Allowed

Punjab National Bank v. M/s Sun king Industries and Others

DRT6 Jun 2024OA/1747/2022

Case brief

AI extract

What is this about?

Front bench tribunal allowed an Original Application filed by Punjab National Bank for recovery of Rs.64,65,921.07p from a proprietorship firm and its guarantor through ex-parte proceedings, modifying the claimed interest rate to 7.65p.a.

What did the court decide?

Recovery of Rs.64,65,921.07p with current and future simple interest @7.65p.a.; Issuance of Recovery Certificate; Liberty to enforce claim against mortgaged and personal assets.

Punjab National Bank versus M/s Sun king Industries and Others — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1747/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.09.2022

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DATE OF DECISION: 06.06.2024

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Punjab National Bank (Erstwhile known as United Bank of India), a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and successor of United Bank of India by scheme of Amalgamation of United Bank of India/ Union Bank of India, passed by the Central Government under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, and amongst others one of its Branch Hambran Road, Ludhiana, Punjab through Smt. Jasmeet Kaur, Manager, BO: Hambran Road, Ludhiana of the Applicant Bank.

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……..Applicant

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Versus

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M/s Sun king Industries, a Proprietorship firm with principal business place at Plot No. 15, Street No. 4 ½ , New Madhopuri, Ludhiana, Punjab through its Proprietor Shri Abhishek Jain S/o Sh. Rajinder Kumar having its PAN No. AIGPJ2224F.

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II-Address: #4689, Street No. 14, Durgapuri Haibowal Kalan Ludhiana, Punjab.

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(Proprietorship Concern)

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Sh. Abhishek Jain S/o Sh. Rajinder Kumar Jain R/o House No. 4689, Street No. 14, Muhalla Durgapuri, Haibowal Kalan, District Ludhiana, Punjab.

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II-Address : #1106-D, Tagore Nagar, Ludhiana, Punjab.

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(Proprietorship –Borrower-Guarantor)

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Smt. Neelu Jain W/o Shri Rajinder Kumar Jain R/o H.No. 4689, Street No. 14, Muhalla Durgapuri, Haibowal Kalan, District Ludhiana.

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(Guarantor–Mortgagor-Hypothecator)

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….……Defendants

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Advocates:

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Argued by Sh. Himanshu Sharma, Advocate for the applicant (through VC) 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.64,65,921.07p (Rupees Sixty Four Lacs Sixty Five Thousand Nine Hundred Twenty One and Paisa Seven only). The Original Application has been filed through Smt. Jasmeet Kaur, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.02.2019, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendant no.1 through its proprietor i.e. defendant Nos.2 approached the applicant bank for the grant of Cash Credit limit of Rs.35.00 Lacs vide Loan application dated 30.10.2010, which is Annexure A3 to this OA and further for its enhancement to Rs.55.00 Lacs and again approached the bank for grant of WCTL (GECL 1.0 Extension) of Rs.5.50 Lacs vide Loan application dated 03.02.2022, which are Annexures A8 to this OA. 3. The applicant Bank sanctioned the Cash Credit limit of Rs.35.00 Lacs vide Sanction Letter dated 30.10.2010, which is Annexure A4 to this OA and later enhanced to Rs.55.00 Lacs vide Sanction Letter 16.05.2012, which is Annexure A5 to this OA and thereafter sanctioned WCTL (GECL 1.0 Extension) of Rs.5.50 Lacs vide Sanction

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Letter dated 14.02.2022, which is Annexure A9 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.3 had mortgaged his immovable properties i.e. total land measuring 133Sq. Yards situated at Village Haibowal Kalan, Hadbast No. 102, Abadi Durga Puri, Tehsil and District Ludhiana, Punjab v ide Equitable mortgage of Sale Deed bearing vasika no.8993 dated 29.10.2010 along with its translation, which is Annexure A10 to this OA.

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Documents executed:- Valuation Report dated 08.08.2019, which is Annexure A1 to this OA; Agreement of Guarantee dated 16.05.2012, which is Annexure A6 to this OA; Request Letter dated 06.04.2016, which is Annexure A7 to this OA; Balance and Security Confirmation Letter dated 17.02.2014, 07.03.2019 and 21.07.2021 which is Annexure A11 to this OA; Recall Notice dated 11.08.2021, which is Annexure A12 to this OA and Statement of Account along with Certificate of banker’s book evidence Act dated 12.08.2022, which are Annexures A13 and A14 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 both the loan accounts there was a debit of Rs.64,65,921.07p, 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. 6. 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 08.04.2024. 7. In support of the OA, affidavit of Smt. Jasmeet Kaur, Manager, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through Video Conferencing that in view of the documentary evidence brought on

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record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A14 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 loan 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.64,65,921.07p (Rupees Sixty Four Lacs Sixty Five Thousand Nine Hundred Twenty One and Paisa Seven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both 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 @12.00%p.a. in CC Limit and @7.65%p.a. in WCTL (GECL 1.0 Extension) with monthly rest in both the accounts from 01.08.2022 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 defendants, 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 @7.65%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 defendants are liable to pay to the applicant a total sum of

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Rs.64,65,921.07p (Rupees Sixty Four Lacs Sixty Five Thousand Nine Hundred Twenty One and Paisa Seven only) jointly and severally, with costs, current and future simple interest @7.65%p.a. in the both 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 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.

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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 21.06.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 06.06.2024

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

Punjab National Bank v. M/s Sun king Industries and Others

Case brief

What is this about?

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Punjab National Bank v. M/s Sun king Industries and Others

Case brief

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What did the court decide?

What the court decided

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