Allowed

Punjab National Bank v. Sucha Singh and Another

DRT21 Oct 2024OA/270/2024

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed the bank's original application for recovery of Rs.30.19 Lakhs due from borrowers of a KCC loan. The court granted relief at 8% p.a. simple interest, ordering the recovery certificate issuance and directing attachment of assets if dues remain unsatisfied.

What did the court decide?

Recovery certificate issued; respondents liable to pay Rs.30,19,666.93 plus current and future simple interest at 08% p.a. from OA filing date till realization, recoverable from sale of mortgaged or p

Punjab National Bank versus Sucha Singh and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.270/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.11.2023

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DATE OF DECISION: 21.10.2024

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Punjab National Bank, a body corporate and nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and amongst others a branch at Khadur Sahib, District Tarn Taran, Punjab through Sh. Jaswinder Singh Chadha, Senior Manager and Attorney holder posted at Circle Sastra Amritsar.

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……..Applicant Bank Versus

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1. Sh. Sucha Singh son of Sh. Ajaib Singh since deceased survived

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by following legal heirs:-

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(i) Sh. Malkit Singh, son (also arrayed as defendant no.2 being borrower) Residents of House No.18, Village Sanghar Kalan Khadur Sahib, District Tarn Taran.

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Sh. Malkit Singh Son of Sh. Sucha Singh Residents of House

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No.18, Village Sanghar Kalan Khadur Sahib, District Tarn Taran

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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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,19,666.93p (Rupees Thirty Lacs Nineteen Thousand Six Hundred Sixty Six And Paise Ninety Three Only). The Original Application has been filed through Sh. Jaswinder Singh Chadha, Senior Manager o f the

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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(since deceased) and defendant no.2 had approached the applicant for grant of KCC Limit of Rs.17.00 Lacs vide Loan Application dated 02.10.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.17.00 Lacs vide Sanction Letter filed in compliance of order dated 20.09.2024 vide diary no.16527 dated 18.10.2024 and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1(since deceased) had mortgaged his immovable properties i.e. total land measuring 94K-05M situated at Village Sanghar, Tehsil Khadur Sahib & District Tarn Taran vide Declaration under Section 4(1) dated 05.10.2015 along with its translation, which is Annexure A6 to this OA.

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Documents executed:-Hypothecation Agreement, Letter of Undertaking & Letter of Consent dated 04.12.2015, which are Annexures A3 to A5 to this OA; Balance & Security Confirmation Letters dated 09.08.2018 & 14.07.2021, which is Annexure A7 to this OA; Notice along with its translation dated 10.05.2023, which is Annexure A8 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A9 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.30,19,666.93p, which is recoverable and the defendants 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 19.08.2024.

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In support of the OA, affidavit of Sh. Jaswinder Singh Chadha, Senior Manager, Punjab National Bank h as been filed.

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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 A9 to this OA, it is proved that the defendant no.1(since deceased) and defendant no.2 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 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 is entitled to recover a sum of Rs.30,19,666.93p (Rupees Thirty Lacs Nineteen Thousand Six Hundred Sixty Six And Paise Ninety Three 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 in relief clause has claimed interest @11.50%p.a. along with penal interest @2%p.a. with half yearly rests from 01.04.2023 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

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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 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.30,19,666.93p (Rupees Thirty Lacs Nineteen Thousand Six Hundred Sixty Six And Paise Ninety Three Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 01.11.2024 15. 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: 21.10.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sucha Singh and Another

Case brief

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Punjab National Bank v. Sucha Singh and Another

Case brief

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