Allowed

Punjab National Bank v. Jasvir Singh

DRT26 Dec 2024OA/158/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the bank's application under RDBFI Act. The court decreed recovery of principal Rs. 23,35,498 with simple interest at 8% p.a., directing enforcement via sale of mortgaged properties under SARFAESI Act.

What did the court decide?

Decree for recovery of Rs. 23,35,498 plus simple interest at 8% p.a. from date of filing. Direction to recover from sale of mortgaged properties or attach personal assets.

Punjab National Bank versus Jasvir Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.158/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.12.2021

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DATE OF DECISION: 26.12.2024

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Punjab National Bank, (Erstwhile Known as Oriental Bank of Commerce), 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 Branch Offices amongst others at Branch office: VPO Kohara, District Ludhiana Punjab, through its General Power of Attorney Holder Shri. Ravinder Kumar, Senior Manager of the Applicant.

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……..Applicant

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Versus

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Sh. Jasvir Singh S/o Sh. Harbhajan Singh, R/o Village Dhanansu, Tehsil and District Ludhiana, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Gaurav Thakur, Advocate proxy for Sh. Brijesh Sharma, Advocate for Applicant Defendants 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.23,35,498.00 (Rupees Twenty Three Lacs Thirty Five Thousand Four Hundred Ninety Eight Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager, o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.12.00 Lacs vide Loan Application dated 04.06.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.12.00 Lacs vide Sanction Letter dated 24.06.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 11Kanal-08Marla situated at Village Dhanashu, Hadbast No.27, Tehsil and District Ludhiana, Punjab vide Registered Mortgage Deed bearing V asika No.397 dated 05.07.2013, with its translation, which is Annexure A5 to this OA. Documents executed:- Agreement for Hypothecation dated 09.07.2013, which is Annexure A4 to this OA; Balance & Security Confirmation Letters dated 19.12.2015 & 08.12.2018, which is Annexure A6 to this OA; Legal Notice dated 12.11.2021 with certificate, which is Annexure A7 to this OA and Statement of Account with certificate of Banker’s Book Evidence Act, 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.23,35,498.00, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 21.12.2024. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard 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,

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the applicant 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 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 is entitled to recover a sum of Rs.23,35,498.00p (Rupees Twenty Three Lacs Thirty Five Thousand Four Hundred Ninety 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 @10.80%p.a. with half yearly rests from 01.04.2021 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 @08.00%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.

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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.23,35,498.00p (Rupees Twenty Three Lacs Thirty Five Thousand Four Hundred Ninety Eight Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant

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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 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 15.02.2025

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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: 26.12.2024.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Jasvir Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Jasvir Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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