Allowed

Punjab National Bank v. Noori and Another

DRT8 Oct 2024OA/2034/2022

Case brief

AI extract

What is this about?

DRT allowed an OA filed by Punjab National Bank under Section 19 RDBFI Act against two borrowers for recovery of Rs. 26,73,317.99p. The Tribunal ordered a simple interest rate of 8% p.a. and directed recovery through sale of mortgaged properties under the SARFAESI Act.

What did the court decide?

Recovery certificate to be issued; Defendants jointly and severally liable to pay Rs. 26,73,317.99p plus costs and 8% p.a. simple interest.

Punjab National Bank versus Noori and Another — Arbitration | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2034/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.09.2022

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DATE OF DECISION: 08.10.2024

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Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi 110075 and amongst others a branch at GT Road Khanna through Sh. Amit Thind, Deputy Manager and Attorney holder presently posted at Circle SASTRA Centre Ludhiana.

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……..Applicant

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Versus

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Smt. Noori W/o Sh. Mukand Khan R/o Village Rurki PO Machhrai Kalan near Government Senior Secondary School, District Fatehgarh Sahib

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Sh. Mukand Khan S/o Sh. Savgati Khan, R/o village Rurki PO Machhrai Kalan near Government Senior Secondary School, District Fatehgarh Sahib

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….……Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant (through VC) 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.26,73,317.99p (Rupees Twenty Six Lacs Seventy Three Thousand Three Hundred Seventeen and Paisa Ninety Nine only). The Original Application has been filed through Sh. Amit Thind, Deputy Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 28.03.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Overdraft Limit of Rs.24.50 Lacs vide Loan application, which is Annexure A2 to this OA.

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The applicant sanctioned the Overdraft Limit of Rs.24.50 Lacs vide Sanction Letter dated 17.02.2018 filed vide diary no.15929 dated 05.10.2024 and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged their immovable properties i.e. immovable land and building measuring 0B-15B situated at Village Majri Mishriwali, Tehsil Gobindgarh, District Fatehgarh Sahib (Punjab) vide Registered Sale Deed bearing v asika No.423 dated 0 7.07.2015 along with its Translations, which is Annexure A5 to this OA. Documents executed:- Overdraft Agreement, Agreement of Guarantee both dated 17.02.2018, which are Annexures A3 & A4 to this OA; Letter of Deposit of Title Deed dated 16.02.2018, which is Annexure A6 to this OA; Valuation Report dated 05.05.2021, which is Annexure A7 to this OA; Balance and Security Confirmation Letter dated 05.01.2021, which is Annexure A8 to this OA; Notice u/s 13(2) dated 10.12.2019 along with postal Receipts, which is Annexure A9 to this OA and Statement of Account duly certified, which is Annexure A10 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.26,73,317.99p, 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.

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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 10.11.2023. 7. In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager, Punjab National Bank h as been filed. 8. Heard arguments and perused record.

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It was argued by learned counsel through Video

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Conferencing 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 A10 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.26,73,317.99p (Rupees Twenty Six Lacs Seventy Three Thousand Three Hundred Seventeen and Paisa Ninety Nine 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 @9.80%p.a. plus penal interest @2%p.a. with monthly rests from 01.09.2022 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 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.

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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.26,73,317.99p (Rupees Twenty Six Lacs Seventy Three Thousand

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Three Hundred Seventeen and Paisa Ninety Nine 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 23.10.2024.

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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 . Dated: 08.10.2024

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

Punjab National Bank v. Noori and Another

Case brief

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Punjab National Bank v. Noori and Another

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