Allowed

Punjab National Bank v. Harprit Pal Singh and Others

DRT17 Aug 2024OA/1529/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under Section 19 of RDBFI Act, 1993 for recovery of Rs.20,91,047. The respondents were absent. The Tribunal fixed interest at 7.85% p.a. and empowered the bank to recover dues from mortgaged properties under SARFAESI Act. Application allowed.

What did the court decide?

Recovery certificate issued for Rs.20,91,047 with interest at 7.85% p.a. recoverable from sale of mortgaged properties under SARFAESI Act.

Punjab National Bank versus Harprit Pal Singh and Others — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1529/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.08.2022

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DATE OF DECISION: 17.08.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970, having its Head Office at Plot No-4, Sector-10, Dwarka, New Delhi-110075 and a Branch amongst others erstwhile United Bank of India, Baltana, Zirakpur (Punjab) through Circle Sastra Centre, Punjab National Bank, SCO 43, Phase 2, Mohali through Sh. Ravi Kumar, Chief Manager, Principal Officer and duly constituted Attorney of the Applicant Bank.

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……..Applicant Bank

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Versus

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Sh. Harprit Pal Singh S/o Sh. Sewa Singh, R/o #231, Near Christ Church, Mawakarora, Akhnoor, Jammu-181201

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2^nd address - Capt. Harprit Pal Singh MS-18949H, 13^th Battalion of The Sikh Light Infantry,

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Smt. Tawinder Kaur @ Tavinder Kaur D/o Sh. Mela Singh W/o Sh. Sewa Singh, R/o #231, Near Christ Church, Mawakarora, Akhnoor, Jammu-181201

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Gupta Builders and Promoters, Registered and Corporate office SCO 196-197, Ground Floor, Sector 34-A, Chandigarh 160022 through its Director/Authorized Signatory

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Bank of Baroda, Branch Office–Sector 17-B, Chandigarh through its Manager/Authorized officer

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….……Defendants

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Advocates:

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Argued by Ms. Rahish Pawa, Advocate for the applicant (through VC) 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.20,91,047.00 (Rupees Twenty Lacs Ninety One Thousand and Forty Seven Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager o f the applicant bank, 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 nos.1, 2 had approached the applicant bank for grant of Housing Loan of Rs.27.90 Lacs vide Loan application dated 15.11.2019, which is Annexure A6 to this OA.

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The applicant Bank sanctioned the Housing Loan of Rs.27.90 Lacs vide Sanction Letter dated 28.11.2019, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 & 2 had mortgaged his Residential 2BHK Flat measuring 959.41 sq. Ft (Super Area) bearing residential unit/floor no.4259, 2^nd Floor, in project GBP Camella at Village Aujila, Hadbast No.181, Tehsil Kharar, SAS Nagar Mohali (Punjab)-140603 vide Allotment Letter, Tripartite Agreement & dated 13.11.2019 & 28.11.2019, which are Annexures A2 and A8 to this OA. Documents executed:- Notification dated 04.03.2020, Which is Annexure X to this OA; Agreement for sale dated 13.11.2009, which is Annexure A3 to this OA; Permission to Create Mortgage dated 23.11.2019, which is A4 to this OA; NOCs for creation of Mortgage both dated 07.08.2019, which is Annexures A5 and A21 to this OA; Power of Attorney dated 28.11.2019, which is Annexure A9 to this OA; Undertaking dated 18.12.2019, which is Annexure A10 to this OA; Demand Promissory Note, Declaration on Execution of documents,

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Agreement, Letter of Lien, Letter from Borrower for disbursement of Loan, Standing Instructions, Letter of Guarantee & Affidavit all dated 28.11.2019, which are Annexures A11 to A14 & A16 to A19 to this OA; Affidavit Cum Undertaking dated 27.11.2019, which is Annexure A15 to this OA; Memorandum Evidencing deposit of Title of Deed, which is Annexure A20 to this OA; Demand Letter dated 02.12.2019, which is Annexure A22 to this OA; Legal Notice dated 18.07.2022, which is Annexure A23 to this OA and Statement of account along with bankers certificate dated 05.08.2022, which is Annexure A24 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.20,91,047.00, 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. 6. 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 18.05.2024. 7. In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned 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 A24 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, account of the

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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.20,91,047.00 (Rupees Twenty Lacs Ninety One Thousand Forty Seven 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 @ 7.85%p.a. penal interest on monthly basis 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 @7.85%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.20,91,047.00 (Rupees Twenty Lacs Ninety One Thousand Forty Seven Only) jointly and severally, with costs, current and future simple interest @7.85%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

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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 07.09.2024. 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: 17.08.2024

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

Punjab National Bank v. Harprit Pal Singh and Others

Case brief

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Punjab National Bank v. Harprit Pal Singh and Others

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