Allowed

Punjab National Bank v. Kuldeep Singh and Another

DRT11 Sept 2024OA/140/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 23.38 lacs as a housing loan default. The court modified the claimed interest rate to simple interest at 8% p.a. and directed issuance of a Recovery Certificate for execution against mortgaged properties.

What did the court decide?

Recovery of Rs. 23,38,079.00 plus simple interest @8% p.a. from filing date. Order to issue Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.140/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.01.2024

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DATE OF DECISION: 11.09.2024

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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 Delhi 110075 and having its branch office at different places including one at Chak Bhajura, Pathankot/Circle Sastra Pathankot (Pb) through its Authorised Officer, Sh. Kuldeep Singh.

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……..Applicant Versus 1. Sh. Kuldeep Singh S/o Sh. Mansa Ram (Co-Borrower) 2. Smt. Santosh Kumari W/o Sh. Kuldeep Singh (Co-Borrower) Both R/o Village Jaswal Lahri, P.O. Sarna, Tehsil and District Pathankot. ….……Defendants Advocates: Argued by Sh. Vishal Kumar, Advocate proxy for Sh. Ankit Kaushal, Advocate for the Applicant Defendants are ex-parte FINAL ORDER 1. 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.23,38,079.00 (Rupees Twenty Three Lacs Thirty Eight Thousand Seventy Nine Only). The Original Application has been filed through Sh. Kuldeep Singh, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 22.12.2022 which is Annexure A1 to this OA.

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Argued by Sh. Vishal Kumar, Advocate proxy for Sh. Ankit Kaushal, Advocate for the Applicant Defendants are ex-parte

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The brief facts of the OA are that the defendantNo.1 had approached the applicant bank for the grant of Housing Loan of

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Rs.15.00 Lacs vide Loan Application dated 30.01.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Housing Loan of Rs.15.00 Lacs vide Sanction Letter dated 05.02.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.2 had mortgaged her immovable properties i.e. total land measuring 3.60 Marla situated at Village Jaswal Lehri, Hadbast no.253, P.O. Sarna, Tehsil and District Pathankot vide Equitable Mortgage of sale Deed bearing V asika No.3804 dated 29.09.2011 with its translations, which is Annexure A5 to this OA. Documents executed:- Loan Agreement dated 05.02.2015, which is Annexure A4 to this OA; Security Confirmation Letters all dated 07.09.2017, 20.08.2020 and 16.09.2021,which are Annexures A6 to A8 to this OA and statement of account with certificate, which are Annexures A9 to 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.23,38,079.00 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 01.08.2024. 7. In support of the OA, affidavit of Sh. Kuldeep Singh, Branch Manager, Punjab National Bank has been filed. 8. Heard ex parte arguments and perused record. 9. 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 A10 to this OA, it is proved that the defendants

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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.23,38,079.00 (Rupees Twenty Three Lacs Thirty Eight Thousand Seventy Nine 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 @11.25%p.a. plus penal interest @2.00%p.a. with monthly rests from 03.12.2023 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 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,38,079.00 (Rupees Twenty Three Lacs Thirty Eight Thousand Seventy Nine 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

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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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 07.10.2024. 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: 11.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Kuldeep Singh and Another

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Punjab National Bank v. Kuldeep Singh and Another

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