Allowed

Punjab National Bank v. Messrs v K International and Another

DRT24 Sept 2024OA/199/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Punjab National Bank against M/s VK International and Smt. Shama Kapoor for recovery of Rs.34,21,410.36p. The Tribunal decreed payment jointly and severally with 8% annual simple interest and directed the issuance of a Recovery Certificate. The application was granted ex-parte as defendants did not appear.

What did the court decide?

Recovery Certificate issued; defendants liable to pay Rs.34,21,410.36p with 8% simple interest; amount recoverable from sale of mortgaged/hypothecated properties.

Punjab National Bank versus Messrs v K International and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.199/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.01.2022

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DATE OF DECISION: 24.09.2024

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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 Offices, amongst others at Branch Office at Shimlapuri, Ludhiana, Punjab through its General Power of Attorney Holder, Sh. Vishnu Gupta, Senior Manager of the Applicant Bank

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……..Applicant

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Versus

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M/s VK International, a Proprietorship firm with principal business place at Focal Point Extension Road, Jugiana Railway Crossing, VPO Gobindgarh, Ludhiana, Punjab through its proprietor Smt. Shama Kapoor S/o Late Shri Harish Kapoor

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Smt. Shama Kapoor S/o Late Shri Harish Kapoor R/o House No. 7673, Street No. 5, New Guru Angad Dev Colony Shimlapuri Near Prince Studio Ludhiana, Punjab being the Proprietor of M/s Rissala Organics

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….……Defendants

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Advocates:

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Argued by Sh. Pancham Sharma, 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.34,21,410.36p (Rupees Thirty Four Lacs Twenty One Thousand Four Hundred Ten and Thirty Six Paisa Only). The Original Application has been filed through Sh. Vishnu Gupta, Senior Manager o f the applicant, who is competent to institute the Original Application vide

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General Power of Attorney dated 24.05.2006, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant for the grant of CC Limit of Rs.25.00 Lacs and Term Loan of Rs.5.00 Lacs vide Loan applications dated 19.05.2017, which is Annexure A2 to this OA. 3. The applicant sanctioned the CC Limit of Rs.25.00 Lacs and Term Loan of Rs.5.00 Lacs vide Sanction Letter dated 13.06.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.2 had mortgaged his immovable properties i.e. total Plot measuring 292 Sq. yards situated at Village Dhandari Khurd, H.B.No.242, Tehsil and District Ludhiana vide Equitable Mortgage Sale Deed bearing V asika No.366 dated 07.05.2015, with its translation, which is Annexure A8 to this OA. Documents executed:- Pronote, Agreement for Loan, Hypothecation of assets to secure Term Loan, Agreement of Guarantee all dated 13.06.2017, which are Annexures A4 to A7 to this OA; Balance and Security confirmation Letter dated 05.03.2019,which is Annexure A9 to this OA; Notice 13(2) of SARFAESI Act dated 10.08.2021 with postal receipts , which is Annexure A10 to this OA and statement of account with certificate dated 30.11.2021, which are Annexures A11 to A12 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.34,21,410.36 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. 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 08.08.2024.

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

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.34,21,410.36p (Rupees Thirty Four Lacs Twenty One Thousand Four Hundred Ten and Thirty 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 @11.45%p.a. in both accounts with monthly rests from 01.11.2021 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 @8.00%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.

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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.34,21,410.36 (Rupees Thirty Four Lacs Twenty One Thousand Four Hundred Ten and Thirty Six Paisa 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 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. 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 16.10.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 24.09.2024.

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

Punjab National Bank v. Messrs v K International and Another

Case brief

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Punjab National Bank v. Messrs v K International and Another

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