The DRT allowed the bank's application for recovery of an outstanding loan of Rs. 20.82 lakhs from two defendants who defaulted on an OGC credit facility after the account was classified as NPA.
Recovery of Rs. 20,82,247.02 plus costs and simple interest at 8% p.a. from filing date till realization.
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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.281/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 28.09.2022
DATE OF DECISION: 18.09.2024
Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and one of its Branch Situated at Mandi Mullanpur, (erstwhile Oriental Bank of Commerce) Distt. Ludhiana, Punjab through its Attorney Holder, Sh. Sunil Kumar, Authorized Officer, presently posted at Circle Sastra, Ludhiana, Punjab.
……..Applicant
Versus
Defendants
Advocates:
Argued by Ms. Avjeet, Advocate proxy for Sh. Iqbal Mohammed Advocate for the Applicant Defendants are ex-parte
FINAL ORDER
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vide Loan Application dated 14.11.2012, which is Annexure A2 to this OA.
Documents executed:-Hypothecation Agreement, Guarantee Agreement both dated 21.12.2012, which are Annexures A4 to A5 to this OA; Legal Search Report dated 14.11.2012, which is Annexure A7 to this OA; Supplementary Report dated 25.07.2013, which is Annexure A8 to this OA; Non Encumbrance Certificate, Affidavit for Encumbrance dated 20.11.2012 and 04.12.2012, which are Annexures A9 to A10 to this OA; Mortgage Certificate dated 17.12.2012, which is Annexure A11 to this OA; Balance and Security confirmation Letter dated 04.10.2019, which are Annexures A12 to A14 to this OA; Recall Notice dated 21.07.2022, which is Annexure A15 to this OA and Account statement with Banker’s Books Evidence, which are Annexures A16 to A17 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.20,82,247.02, 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. 6. 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 09.08.2024.
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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 just and appropriate to grant uniform simple interest @8.00%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.
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Tribunal on 10.10.2024.
Pronounced by me in the open Tribunal . Dated: 18.09.2024.
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant is entitled to recover the outstanding loan amount from the defendants.
What adjustment should be made to the interest rate claimed by the applicant.
1 provisions across 1 enactments
PUNJAB NATIONAL BANK
SH. ONKAR SINGH
SH. RANJIT SINGH
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
