Allowed

Punjab National Bank v. Sh. Baldev Singh

DRT19 Jan 2024OA/165/2022

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's original application for recovery of a loan of Rs. 27,34,309.00. The court ruled that defendants are jointly and severally liable to pay the principal sum along with future simple interest at 9.70% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.27,34,309.00 plus interest at 9.70% p.a.; issuance of Recovery Certificate; liberty to enforce via SARFAESI or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.165/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.01.2022

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DATE OF DECISION: 19.01.2024

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Punjab National Bank, 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 the successor of Oriental Bank of Commerce by Scheme of Amalgamation of Oriental Bank of Commerce, passed by the Central Government under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, through one of its Branch amongst others at Patiala Circle, Sastra Centre, 2nd Floor, Opposite Improvement Trust Building, Chotti Barandari, Patiala (Punjab)147101, through Sh. Sunil Sharma, Assistant Manager

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……..Applicant

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Versus

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Sh. Baldev Singh S/o Sh. Jawand Singh R/o House No.58, Village Gurditpura, Tehsil Patran & District Patiala, Punjab (Borrower)

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Sh. Malkeet Singh S/o Sh. Baldev Singh R/o House No.58, Village Gurditpura, Tehsil Patran & District Patiala, Punjab (Co-Borrower)

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………Defendants

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Advocates:

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Argued by Sh. Vansh Chawla, counsel proxy for Sh. Ankit Sood, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.27,34,309.00 (Rupees Twenty Seven Lacs Thirty Four Thousand Three Hundred Nine only). The Original Application has been filed

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through Sh. Sunil Sharma, Assistant Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 07.08.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of OGC facility of Rs.5.00 Lacs and a Term Loan of Rs.10.00 Lacs vide Loan application dated 12.10.2010.

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The applicant Bank sanctioned the OGC facility of Rs.5.00 Lacs and a Term Loan of Rs.10.00 Lacs vide Loan application dated 12.10.2010 and Sanction letter dated 15.10.2010, which is Annexure A2 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. agricultural land measuring 48 Kanal 10 Marlas; situated at Village Gurditpura, Tehsil Patran & District Patiala, Punjab; vide Mortgage Deed bearing vasika no.2380 dated 15.10.2010 along with its translation, which is Annexure A3 to this OA. Documents executed:- Hypothecation Agreement, Agreement of Term Loan, Common Agreement all dated 16.10.2010, which are Annexures A4 to A6 to this OA; Balance and Confirmation Letters & Copy of Cheque along with translations dated 18.12.2017, which are Annexures A7 to A10 to this OA; Recall Notice dated 02.12.2021, which is Annexure A11 to this OA; Account statement along with certificate under Banker’s Book Evidence Act, which is Annexure A12 to this OA; Voter Card, which is Annexure A13 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.27,34,309.00, 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.

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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 26.07.2023. 7. In support of the OA, affidavit of Sh. Sunil Sharma, Assistant Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy counsel through video conferencing 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 A13 to this OA, it is proved that the defendants approached applicant bank 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 bank. The defendants failed to pay back the loans 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 bank is entitled to recover a sum of Rs.27,34,309.00 (Rupees Twenty Seven Lacs Thirty Four Thousand Three Hundred nine only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.70%p.a. along with @2%p.a. penal interest with half yearly rests in both the loan accounts from 01.12.2021 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

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just and appropriate to grant uniform simple interest @9.70%p.a. in both 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.27,34,309.00 (Rupees Twenty Seven Lacs Thirty Four Thousand Three Hundred nine only) jointly and severally, with costs, current and future simple interest @9.70%p.a. in both the loan accounts 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. 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 07.02.2024. 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. Dated: 19.01.2024

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

Punjab National Bank v. Sh. Baldev Singh

Case brief

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Punjab National Bank v. Sh. Baldev Singh

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