Allowed

Punjab National Bank v. Sh. Amandeep Singh and Another

DRT15 May 2024OA/1695/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal, Chandigarh, allowed the bank's original application filed under Section 19 of the RDBFI Act, 1993. The court directed the prosecution of ex-parte respondents to pay the outstanding loan amount along with adjusted simple interest and ordered the issuance of a Recovery Certificate.

What did the court decide?

To pay Rs.26,18,318.36 with interest @8% p.a.; to issue Recovery Certificate.

Punjab National Bank versus Sh. Amandeep Singh and… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1695/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.08.2022

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DATE OF DECISION: 15.05.2024

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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 and having one of its branches at Punjab National Bank, VPO Mallah, District Ludhiana, Punjab through its General Power of Attorney holder, Sh. Mahesh Kumar, Senior Manager, Punjab National Bank, VPO Mallah, District Ludhiana, Punjab who is duly Authorized and Principal Officer of the applicant bank

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……..Applicant

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Versus

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Sh. Amandeep Singh S/o Sh. Boota Singh, R/o Village Machhike, Tehsil Nihal Singh Wala, District Moga, Punjab

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(Borrower and Mortgagor)

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Sh. Kuljeet Singh S/o Sh. Harbans Singh, R/o Village Machhike, Tehsil Nihal Singh Wala, District Moga, Punjab (Guarantor)

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………Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.26,18,318.36p (Rupees Twenty Six Lacs Eighteen Thousand Three Hundred Eighteen and Thirty Six Paisa only). The Original Application

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has been filed through Sh. Mahesh Kumar, Senior Manager , who is competent to institute the Original Application vide Power of Attorney dated 27.07.2016, 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 bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 31.05.2017, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Memorandum of Sanction dated 28.06.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 36 Kanal 11 Marlas detailed as:

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a. Land Measuring 5k-16M situated at Village Patti Diwana, Tehsil Nihal Singh Wala, District Moga, Punjab

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b. Land Measuring 30k-15M situated at Village Machhike, Tehsil Nihal Singh Wala, District Moga, Punjab vide declaration under section 4(1) and Letter to Sub Registrar for creation of Charge bearing mortgage no.147 dated 13.06.2017 along with its translation, which are Annexures A5 and A5-T to this OA. Documents executed: - Simplified Confidential report on Borrower and Guarantor dated 31.05.2017, which is Annexure A4 to this OA; Advocate Report on Title dated 08.06.20217, which is Annexure A6 to this OA; Affidavit by borrower dated 21.06.2017, which is Annexure A7 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Consent(revised), and Deed of Guarantee all dated 28.6.2017, which are Annexures A8 to A10 and A12 to this OA; Letter declaring acceptance of consent clause by the Borrower and Letter declaring acceptance of consent clause by the Guarantor, which are Annexures A11 and A13 to this OA; Balance and security confirmation letters dated 23.04.2020, which is Annexure A14 to this

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OA; Notice by the Advocate regarding Recall of Bank’s dues dated 12.07.2022 with postal receipts, which is Annexure A15 to this OA and Statement of account along with certificate, which is Annexure A16 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.26,18,318.36p, which is recoverable and the defendants were 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 were served notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 20.03.2024.

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In support of the OA, affidavit of Sh. Mahesh Kumar, Senior Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record. 9. 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 A16 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. 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 bank is entitled to recover a sum of Rs.26,18,318.36p (Rupees Twenty Six Lacs Eighteen Thousand Three Hundred Eighteen and Thirty Six Paisa only) along with interest from the defendants, 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 @8.65%p.a. with plus penal interest @2%p.a. half yearly rests from 01.04.2022 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 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.26,18,318.36p (Rupees Twenty Six Lacs Eighteen Thousand Three Hundred Eighteen and Thirty Six Paisa 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 20.05.2024.

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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 .

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Dated: 15.05.2024

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

Punjab National Bank v. Sh. Amandeep Singh and Another

Case brief

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Punjab National Bank v. Sh. Amandeep Singh and Another

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