Allowed

Punjab National Bank, v. Sh. Nek Singh and Others

DRT16 Jan 2024OA/3/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's origin application for recovery of Rs.30,40,245. The Tribunal ordered uniform simple interest at 8.50% p.a., declared the defendants liable to pay jointly and severally, and instructed issuance of a recovery certificate for enforcement under the SARFAESI Act.

What did the court decide?

Recovery of Rs.30,40,245 with interest at 8.50% p.a., along with costs, issue of Recovery Certificate, and liberty to enforce via sale of properties.

Punjab National Bank, versus Sh. Nek Singh and Others — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.03/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.12.2021

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DATE OF DECISION: 16.01.2024

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Punjab National Bank, a body corporate, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and one of the Branch at Retail Asset Branch, Partap Road, Moga, Punjab, through its Authorized Officer and General Attorney, Sh. Sandeep Kumar, Senior Manager, Circle Sastra, 4^th Floor, Darshan Singh Complex, G.T. Road, Moga-142001

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……..Applicant Versus

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Sh. Nek Singh S/o Sh. Atma Singh, R/o Village Khosa Kotla, P.O. Khosa Randhir, Tehsil Dharamkot, Moga, Punjab (Borrower)

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Sh. Buta Singh S/o Sh. Atma Singh, R/o Village Khosa Kotla, P.O. Khosa Randhir, Tehsil Dharamkot, Moga, Punjab (Borrower)

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Sh. Baljinder Singh S/o Sh. Buta Singh, R/o Village Khosa Kotla, P.O. Khosa Randhir, Tehsil Dharamkot, Moga, Punjab (Guarantor)

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………Defendants

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Advocates:

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Argued by Sh. Sumeet Sehgal, Advocate proxy for Sh. J.S. Sehgal, counsel 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.30,40,245.00 (Rupees Thirty Lacs Forty Thousand Two Hundred and Forty Five only). The Original Application has been filed through

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Sh. Sandeep Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos.1 and 2 had approached the applicant bank for the grant of Housing Loan of Rs.40.00 Lacs vide Loan Application dated 27.07.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Housing Loan of Rs.35.00 Lacs vide Sanction Letter dated 17.08.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 and 2 had mortgaged their immovable property i.e. Plot/Land measuring 04K-03M situated at Village Khosa Kotla, Tehsil Dharamkot, District Moga, Punjab vide Registered Mortgage Deed bearing Vasika No.2682 dated 17.08.2011 and copy of Lien dated 18.08.2011; along with their translations, which are Annexures A9 to A12 to this OA.

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Documents executed: - Agreement of housing loan and Agreement of guarantee both dated 23.08.2011, which are Annexures A4 and A5

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to this OA; Balance and security confirmation letters dated 11.06.2014, 31.05.2017 and 13.05.2020, which are Annexures A6 to A8 to this OA and Statement of account along with the certificate, which is Annexure A13 to this OA.

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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.30,40,245.00, 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 21.07.2023.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed. 8. 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 A13 to this OA, it is proved that the defendants approached applicant bank 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 bank. 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 bank is entitled to recover a sum of Rs.30,40,245.00 (Rupees Thirty Lacs Forty Thousand Two Hundred and Forty Five 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 bank in relief clause has claimed interest @8.50%p.a. along with @2.00%p.a. penal interest from 19.11.2021 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.50%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.30,40,245.00 (Rupees Thirty Lacs Forty Thousand Two Hundred and Forty Five only) jointly and severally, with costs, current and future simple interest @8.50%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 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 05.02.2024. 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. Pronounced by me in the Open Tribunal. Dated: 16.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Sh. Nek Singh and Others

Case brief

What is this about?

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Punjab National Bank, v. Sh. Nek Singh and Others

Case brief

What is this about?

What did the court decide?

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