Allowed

Punjab National Bank v. Sh. Gurminder Singh and Another

DRT17 May 2024OA/163/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs. 31.87 lakhs from two defendants. The court confirmed the debt was proven, modified the interest rate, and ordered the issue of a recovery certificate.

What did the court decide?

Recovery of Rs.31,87,211.00 with costs and simple interest at 8% p.a. from filing date; Recovery Certificate issued; entitlement to recover via sale of mortgaged properties or attachment of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.163/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.01.2022

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DATE OF DECISION: 17.05.2024

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Punjab National Bank, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and Branch Office at Gill Point, Sahnewal Road, Dehlon, District Ludhiana, Punjab through its General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager of the applicant bank

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……..Applicant

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Versus

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Sh. Gurminder Singh S/o Sh. Avtar Singh, R/o VPO Khatra Chauhram, District Ludhiana, Punjab (Borrower-Hypothecator-Mortgagor)

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Sh. Harnek Singh S/o Sh. Gian Singh, R/o Village Dau Majra, Tehsil Dehlon, District Ludhiana, Punjab (Guarantor)

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………Defendants

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Advocates:

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Argued by Sh. Mohan Prasad, counsel proxy for Sh. Pancham Sharma, counsel 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.31,87,211.00 (Rupees Thirty One Lacs Eighty Seven Thousand Two Hundred and Eleven only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 had approached the applicant bank for the grant of Agriculture OGC Limit of Rs.15.00 Lacs vide Application Form-cum-Process Note dated 07.11.2011, which is Annexure A2 to this OA. Defendant no.2 stood as Guarantor. 3. The applicant Bank sanctioned the Agriculture OGC Limit of Rs.15.00 Lacs vide Sanction Letter dated 07.11.2011, which is Annexures A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 21 Kanal 16 Marla situated at Village Khattra Choharam, Hadbast No.324, Tehsil and District Ludhiana vide Registered Mortgage Deed bearing Vasika No.1367 dated 15.11.2011 along with its translation, which is Annexure A6 to this OA. Documents executed:- Agreement for hypothecation and Agreement of guarantee both dated 17.11.2011, which are Annexures A4 and A5 to this OA; Balance and security confirmation letters dated 07.11.2014 and 06.11.2017, which is Annexure A7 to this OA; Legal notice dated 05.01.2022 with postal receipts, which is Annexure A8 to this OA and Statement of account along with Certificate dated 10.01.2022, which is Annexure A9 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.31,87,211.00, 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. 6. 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 27.03.2024. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A9 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. 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.31,87,211.00 (Rupees Thirty One Lacs Eighty Seven Thousand Two Hundred and Eleven 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.25%p.a. with half yearly rests from 01.10.2021 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 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.31,87,211.00 (Rupees Thirty One Lacs Eighty Seven Thousand Two Hundred and Eleven only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of

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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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.05.2024. 15. 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.

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Dated: 17.05.2024

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

Punjab National Bank v. Sh. Gurminder Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Sh. Gurminder Singh and Another

Case brief

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