Allowed

Punjab National Bank v. Sh. Karnail Singh

DRT9 Aug 2024OA/1765/2022

Case brief

AI extract

What is this about?

In this ex-parte application under Section 19 of the RDBFI Act, 1993, the Debts Recovery Tribunal allowed the Punjab National Bank's claim for recovery of Rs. 81,36,051.00 from the borrowers. The Tribunal directed the grant of uniform simple interest at 8% p.a. from the filing date via the sale of mortgaged properties.

What did the court decide?

Recovery of Rs. 81,36,051.00 with costs and simple interest @ 8% p.a. from the filing date; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1765/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.09.2022

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DATE OF DECISION: 09.08.2024 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 at SBS Nagar, Ludhiana through General Power of Attorney Holder, Sh. Vineet Dhingra, Branch Manager and Constituted Attorney.

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……..Applicant Versus 1. Sh. Karnail Singh S/o Sh. Pal Singh, R/o VPO Halwara, Tehsil Raikot, District Ludhiana (Borrower/Mortgagor) 2. Sh. Sukhwinder Singh S/o Sh. Karnail Singh, Resident of VPO, Halwara, Tehsil Raikot, District Ludhiana (Co- Borrower) ….……Defendants Advocates: Argued by Ms. Ashmita Goel, Advocate proxy for Ms. Puja Sharma, Advocate for Applicant Defendants are ex-parte FINAL ORDER 1. 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.81,36,051.00 (Rupees Eighty One Lakhs Thirty Six Thousand Fifty One Only). The Original Application has been filed through Sh. Vineet Dhingra, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.12.2005 which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 & 2 had approached the applicant bank for the grant of KCC Limit of Rs.30.00 Lacs vide Loan Application dated 06.10.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.30.00 Lacs vide Sanction Letter dated 06.10.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 38Kanal-9-1/2Marla situated at Village Halwara1, H.B.No.95, Tehsil Raikot, District Ludhiana vide Registered Mortgage Deed bearing Vasika No.3619 dated 02.11.2011 along with its translation, which are Annexure A6 & A6T to this OA. Documents executed:- Id Proof of Defendants in FILE3, which is Annexure A3 to this OA; Hypothecation Agreement dated 12.11.2011, which is Annexure A5 to this OA; Balance and Security confirmation Letter dated 17.09.2014, which is Annexure A7 to this OA; Legal Notice dated 27.10.2014, 05.01.2015 and 05.08.2022 with postal receipts, which are Annexures A8 to A10 to this OA; Statement of account with certificate, which is Annexure A11 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.81,36,051.00 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 10.07.2024. 7. In support of the OA, affidavit of Sh. Vineet Dhingra, Branch Manager, 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 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 A11 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.81,36,051.00 (Rupees Eighty One Lakhs Thirty Six Thousand Fifty One Only) along with interest from the defendants, jointly and severally, 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 [email protected]%p.a. plus penal interest @2.00%p.a. with half yearly rests from 04.08.2022 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 @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 defendants are liable to pay to the applicant a total sum of

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Rs.81,36,051.00 (Rupees Eighty One Lakhs Thirty Six Thousand Fifty One Only) jointly and severally, 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 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 02.09.2024

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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. Pronounced by me in the open Tribunal . Dated: 09.08.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Karnail Singh

Case brief

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Punjab National Bank v. Sh. Karnail Singh

Case brief

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