Allowed

Punjab National Bank v. Gursahib Singh

DRT24 Sept 2024OA/209/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's application for recovery of Rs.36,06,701.11 against the respondent, who failed to repay an agricultural loan. The court decreed uniform simple interest at 8% p.a. and directed the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.36,06,701.11 with 8% p.a. interest; issuance of Recovery Certificate; liberty to enforce claim under SARFAESI Act.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.209/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.02.2023

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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 the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and a Branch amongst others at ADDA Daburji, Post Office Thathi Khara, District Tarn Taran (Punjab) Pin Code 143022 through it’s recovery vertical Circle Sastra Centre, McLeod Road, Amritsar (Punjab) through Sh. Jaswinder Singh Chadha S/o Sh. Tarunbir Singh, Sr. Manager, Principal Officer and duly Constituted Attorney of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Gursahib Singh, S/o Sh. Sukhwinder Singh, R/o H.No.70, Village Pandori Ran Singh, Tehsil & District Tarn Taran (Punjab) 143402.

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….……Defendant

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Advocates: Argued by Sh. Rajesh Gupta, 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 defendants for recovery of Rs.36,06,701.11p (Rupees Thirty Six Lac Six Thousand Seven Hundred One and Paisa Eleven Only). The Original Application has been filed through Sh. Jaswinder Singh Chadha, Senior Manager o f the applicant, who is competent to institute the Original Application vide 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 had approached the applicant for the grant of Credit Facility for Dairy Farming of Rs.21.25 Lacs vide Loan application dated 25.09.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the Credit Facilities Dairy Farming i.e. CC Limit of Rs.5.00 Lacs and Term Loan of Rs.16.25 Lacs vide Sanction Letter dated 25.09.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property total land measuring 15 kanal 07 Marla situated at Village Pandori Ran Singh, Tehsil & District Tarn Taran (Punjab) vide Registered Mortgage Deed bearing vasika no.1436 dated 27.09.2012, with its Translations, which is Annexure A4 to this OA. Documents executed:- Priority Sector Term Loan Agreement, Hypothecation Agreement both dated 21.11.2012, which are Annexures A5 to A6 to this OA; Balance Confirmation Letters dated 03.11.2015, 30.09.2016, 22.04.2018, 13.03.2019 and 15.02.2020, which is Annexure A7 to this OA; Legal Notice dated 16.10.2015, 16.09.2017, which is Annexure A8 to this OA and Statement of accounts with Certificate, which are Annexures A9 to A10 to this OA. 5. 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.36,06,701.11, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 27.08.2024. 7. In support of the OA, affidavit of Sh. Jaswinder Singh Chadha, Senior Manager, Punjab National Bank h as 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 had proved its case. From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were 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, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.36,06,701.11p (Rupees Thirty Six Lac Six Thousand Seven Hundred One and Paisa Eleven 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 @11.50%p.a. with rests from 10.02.2023 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 defendant, 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 @08.00%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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.36,06,701.11p (Rupees Thirty Six Lac Six Thousand Seven Hundred One and Paisa Eleven Only) with costs, current and future simple interest @08.00%p.a. in both the loan accounts from the date of filing

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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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.10.2024.

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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. 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. Gursahib Singh

Case brief

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Punjab National Bank v. Gursahib Singh

Case brief

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