Allowed

Punjab National Bank v. Gursewak Singh and Others

DRT27 Sept 2024OA/1824/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an Original Application filed by Punjab National Bank against four defendants for recovery of a defaulted loan. The Tribunal granted a uniform simple interest rate of 8% p.a., reduced from the bank's claim, and ordered recovery from mortgaged or personal assets.

What did the court decide?

Ordered recovery of Rs. 28,92,809.13 with uniform simple interest at 8% p.a. from the date of filing OA till realization, enforceable via sale of hypothecated or personal assets. Recovery Certificate

Punjab National Bank versus Gursewak Singh and… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1824/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.08.2022

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DATE OF DECISION: 27.09.2024

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Punjab National Bank, a body corporate constituted 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 a branch amongst at Sadar Bazar, Ferozepur Cantt through its General Power of Attorney holder, Sh. Sandeep Kumar, Senior Manager, Punjab National Bank, Circle Office, Partap Singh Road, Moga.

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……..Applicant Bank

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Versus

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Sh. Gursewak Singh S/o Late Sh. Jaswant Singh, H.No.47, Village Jhok Tehal Singh, District Ferozepur.

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Sh. Davinder Singh S/o Late Sh. Jaswant Singh, H.No.47, Village Jhok Tehal Singh, District Ferozepur.

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Smt. Surjit Kaur W/o Late Sh. Jaswant Singh, H.No.47, Village Jhok Tehal Singh, District Ferozepur.

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Sh. Kulwant Singh S/o Sh. Gurmukh Singh R/o Village Jhok Tehal Singh, District Ferozepur.

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………. Defendants

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Advocates:

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Argued by Ms. Puja Sharma, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.28,92,809.13p (Rupees Twenty Eight Lacs Ninety Two Thousand Eight Hundred Nine And Paise Thirteen Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager o f the

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applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 to 3 had approached the applicant for grant of OGC Limit of Rs.16,10,510.00 and Term Loan of Rs.4.00 Lacs vide Loan Application dated 04.02.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned OGC Limit of Rs.11.00 for the 1^st year and to be enhanced upto Rs.16,10,510.00 and Term Loan of Rs.4.00 Lacs vide Sanction Letter dated 10.02.2015, which is Annexure A3 to this OA. 4. Defendant Nos.1 to 3 had mortgaged their immovable properties i.e. total land measuring 34K-06M situated Village Jhok Tehal Singh, District Ferozepur vide Declaration under Section 4(1) of Punjab Agricultural Credit Operation and Miscellaneous Provisions Act 1978 bearing a long with its translation and letter to the Sub-Registrar for creation of charge both dated 2 0.02.2015, which are Annexures A8 & A9 to this OA. Documents executed:-Voter identity proof of defendant no.1, which is Annexure A4 to this OA; Hypothecation Agreement, Agreement of Term Loan & Agreement of Guarantee all dated 23.02.2015, which are Annexures A5 to A7 to this OA; Balance & Security Confirmation Letters dated 23.05.2017, which is Annexure A10 to this OA; Recall Notice dated 05.08.2022 with postal receipts, which is Annexure A11 to this OA and Statement of Accounts along with Certificate, which are Annexures A12 & A13 to this OA. 5. 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.28,92,809.13p which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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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 09.09.2024.

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In support of the OA, affidavit of Sh. Sh. Sandeep Kumar, Senior Manager, Punjab National Bank. h as been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 is entitled to recover a sum of Rs.28,92,809.13p (Rupees Twenty Eight Lacs Ninety Two Thousand Eight Hundred Nine And Paise Thirteen Only) along with interest from the defendants, jointly and severally, 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 in relief clause has claimed interest @10.75%p.a. for OGC Limit and @11.70%p.a. for Term Loan along with penal interest @2%p.a. with half yearly rests from 01.04.2022 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 loans and prevalent market rates of interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in 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 Rs.28,92,809.13p (Rupees Twenty Eight Lacs Ninety Two Thousand Eight Hundred Nine And Paise Thirteen Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan accounts 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 defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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 19.10.2024.

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Copy of this order be given dasti to the applicant 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: 27.09.2024

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

Punjab National Bank v. Gursewak Singh and Others

Case brief

What is this about?

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Punjab National Bank v. Gursewak Singh and Others

Case brief

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