Allowed

Punjab National Bank v. Sukhchain Singh

DRT2 Aug 2024OA/1329/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Punjab National Bank for recovery of Rs. 25,83,726.20p from the defendant regarding an NPA loan account. Upon ex-parte hearing and establishing the debt with documentary evidence, the court ordered recovery with 8% simple interest and instructed issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 25,83,726.20p with costs and 8% simple interest; Recovery Certificate issued; Authority to attach/sell assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1329/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.11.2023

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DATE OF DECISION: 02.08.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act, 1970 having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi110075 and branch offices amongst others at branch office Main Branch Malout, District Sri Muktsar Sahib (Punjab). Later on the account has been transferred to Punjab National Bank, Circle SASTRA Centre, Abohar Road, Fazilka (Punjab) through its General Power of Attorney holder Sh. Amrik Singh posted as Manager of the applicant bank.

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……..Applicant

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Versus

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Sh. Sukhchain Singh S/o Sh. Hardeep Singh, R/o Mahni Khera, Malout, District Sri Muktsar Sahib (Punjab).

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….……Defendant

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Advocates:

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Argued by Sh. G.P. Bharti, Advocate proxy for Sh. Banni Thomas, 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.25,83,726.20p (Rupees Twenty Five Lacs Eighty Three Thousand Seven Hundred Twenty Six and Paisa Twenty only). The Original Application has been filed through Sh. Amrik Singh, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009, 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 of Rs.20.00 Lacs vide Application Form for Agriculture Credit dated 18.05.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter, 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. land measuring 70K situated at Village Mahni Khera, Tehsil Malout, District Sri Muktsar Sahib Punjab vide Declaration u/s 4(1) bearing vasika no.113 dated 24.05.2017 along with its English Translation, which is Annexure A4 to this OA. Documents executed: - Legal Search Report dated 24.05.2017, which is Annexure A5 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Undertaking, Letter of Consent, all dated 02.06.2017, which are Annexures A6 to A9 to this OA; Letter of Information dated 20.06.2020, which is Annexure A10 to this OA; Letters/Communications dated 02.11.2022 and 17.03.2023, which is Annexure A11 to this OA; Legal Notice dated 28.03.2023 with its translation, which is Annexure A12 to this OA; Balance and Security Confirmation Letter dated 29.05.2020 and 20.01.2022, which are Annexures A13 & A14 to this OA and Statement of account along with Calculation Chart Certified under Banker Books Evidence act, 1891 dated 15.07.2023, which is Annexure A15 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.25,83,726.20p, 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 27.05.2024.

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In support of the OA, affidavit of Sh. Amrik Singh, 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 A15 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.25,83,726.20p (Rupees Twenty Five Lacs Eighty Three Thousand Seven Hundred Twenty Six and Paisa Twenty 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 @8.80%p.a. from 01.06.2023 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 interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it

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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.

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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.25,83,726.20p (Rupees Twenty Five Lacs Eighty Three Thousand Seven Hundred Twenty Six and Paisa Twenty 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 23.08.2024.

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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: 02.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sukhchain Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sukhchain Singh

Case brief

What is this about?

What did the court decide?

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