Allowed

Punjab National Bank v. Messrs Prem Marble and Building Material and Others

DRT7 Sept 2024OA/18/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 23.52 Lakhs with a uniform simple interest rate of 8% per annum, despite the bank claiming higher rates, and instructed the issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 23,52,133.28 with simple interest at 8% per annum; issuance of Recovery Certificate.

Punjab National Bank versus Messrs Prem Marble and Building… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.18/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.09.2023

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DATE OF DECISION: 07.09.2024

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Punjab National Bank, a body corporate, constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and its Branch offices throughout India including Branch office at Punjab National Bank, Branch Dirba, Tehsil Patran, DistrictSangrur, Punjab-147105 through its General Power of Attorney, Sh. Gurcharan Singh, Senior Manager, Punjab National Bank, Circle Sastra Centre, Second Floor, Opposite Improvement Trust building, Choti Baradari Patiala and District Patiala, Punjab-147001.

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… …..Applicant

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Versus

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M/S Prem Marble and Building Material Through Proprietor Sh. Harmesh Kumar R/O Patran Road Dirba, District Sangrur-148035

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Sh. Harmesh Kumar S/O Amar Nath (Proprietor-M/S Prem Marble and Building Material) R/o Victoria Enclave Ward No.4, Dirba District Sangrur-148035

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(Defendants/Borrower)

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Smt. Santosh Rani W/O Sh. Harmesh Kumar R/O Victoria Enclave Ward No.4, Dirba District Sangrur-148035

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(Defendants/Guarantor)

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Advocates:

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Argued by Sh. Lovish, Advocate proxy for Sh. Neeraj Madan, 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

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Rs.23,52,133.28 (Rupees Twenty Three Lacs Fifty Two Thousand One Hundred Thirty Three And Paise Twenty Eight Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its proprietor defendant no.2 had approached the applicant bank for grant of CC Limit of Rs.10.00 Lacs vide Loan application dated 01.12.2012, which is Annexure A2 to this OA and Later for enhancement of C.C. Limit of Rs.10.00 Lacs to Rs.20.00 Lacs vide loan application dated 13.01.2015, which is Annexure A7 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.10.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and Later applicant bank sanctioned the Enhancement of CC Limit to Rs.15.00 Lacs vide Appraisal Format Cum Sanction Letter dated 13.01.2015, which is Annexure A8 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 property i.e. land measuring 5Marla (150 Sq. yards) situated in Revenue Estate of Village Dirba, Tehsil Sunam, District Sangrur vide Equitable Mortgage of Sale Deed bearing V asika No.668 dated 2 2.06.2011 along with its Translation, which are Annexures A16 & A-16A to this OA. Documents executed:- Hypothecation of Goods and Books Debts, Agreement of Guarantee & Consent Clause all dated 10.12.2012, which are Annexures A4 to A6 to this OA; Hypothecation of Goods and Books Debts, Agreement of Guarantee & Consent Clause all dated 13.01.2015, which are Annexures A9 to A11 to this OA; Renewal of CC Limit under PNB LABHU UDYAMI Credit Card Scheme, Draft of Supplementary Agreement, Letter of Undertaking & Consent Clause from Guarantor all dated 31.03.2016, which are Annexures A12 to

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A15 to this OA; Copy of Affidavits dated 29.11.2012 & 29.12.2014, which is Annexures A17 to this OA; Balance & Security Confirmation Letter dated 09.12.2015, 01.01.2018 & 29.09.2020, which are Annexures A18 to A20 to this OA; Notice U/s 13(2) & 13(4) both dated 02.11.2020 & 09.02.2021, which are Annexures A21 & A22 to this OA and Statement of Account, which is Annexure A23 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.23,52,133.28 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. Defendant no.2 appeared through his counsel and filed Memo of Appearance on 06.04.2024 but did not filed Power of Attorney. Since no one appeared on behalf of defendants, they were proceeded ex-parte on 30.07.2024.

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

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Heard 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 A23 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 loans 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.23,52,133.28

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(Rupees Twenty Three Lacs Fifty Two Thousand One Hundred Thirty Three And Paise Twenty Eight 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. along with penal interest @2%p.a. with half yearly rests from 31.08.2023 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 @8.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,52,133.28 (Rupees Twenty Three Lacs Fifty Two Thousand One Hundred Thirty Three And Paise Twenty Eight Only) jointly and severally, with costs, current and future simple interest @8.00%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 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

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of the defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.10.2024 15. 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: 07.09.2024

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

Punjab National Bank v. Messrs Prem Marble and Building Material and Others

Case brief

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Punjab National Bank v. Messrs Prem Marble and Building Material and Others

Case brief

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