Allowed

Punjab National Bank v. Narinder Singh

DRT25 Sept 2024OA/258/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Punjab National Bank for recovery of Rs. 42,81,460.75 from a defaulting defendant. The Tribunal granted a recovery certificate and fixed simple interest at 8% p.a. instead of the claimed higher rate.

What did the court decide?

Recovery of Rs. 42,81,460.75 with costs and simple interest @08.00%p.a.; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.258/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.01.2024

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DATE OF DECISION: 25.09.2024

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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 at Machhiwara, District Ludhiana, through General Power of Attorney Holder, Sh. Ravinder Kumar, Senior Manager and Constituted Attorney presently posted at Circle Sastra Centre, Ludhiana.

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……..Applicant

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Versus

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Sh. Narinder Singh, S/o Sh. Arjan Singh, R/o Village Gonsgarh, Tehsil Samrala, Distt. Ludhiana.

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….……Defendant

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Advocates:

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Argued by Ms. Priya, Advocate proxy for Ms. Puja Sharma, 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.42,81,460.75p (Rupees Forty Two Lacs Eighty One Thousand Four Hundred Sixty And Paise Seventy Five Only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC of Rs.30.00 Lacs vide Loan Application dated 02.12.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC of Rs.30.00 Lacs vide Sanction Letter dated 02.12.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property total land measuring 32 Kanal 18 Marla situated at Village Gonsgarh, Hadbast No.268, Sub Tehsil Machhiwara, Tehsil Samrala, District Ludhiana vide Registered Mortgage Deed bearing Vasika No.1451 dated 04.12.2013, with its translation, which is Annexure A5 to this OA. Documents executed:- Gazette Notification dated 04.03.2020, which is Annexure A/1A to this OA Agreement for Hypothecation dated 05.12.2013, which is Annexure A4 to this OA; Balance and Security Confirmation Letters dated 25.04.2016, 18.06.2018 and 24.03.2021, which are Annexures A6 to A8 to this OA; Legal Notice dated 09.01.2024, which is Annexure A9 to this OA and Statements of account with certificate, 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.42,81,460.75, 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 21.08.2024. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned proxy 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 facility which was granted to them and for that they 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 defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.42,81,460.75 (Rupees Forty Two Lacs Eighty One Thousand Four Hundred Sixty And Paise Seventy Five Only) along with interest from the defendant, 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 @10.50%p.a. plus penal interest @2.00%p.a. with half yearly rests from 07.12.2023 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 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of

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Rs.42,81,460.75 (Rupees Forty Two Lacs Eighty One Thousand Four Hundred Sixty And Paise Seventy Five Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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.

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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

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Tribunal on 17.10.2024.

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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.

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Dated: 25.09.2024.

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

Punjab National Bank v. Narinder Singh

Case brief

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Punjab National Bank v. Narinder Singh

Case brief

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