Allowed

Punjab National Bank v. Parminderjit Singh

DRT16 Jul 2024OA/1355/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the Original Application filed by Punjab National Bank for recovery of Rs.38,49,535 despite defendant's absence. The court exercized discretion to grant uniform simple interest at 8% p.a. and authorized recovery from mortgaged and personal assets.

What did the court decide?

Issued Recovery Certificate; Defendant liable to pay Rs.38,49,535 plus 8% simple interest; Bank entitled to sell mortgaged/attach personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1355/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.06.2022

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DATE OF DECISION: 16.07.2024

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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 the successor of Oriental Bank of Commerce, by scheme of Amalgamation of Oriental Bank of Commerce dated 04.03.2020, passed by the Central Government under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 having one of its Branch Office at Kohara, Ludhiana, Punjab, through Shri Ravinder Kumar, Senior Manager, Punjab National Bank Circle Sastra Centre, Ferozepur Road, Ludhiana, Principal Officer and duly constituted Attorney of the Applicant Bank.

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(Erstwhile Oriental Bank of Commerce, Branch Office at Sahnewal, Ludhiana, Punjab).

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……..Applicant

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Versus

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Sh. Parminderjit Singh S/o Sh. Nachhatar Singh, R/o Village Marewal, PO Panjeta, District Ludhiana.

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….……Defendant

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Advocates:

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Argued by Sh. P.S.Sobti, 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 defendant for recovery of Rs.38,49,535.00 (Rupees Thirty Eight Lacs Forty Nine Thousand Five Hundred and Thirty Five only). The Original Application has been filed through Shri Ravinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General

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Power of Attorney dated 05.06.1997, which isAnnexure A2to this OA.
2. The brief facts of the OA are that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.25.00 Lacs vide Loan application dated 26.06.2012, which isAnnexure A3to this OA.
3. The applicant Bank sanctioned the OGC Limit of Rs.25.00 Lacs vide Sanction Letter dated 05.07.2012, which isAnnexure A4to 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 54K-6-1/2M detailed as:-
a) Land measuring 33K-12-1/2Msituated at Village Marewal, Hadbast No. 203, Sub Tehsil Koom Kalan, Tehsil and District Ludhiana (Punjab)
b) Land measuring 20K-14-1/2Msituated at Village Razoor, Hadbast No. 202, Sub Tehsil Koom Kalan, Tehsil and District Ludhiana (Punjab)
vide Registered Mortgaged Deed bearingvasika No.492dated
10.07.2012and Jamabandi for the year 2007-2008 along with their
Translations,which areAnnexures A6, A6A, A7 & A7Ato this OA.
Documents executed:- Gazette notification, which isAnnexure A1to
this OA; Agreement for Hypothecation dated 16.07.2012, which is
Annexure A5to this OA; Notice dated 11.08.2021 along with its
translation, which areAnnexures A8 and A8Ato this OA; Notice
dated 01.01.2022 with postal receipt, which isAnnexure A9to this
OA; Balance and security Confirmation Letter dated 05.03.2015,
24.07.2017 and 24.06.2020, which areAnnexures A10 to A12to
this OA and Statement of account along with Memoranda and
Certificate dated 24.06.2022, which areAnnexures A13 & A14to
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.38,49,535.00, which is recoverable and the defendant was

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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 03.07.2024.

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In support of the OA, affidavit of Shri Ravinder Kumar, Senior 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 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.38,49,535.00 (Rupees Thirty Eight Lacs Forty Nine Thousand Five Hundred and Thirty Five 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 @9.55%p.a. plus Penal Interest @2.00%p.a. with half yearly rests from 01.06.2022 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

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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 defendant is liable to pay to the applicant a total sum of Rs.38,49,535.00 (Rupees Thirty Eight Lacs Forty Nine Thousand Five Hundred and Thirty Five 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 05.08.2024. 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. Pronounced by me in the open Tribunal. Dated: 16.07.2024

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

Punjab National Bank v. Parminderjit Singh

Case brief

What is this about?

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Punjab National Bank v. Parminderjit Singh

Case brief

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