Allowed

Punjab National Bank v. Gurcharan Singh

DRT3 Sept 2024OA/1672/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for recovery of a loan. The defendant failed to appear and was proceeded ex-parte. The Tribunal granted uniform simple interest and directed issuance of a recovery certificate and attachment of properties if dues remain unsatisfied.

What did the court decide?

Recovery certificate issued; defendant liable to pay Rs.35,53,826.83p with 8% simple interest; entitled to recover from sale of mortgaged properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1672/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.08.2022

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DATE OF DECISION: 03.09.2024

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Punjab National Bank, a body corporate, constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075 and amongst other at Sheikhupur, Tehsil and District Kapurthala (Punjab) Pin code 144620 through Sh. Surinder Kumar Bhatia S/o Late Sh. A. N. Bhatia, Principal Officer and duly constituted attorney of the applicant bank.

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……..Applicant Versus Sh. Gurcharan Singh S/o Sh. Havela Singh, H.No. 79, Village Dhudhianwal, Tehsil and District Kapurthala, (Punjab)-144620.

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….……Defendant

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Advocates:

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Argued by Sh. Rajesh Gupta, Advocate for the applicant (through VC) 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.35,53,826.83p (Rupees Thirty Five Lacs Fifty Three Thousand Eight Hundred Twenty Six and Paisa Eight Three only). The Original Application has been filed through Sh. Surinder Kumar Bhatia, Principal 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 was already availing KCC Limit of Rs.10.00 Lacs and had approached the applicant

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bank for its enhancement to Rs.20.00 Lacs vide Loan application dated 17.02.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs and further enhanced it to Rs.20.00 Lacs vide Sanction Letter dated 17.02.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 18K-11M situated at Village Dhudianwal, Tehsil and District Kapurthala, Punjab vide Registered Mortgage Deed bearing vasika no. 4314 dated 21.02.2014 along with it English Translation, which are Annexures A5 & A5-T to this OA.

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Documents executed: - Hypothecation Agreement dated 04.03.2014, which is Annexure A4 to this OA; Balance and Security Confirmation Letter dated 23.07.2013, 20.12.2016 and 05.12.2019 which is Annexure A6 to this OA; Demand Notices dated 17.09.2018, 16.02.2019, 01.06.2019 and 25.10.2019 with its translation which is Annexure A7 to this OA; Renewal Notices dated 16.02.2019 and 30.01.2020 with their translations, which is Annexure A8 to this OA; Legal Notice dated 23.01.2020 with postal receipt, which is Annexure A9 to this OA and Statement of and Calculation Sheet along with Certificate under Bankers Book Evidence dated 11.07.2022, which are Annexures A10 & A11 to this OA.

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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.35,53,826.83p, 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. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 25.07.2024.

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In support of the OA, affidavit of Sh. Surinder Kumar Bhatia, Principal 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 (through Video

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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 A11 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.35,53,826.83p (Rupees Thirty Five Lacs Fifty Three Thousand Eight Hundred Twenty Six and Paisa Eight Three 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 in relief clause has claimed interest @8.75%p.a. plus penal interest @2.00%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 just and appropriate to grant uniform simple interest @8.00%p.a. in

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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.35,53,826.83p (Rupees Thirty Five Lacs Fifty Three Thousand Eight Hundred Twenty Six and Paisa Eight Three only), 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 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 26.09.2024.

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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: 03.09.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Gurcharan Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Gurcharan Singh

Case brief

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