Allowed

Punjab National Bank v. Yadwinder Singh

DRT27 Sept 2024OA/208/2024

Case brief

AI extract

What is this about?

The DR T allowed the applicant's money recovery application filed ex parte against a defendant who defaulted on a secured loan. The Tribunal reduced the claimed interest rate from 13.5% to 8% per annum and directed issuance of a recovery certificate.

What did the court decide?

Recovery certificate issued. Defendant liable to pay principal plus simple interest at 8% p.a. from OA filing date realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.208/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.01.2024

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DATE OF DECISION: 27.09.2024

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Punjab National Bank, a body corporate and nationalized Bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at Plot No. 4, Sector10, Dwarka, New Delhi-110075 and amongst other a Branch Office at Banga Road Mahallon, Nawanshahr District S.B.S. Nagar (Punjab) through its Constituted Attorney and Senior Manager Sh. Ankur Rawat son of Sh. K S Rawat posted at Punjab National Bank Circle Sastra Kapurthala

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……..Applicant Versus

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Yadwinder Singh S/o Jagdev Singh, R/o Village Manewal, P.O. Macchiwara, Tehsil Samrala, District Ludhiana.

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….……Defendant

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Advocates:

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Argued by Sh. Kanwar Harbir Singh Bath, Advocate for the applicant Defendant is 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 defendant for recovery of Rs.34,83,067.00 (Rupees Thirty Four Lakh Eighty Three Thousand and Sixty Seven Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager, o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A2 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.15 Lacs vide Loan Application dated 19.02.2013, which is Annexure A4 to this OA.

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The applicant sanctioned the KCC limit of Rs. 15.00 lacs vide Sanction Letter dated 19.02.2013, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant had mortgaged his immovable properties i.e. land measuring 24 Kanals situated at Village Mallewal/374, Tehsil Balachaur, District S.B.S Nagar Punjab vide Registered Mortgaged Deed No. 4980 dated 19.02.2013 with its translation, which is Annexure A7 to this OA.

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Documents executed:- Latest Collector rates, which is Annexure A1 to this OA; Amalgamation notification dated 04.03.2020, which is Annexure A3 to this OA; Hypothecation Agreement dated 28.02.2013, which is Annexure A6 to this OA; Balance and Security Confirmation Letter dated 18.02.2016, 06.02.2019 & 01.01.2022, which are Annexures A8 to A10 to this OA; Recall Notice dated 13.09.2022 with postal receipt, which is Annexure A11 to this OA; Loan Account Statement along with Certificate of Banker’s Book of Evidence Act, which is Annexure A12 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.34,83,067.00, which is recoverable and the defendant 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendants and he was proceeded ex-parte on 20.08.2024. 7. In support of the OA, affidavit of Sh. Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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the applicant had proved its case. From the perusal of all the Annexures A1 to A12 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant 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.34,83,067.00 (Rupees Thirty Four Lakh Eighty Three Thousand and Sixty Seven Only) along with interest from the defendant, 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 @13.50%p.a. (including penal interest @2%) with half yearly rest from 18.05.2023 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.34,83,067.00 (Rupees Thirty Four Lakh Eighty Three Thousand and Sixty Seven Only) with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the

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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 defendant 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 defendant. 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 19.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 27.09.2024

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

Punjab National Bank v. Yadwinder Singh

Case brief

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Punjab National Bank v. Yadwinder Singh

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