Allowed

Punjab National Bank v. Sh. Gurdeep Singh

DRT16 Aug 2024OA/1906/2022

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Punjab National Bank for recovery of dues from a defaulting borrower. The court modified the claimed interest rate and issued a Recovery Certificate, authorizing recovery from mortgaged properties.

What did the court decide?

Recovery of Rs. 25,60,199.00 with costs and 8% p.a. simple interest ordered; Recovery Certificate issued for realization from mortgaged properties.

Punjab National Bank versus Sh. Gurdeep Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1906/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.11.2022

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DATE OF DECISION: 16.08.2024

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Punjab National Bank, a body corporate and a Nationalized Bank, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act V of 1970 having its Head Office at Plot No. 4, Sector-10, Dwarka, Delhi-110075, and one of the branch office, amongst others, Patiala Circle Sastra Centre, 2^nd Floor, Opposite Improvement Trust Building, Chotti Barandari, Patiala, Punjab-147101, through its Constituted Attorney Sh. Gurcharan Singh, Senior Manager.

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……..Applicant

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Versus

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Sh. Gurdeep Singh S/o Sh. Nazar Singh R/o Village Devi Nagar, Post Office Karhali, Tehsil and District Patiala, Punjab-147101

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….……Defendant

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Advocates:

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Argued by Sh. S.C. Prajaparti, Advocate proxy for Sh. R.K. Bansal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.25,60,199.00 (Rupees Twenty Five Lacs Sixty Thousand One Hundred Ninety Nine only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Poer of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 08.09.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs Lacs vide Sanction Letter dated 29.09.2015, 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-0M situated at Village Devi Nagar, Hadbast No. 174, Tehsil and District Patiala, Punjab vide Letter to Sub Registrar for creation of charge bearing vasika no.1823 and Declaration u/s 4(1) both dated 05.10.2015 along with its English Translation, which are Annexures A8 & A9 to this OA. Documents executed:- Hypothecation Agreement, Letter of Understanding, Letter of Consent, Supplemental Agreement all dated 14.10.2015, which are Annexures A4 to A7 to this OA; Balance and Security Confirmation dated 09.10.2018 and 01.10.2021, which are Annexures A10 & A11 to this OA; Legal Notice dated 06.09.2019 with postal receipt, which is Annexure A12 to this OA and Statement of account along with Memorandum of Interest and certificate, which are Annexures A13 & A14 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.25,60,199.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank 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 02.07.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed.

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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 A14 to this OA, it is proved that the defendant approached applicant bank 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 bank. 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 bank is entitled to recover a sum of Rs.25,60,199.00 (Rupees Twenty Five Lacs Sixty Thousand One Hundred Ninety Nine 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 bank in relief clause has claimed interest @10.30%p.a. with yearly rests from 07.11.2022 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, 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.25,60,199.00 (Rupees Twenty Five Lacs Sixty Thousand One Hundred Ninety Nine 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 bank 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 bank 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.09.2024.

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Copy of this order be given dasti to the applicant bank 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: 16.08.2024

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

Punjab National Bank v. Sh. Gurdeep Singh

Case brief

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Punjab National Bank v. Sh. Gurdeep Singh

Case brief

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