Allowed

Punjab National Bank v. Tirath Singh

DRT20 Sept 2024OA/181/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 22,92,550 to the defendant was proceeded ex-parte. The tribunal allowed the application for recovery, but reduced the interest rate from the claimed 13.50% to 8% per annum.

What did the court decide?

Recovery of Rs. 22,92,550 with costs and simple interest at 8% p.a. from filing date till realization; issue Recovery Certificate.

Punjab National Bank versus Tirath Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.181/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.02.2024

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DATE OF DECISION: 20.09.2024

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Punjab National Bank, a body corporate, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075 and one of the branch at Sherpur Road, Jagraon, District Ludhiana, Punjab and Circle Sastra Centre, Site No. 5, PNB House Ferozepur Road, Near Wave Mall, Ludhiana, Punjab through its Authorized Officer and General Attorney Sh. Naveen Kumar Bansal.

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……..Applicant Versus Sh. Tirath Singh S/o Sh. Bhag Singh, R/o Village Daudhar, Tehsil and District Moga, Punjab-142053

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….……Defendant

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Sumeet Sehgal, Advocate 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,92,550.00 (Rupees Twenty Two Lacs Ninety Two Thousand Five Hundred Fifty only). The Original Application has been filed through Sh. Naveen Kumar Bansal, Authorized Officer o f the applicant, who is competent to institute the Original Application vide Authorization Letter dated 05.12.2005, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.15.00 Lacs vide Loan application dated 28.08.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter and its acceptance dated 28.08.2012, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 22K-12½M situated at Village Daudhar Garbi, Tehsil and District Moga, Punjab vide Registered Mortgage Deed bearing vasika no. 4667 dated 29.08.2012 and Mutation Certificate dated 30.08.2012 along with their English Translation , which are Annexures A7 to A10 to this OA. Documents executed: - Hypothecation Agreement, Letter of Undertaking, Letter of Consent all dated 14.09.2012, which are Annexures A4 to A6 to this OA; Balance and Security Confirmation Letter dated 21.11.2014, 28.12.2016, 24.01.2019 and 08.02.2021, which are Annexures A11 to A14 to this OA; Notice dated 31.07.2021 along with Postal Receipt, which are Annexures A15 & A16 to this OA and Statement of account along with certificate regarding the Computer System and the genuineness of the Statement of Account being prepared through Computer System, which is Annexure A17 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.22, 92,550.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 09.08.2024. 7. In support of the OA, affidavit of Sh. Naveen Kumar Bansal, Authorized Officer, 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 had proved its case. From the perusal of all the Annexures A1 to A17 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,92,550.00 (Rupees Twenty Two Lacs Ninety Two Thousand Five Hundred Fifty only) along with interest from the defendant, 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 in relief clause has claimed interest @11.50%p.a. plus penal interest @2.00%p.a. from 15.09.2023 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 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.22,

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92,550.00 (Rupees Twenty Two Lacs Ninety Two Thousand Five Hundred Fifty 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 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 applicant 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 14.10.2024. 15. Copy of this order be given dasti to the applicant 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 . Dated: 20.09.2024

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

Punjab National Bank v. Tirath Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Tirath Singh

Case brief

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What did the court decide?

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