Allowed

Punjab National Bank v. Sh. Karaj Singh

DRT18 Jan 2024OA/1325/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of Rs.32,60,987.29p from the defaulting borrower. The tribunal ordered the payment of the principal amount along with uniform simple interest @8.85% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.32,60,987.29p with costs and simple interest @8.85% p.a.; Issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1325/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.05.2022

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DATE OF DECISION: 18.01.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 and its Branch Offices throughout India including Branch Office at Punjab National Bank, Malout Main, Tehsil Malout and District Shri Muktsar Sahib, Punjab through its General Power of Attorney, Sh. Rakesh Valecha, Deputy Manager, at Circle Sastra Center at Punjab National Bank, Abohar Road, Fazilka, Tehsil and District Fazilka, Punjab

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……..Applicant

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Versus

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Sh. Karaj Singh S/o Sh. Piara Singh, R/o Village Ennakhera, Tehsil Malout, District Shri Muktsar Sahib, Punjab

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………Defendant

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Advocates:

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Argued by Ms. Lovedeep Kaur, counsel proxy for Sh. Neeraj Madan, counsel 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.32,60,987.29p (Rupees Thirty Two Lacs Sixty Thousand Nine Hundred Eighty Seven and Twenty Nine Paisa only). The Original Application has been filed through Sh. Rakesh Valecha, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide 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 defendant had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 04.01.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 12.01.2016, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 48 Kanal 00 Marla situated at Hadbast No.170, Village Enna Khera, Tehsil Malout, District Shri Muktsar Sahib, Punjab vide Declaration u/s 4(1) and dated 12.01.2016 and Mortgage rapat bearing No.229 dated 04.01.2010 along with its translation, which are Annexures A10, A11 and A11-A to this OA. Documents executed:- Hypothecation agreement, Letter of undertaking, Letter of consent and Undertaking all dated 12.01.2016, which are Annexures A4 to A6 and A9 to this OA; Request letter and Consent clause, which are Annexures A7 and A8 to this OA; Balance cum security confirmation letter dated 04.01.2019, which is Annexure A12 to this OA; Legal notice dated 07.03.2022, which is Annexure A13 to this OA and Statement of account along with Interest chart and Certificate, which is Annexure A14 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.32,60,987.29p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant bank 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 07.12.2023. 7. In support of the OA, affidavit of Sh. Rakesh Valecha, Deputy Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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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 A14 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.32,60,987.29p (Rupees Thirty Two Lacs Sixty Thousand Nine Hundred Eighty Seven and Twenty Nine Paisa 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 @8.85%p.a. plus @2%p.a. penal interest with half yearly rests from 01.03.2022 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 @8.85%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

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defendant is liable to pay to the applicant a total sum of

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Rs.32,60,987.29p (Rupees Thirty Two Lacs Sixty Thousand Nine Hundred Eighty Seven and Twenty Nine Paisa only) with costs, current and future simple interest @8.85%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. 12. 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 06.02.2024. 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: 18.01.2024

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

Punjab National Bank v. Sh. Karaj Singh

Case brief

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Punjab National Bank v. Sh. Karaj Singh

Case brief

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