Allowed

Punjab National Bank v. Davinder Singh Alias Devinder Singh and Another

DRT18 Sept 2024OA/1526/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank against two defendants for recovery of a loan amount of Rs. 28,94,054.55 and future interest at 8% per annum, despite the defendants' non-appearance.

What did the court decide?

Applicant entitled to recover Rs. 28,94,054.55 with simple interest at 8% p.a. from defendants; order includes right to recover via sale of mortgaged properties or attachment of personal assets.

Punjab National Bank versus Davinder Singh Alias Devinder… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1526/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.08.2022

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DATE OF DECISION: 18.09.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi and having one of its branches at Punjab National Bank, Sherpura Road, Jagraon, District Ludhiana, Punjab through its General Power of Attorney Holder, Sh. Hari Om Sharma, Senior Manager, Punjab National Bank, Sherpura Raod, Jagroan, District Ludhiana, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant

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Versus

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Sh. Davinder Singh @ Devinder Singh S/o Sh. Gurcharan Singh, R/o Village Kokri Heran, Tehsil and District Moga, Punjab.

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Sh. Sukhminder Singh S/o Sh. Daulat Singh, R/o Village Kokri Heran, Tehsil and District Moga, Punjab.

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….……Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.28,94,054.55p (Rupees Twenty Eight Lacs Ninety Four Thousand Fifty Four and Paisa Fifty Five only). The Original Application has been filed through Sh. Hari Om Sharma, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 27.05.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.17.00 Lacs vide Loan application dated 25.08.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit (KCC) of Rs.17.00 Lacs vide Sanction Letter dated 25.08.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 34K-00M situated at Village Kokri Heran, Hadbast no.33, Tehsil and District Moga (Punjab) vide Declaration under section 4 (1) dated 0 3.09.2015 along with its Translations, which are Annexures A5 & A5T to this OA.

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Documents executed:- Confidential Report on Borrowers/Guarantors dated 2508.2015, which is Annexure A4 to this OA; Advocate Report on Title Deed, Affidavit by borrower both dated 03.09.2015, which are Annexures A6 & A7 to this OA; Hypothecation Agreement, Letter of Consent, Letter declaring acceptance of loan Terms and conditions, Declaration regarding Agricultural land, Deed of guarantee, all dated 08.09.2015, which are Annexures A8, A10, A12 to A14 to this OA; Letter of Undertaking, which is Annexure A9 to this OA; Letter declaring acceptance of consent clause by the borrower, letter declaring acceptance of consent clause by the guarantor, which are Annexures A11 & A15 to this OA; Balance and Security confirmation dated 26.12.2017 and 24.12.2019, which are Annexures A16 & A17 to this OA; Notice dated 05.07.2022, which is Annexure A18 to this OA and Statement of account with certificate, which is Annexure A19 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.28,94,054.55p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant 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 13.08.2024. 7. In support of the OA, affidavit of Sh. Hari Om Sharma, Senior 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 had proved its case. From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.28,94,054.55p (Rupees Twenty Eight Lacs Ninety Four Thousand Fifty Four and Paisa Fifty Five 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 in relief clause has claimed interest @10.75%p.a. plus penal interest @2%p.a. with half yearly rests from 01.04.2022 till the realization. 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

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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.28,94,054.55p (Rupees Twenty Eight Lacs Ninety Four Thousand Fifty Four and Paisa Fifty Five 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 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 applicant the 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 10.10.2024. 15. Copy of this order be given dasti to the applicant 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: 18.09.2024

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

Punjab National Bank v. Davinder Singh Alias Devinder Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Davinder Singh Alias Devinder Singh and Another

Case brief

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What did the court decide?

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