Allowed

Punjab National Bank v. Messrs Bachittar Singh and Sons and Others

DRT19 Nov 2024OA/1597/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh, allowed the original application filed by Punjab National Bank against three respondents for recovery of Rs.22,25,267.19. The bank proved the loan agreement, non-repayment, and mortgage documents. The Tribunal decreed the amount with simple interest at 8% p.a. and ordered issuance of a Recovery Certificate.

What did the court decide?

Declaring respondents liable to pay Rs.22,25,267.19 with costs and simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce claim through execution proceedings.

Punjab National Bank versus Messrs Bachittar Singh… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1597/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.09.2022

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DATE OF DECISION: 19.11.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), 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 having one of its branches at Punjab National Bank (erstwhile Oriental Bank of Commerce), VPO Lkolaha, Tehsil Khanna, District Ludhiana, Punjab through its general Power of Attorney Holder Mr. Daljit Singh, Manager, Punjab National Bank, Circle Sastra Centre, Plot No.5, Ferozepur Road, Near Wave Mall, 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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M/s Bachittar Singh and Sons, Through its proprietor Sh. Rachhpal Singh, Address: Shop No.8-B, New Grain Market, Khanna, Punjab.

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Mr. Rachhpal Singh S/o Mr. Bachittar Singh, proprietor of M/s Bachittar Singh and Sons, R/O Village Rauni, District Ludhiana, Punjab.

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Sh. Harpreet Singh S/o Sh. Amrik Singh, R/o Village Rauni, District Ludhiana, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder 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

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Rs.22,25,267.19p (Rupees Twenty Two Lac Twenty Five Thousand Two Hundred Sixty Seven and Nineteen Paisa Only). The Original Application has been filed through Mr. Daljit Singh, Manager of 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 & 2 had approached the applicant for grant of OD Limit of Rs.3.00 Lacs & further for its enhancement to Rs.20.00 Lac vide Loan Applications dated 03.07.1998 & 15.07.2010, which are Annexures A2 & A15 to this OA.

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The applicant sanctioned OD Limit of Rs.3.00 Lacs & further enhanced it to Rs.20.00 Lac vide Sanction Letters dated 09.07.1998 & 15.07.2010, which are Annexures A3 & A16 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.3 had mortgage his immovable property i.e. total land measuring 1K-08M situated at Village Galwadi, Tehsil Khanna, Distt. Ludhiana vide Registered Title Deed bearing vasika no.2068 dated 17.08.2009 and Jamabandi for the year 2003-2004 with its Translations, which is Annexure A17 & A17-T to this OA. Documents executed:- Copy of Amalgamation Notification dated 04.03.2020, which is Annexure A1A to this OA; Letter by Bank Confirming the deposit of Title Deed dated 11.07.1998, which is Annexure A4 to this OA; Sole Proprietor Letter, Agreement of Hypothecation of BOOK DEBTS, Agreement of Cash Credit/Overdraft, Letter by Borrower declaring acceptance of loan term and Conditions, Agreement of Guarantee all dated 09.07.1998, which are Annexures A5 to A9 to this OA; Balance and Security Confirmation Letters dated 23.04.2001, 01.08.2002, 26.12.2003, 05.10.2006 and 04.04.2008, which are Annexures A10 to A14 to this OA; Supplemental Agreement to secure credit/loans facilities, Agreement of Guarantee both dated 15.07.2010, which are Annexures A18 & A19 to this OA; Balance and Security Confirmation Letters dated 15.07.2010,

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10.07.2011, 04.07.2013, 06.07.2015, 31.03.2018 & 01.10.2019, which are Annexures A20 to A25 to this OA; Advocate Report on Title dated 07.11.2020, which is Annexure A26 to this OA; Notice u/s 13(2) of the SARFAESI Act 2002 dated 02.12.2021 with postal receipts, which is Annexure A27 to this OA; Possession Notice dated 11.03.2022, which is Annexure A28 to this OA and Statement of Account with certificate, which is Annexure A29 to this OA.

¶24

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.22,25,267.19p, 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.

¶25

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 13.11.2024. 7. In support of the OA, affidavit of Mr. Daljit Singh, Manager, Punjab National Bank h as been filed.

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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 A1A, A1 to A29 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.22,25,267.19p (Rupees Twenty Two Lac Twenty Five Thousand Two Hundred Sixty Seven and Nineteen Paisa Only) along with interest from the

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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 @8.25%p.a. along with penal interest @2.00%p.a. with monthly rests from 01.09.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes inappropriate 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 defendants are liable to pay to the applicant a total sum of Rs.22,25,267.19p (Rupees Twenty Two Lac Twenty Five Thousand Two Hundred Sixty Seven and Nineteen 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.12.2024. 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: 19.11.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Messrs Bachittar Singh and Sons and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Bachittar Singh and Sons and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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