Allowed

Punjab National Bank v. Sh. Mansa Singh

DRT6 Feb 2024OA/1654/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's original application for recovery of Rs.41.48 lakhs. The Tribunal adjudicated interest rates and empowered the bank to enforce the claim through sale of mortgaged properties or attachment of personal assets under the SARFAESI Act.

What did the court decide?

Defendant ordered to pay Rs.41,48,279.39 with uniform simple interest at 10% p.a.; Recovery Certificate issued; Bank empowered to enforce sale of mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1654/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.08.2022

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DATE OF DECISION: 06.02.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot no.4, Sector 10, Dwarka, New Delhi 110075 and a Branch amongst others at Sheikhupur, Tehsil and District Kapurthala, Punjab 144620, through Sh. Surinder Kumar Bhatia S/o Lt. Sh. A.N. Bhatia, Officer and duly Constituted Attorney of the applicant bank

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……..Applicant

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Versus

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Sh. Mansa Singh S/o Sh. Gurbachan Singh, R/o H. No.2, Near Reliance Petrol Pump, Village Brindpur, P.O. Sheikhupur, Tehsil and District Kapurthala (Punjab) 144620 being Applicant

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………Defendant

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Advocates:

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Argued by Sh. Rajesh Gupta, counsel for the applicant Defendant is 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 defendant for recovery of Rs.41,48,279.39p (Rupees Forty One Lacs Forty Eight Thousand Two Hundred Seventy Nine and Thirty Nine Paisa only). The Original Application has been filed through Sh. Surinder Kumar Bhatia, Officer and duly Constituted Attorney o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 27.05.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the enhancement of already availed KCC Limit of Rs.20.00 Lacs to Rs.27.00 Lacs vide Loan application dated 25.08.2017, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the already availed KCC Limit of Rs.20.00 Lacs to Rs.27.00 Lacs vide Sanction Letter dated 23.11.2017, which is Annexure A4 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total agricultural land measuring 54K-0-3/4M; out of which (i) total land measuring 53K-17-3/4M situated at Village Bahui, Tehsil and District Kapurthala, Punjab; and (ii) land measuring 00K-03M situated at Village Brindpur, Tehsil and District Kapurthala, Punjab; vide Declaration u/s 4(1) dated 08.06.2015 and copy of creation of charge, which are Annexures A2 and A8 to this OA. Documents executed: - Affidavit dated 18.09.2017, which is Annexure A5 to this OA; Hypothecation agreement and Letter of Undertaking both dated 05.12.2017, which are Annexures A6 and A7 to this OA; Balance Confirmation letter dated 11.12.2019, which is Annexure A9 to this OA; Demand notices dated 02.05.2019, 18.06.2019 & 05.06.2020, which is Annexure A10 to this OA; Statement of Loan account and Calculation sheet, which is Annexure A11 to this OA and Certificate under Bankers Book Evidence Act dated 11.07.2022, which is Annexure A12 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.41,48,279.39p, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of the defendant and he was proceeded ex-parte on 22.12.2023.

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In support of the OA, affidavit of Sh. Surinder Kumar Bhatia, Officer and duly Constituted Attorney, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A12 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.41,48,279.39p (Rupees Forty One Lacs Forty Eight Thousand Two Hundred Seventy Nine and Thirty Nine Paisa only) along with interest from the defendant, 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 bank has claimed interest @10.25%p.a. plus penal interest @2%p.a. from 08.06.2022 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 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 @10.00%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 defendant is liable to pay to the applicant a total sum of Rs.41,48,279.39p (Rupees Forty One Lacs Forty Eight Thousand Two Hundred Seventy Nine and Thirty Nine Paisa only), with costs, current and future simple interest @10.00%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 defendant 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 defendant. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.02.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the Open Tribunal Dated: 06.02.2024

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

Punjab National Bank v. Sh. Mansa Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Mansa Singh

Case brief

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