Allowed

Punjab and Sind Bank v. J P Juice and Fruit Shop and Others

DRT12 Mar 2024OA/1860/2022

Case brief

AI extract

What is this about?

The court, hearing an original application ex-parte, allowed the bank's claim for recovery of Rs. 71,04,532.86 towards loans granted to the respondents. The court granted a uniform simple interest rate of 8.70% p.a. and directed the issuance of a recovery certificate.

What did the court decide?

Order allowed declaring respondents liable for total sum of Rs. 71,04,532.86 with simple interest @ 8.70% p.a.; directed to issue Recovery Certificate.

Punjab and Sind Bank versus J P Juice and Fruit Shop and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1860/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.07.2022

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DATE OF DECISION: 12.03.2024

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Punjab and Sind Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No.40 of 1980, having its Head Office at 21, Bank House, Rajindera Place, New Delhi and having amongst other branches, one at Model Town, Ludhiana, Punjab, through Ms. Jyoti Bhagat, General Attorney and Principal Officer of the bank

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……..Applicant

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Versus

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J.P. Juice and Fruit Shop, Shop No.137, Gole Market, Model Town, Ludhiana, Punjab, 141001 through its proprietor, Sh. Gurwinder Singh

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Also at : - Shop No.101, Karabara Road, New Sabzi Mandi, Ludhiana, Punjab

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Sh. Gurwinder Singh S/o Sh. Parwinder Singh R/o 178, Model Gram, Model Town, Ludhiana, Punjab

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Smt. Ranjit Kaur W/o Sh. Parwinder Singh R/o 178, Model Gram, Model Town, Near Malwa School, Ludhiana, Punjab

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Smt. Sehajpreet Kaur W/o Sh. Gurwinder Singh R/o 178, Model Gram, Model Town, Near Malwa School, Ludhiana, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Arpit Chawla, Advocate proxy for Sh. Rajan Chawla, 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

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Institutions Act, 1993, against the defendants for recovery of Rs.71,04,532.86p (Rupees Seventy One Lacs Four Thousand Five Hundred Thirty Two and Eighty Six Paisa Only). The Original Application has been filed through Ms. Jyoti Bhagat, General Attorney o f the applicant bank, who is competent to institute the Original 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 defendant No.1 through its proprietor defendant no.2 had approached the applicant bank for the grant of Overdraft Limit of Rs.18.00 Lacs and Term Loan of Rs.50.00 Lacs vide Loan applications, which are Annexures A2 and A22 to this OA.

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The applicant Bank sanctioned the Overdraft Limit of Rs.18.00 Lacs and Term Loan of Rs.50.00 Lacs vide Sanction Letters dated 09.02.2021 and 09.06.2021, which are Annexures A3 and A23 to this OA; and the terms and conditions were duly accepted by the defendants.

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Defendant no.3 had mortgaged her immovable properties i.e. Shop measuring 49.50 Sq. Yards, bearing M.C. No. B-18-1068 and B- 18, 1068/2 situated at Model Town, Gole Market, Ludhiana vide Sale Deed No.6483 dated 05.06.1997 and Sale Deed No.2283 dated 24.05.1983 along with the translations, which are Annexures A19, A19/T, A20 and A20/T to this OA.

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Documents executed:- Demand Promissory Note 14(R), Form No.106- Letter of Waiver, Form No.199- Undertaking, Form No. 103/291/412, Addendum to the loan agreement, Form No.112, Form No.126, Form No.159, Form No.216, Form No.200 revised clause pertaining to rate of interest, Cash credit (Hypothecation) & book debts facility agreement, Deed of Hypothecation, Overdraft limit agreement, Certificate of execution of documents and Guarantee Deed all dated 09.02.2021, which are Annexures A4 to A18 to this OA; Memorandum of deposit of title deed dated 09.02.2021, which is Annexure A21 to this OA; Demand promissory note 14(R), Form No.106- Letter of Waiver, Form

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No.199- Undertaking, Form No. 103/291/412, Loan Agreement along with Addendum to Term loan, Form No.216, Form No.200- revised clause pertaining to rate of interest, Deed of Hypothecation and Certificate of execution of documents, all dated 09.06.2021, which are Annexures A24 to A32 to this OA; Notices along with postal receipts, which is Annexure A33 (colly) to this OA and Statement of account as per Banker’s Book Evidence act, which are Annexures A34 and A35 to this OA.

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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.71,04,532.86p, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 13.02.2024.

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In support of the OA, affidavit of Ms. Jyoti Bhagat, General Attorney, Punjab and Sind Bank has 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 unrebuted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A35 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, 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.71,04,532.86p (Rupees Seventy One Lacs Four Thousand Five Hundred Thirty Two and Eighty Six Paisa

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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 @9.15%p.a. with monthly rests in Overdraft limit account and @8.70%p.a. with monthly rests in Term loan from 01.06.2022 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 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 @8.70%p.a. in both the loan accounts till realization of the amounts 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.71,04,532.86p (Rupees Seventy One Lacs Four Thousand Five Hundred Thirty Two and Eighty Six Paisa Only) jointly and severally, with costs, current and future simple interest @8.70%p.a. in both the loan accounts from till the date of realization of the amounts. 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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12.	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 19.03.2024.

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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.

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Dated: 12.03.2024

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

Punjab and Sind Bank v. J P Juice and Fruit Shop and Others

Case brief

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Punjab and Sind Bank v. J P Juice and Fruit Shop and Others

Case brief

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