Allowed

Punjab National Bank v. Smt. Gurmail Kaur and Another

DRT27 May 2024OA/1968/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank’s original application for recovery of a term loan and KCC limit. The court held the defendants liable to pay the principal amount with uniform simple interest of 8% p.a., authorizing recovery from mortgaged properties under the SARFAESI Act.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 34,18,911 plus costs and 8% simple interest p.a. from filing date to realization; Claim enforceable against mortgaged properties under SARFAES

Punjab National Bank versus Smt. Gurmail Kaur and Another — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1968/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.11.2022

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DATE OF DECISION: 27.05.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on Banking business and having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and one of the Branch Office, amongst others at Tripuri Patiala District Patiala (Punjab)-147001, through its constituted attorney & Principal Officer Sh. Gurcharan Singh, Senior Manager.

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……..Applicant

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Versus

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Smt. Gurmail Kaur W/o Late Sh. Bant Singh, R/o Village Hassanpur Prohtan, Near Gugga Mari, Opposite Avtar Dharam Kanda Sirhind Road, Tehsil & District Patiala, Punjab-147001.

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Sh. Jaimal Singh S/o Late Sh. Bant Singh, R/o Village Hassanpur Prohtan, Near Gugga Mari, Opposite Avtar Dharam Kanda Sirhind Road, Tehsil & District Patiala, Punjab-147001.

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….……Defendants

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Advocates:

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Argued by Ms. Anuradha Gupta, 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 Rs34,18,911.00 (Rupees Thirty Four Lacs Eighteen Thousand Nine Hundred and Eleven only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power 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 defendants had approached the applicant bank for the grant of Term Loan I (ODDS) of

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Rs.1.00 Lacs, Term Loan II (ODDS) of Rs. 1.00 Lacs and KCC Limit of Rs.20.00 Lacs vide Loan application dated 08.12.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Term Loan I (ODDS) of Rs.1.00 Lacs, Term Loan II (ODDS) of Rs.1.00 Lacs and KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 20.11.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Later Term Loam II(OODS) got fully adjusted by defendant no.2 on 13.05.2019.

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Defendants had mortgaged their immovable property i.e. land measuring 8 Bigha-8 Biswa situated at Village Hasanpur Prohatan, Tehsil & District Patiala, Punjab vide Declaration under amended section 4A Sub Section (1) (2) and Section 4B along with Letter to sub registrar bearing mutation no. 589-A both dated 21.11.2014, NEC and Jamabandi for the year 2012-2013 along with their English Translation, which are Annexures A8, A8T, A9 & A9T to this OA.

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Documents executed:- Hypothecation Agreement, Supplementary Agreement, Letter of Undertaking, Letter of Consent, Property Declaration Form all dated 26.11.2014, which are Annexures A4 to A7 & A10 to this OA; Letter of intimation dated 30.11.2015, which is Annexure A11 to this OA; Balance and Security Confirmation Letter dated 21.11.2017 and 10.02.2020, which are Annexures A12 to A15 to this OA; Legal Notice dated 05.09.2022 with postal receipts, which are Annexures A16 and A17 to this OA and Statement of Accounts along with certificate dated 11.10.2022, which are Annexure A18 & A19 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 both the loan accounts there was a debit of Rs.34,18,911.00, 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.

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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 28.03.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned 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 A19 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 Rs34,18,911.00 (Rupees Thirty Four Lacs Eighteen Thousand Nine Hundred and Eleven only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @12.25% in Term Loan and @10.75% in KCC Loan plus penal interest @2%p.a. in both the accounts with yearly rests from 03.10.2022 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

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just and appropriate to grant uniform simple interest @8.00%p.a. in both the loan accounts 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 Rs34,18,911.00 (Rupees Thirty Four Lacs Eighteen Thousand Nine Hundred and Eleven only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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. 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 11.06.2024. 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.

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Pronounced by me in the open Tribunal . Dated: 27.05.2024

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

Punjab National Bank v. Smt. Gurmail Kaur and Another

Case brief

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Punjab National Bank v. Smt. Gurmail Kaur and Another

Case brief

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