Allowed

Punjab National Bank v. Jaswinder Singh and Another

DRT10 Sept 2024OA/1329/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of Rs.28,55,297.00. The Tribunal held the respondents liable to pay the principal sum with costs and simple interest at 8.00% per annum, authorizing recovery through sale of mortgaged properties or attachment of assets.

What did the court decide?

Recovery of Rs.28,55,297.00 plus costs and simple interest at 8.00% p.a. to be realized from sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1329/2022

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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: 10.09.2024

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

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……..Applicant

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Versus

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Sh. Jaswinder Singh S/o Sh. Tara Singh R/o Village Kangror, Shaheed Bhagat Singh Nagar, Tehsil and District Nawanshahr

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Sh. Balvir Singh S/o Sh. Tara Singh R/o House No.41, Village Kangror, Tehsil and District Nawanshahr

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Advocates:

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Argued by Sh. Bharat Kawal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.28,55,297.00 (Rupees Twenty Eight Lacs Fifty Five Thousand Two Hundred Ninety Seven Only). The Original Application has been filed through Sh. Lal Chand, Officer of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for grant of OGC Limit of Rs.8.00 Lacs

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dated 27.02.2007 and further for its enhancement to Rs.13.00 Lacs vide Loan applications dated 27.02.2007 and 09.07.2014, which are Annexures A2 & A2A to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.8.00 Lacs dated 29.02.2007 and further enhanced it to Rs.13.00 Lacs vide Sanction letters dated 09.07.2014, which are Annexures A3 & A3A to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 17K-05M situated at Village Data, Tehsil Garhshankar, District Hoshiarpur vide Registered Mortgaged Deed bearing v asika No.631 dated 2 1.07.2014 and Jamabandi for the year 2007-2008 along with their Translations , which are Annexures A7 & A8 to this OA.

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Documents executed:- Hypothecation Agreements dated 27.02.2007 & 28.07.2014, which are Annexures A4 & A4A to this OA; Balance & Confirmation letters dated 11.06.2009, 15.05.2012, 01.06.2015, , 22.05.2018 & 10.05.2021, which are Annexures A5A to A5E to this OA; Agreement of Guarantee dated 28.07.2014, which is Annexure A6 to this OA; Legal notices dated 05.06.2017, 17.05.2021, which are Annexures A9A & A9C to this OA; Statement of account, which is Annexure A10 to this OA and Photocopy of Voter Card of defendants, which is Annexure A11 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.28,55,297.00 which is recoverable and the defendants were served recall notices but they 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.12.2023.

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In support of the OA, affidavit of Vijay Kumar, Senior 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 A11 to this OA, it is proved that the defendants 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 defendants failed to pay back the loans 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 bank is entitled to recover a sum of Rs.28,55,297.00 (Rupees Twenty Eight Lacs Fifty Five Thousand Two Hundred Ninety 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 bank in relief clause has claimed interest @8.85%p.a. along with penal interest @2%p.a. with monthly rests in 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 defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,55,297.00 (Rupees Twenty Eight Lacs Fifty Five Thousand Two Hundred Ninety 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. Accordingly, the applicant bank 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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.10.2024. 15. Copy of this order be given dasti to the applicant bank 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. Pronounced by me in the open Tribunal. Dated: 10.09.2024

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

Punjab National Bank v. Jaswinder Singh and Another

Case brief

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Punjab National Bank v. Jaswinder Singh and Another

Case brief

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