Allowed

Punjab National Bank v. Sh. Sakatter Singh

DRT8 May 2024OA/1487/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed Punjab National Bank's application under Section 19 RDBFI Act for recovery of Rs.29.20 lakhs. The court declared the respondent liable to pay the principal with uniform simple interest at 8% p.a. and authorized recovery from hypothecated properties or personal assets.

What did the court decide?

Total sum of Rs.29,20,458.00 with simple interest @8.00%p.a. recoverable from hypothecated properties or personal assets.

Punjab National Bank versus Sh. Sakatter Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1487/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.07.2022

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DATE OF DECISION: 08.05.2024

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Punjab National Bank a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act of 1970 having its Head Office at Plot No. 4 Sector-10, Dwarka, New Delhi and its Branch office at Punjab National Bank, Model Town Branch, District Pathankot-145001 through its Authorized Representative Mr. Raja Singh, Senior Manager, Punjab National Bank, Model Town Branch, District Pathankot-145001.

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……..Applicant

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Versus

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Sh. Sakatter Singh S/o Sh. Teja Singh, R/o H.No.569, Ward No.10, Saili Kullian, Pathankot-145001

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….……Defendant

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate proxy for Sh. Krishan Kumar, Advocate for the applicant (through VC) 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.29,20,458.00 (Rupees Twenty Nine Lacs Twenty Thousand Four Hundred Fifty Eight only). The Original Application has been filed through Sh. Raja Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.02.2019, 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 bank for the grant of Term Loan for purchase of Ashok Leyland Truck of Rs.16.90 Lacs vide Loan application dated 23.05.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Term Loan for purchase of Ashok Leyland Truck (AMW Truck with body) of Rs.16.90 Lacs vide Interview cum Appraisal Form dated 23.05.2011, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had hypothecated his movable properties i.e. truck namely the Ashok Leyland Tusker Super bearing Engine NumberABP106937, Chassis Number-MB1CTDYCIBPAA5896 and bearing Registration Number PB06N2209 and body of Truck vide Letter of Hypothecation dated 25.05.2011, which is Annexure A4 to this OA and R egistration Certificate of Vehicle dated 01.07.2011, which is Annexure A5 to this OA Documents executed: - Balance and Confirmation letter dated 12.04.2022, which is Annexure A6 to this OA; Notice dated 13.06.2022 along with Postal Receipt, which is Annexure A7 to this OA; Statement of account with certificate, which is Annexure A8 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.29,20,458.00, which is recoverable and the defendant was 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 19.03.2024.

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In support of the OA, affidavit of Sh. Raja Singh, 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 proxy counsel through video conferencing 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 A8 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.29,20,458.00 (Rupees Twenty Nine Lacs Twenty Thousand Four Hundred Fifty Eight 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 @12.00%p.a. plus penal interest @2%p.a. 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%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.29,20,458.00 (Rupees Twenty Nine Lacs Twenty Thousand Four Hundred Fifty Eight 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.05.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 08.05.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Sakatter Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Sakatter Singh

Case brief

What is this about?

What did the court decide?

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