Allowed

Punjab National Bank v. Darshan Kumar and Others

DRT7 Oct 2024OA/1859/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application under the RDBFI Act for recovery of Rs. 36.76 Lacs from borrowers for a defaulted term loan. The Tribunal reduced the claimed interest to 8% p.a. and directed recovery from personal assets since the mortgaged vehicle was clogged with IBC proceedings.

What did the court decide?

Recovery of Rs.36,76,697.76 with 8% simple interest from personal assets of respondents; Issue of Recovery Certificate.

Punjab National Bank versus Darshan Kumar and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1859/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.07.2022

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DATE OF DECISION: 07.10.2024.

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Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its head office at Plot No.4, Sector-10, Dwarka, New Delhi-10075 and amongst others a branch at Sector 70, Mohali, through Sh. Ravi Kumar, Chief Manager and Attorney holder posted at Circle SASTRA Centre, Circle Office, SCO 43,2^nd Floor, Phase-2, Sector 54, SAS Nagar, Mohali160055.

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……..Applicant

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Versus

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1. Sh. Darshan Kumar son of Sh. Lekh Ram, Proprietor M/s Poswal Enterprises, resident of Village Rood Jaman, PO Tarsooh, Tehsil Naina Devi, District Bilaspur, Himachal Pradesh 174201.

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Also At: Village Waknaghat Bahra, near JP University, Tehsil Kandaghat District Solan, HP-173234. 2. Sh. Vijay Kumar son of Sh. Lekh Ram, resident of Village Rood Jaman, PO Tarsooh, Tehsil Naina Devi, District Bilaspur, Himachal Pradesh 174201.

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1. Sh. Bhagat Ram son of Sh. Ghanya Ram, resident of Village Rood Jaman, PO Tarsooh, Tehsil Naina Devi, District Bilaspur, Himachal Pradesh 174201. ….……Defendants

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1. M/s SREI Equipment Finance Limited, Branch Office SCO No.130131, First Floor, Sector 34 A, Chandigarh and having its Head Office at Vishwakarma 86 C, Topsia Road (South), Kolkata 700 046 through its Resolution Professional/Administrator Sh. Rajneesh Sharma Plot No.Y-10, Block EP Sector V, Salt Lake City Kolkata 700 091. Performa Defendant

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Advocates: Argued by Sh. Rajnish K. Jindal, Advocate for the applicant (Through VC) Defendant nos.1 to 3 are ex-parte None for defendant no.4

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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.36,76,697.76p (Rupees Thirty Six Lacs Seventy Six Thousand Six Hundred Ninety Seven and Seventy Six Paise only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant and defendant no.4(Performa defendant) for the grant of Term Loan of Rs.47.00 Lacs for purchase of vehicle (Hydraulic Excavator) vide Loan application dated 01.12.2019, which is Annexure A3 to this OA. 3. The applicant bank and defendant no.4 (Performa defendant) sanctioned the Term Loan in a joint venture of Rs.47.00 Lacs (37.60 Lacs by Applicant and 9.40 lacs by defendant no.4 (Performa defendant)) for purchase of vehicle (Hydraulic Excavator) vide Sanction Letter dated 03.01.2020, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged movable properties/vehicle i.e. TATA Hitachi Hydraulic Excavator, Model EX210LC Super Plus with GP Bucket, Machine Serial No.SP21-61127, Item Code SP21-0001 The above mentioned movable assets is hypothecated to defendant no.4(Performa defendant) vide Tax Invoice, which is Annexure A6 to this OA.

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Documents executed:- Amalgamation/Gazette Notification which is Annexure A2 to this OA; Letter dated 09.01.2020 and 14.01.2020, which are Annexures A5 and A7 to this OA; Margin Money Receipt dated 01.01.2020, which is Annexure A8 to this OA; Hypothecation Agreement and DP Note both dated 10.01.2020, which are Annexures A9 & A10 to this OA; Photographs of the vehicle purchased from banks finance which is Annexure A11 to this OA; Notices both dated 21.04.2021 and 11.07.2022, which are Annexures A12 & A13 to this OA and Statement of Account along with Certificate which is Annexure A14 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.36,76,697.76p, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendant Nos. 1 to 3 and they were proceeded ex-parte on 12.09.2024. Defendant No.4 is a Performa defendant and was impleaded as defendant only to complete the sequence of events and proceedings of this OA. Because of proceeding under the IB Code have been initiated against defendant no.4, was ordered to be kept in abeyance on 12.09.2024.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned counsel through video conferencing 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 A14 to this OA, it is proved that the defendant Nos. 1 to 3 approached applicant and defendant no.4 (Performa defendant) for availing of the loan facility which was granted

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to them and for that they had executed all the relevant documents in favour of the applicant and defendant no.4 (Performa defendant). The defendant Nos. 1 to 3 failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant Nos. 1 to 3 was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,76,697.76p (Rupees Thirty Six Lacs Seventy Six Thousand Six Hundred Ninety Seven and Seventy Six Paise only) along with interest from the defendant nos.1 to 3, 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 in relief clause has claimed interest @10.02%p.a. plus penal interest @2%p.a. with monthly rests from 01.07.2022 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 defendant nos.1 to 3, 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 nos.1 to 3 are liable to pay to the applicant a total sum of Rs.36,76,697.76p (Rupees Thirty Six Lacs Seventy Six Thousand Six Hundred Ninety Seven and Seventy Six Paise only) from defendant Nos. 1 to 3, jointly and severally, with costs, current and future simple

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interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount.

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Since the movable assets is hypothecated to defendant no.4 (Performa defendant) and same is under IB Code, the asset cannot be sold by applicant. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of personal assets of the defendant nos.1 to 3. 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 22.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendant nos.1 to 3 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: 07.10.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Darshan Kumar and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Darshan Kumar and Others

Case brief

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