Allowed

Punjab National Bank v. Raj Kumar

DRT29 Aug 2024OA/26/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank against Raj Kumar for recovery of an NPAs amounting to Rs.24,07,773.25p. The Tribunal confirmed liability and prescribed an 8% simple interest rate, authorizing execution via SARFAESI or attachment of assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.24,07,773.25p with 8% simple interest; Recovery via SARFAESI or attachment of assets if dues unsatisfied.

Punjab National Bank versus Raj Kumar — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.26/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.08.2023

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DATE OF DECISION: 29.08.2024

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Punjab National Bank, a body corporate, constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi, carrying on business of banking and its branches at different places throughout India, including one at Branch Office Balachaur, Tehsil Balachaur, District S.B.S. Nagar (Nawanshahr) through Sh. Baljit Kumar, Deputy Manager and duly constituted attorney of Circle Sastra, Punjab National Bank, Kapurthala.

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……..Applicant Versus Sh. Raj Kumar S/o Sh. Prem Chand R/o VPO Takarla, Tehsil Balachaur, District Nawanshahr, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. V.K. Diwan, Advocate for the applicant Defendant is already 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 defendant for recovery of Rs.24,07,773.25p (Rupees Twenty Four Lacs Seven Thousand Seven Hundred And Seventy Three and Twenty Five Paise Only). The Original Application has been filed through Sh. Baljit Kumar, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2020, 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 bank for the grant of OGC Limit of Rs.14.64 Lacs vide

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Loan application dated 19.12.2024, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.10.00 Lacs for the 1^st year and to be enhanced Rs.14.64 Lacs for the 5^th year vide Sanction Letter dated 22.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 14K-06M situated at Village Takarla/388, Tehsil Balachaur, District Nawanshahr, Punjab vide Declaration U/s 4(1) dated 31.12.2014 along with Receipt Challan issued by Sub-registrar Balachaur dated 24.12.2014 and Non-Encumbrance Certificate dated 23.12.20014 and Jamabandi for the Year 2009-2010 along with their translations, which are Annexures A5, A6, A7 & A8 to this OA. Documents executed:- Hypothecation Agreement dated 08.01.2015, which is Annexure A4 to this OA; Balance & Security Confirmation Letters dated 18.12.2017 & 05.08.2020, which are Annexures A9 & A10 to this OA; Statement of Account, which is Annexure A11 to this OA and Statement of accrued interest with certificate dated 31.07.2023, which is Annexure A12 to this OA. 5. The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.24,07,773.25p, which is recoverable and the defendant was 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. 6. The defendant was served notices to appear before this Tribunal. Defendant appeared through his counsel and filed Memo of Appearance on 10.05.2024 but did not filed power of attorney. Since no one appeared on behalf of defendant, he was proceeded ex-parte on 22.07.2024. 7. In support of the OA, affidavit of Sh. Baljit Kumar, Deputy Manager, Punjab National Bank has been filed.

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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 A12 to this OA, it is proved that the defendant approached applicant bank 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 bank. The defendant failed to pay back the loans 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 bank is entitled to recover a sum of Rs.24,07,773.25p (Rupees Twenty Four Lacs Seven Thousand Seven Hundred And Seventy Three and Twenty Five Paise 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 bank in relief clause has claimed [email protected]%p.a. with half yearly rests from 26.07.2023 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 @8.00%p.a. in both 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 defendant is liable to pay to the applicant a total sum of Rs.24,07,773.25p (Rupees Twenty Four Lacs Seven Thousand Seven Hundred And Seventy Three and Twenty Five Paise 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 bank 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 bank 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.

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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 21.09.2024.

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Copy of this order be given dasti to the applicant bank 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: 29.08.2024

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

Punjab National Bank v. Raj Kumar

Case brief

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Punjab National Bank v. Raj Kumar

Case brief

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What did the court decide?

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