Allowed

Punjab National Bank v. Balwant Singh and Others

DRT11 Sept 2024OA/203/2024

Case brief

AI extract

What is this about?

In an original application filed under the RDBFI Act, 1993, the Tribunal found the bank proved its case of loan default. The debt was admissible but the Tribunal modified the interest rate to 8% p.a., directed issuance of a Recovery Certificate, and allowed enforcement through SARFAESI proceedings.

What did the court decide?

Issued Recovery Certificate, declared defendants jointly and severally liable to pay Rs. 22,82,473.28 plus 8% p.a. simple interest, and directed enforcement under SARFAESI Act.

Punjab National Bank versus Balwant Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.203/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.02.2024

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DATE OF DECISION: 11.09.2024

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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 one of its branch at Boparai Kalan, Ludhiana and Circle SASTRA CENTRE, Ludhiana, District Ludhiana (Punjab) through its General Power of Attorney holder Sh. Navin Kumar Bansal, Manager of the applicant Bank presently posted at Circle SASTRA Centre, Ludhiana, District Ludhiana, (Punjab).

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……..Applicant

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Versus

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1. Sh. Balwant Singh (deceased) S/o Sh. Ajaib Singh through his Legal Heir(s):-

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1(i) Smt. Paramjeet kaur Wd/o Sh. Balwant Singh

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1(ii) Smt. Harbhajan Kaur Mother of Sh. Balwant Singh

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1(iii) Sh. Jagjeet Singh S/o Sh. Balwant Singh

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Sh. Ram Singh S/o Sh. Ajaib Singh All residents of Village Raqba, Tehsil Mullanpur, District Ludhiana, Punjab-144033.

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………Defendants

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Advocates:

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Argued by Sh. Aseem Kataria, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,82,473.28p (Rupees Twenty Two Lacs Eighty Two Thousand Four Hundred Seventy Three and Paisa Twenty Eight only). The Original Application has been filed through Sh. Navin Kumar Bansal, Manager who is competent to institute the Original Application vide

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General Power of Attorney dated 05.12.2005, 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 bank for the grant of KCC Limit of Rs.5.00 Lacs and further for its enhancement to Rs.13.00 Lacs, vide Loan Applications dated 26.09.2008 and 14.05.2015, which are Annexures A2 & A7 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.5.00 Lacs and further enhanced it to Rs.13.00 Lacs vide Sanction Letters, which are Annexures A3 & A8 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 (since deceased) & 2 had mortgaged their immovable properties i.e. total land measuring 4B-16B-0B (24K-0M) situated at Village Raqba , Sub Tehsil Mullanpur, Tehsil and District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika no.1123 dated 26.09.2008, Declaration U/s 4(1) and Letter to Sub Registrar for creation of charge bearing vasika no.33 dated 19.05.2015 along Jamabandi for the year 2019-20 along with their Translations, which are Annexures A6, A6T, A11 to A13 to this OA. Documents executed:- Hypothecation Agreement, Undertaking both dated 11.10.2008 and 29.05.2015 which are Annexures A4, A5, A9 & A10 to this OA; Balance and Security Confirmation Letter dated 03.10.2011, 05.10.2013, 12.04.2018 and 11.02.2021, which are Annexures A14 to A17 to this OA; Notice dated 20.01.2024, which is Annexure A18 to this OA and Statement of account with certificate, which is Annexure A19 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.22,82,473.28p, 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 05.08.2024.

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In support of the OA, affidavit of Sh. Navin Kumar Bansal , Manager, Punjab National Bank has been filed. 8. 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 bank had proved its case. From the perusal of all the Annexures A1 to A19 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2 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.22,82,473.28p (Rupees Twenty Two Lacs Eighty Two Thousand Four Hundred Seventy Three and Paisa Twenty Eight 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 bank in relief clause has claimed interest @11.00%p.a. plus Penal Interest @2.00%p.a. with half yearly rests from 01.02.2024 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 @8.00%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.22,82,473.28p (Rupees Twenty Two Lacs Eighty Two Thousand Four Hundred Seventy Three and Paisa Twenty Eight 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 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 07.10.2024. 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.

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Dated: 11.09.2024

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

Punjab National Bank v. Balwant Singh and Others

Case brief

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Punjab National Bank v. Balwant Singh and Others

Case brief

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