Allowed

Punjab National Bank v. Sh. Gurdeep Singh and Another

DRT9 May 2024OA/1577/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Punjab National Bank against two borrowers for recovery of Rs.34.05 lakhs. The Tribunal, exercising discretion, reduced the rate of interest to 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Issuance of Recovery Certificate for Rs.34,05,146.47 with costs and simple interest @ 8% p.a. from date of filing.

Punjab National Bank versus Sh. Gurdeep Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1577/2022

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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: 09.05.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and 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 Road, Jagraon, District Ludhiana, Punjab who is duly Authorized and Principal Officer of the applicant bank

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……..Applicant

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Versus

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Sh. Gurdeep Singh S/o Sh. Chanan Singh, R/o Village Malliana, Tehsil and District Moga, Punjab

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(Borrower and Mortgagor)

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Sh. Harpreet Singh S/o Sh. Gurdeep Singh, R/o Village Malliana,

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Tehsil and District Moga, Punjab

(Co-Borrower)

………Defendants

Advocates:

Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Surinder 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.34,05,146.47p (Rupees Thirty Four Lacs Five Thousand One Hundred

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Forty Six and Forty Seven Paisa Only). The Original Application has been filed through Sh. Hari Om Sharma, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.05.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 08.11.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 08.11.2014, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants vide Letter by the borrower dated 28.11.2014 declaring acceptance of loan terms and conditions, which is Annexure A8 to this OA. 4. Defendant No.1 had mortgaged his immovable property i.e. 29 Kanal 04 Marla situated at Village Maliana, Tehsil and District Moga, Punjab vide Declaration u/s 4(1) dated 18.11.2014 and letter to sub registrar for creation of charge along with translations, which are Annexures A5 and A5-T to this OA. Documents executed:- Confidential report on borrowers and guarantors dated 08.11.2014, which is Annexure A3 to this OA; Advocate report on title dated 17.11.2014, which is Annexure A6 to this OA; Declaration regarding agricultural land dated 28.11.2014, which is Annexure A7 to this OA; Hypothecation agreement, Letter of undertaking and Letter of consent all dated 28.11.2014, which are Annexures A9 to A11 to this OA; Legal compliance certificate, which is Annexure A12 to this OA; Balance and security confirmation letters dated 18.04.2017 and 26.08.2019, which are Annexures A13 and A14 to this OA; Notice of Recall of Bank’s dues by the advocate dated 06.08.2022 with postal receipts, which is Annexure A15 to this OA and Statement of account with certicate, which is Annexure A16 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

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of Rs.34,05,146.47p, 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.

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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 20.03.2024. 7. In support of the OA, affidavit of Sh. Hari Om Sharma, Senior Manager, Punjab National Bank has been filed. 8. It was argued by the 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 A16 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 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.34,05,146.47p (Rupees Thirty Four Lacs Five Thousand One Hundred Forty Six and Forty Seven Paisa 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 has claimed interest @8.75%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

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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 @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.34,05,146.47p (Rupees Thirty Four Lacs Five Thousand One Hundred Forty Six and Forty Seven Paisa 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 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.05.2024.

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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: 09.05.2024

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

Punjab National Bank v. Sh. Gurdeep Singh and Another

Case brief

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Punjab National Bank v. Sh. Gurdeep Singh and Another

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