Allowed

Punjab National Bank v. Smt. Charanjit Kaur and Others

DRT3 Apr 2024OA/1425/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's Original Application for recovery of an agricultural loan defaulting NPA. Finding evidence unrebutted due to ex-parte proceedings, the court declared defendants jointly and severally liable and awarded interest.

What did the court decide?

Defendants declared jointly and severally liable to pay Rs.24,47,886 plus costs and simple interest at 10% per annum. Recovery via sale of mortgaged properties or attachment of personal assets.

Punjab National Bank versus Smt. Charanjit Kaur and Others — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1425/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.08.2022

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DATE OF DECISION: 03.04.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Ferozepur Cantt, Tehsil and District Ferozepur through its General Power of Attorney Holder, Sh. Sandeep Kumar, Senior Manager

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……..Applicant Versus

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Smt. Charanjit Kaur W/o Late Sh. Gurdas Singh R/o Village Malwal, Tehsil and District Ferozepur. (Borrower)

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Smt. Harbhajan Kaur W/o Late Sh. Dalbara Singh R/o Village Malwal, Tehsil and Distt. Ferozepur. (Co-Borrower)

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Sh. Karanbir Singh S/o Sh. Ajmer Singh R/o Village Malwal Qudim, Tehsil and Distt. Ferozepur. (Guarantor)

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………Defendants

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Advocates:

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Argued by Sh. Sanjay Sagar, Advocate proxy for Ms. Puja Sharma, 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.24,47,886.00 (Rupees Twenty Four Lacs Forty Seven Thousand Eight Hundred Eighty Six only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager, who is competent to

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institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA. 2. 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 for purchasing of seeds, fertilizers, pesticides and insecticides etc. vide dated 01.06.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned OGC Limit of Rs.15.00 Lacs vide Sanction Letters dated 10.06.2013, in which the terms and conditions were duly accepted by the defendants, which is Annexure A3 to this OA.

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Defendant Nos.1 and 2 had mortgaged their immovable properties i.e. total land measuring 30K-2M situated at village Malwal Tehsil and Distt. Ferozpur, Punjab vide Registered mortgaged deed bearing vasika no.1905 dated 11.06.2013 along with translation, which are Annexures A7 and A7T to this OA.

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Documents executed: - Voter Identity Proof of defendants in file 3, which is Annexure A4 to this OA ; Hypothecation Agreement and Agreement of Guarantee both dated 21.06.2013, which are Annexures A5 and A6 to this OA; Balance and Security confirmation letters dated 23.06.2014 and 05.03.2019, which are Annexures A8 and A9 to this OA, Legal Notice dated 21.07.2022, which is Annexure A10 to this OA and Statement of Account, which is Annexure A11 to 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.24,47,886.00 which is recoverable and the defendants were 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. 6. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of the defendants and they were proceeded ex-parte on 01.03.2024.

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7. In	support of the OA, affidavit ofSh. Sandeep Kumar, Senior
Manager,	Punjab National Bank has been filed.

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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 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 loan as per terms and conditions of the agreement between the parties. Subsequently, an 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.24,47,886.00 (Rupees Twenty Four Lacs Forty Seven Thousand Eight Hundred Eighty Six 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 @10.75%p.a. with half yearly rests together with @2%p.a. penal interest from 01.07.2022 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%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 Rs.24,47,886.00(Rupees Twenty Four Lacs Forty Seven Thousand Eight Hundred Eighty Six only), jointly and severally with costs, current and future simple interest @10.00%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 10.04.2024.

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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 Dated: 03.04.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Smt. Charanjit Kaur and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Smt. Charanjit Kaur and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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