Allowed

Punjab and Sind Bank v. Sh. Shamsher Singh and Another

DRT26 Apr 2024OA/1447/2022

Case brief

AI extract

What is this about?

The Tribunal adjudicated an Original Application filed by Punjab & Sind Bank for recovery of a loan amounting to Rs. 33,25,296.16. The Tribunal allowed the application, declared the respondents jointly and severally liable, and awarded interest at 10.00%p.a., ordering the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability for Rs. 33,25,296.16 with costs and current and future simple interest @ 10.00%p.a. Issuance of Recovery Certificate under the RDDBFI Act.

Punjab and Sind Bank versus Sh. Shamsher Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1447/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.07.2022

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DATE OF DECISION: 26.04.2024

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Punjab & Sind Bank, A body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 with its Head Office at 21, Rajindra Place, New Delhi and Branches amongst other places at Samana, Tehsil Samana, District Patiala through Sh. Reekesh Kumar Roy, Branch Manager, Punjab & Sind Bank, Branch Office Samana, District Patiala and Sh. Kuljinder Singh, Branch Manager, Punjab & Sind Bank, Branch Office Guru Nanak Nagar, Tripuri, Patiala, Punjab.

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……..Applicant

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Versus

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Sh. Shamsher Singh S/o Late Sh. Karnail Singh, S/o Sh. Sulakhan Singh, R/o H.No. 63, Waraichan Patti, Samana, Tehsil Samana District Patiala.

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Sh. Navjot Singh S/o Sh. Mangal Singh, R/o Village Waraichan Patti Samana, Tehsil Samana, District Patiala.

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………Defendants

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Advocates:

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Sh. C.S. Kwatra, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.33,25,296.16p (Rupees Thirty Three Lacs Twenty Five Thousand Two Hundred Ninety Six and Paisa Sixteen only). The Original Application has been filed through Sh. Reekesh Kumar Roy, Branch Manager and Sh. Kuljinder Singh, Branch Manager o f the applicant

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bank, who are competent to institute the Original Application vide Letter of Authorization dated 12.07.2022 and General Power of Attorneys dated 06.09.2019 and 09.08.2017, which are Annexures A1 to A3 to this OA.

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The brief facts of the OA are that Late Sh. Karnail Singh was already availing KCC Limit of Rs.15.00 Lacs and further approached the applicant bank for its enhancement to Rs.23.00 Lacs and a fresh Housing Loan (for Repair and Renovation of House) of Rs.2.00 Lacs vide Loan Application dated 05.01.2016 and 06.01.2016, which are Annexures A5 and A6 to this OA.

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The applicant Bank sanctioned the enhancement of KCC Limit to Rs.23.00 Lacs vide Sanction Letter dated 05.01.2016, which is Annexure A7 to this OA and sanctioned the fresh Housing Loan (for Repair and Renovation of House) of Rs.2.00 Lacs vide Sanction Letter dated 06.01.2016 which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Karnail Singh had mortgaged his immovable properties total land measuring 32K-00M situated at Village Samana, Tehsil Samana, District Patiala, Punjab vide Registered Mortgage Deed bearing vasika no. 632 dated 04.06.2013, which is Annexure A4 to this OA.

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Documents executed:- Pronote executed by Late Sh. Karnail Singh, Waiver Letter-Form No.106, Form No.201, Letter of Continuity, Consent Letter, Deed of Hypothecation, Deed of Guarantee executed by defendant No. 2 and Consent letter by guarantor all dated 05.01.2016, which are Annexures A8 to A15 to this OA; Pronote executed by Late Sh. Karnail Singh, Waiver Letter-Form No.106, Form No.201, Consent Letter by the borrower Late Sh. Karnail Singh, Deed of Guarantee executed by defendant No.2 and Consent letter by guarantor all dated 06.01.2016, which are Annexures A17 to A22 to this OA; Form no.199 regarding of Bank to securitize/assign etc., which is Annexure A23 to this OA; Letter of Authority for alteration of

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account dated 17.05.2016, which is Annexure A24 to this OA; Death Certificate of Sh. Karnail Singh, which is Annexure A25 to this OA; Letter issued by defendant No.1 along with its Translation, Pronote executed by defendant No.1 in KCC Limit Account, Waiver Letter executed by defendant No.1, Form No.201, Pronote executed by defendant No.1 in housing Loan account, Waiver Letter executed by defendant No.1 in housing Loan Account and Form No.201 all dated 19.11.2018, which are Annexures A26 to A32 to this OA; Legal Notice dated 01.10.2021 with postal receipts, which are Annexures A33 to A35 to this OA; Balance and Security Confirmation Letter in KCC account and in Housing Loan account dated 19.10.2021, which are Annexures A36 & A37 to this OA; Statement of account in KCC Limit and Housing Loan Account with certificate, which are Annexures A38 and A39 to this OA

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.33,25,296.16p, 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 14.03.2024.

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In support of the OA, affidavit of & Sh. Reekesh Kumar Roy, Branch Manager, Punjab & Sind Bank has been filed. 8. 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 A39 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant

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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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.33,25,296.16p (Rupees Thirty Three Lacs Twenty Five Thousand Two Hundred Ninety Six and Paisa Sixteen only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @15.20%p.a. (including Penal Interest @2%p.a.) with half yearly in KCC Loan account and @11.30%p.a. (including Penal Interest @2%p.a.) with half yearly in Housing Loan Account from 17.07.2022 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 both the loan accounts 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.33,25,296.16p (Rupees Thirty Three Lacs Twenty Five Thousand Two Hundred Ninety Six and Paisa Sixteen only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to

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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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 02.05.2024. 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: 26.04.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab and Sind Bank v. Sh. Shamsher Singh and Another

Case brief

What is this about?

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Punjab and Sind Bank v. Sh. Shamsher Singh and Another

Case brief

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