Allowed

Punjab National Bank v. Messrs Sohan Singh and Sons and Others

DRT27 Dec 2024OA/1972/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application under S.19 RDBFI Act by Punjab National Bank for recovery of Rs.39.11 lakhs from defendants who defaulted on an OD loan secured by mortgaged shop properties, ordering uniform simple interest at 8% p.a.

What did the court decide?

Recovery of Rs.39,11,542.86 plus costs and simple interest at 8% p.a. from filing date; Recovery Certificate to be issued.

Punjab National Bank versus Messrs Sohan Singh and… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1972/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.10.2022

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DATE OF DECISION: 27.12.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head office at Plot No. 4, Sector-10, Dwarka, New Delhi 110075 and a Branch amongst at Sherpur Road, Jagraon through General Power of Attorney Holder Sh. Hari Om Sharma, Senior Manager and Constituted Attorney.

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……..Applicant

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Versus

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M/s Sohan Singh and Sons is a partnership Firm, Situated at Shop No.10, Opp. Sanjeevni Hospital, New Grain Market, Jagraon, Distt. Ludhiana through its partners Sh. Daljit Singh, Sh. Balpreet Singh and Sh. Pawanpreet Singh.

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Sh. Daljit Singh S/o Sh. Sohan Singh, Partner R/o H No.1757/17AB, 6-R, Heera Bagh, Jagroan, Distt. Ludhiana Alternate Address : Shop No.10, Opp. Sanjeevni Hospital, New Grain Market, Jagraon, Distt. Ludhiana

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Sh. Balpreet Singh S/o Sh. Daljit Singh, Partner R/o H. No.1757/17AB, 6-R, Heera Bagh, Jagroan, Distt. Ludhiana

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Sh. Pawanpreet Singh S/o Sh. Daljit Singh, Partner R/o H. No.1757/17AB, 6-R, Hira Bagh, Jagroan, Distt. Ludhiana

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.……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for applicant Defendant 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

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Institutions Act, 1993, against the defendant for recovery of Rs.39,11,542.86p (Rupees Thirty Nine Lacs Eleven Thousand Five

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Hundred Forty Two and Eighty Six Paisa Only). The Original Application has been filed through Sh. Hari Om Sharma, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.05.2019, 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 for the grant of OD Limit of Rs.30.00 Lacs vide Loan application, which is Annexure A3 to this OA. 3. The applicant sanctioned the OD Limit of Rs.10.00 Lacs vide Sanction Letter dated 06.08.2018 filed in compliance of the order dated 07.11.2024 vide diary no.19805 dated 18.12.2024 and the terms and conditions were duly accepted by the defendant. 4. Defendant no.3 had mortgaged his immovable properties i.e. Commercial Shop no.10 measuring 278 Sq. Yards Situated at New Grain Market, Jagraon, District Ludhiana, Punjab vide Equitable Mortgage of Sale deed bearing vasika no. 2125 dated 25.10.2017 and Gift Deed bearing vasika no.3693 dated 18.03.2016 along with their Translations, which are Annexures A9 and A10 to this OA. Documents executed: Partnership Deed dated 01.04.2018, which is Annexure A2 to this OA; Partnership Letter dated 06.08.2018, which is Annexure A2A to this OA; Undertaking, which is Annexure A4 to this OA; Agreement of Overdraft, Agreements of Guarantee, Affidavit/Undertaking and Common Agreement all dated 06.08.2018, which are Annexures A5, A6, A7, A8, A13 and A14 to this OA; Letter Confirming deposit of Title Deed and CERSAI Letter both dated 07.08.2018, which are Annexures A11 and A15 to this OA; Affidavit dated 26.07.2018, which is Annexure A12 to this OA; Balance and Security Confirmation Letter dated 04.08.2021, which is Annexure A16 to this OA; Account Statement with certificate, which is Annexure A17 to this OA and Notice U/s 13(2) f SARFAESI Act dated 05.02.2022 with postal receipt, which is Annexure A18 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

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debit of Rs.39,11,542.86p, which is recoverable and the defendant was served recall notice but he 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 30.10.2024. Thereafter an IA no.1775/2024 was filed by defendants for setting aside ex-parte order dated 30.10.2024 and the same was dismissed on 07.11.2024.

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In support of the OA, affidavit of Sh. Hari Om Sharma, Senior Manage, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy counsel 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 A18 to this OA, it is proved that the defendants 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 of Rs.39,11,542.86p (Rupees Thirty Nine Lacs Eleven Thousand Five Hundred Forty Two and Eighty Six Paisa 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 in relief clause has claimed interest @10.10%p.a. plus penal interest @02.00%p.a. with monthly rests from 01.08.2022 till the realization.

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The Tribunal is of the considered opinion that sometimes in

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appropriate cases the prerogative of mercy is the brightest jewel in the

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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 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 defendants are liable to pay to the applicant a total sum of Rs.39,11,542.86p (Rupees Thirty Nine Lacs Eleven Thousand Five Hundred Forty Two and Eighty Six Paisa 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

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Tribunal on 18.02.2025.

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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: 27.12.2024

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

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Punjab National Bank v. Messrs Sohan Singh and Sons and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Sohan Singh and Sons and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

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