Allowed

Punjab National Bank v. Sh. Jaswant Singh

DRT27 May 2024OA/1313/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of dues against a defaulting borrower. The court deemed it appropriate to award uniform simple interest at 8% per annum instead of the claimed rate, holding the defendant liable for the principal amount plus accrued interest and costs.

What did the court decide?

Decreed in favor of applicant for Rs.26,61,566 plus costs and simple interest at 8% per annum from date of filing. Ordered issuance of Recovery Certificate.

Punjab National Bank versus Sh. Jaswant Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1313/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.10.2023

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DATE OF DECISION: 27.05.2024

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Punjab National Bank, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Plot No.4, Sector 10, Dwarka, New Delhi and inter alia a Branch Office, Circle SASTRA, SAS Nagar (Mohali) Punjab, through Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank

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……..Applicant Versus Sh. Jaswant Singh S/o Sh. Dhani Ram R/o House No.94 Village Paragpur, Tehsil Dera Bassi, District Mohali-140507, Punjab

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….……Defendant

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Advocates:

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Argued by Ms. Dipti Toni, 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 defendants for recovery of Rs.26,61,566.00 (Rupees Twenty Six Lacs Sixty One Thousand Five Hundred Sixty Six only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.02.1998, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant bank for grant of KCC Limit of Rs.5.00 Lacs vide Loan Application dated 24.12.2008 and further for the enhancement to

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Rs.20.00 Lacs vide Loan application dated 15.07.2013, which is Annexure A9 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.5.00 Lacs vide Memorandum of Sanction Letter dated 24.12.2008, which is Annexure A2 to this OA and further the applicant bank had enhanced the existing KCC Limit of Rs.5.00 Lacs to Rs.20.00 Lacs vide Sanction Letter dated 22.07.2013, which is Annexure A10 to this OA; and the terms and conditions were duly accepted by the defendants.

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Defendant had mortgaged his immovable property i.e. land measuring 09 Bigha 19 Biswa situated at Village Bahauri, Tehsil Dera Bassi, District SAS Nagar (Mohali) Punjab vide Registered Mortgaged Deed bearing vasika No. 7722 dated 23.12.2008 and bearing vasika No. 4459 dated 19.07.2013 along with their Translations , which are

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Annexures A8 & A15 to this OA.

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Documents executed:- Agreement for Hypothecation, Letter of Undertaking, Letter of Consent and Deed of Guarantee all dated 24.12.2008, which are Annexures A3 to A6 to this OA; Supplementary Agreement, Agreement for Hypothecation, Letter of Undertakings and Letter of Consent all dated 23.07.2013, which are Annexures A7, A11 to A14 to this OA; Balance Confirmation Letter dated 08.12.2011, 20.06.2016, 17.04.2019 and 13.04.2022 which is Annexure A16 (Colly) to this OA; Recall Notice dated 05.11.2018 and 26.05.2023 with postal receipt, which is Annexure A17(Colly) to this OA and Statement of Account with certificate, which is Annexure A18 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.26,61,566.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.05.2024.

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In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him 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 bank is entitled to recover a sum of Rs.26,61,566.00 (Rupees Twenty Six Lacs Sixty One Thousand Five Hundred Sixty Six only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.50%p.a. with monthly rests from 30.09.2023 till the realization. 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 @8.00%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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.26,61,566.00 (Rupees Twenty Six Lacs Sixty One Thousand Five Hundred Sixty Six only), 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. 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 defendant. 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 11.06.2024. 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.

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Pronounced by me in the open Tribunal . Dated: 27.05.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Jaswant Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Jaswant Singh

Case brief

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What did the court decide?

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