Allowed

Punjab National Bank v. Jagdev Singh and Another

DRT13 Sept 2024OA/1600/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal adjudicated an Original Application by Punjab National Bank for recovery of Rs. 37.85 lakhs against two borrowers. Being satisfied with the unchallenged documentary evidence, the Tribunal allowed the application, modified the future interest rate to 8% p.a., and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs. 37,85,317.05 plus costs and simple interest @ 8.00% p.a. from the date of filing till realization, with directions to issue a Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1600/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.08.2022

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DATE OF DECISION: 13.09.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No4, Sector-10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank (erstwhile Oriental Bank of Commerce), Raikot Road, VPO Pakhowal, District Ludhiana, Punjab through its General Power of Attorney Holder, Sh. Balwinder Khanna, Manager, Punjab National Bank, (erstwhile Oriental Bank of Commerce), Branch Office Pakhowal, Distt. Ludhiana, Punjab who is duly authorized and Principal Officer of the Applicant

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……..Applicant

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Versus

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Sh. Jagdev Singh S/o Sh. Jeun Singh R/o Village Meherna Khurd, Tehsil Ahmedgarh, District Malerkotla, Punjab.

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Sh. Kulwant Singh S/o Sh. Maghar Singh R/o Village Meherna Khurd, Tehsil Ahmedgarh, District Malerkotla, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Surinder Nath Sharma, 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 Rs.37,85,317.05p (Rupees Thirty Seven Lacs Eighty Five Thousand Three Hundred Seventeen and Paise Five Only). The Original Application has been filed through Sh. Balwinder Khanna, Manager o f the applicant, who is competent to institute the Original Application

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vide General Power of Attorney dated 06.10.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.15.00 Lacs vide Loan application dated 19.12.2012, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 24.12.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 18K-18M situated at Village Meherna Khurd, Hadbast No.12, Tehsil Ahmedgarh, District Malerkotla, Punjab vide Registered Mortgaged Deed bearing vasika no.1819 dated 24.12.2012 along with its translation, which is Annexure A4 & A4T to this OA. Documents executed:-Notification dated 04.03.2020, which is Annexure A1A to this OA; Advocate Report on title deed dated 19.12.2012, which is Annexure A5 to this OA; Agreement of Hypothecation & Agreement of Guarantee both dated 28.12.2012 which are Annexures A6 & A7 to this OA; Balance Confirmation Letters dated 06.11.2015, 01.05.2018 & 06.07.2020, which are Annexures A8, A9 & A11 to this OA; Notices of Recall of bank’s dues by Advocate dated 16.08.2019 & 04.07.2022, which are Annexures A10 & A12 to this OA and Statement of account along with certificate, which is Annexure A13 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.37,85,317.05, 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 19.07.2024.

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In support of the OA, affidavit of Sh. Balwinder Khanna, Manager, Punjab National Bank has 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 A13 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.37,85,317.05 (Rupees Thirty Seven Lacs Eighty Five Thousand Three Hundred Seventeen And Paise Five 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 @10.75%p.a. along with penal interest @2%p.a. with half yearly rests from 11.08.2022 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

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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.37,85,317.05 (Rupees Thirty Seven Lacs Eighty Five Thousand Three Hundred Seventeen And Paise Five 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 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 applicant 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.10.2024. 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: 13.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Jagdev Singh and Another

Case brief

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Punjab National Bank v. Jagdev Singh and Another

Case brief

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