Allowed

Punjab National Bank (erstwhile known as Oriental Bank of Commerce), v. Sh. Hakam Singh

DRT16 Jan 2024OA/155/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's original application filed under Section 19 of the RDBFI Act for recovery of Rs.31,11,911.00. The Tribunal reduced the claimed interest rate to 10.00% per annum, issued a recovery certificate, and directed enforcement via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.31,11,911.00 plus simple interest @10.00%p.a.; Dues recoverable via sale of mortgaged properties.

Punjab National Bank (erstwhile known as Oriental Bank of… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.155/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2022

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DATE OF DECISION: 16.01.2024

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Punjab National Bank (erstwhile known as Oriental Bank of Commerce), a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and Branch Office at Gill Point, Sahnewal Road, Dehlon, District Ludhiana, Punjab through its General Power of Attorney holder, Sh. Ravinder Kumar, Senior Manager of the applicant bank

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……..Applicant

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Versus

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Sh. Hakam Singh S/o Sh. Bant Singh, R/o VPO Butaheri, Tehsil Dehlon, District Ludhiana, Punjab

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(Borrower-Hypothecator-Mortgagor) ………Defendant

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Advocates:

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Argued by Ms. Sonal Chabbra, counsel proxy for Sh. Brijesh Sharma, counsel for the applicant 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.31,11,911.00 (Rupees Thirty One Lacs Eleven Thousand Nine Hundred and Eleven only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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2. The brief facts of the OA are that the defendant had approached
the applicant bank for the grant of OGC Limit of Rs.8.00 Lacs and
further for its enhancement to Rs.16.00 Lacs vide Applications forms
cum Process Notes dated 02.05.2011 and 15.12.2012, which are
Annexures A2 and A6to this OA.
3. The applicant Bank sanctioned the OGC Limit of Rs.8.00 Lacs
and further enhanced it to Rs.16.00 Lacs vide Sanction Letters dated
03.05.2011 and 15.12.2012, which areAnnexures A3 and A7to this
OA and the terms and conditions were duly accepted by the defendant.
4. Defendant had mortgaged his immovable properties detailed
as:-
a) Land measuring 16K-17M situated atVPO Butaheri, H.B. No.328, Sub-Tehsil Dehlon, Tehsil and District Ludhiana, Punjab videMortgage Deed bearing Vasika No.219dated 10.05.2011, which isAnnexure A5to this OA; and
b) Land measuring 16K-03M situated atVPO Butaheri, H.B. No.328, Sub-Tehsil Dehlon, Tehsil and District Ludhiana, Punjab videMortgage Deed bearing Vasika No.1589dated 08.01.2013, which isAnnexure A9to this OA.
Documents executed: - Agreement for hypothecation dated
13.05.2011, which isAnnexure A4to this OA; Supplemental
agreement dated 16.01.2013, which isAnnexure A8to this OA;
Balance and security confirmation letters dated 06.03.2016 and
07.09.2018, which isAnnexure A10to this OA; Recall notice dated
05.01.2022, which isAnnexure A11to this OA and Statement of account along with the certificate, which isAnnexure A12to 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.31,11,911.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount,

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therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 21.07.2023.

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In support of the OA, affidavit of Sh. Ravinder Kumar, 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 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 A12 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.31,11,911.00 (Rupees Thirty One Lacs Eleven Thousand Nine Hundred and Eleven 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 @12.75%p.a. with half yearly rests in OGC Limit from the date of filing of this Application 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

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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 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 defendant is liable to pay to the applicant a total sum of Rs.31,11,911.00 (Rupees Thirty One Lacs Eleven Thousand Nine Hundred and Eleven only) with costs, current and future simple interest @10.00%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. 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 05.02.2024. 15. 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. Pronounced by me in the Open Tribunal. Dated: 16.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank (erstwhile known as Oriental Bank of Commerce), v. Sh. Hakam Singh

Case brief

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What did the court decide?

Punjab National Bank (erstwhile known as Oriental Bank of Commerce), v. Sh. Hakam Singh

Case brief

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