Allowed

Punjab National Bank v. Bawa Singh

DRT7 Oct 2024OA/1473/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of a loan of Rs. 30,98,512.70p. The court deemed it appropriate to grant simple interest at 8% p.a. instead of the claimed rate and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 30,98,512.70p with interest at 8% p.a. from date of filing; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1473/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.07.2022

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DATE OF DECISION: 07.10.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, No.5 of 1970 having its Corporate Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and a Branch amongst others, at Tira Punjab through Sh. Ravi Kumar, Chief Manager, Circle Sastra SAS Nagar Mohali who is Principal officer & Power of Attorney holder of the applicant.

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……..Applicant

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Versus

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Sh. Bawa Singh s/o Sh. Harbhajan Singh, R/o House No.65, village Mastgarh, PO Mullanpur, Tehsil Kharar, District SAS Nagar, (Mohali)140901.

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………. Defendants

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Advocates:

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Argued by Sh. Jas Bains, Nodal officer of the applicant Defendant is 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 defendant for recovery of Rs.30,98,512.70p (Rupees Thirty Lacs Ninety Eight Thousand Five Hundred Twelve and Seventy Paise Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 30.01.2014 and further for its renewal.

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The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 30.01.2014, which is Annexure A2 to this OA and further applicant sanctioned the renewal of KCC Limit vide Letter of Renewal dated 13.02.2019, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. Khewat Khatauni No.572/645, Khasra No.2243 (4 bigha-2biswa) situated in Village Mullanpur Garibdass, H.B. No.342, Tehsil Kharar, District SAS Nagar, (Mohali) vide Registered Sale Deed bearing v asika No.3159 dated 2 1.02.2014 and as per Jamabandi for the year 2011-2012 along with their translations, which are Annexures A7, A8 & A7T, A8T & A9 & A9T to this OA.

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Documents executed:-Hypothecation Agreement, Letter of Undertaking & Declaration all dated 27.02.2014, which are Annexures A3, A4 & A5 to this OA; Encumbrance Certificate along with its translation dated 30.01.2014, which are Annexures A6 & A6T to this OA; BC Letter dated 28.10.2016 and 13.02.2019, which is Annexure A11 to this OA; Legal Notice dated 07.04.2018 with postal receipt, which is Annexure A12 to this OA; Recall Notice dated 02.07.2022 with postal receipt, which is Annexure A13 to this OA and Account Statement along with Certificate dated 16.07.2022, which is Annexure A14 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.30,98,512.70p, which is recoverable and the defendant were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal. Sh. Harpreet Singh, Advocate appeared on behalf of the defendant on 11.09.2023 but neither he had filed Memo of Appearance

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nor Power of Attorney. Since no one appeared on behalf of defendant, he was proceeded ex-parte on 12.02.2024.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by Nodal officer of applicant that in view of the documentary evidence brought on record which had gone unrebutted, the applicant 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 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 is entitled to recover a sum of Rs.30,98,512.70p (Rupees Thirty Lacs Ninety Eight Thousand Five Hundred Twelve and Seventy Paise 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 in relief clause has claimed interest @10.75%p.a. along with penal interest @2%p.a. with monthly rests from 01.04.2022 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in

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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 defendant is liable to pay to the applicant a total sum of Rs.30,98,512.70p (Rupees Thirty Lacs Ninety Eight Thousand Five Hundred Twelve and Seventy Paise Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 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 22.10.2024. 15. Copy of this order be given dasti to the applicant 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.

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Pronounced by me in the open Tribunal . Dated: 07.10.2024

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

Punjab National Bank v. Bawa Singh

Case brief

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Punjab National Bank v. Bawa Singh

Case brief

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