Allowed

Punjab National Bank v. M/S Dilpreet Knitting Works and Others

DRT9 Oct 2024OA/159/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application to recover a loan of Rs. 26,35,178.32 from the defendants jointly and severally. The court modified the claimed interest rates to 8% per annum in view of current market rates and directed the issuance of a recovery certificate.

What did the court decide?

Recovery Certificate issued for Rs. 26,35,178.32 plus costs and simple interest at 8% per annum.

Punjab National Bank versus M/S Dilpreet Knitting Works and… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.159/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2023

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DATE OF DECISION: 09.10.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5, of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and amongst others a branch at Feroze Gandhi Market, Ludhiana, Punjab through Sh. Daljit Singh, Manager and Attorney holder presently post at Circle Centre, Ludhiana, Site No.5, Ferozepur Road, near Wave Mall, Ludhiana.

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……..Applicant Plaintiff Versus

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M/s Dilpreet Knitting Works, a partnership concern situated at Street No.1, Green City, Kailash Road, Near Kakowal Road, Ludhiana-141001 through its Partners Sh. Ranjit Singh and Smt Harjit Kaur.

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Sh. Ranjit Singh S/o Sh. Baldev Singh resident of 539/39, Street No.1-C, New Vishnupuri, Ludhiana-141001.

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Smt. Harjit Kaur w/o Sh. Inderjit Singh resident of 539/39, Street No.1-C, New Vishnupuri, Ludhiana-141001.

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………. Defendants

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Advocates:

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Argued by Sh. Jiteshwar Malhi, Advocate proxy for Sh. Manish Singla, 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.26,35,178.32p (Rupees Twenty Six Lacs Thirty Five Thousand One

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Hundred Seventy Eight and Thirty Two Paise Only). The Original Application has been filed through Sh. Daljit Singh, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its partners i.e. defendant no.2 & 3 had approached the applicant for grant of CC Limit of Rs.12.00 Lacs and Term Loans I of Rs.9.00 Lacs and Term Loans II Rs.3.50 Lacs vide Loan Application which is Annexure A3 to this OA.

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The applicant sanctioned CC Limit of Rs.12.00 Lacs and Term Loans I of Rs.9.00 Lacs and Term Loans II Rs.3.50 Lacs vide Sanction Letter filed in compliance of order date 09.09.2024 vide diary No.14950 dated 19.09.2024 and the terms and conditions were duly accepted by the defendants.

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Defendant nos.2 and 3 had mortgaged their immovable properties i.e. House built over Plot No.6 bearing MC No.B-XXXII1470/10, measuring 100 Sq. Yds. situated at Village Kakowal, H.B. No.80, Abadi New Jaswal Colony, Vishal Nagar, Tehsil and District Ludhiana, Punjab vide Equitable Mortgage of Sale Deed bearing v asika No.16661 dated 0 5.12.2016 along with its translation, which is Annexures A7 to this OA.

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Documents executed:-Partnership Deed dated 14.01.2017, which is Annexure A2 to this OA; Term Loan Agreement, Hypothecation of goods and book debts to secure cash credit facility, Guarantee Agreement all dated 28.03.2017, which are Annexures A4 to A6 to this OA; Appendix 2A dated 29.03.2017, which are Annexures A8 & 10 to this OA; Appendix 3A dated 30.03.2017, which are Annexures A9 & A11 to this OA; Valuation Report dated 28.02.2017, which is Annexure A12 to this OA; Balance and Security Confirmation Letters dated 20.01.2020, which are Annexures A13 to A15 to this OA;

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Notice dated 18.09.2019, which is Annexure A16 to this OA; Statements of Accounts along with Certificate, which are Annexures A17 to A19 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.26,35,178.32p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding 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 31.07.2024.

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In support of the OA, affidavit of Sh. Daljit Singh, Manager, Punjab National Bank h as been filed. 8. Heard 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 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 facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,35,178.32p (Rupees Twenty Six Lacs Thirty Five Thousand One Hundred Seventy Eight and Thirty Two Paise 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 @12.15%p.a. in Term Loan Account and interest @11.95%p.a. in CC Loan Account along with penal interest 2% with monthly rests in all from 01.01.2023 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 @08.00%p.a. in all the loan accounts 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 defendants are liable to pay to the applicant a total sum of Rs.26,35,178.32 (Rupees Twenty Six Lacs Thirty Five Thousand One Hundred Seventy Eight and Thirty Two Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the loan accounts 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. 12. 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 23.10.2024. 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: 09.10.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S Dilpreet Knitting Works and Others

Case brief

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Punjab National Bank v. M/S Dilpreet Knitting Works and Others

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