovery of Rs. 34.94 lakhs with interest. Tribunal found for bank ex-parte, reduced interest to 8%p.a., and directed recovery from mortgaged/other assets via SARFAESI or execution proceedings.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.34,94,261.16 plus 8% p.a. interest; recovery from sale of mortgaged/other assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.130/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.09.2023

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DATE OF DECISION: 02.09.2024

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Punjab National Bank (Erstwhile Oriental Bank of Commerce), 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 Delhi 110075 (erstwhile Oriental Bank of Commerce) and one of its Branch situated at Rahon, District S.B.S. Nagar, Punjab through its Authorized officer Sh. Ankur Rawat, presently posted at Punjab National Bank, Circle Sastra Centre Kapurthala.

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……..Applicant

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Versus

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Sh. Sohan Singh, S/o Sh. Dayal Singh, R/o Village Tanda khushal Singh, PO Panj Garaian, Tehsil Machiwara, Distt. Ludhiana.

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….……Defendant

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Advocates:

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Argued by Sh. Shivam Dheer, Advocate proxy for Sh. Iqbal Mohammed, 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.34,94,261.16p (Rupees Thirty Four Lakh Ninety Four Thousand Two Hundred Sixty One And Paisa Sixteen Only). The Original Application has been filed through Sh. Ankur Rawat, Authorized officer o f the applicant bank, who is competent to institute the Original 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 had approached the applicant bank for the grant of KCC Limit (Oriental Green Card)

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and further for enhancement of KCC Limit (Oriental Green Card) to Rs.20.00 Lacs of vide Loan applications dated 18.05.2011 & 30.01.2014, which are Annexure A2 & A9 to this OA.

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The applicant Bank sanctioned the KCC Limit (Oriental Green Card) of Rs.10.00 Lacs and further enhanced the KCC Limit (Oriental Green Card) to Rs.20.00 Lacs vide Sanction Letters dated 18.05.2011 & 30.01.2014, which are Annexures A3 & A10 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property total land measuring 40Kanal 0 Marla situated at Village Sultanpur, Tehsil Nawanshahr vide Registered mortgage deed bearing vasika no.918 dated 24.05.2011 & Simple registered mortgage deed bearing no. 3935 dated 05.02.2014, which are Annexures A5 & A12 to this OA. Documents executed:-Hypothecation agreement dated 26.05.2011, which is Annexure A4 to this OA; Copy of legal search reports dated 24.05.2011, which is Annexure A6 to this OA; Non Encumbrance certificate and Affidavit dated 19.05.2011, which are Annexure A/A, A7 and A8 to this OA; Hypothecation agreement dated 20.02.2014, which is Annexure A11 to this OA; Copy of legal search reports dated 30.01.2014, which is Annexure A13 to this OA; Non Encumbrance certificate and Affidavit dated 28.01.2014, which are Annexure A14 and A15 to this OA; Balance & Security confirmation letter dated 13.06.2013, 01.01.2016, 21.12.2018, 30.08.2019, 17.11.2021 and 04.02.2023, which are Annexures A16 to A21 to this OA; Recall Notice dated 14.01.2020 and 14.08.2023 with postal receipts, which are Annexures A22 & A23 to this OA and Statement of account along with Bank book evidence dated 17.08.2023, which are Annexures A24 & A25 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 the loan account there was a debit of Rs.34,94,261.16 which is recoverable and the defendant was served recall notices but they did not repay the outstanding

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amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 24.07.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, Branch officer, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A25 to this OA, it is proved that the defendant approached applicant bank 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 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.34,94,261.16p (Rupees Thirty Four Lakh Ninety Four Thousand Two Hundred Sixty One And Paisa Sixteen 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 @12.50%p.a. along penal interest with @2%p.a. with half yearly rests from 26.05.2023 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

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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 defendant is liable to pay to the applicant a total sum of Rs.34,94,261.16p (Rupees Thirty Four Lakh Ninety Four Thousand Two Hundred Sixty One And Paisa Sixteen 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 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 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 25.09.2024. 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: 02.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sohan Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sohan Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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