Allowed

Punjab National Bank v. Sh. Jora Singh

DRT22 Aug 2024OA/1343/2022

Case brief

AI extract

What is this about?

Punjab National Bank approached the Debts Recovery Tribunal for recovery of dues under Section 19 of RDBFI Act against defaulting borrowers. Defendants were ex-parte. Tribunal upheld bank's claim, reduced interest rate, and ordered execution of judgment against mortgaged and personal assets.

What did the court decide?

Defendants declared liable to pay Rs. 21,32,244.21 with costs and interest @ 8% p.a. Recovery permitted from mortgaged and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1343/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.07.2022

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DATE OF DECISION: 22.08.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 and the Successor of Oriental Bank of Commerce, by Scheme of Amalgamation of Oriental Bank of Commerce, passed by the Central Bank under Section 9 of the banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, and one of its Branch office at Kohara, Tehsil and District Ludhiana, Punjab, through its General Power of Attorney Holder Sh. Ravinder Kumar son of Sh. Madan Lal.

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……..Applicant/Plaintiff

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Versus

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Sh. Jora Singh son of Sh. Jhalman Singh resident of VPO Dhanansu, Sub-Tehsil Koom Kalan, Tehsil and District Ludhiana, Punjab. (Mortgagor and Borrower)

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Sh. Sandeep Singh son of Sh. Jora Singh resident of VPO Dhanansu, Sub-Tehsil Koom Kalan, Tehsil and District Ludhiana, Punjab. (Co-Borrower)

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….……Defendants

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Advocates:

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Argued by Ms. Shivya Sehgal, 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.21,32,244.21p (Rupees Twenty One Lacs Thirty Two Thousand Two Hundred Forty Four And Twenty One Paise Only). The Original Application has been filed through Sh. Ravinder Kumar , Senior Manager of applicant bank, w ho is competent to institute the Original

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Application vide General Power of Attorney dated 05.06.1997, 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.15.00 Lacs vide Loan Application dated 07.06.2013, which is Annexures A2 to this OA.

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The applicant Bank sanctioned OGC Limit of Rs.15.00 Lacs vide Sanction Letter dated 14.06.2013, which is Annexures A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 14K-8M, situated at Village Dhanansu, Hadbast No.186, Sub-Tehsil Koom Kalan, Tehsil Samrala, District Ludhiana, Punjab vide Registered Mortgage Deed bearing Vasika No.312, dated 11.06.2013, along with its translation, which is Annexures A5 to this OA.

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Documents executed:- Agreement of Hypothecation dated 19.06.2013, which is Annexure A4 to this OA; Balance Confirmation Letters dated 19.11.2015, 16.05.2018 & 12.05.2021, which are Annexures A6, A7 & A8 to this OA; Legal Notice dated 01.01.2022, along with postal receipts which is Annexures A9 to this OA and Statement of account with certificate, which is Annexure A10 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.21,32,244.21p 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. 6. 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 16.07.2024. 7. In support of the OA, affidavit of Mr. Sh. Ravinder Kumar , Senior Manager, Punjab National Bank h as been filed.

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Heard ex parte arguments and perused record.

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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 Annexure A1 to A10 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 loan 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.21,32,244.21p (Rupees Twenty One Lacs Thirty Two Thousand Two Hundred Forty Four And Twenty One Paise Only) along with interest from the defendants, 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 @8.50%p.a. plus penal interest @2.00%p.a. with half yearly rests from 01.07.2022 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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of

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Rs.21,32,244.21p (Rupees Twenty One Lacs Thirty Two Thousand Two Hundred Forty Four And Twenty One Paise 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 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.

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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 Tribunal on 12.09.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 22.08.2024

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

Punjab National Bank v. Sh. Jora Singh

Case brief

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Punjab National Bank v. Sh. Jora Singh

Case brief

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