Allowed

Punjab National Bank v. Sh. Hardit Singh

DRT16 Mar 2024OA/170/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application by Punjab National Bank against a borrower for recovery of Rs.24,07,265.33p. The Tribunal adjusted interest rates to a uniform 8.50% p.a. and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs.24,07,265.33p with costs and uniform simple interest @8.50% p.a.; Recovery Certificate issued; Execution permitted under SARFAESI Act or attachment.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.170/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.02.2023

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DATE OF DECISION: 16.03.2024

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Punjab National Bank, a body corporate, constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch office at Sanaur, Tehsil and District Patiala through its constituted attorney and principal officer, Sh. Gurcharan Singh, Officer, presently posted at Circle SASTRA, Centre Patiala

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……..Applicant

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Versus

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Sh. Hardit Singh S/o Sh. Amar Singh R/o Village Sirkapra, Tehsil and District Patiala (Borrower/Mortgagor)

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………Defendant

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Advocates:

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Argued by Sh. Manish Singla, 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.24,07,265.33p (Rupees Twenty Four Lacs Seven Thousand Two Hundred Sixty Five and Thirty Three Paisa only). The Original Application has been filed through Sh. Gurcharan Singh, Officer o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney, 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 grant of KCC Limit of Rs.3.00 Lacs and ATL (Vehicle) of Rs.11.25 Lacs for purchasing a Harvester Combine vide Loan application dated 07.02.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned KCC Limit of Rs.3.00 Lacs and ATL (Vehicle) of Rs.11.25 Lacs vide Sanction Letter dated 14.02.2011; which was submitted in compliance of order dated 13.02.2024 vide diary no.3969 on 13.03.2024, and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged/hypothecated his immovable/movable properties detailed as:

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(i) Mortgage of agricultural land measuring 20 Bigha 00 Biswa situated at Village Sirkapra, Tehsil and District Patiala, Punjab; vide Registered Mortgage deed bearing Vasika No.19195/1910 dated 15.02.2011 along with its translation, which is Annexure A10 to this OA; and

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(ii) Hypothecation of Vehicle i.e. Harvester Combine Make Swaraj 8100; bearing Engine No. LAEM091499, Chassis no. 11A026 and Registration no. PB11AT8578 vide Hypothecation agreement dated 21.02.2011, which is Annexure A3 to this OA.

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Copy of Registration Certificate of the vehicle was submitted in compliance of order dated 13.02.2024 vide diary no.3969 on 13.03.2024. Documents executed:- Letter of undertaking, Letter of consent, Supplementary agreement, Letter (Appendix 1), Letter authorizing bank to debit the saving account of the defendant with the installment, Declaration regarding agricultural land all dated 21.02.2011, which are Annexures A4 to A9 to this OA; Retail invoices/cash receipts dated 21.01.2011, which is Annexure A11 to this OA; Balance confirmation letters dated 10.08.2013, 20.02.2016, 23.05.2016, 06.02.2019, 14.05.2019, 02.02.2022 and 05.05.2022, which are Annexures A12

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to A19 to this OA, Notice dated 02.06.2016, which is Annexure A20 to this OA and Statements of Accounts duly certified, which are Annexures A21 and A22 to this OA.

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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.24,07,265.33p, 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 16.01.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Officer, 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 A22 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant 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.24,07,265.33p (Rupees Twenty Four Lacs Seven Thousand Two Hundred Sixty Five and Thirty Three Paisa only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the accounts.

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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 @8.50%p.a. with half yearly rests in KCC Limit and @11.50%p.a. with monthly rests in Term loan facility along with @2%p.a. penal interest, in both, from 01.10.2022 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 @8.50%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.

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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.24,07,265.33p (Rupees Twenty Four Lacs Seven Thousand Two Hundred Sixty Five and Thirty Three Paisa only), with costs, current and future simple interest @8.50%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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 22.03.2024. 15. 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. Pronounced by me in the open Tribunal. Dated: 16.03.2024

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

Punjab National Bank v. Sh. Hardit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Hardit Singh

Case brief

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