Allowed

Punjab and Sind Bank v. Namisha Khanna and Others

DRT20 Aug 2024OA/1854/2022

Case brief

AI extract

What is this about?

A Debt Recovery Tribunal allowed an application by Punjab & Sind Bank for recovery of Rs. 88.61 Lakhs against defaulting borrowers. The tribunal validated the NPA classification and modified the bank's claim, reducing interest from the claimed rate to 8% per annum until realization.

What did the court decide?

Recovery Certificate issued; Defendants directed to pay Rs. 88,61,707.28 p with future simple interest at 8% p.a. Execution via sale of mortgaged properties.

Punjab and Sind Bank versus Namisha Khanna and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1854/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.08.2022

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DATE OF DECISION: 20.08.2024

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Punjab & Sind Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 having its Head Office at Bank House, 21, Rajendra Place, New Delhi and having amongst other branches a branch at Model Town, Ludhiana, through Ms. Jyoti Bhagat, Chief Manager and duly constituted and authorized signatory.

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……..Applicant

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Versus

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Ms. Namisha Khanna D/o Sh. Sumit Kumar Khanna R/o H.No.B-19- 323, Dr. Sham Singh Road, Civil Lines, Ludhiana-141001(Borrower)

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Sh. Satish Kumar alias Sh. Satish Khanna S/o Sain Ditta, R/o H.No.322/1, Dr. Sham Singh Road, Civil Lines, Ludhiana-141001

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Smt. Madhu Khanna W/o Sh. Satish Khanna, R/o H.No.322/1, Near Bhuri Wala Mandir, Dr. Sham Singh Road, Civil Lines, Ludhiana- 141001

(Co-Borrowers)

….……Defendants

Advocates:

Argued by Ms. Neha Arora, Advocate proxy for Sh. APS Pathania, 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 Rs.88,61,707.28p (Rupees Eighty Eight Lacs Sixty One Thousand Seven Hundred Seven and Twenty Eight Paise only). The Original Application has been filed through Ms. Jyoti Bhagat, Chief Manager o f the applicant bank, who is competent to institute the Original

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Application vide General Power of Attorney dated 28.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Term Loan (Mortgage Loan) of Rs.80.00 Lacs vide application dated 08.03.2021, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Term Loan (Mortgage Loan) of Rs.80.00 Lacs vide Sanction Letter dated 24.03.2021, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged his immovable properties i.e. Property Measuring 240 Sq. Yards MC No.B-19-98-A situated at Taraf Gehlewal, Mall Road, Civil Lines Tehsil & District Ludhiana vide Equitable Mortgage of Sale Deed bearing vasika No.21190 dated 06.03.2006 and Jamabandi for the year 2008-09 along with their translations, which are Annexures A14 to A14T & Annexure A14/1 to A14/1T to this OA.

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Documents executed:- Certificate of execution of documents, Form No.15(R):DP Note, Form No.103/291/412, Form-199-Undertaking by the borrower and Co-borrower, Form No. 200- Revised clauses pertaining to rate of interest, Form No.216-Letter of Declaration, Form No.84-A-Document of deposit of title deeds, Undertaking by the borrower/Defendant No.1, Form No.A2- Term Loan Agreement, Addendum to the Loan Agreement all dated 24.03.2021, which are Annexures A4 to A13 to this OA; Notice u/s 13(2) of SARFAESI Act 2002 dated 01.03.2022 with postal receipts, which is Annexure A15 to this OA; Statement of account along with Certificate under section 65-B of the Indian Evidence Act, which are Annexures A16 to A17 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.88,61,707.28p, which is recoverable and the defendants

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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.

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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 15.07.2024.

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In support of the OA, affidavit of Ms. Jyoti Bhagat, Chief Manager, Punjab and Sind Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A17 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.88,61,707.28p (Rupees Eighty Eight Lacs Sixty One Thousand Seven Hundred Seven and Twenty Eight Paise 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 interest @9.95%p.a. plus Penal interest @2%p.a. with monthly rest 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.88,61,707.28p (Rupees Eighty Eight Lacs Sixty One Thousand Seven Hundred Seven and Twenty Eight Paise 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.09.2024. 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. Pronounced by me in the open Tribunal . Dated: 20.08.2024

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

Punjab and Sind Bank v. Namisha Khanna and Others

Case brief

What is this about?

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Punjab and Sind Bank v. Namisha Khanna and Others

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