Allowed

Punjab National Bank v. Sh. Gurnam Singh

DRT16 Jan 2024OA/2119/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan account classified as NPA. It granted uniform simple interest at 9.25% p.a. and ordered joint and several liability against the mortgagor and borrower.

What did the court decide?

Declaration of joint and several liability to pay principal, costs, and simple interest at 9.25% p.a. from the date of filing till realization. Direction to issue Recovery Certificate.

Punjab National Bank versus Sh. Gurnam Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2119/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.11.2022

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DATE OF DECISION: 16.01.2024

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Punjab National Bank, a body corporate, constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch office at Chappar, Patiala, Punjab 147001 through its Constituted Attorney & Principal Officer, Sh. Gurcharan Singh, Senior Manager presently posted at Circle Sastra Centre, Patiala

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(Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant

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Versus

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1. Sh. Gurnam Singh S/o Sh. Kapoor Singh, R/o House No.183, Part 2, Village Chapparh, Tehsil Rajpura, District Patiala (Borrower/Mortgagor)

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Sh. Parminder Singh S/o Sh. Gurnam Singh, R/o House No.183, Part 2, Village Chapparh, Tehsil Rajpura, District Patiala (Borrower)

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….……Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate 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.38,00,504.07p (Rupees Thirty Eight Lacs Five Hundred Four and Seven Paise only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant bank, who is

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competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank (erstwhile Oriental Bank of Commerce) for the grant of Over Draft facility of Rs.25.00 lacs vide Loan application dated 05.03.2011, which is Annexure A3 to this OA. 3. The applicant Bank (erstwhile Oriental Bank of Commerce) sanctioned the Over Draft facility of Rs.25.00 lacs vide Sanction letter dated 30.03.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 49 Bigha 10 Biswasi situated in the Revenue Estate of Village Chappar, Sub-Tehsil Ghanaur, Tehsil Rajpura, District Patiala, Punjab vide Registered Mortgage Deed bearing vasika no.2113 dated 28.03.2011 along with its translation, which is Annexure A8 to this OA.

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Documents executed: - Amalgamation Scheme/Gazette notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement of Hypothecation, Agreement of Overdraft and Common Agreement all dated 30.03.2011, which are Annexures A5 to A7 to this OA; Balance and Security Confirmation Letters dated 28.01.2014, 11.07.2016, 10.09.2018 and 24.12.2019, which are Annexures A9 to A12 to this OA; Notice dated 01.06.2022, which is Annexure A13 to this OA and Statement of Account duly certified (CC), which is Annexure A14 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.38,00,504.07p, 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 20.10.2023.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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 A14 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.38,00,504.07p (Rupees Thirty Eight Lacs Five Hundred Four and Seven Paise 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 @9.25%p.a. along with @2.00%p.a penal interest with half yearly rests from 01.10.2022 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

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just and appropriate to grant uniform simple interest @9.25%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.38,00,504.07p (Rupees Thirty Eight Lacs Five Hundred Four and Seven Paise only) jointly and severally, with costs, current and future simple interest @9.25%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.

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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

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

Punjab National Bank v. Sh. Gurnam Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Gurnam Singh

Case brief

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