Allowed

Punjab National Bank v. Charankaur and Another

DRT14 Oct 2024OA/1958/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh allowed the applicant bank's original application for recovery of an NPA loan of Rs.23.87 Lakhs. Since respondents were ex-parte, the award allowed recovery from mortgaged and personal assets, setting simple interest at 8% per annum.

What did the court decide?

Recovery of Rs.23,87,226.00 plus simple interest at 8% p.a. from the date of filing OA till realization, enforceable via sale of mortgaged property or attachment of personal assets.

Punjab National Bank versus Charankaur and Another — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1958/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.09.2022

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DATE OF DECISION: 14.10.2024

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The 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 branch office at Ludhiana (Punjab) through its General Power of Attorney holder Sh. Diljit Singh, Senior Manager of the applicant bank.

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……..Applicant Versus

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Smt. Charan Kaur W/o Sh. Santokh Singh through legal heir Sh. Virsa Singh S/o Sh. Santokh Singh

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Sh. Virsa Singh S/o Sh. Santokh Singh

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both are residents of village Patti Multani, Tehsil Jagraon, Distirct Ludhiana, Punjab.

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………Defendants

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Advocates:

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Present Ms. Ashmita Goel, Advocate proxy for Sh. Amirt Singh Kang, 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.23,87,226.00 (Rupees Twenty Three Lacs Eighty Seven Thousand Two Hundred and Twenty Six only). The Original Application has been filed through Sh. Diljit Singh , Senior Manager 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 (since deceased) and defendant no.2 had approached the applicant for the

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grant of Cash Credit Limit of Rs.18.00 Lacs vide Loan Application Form dated 29.11.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.18.00 Lacs and vide Sanction Letter dated 29.11.2012, which are Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant no.1 (since deceased) and defendant no.2. 4. Defendants No.1 (since deceased) and defendant no.2 had mortgaged their immovable properties i.e. total land measuring 34K16M detailed as:-

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a) Land measuring 10K-18M owned by defendant No.1 and b) Land measuring 23K-18M owned by defendant No.2 situated at Village Patti Multani, Hadbast No. 37, Tehsil Jagroan, District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing vasika No.1335 dated 0 4.12.2012 along with its Translations, which is Annexure A5 to this OA. Documents executed:- Deed of Hypothecation dated 06.12.2012, which is Annexure A4 to this OA; Balance Confirmation Letter dated 04.05.2015, 30.11.2017, 13.05.2019 and 12.05.2022, which is Annexure A6 to this OA; Legal Notice dated 02.06.2022 with postal receipt, which is Annexure A7 to this OA and Statement of account with certificate, which is Annexure A8 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.23,87,226.00, 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 07.10.2024. 7. In support of the OA, affidavit of Sh. Diljit Singh , Senior Manager, Punjab National Bank Limited has been filed.

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Learned proxy counsel present has not advanced any

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arguments. Perused record.

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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 A8 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2 approached applicant 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 applicant. 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 is entitled to recover a sum Rs.23,87,226.00 (Rupees Twenty Three Lacs Eighty Seven Thousand Two Hundred and Twenty Six only) along with interest from the present 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 in relief clause has claimed interest @10.50%p.a. from 01.08.2022 till the realization. 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 @8.00%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.23,87,226.00 (Rupees Twenty Three Lacs Eighty Seven Thousand

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Two Hundred and Twenty Six 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 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 applicant 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 24.10.2024.

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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: 14.10.2024

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

Punjab National Bank v. Charankaur and Another

Case brief

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Punjab National Bank v. Charankaur and Another

Case brief

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