Allowed

Punjab National Bank v. Ranjit Singh

DRT18 Dec 2024OA/287/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a loan debt of Rs. 25.97 Lacs advanced as KCC limits. The court accepted the argument that higher interest rates were not justified given plunging market rates, ordering simple interest at 8% p.a. instead and directing issuance of a Recovery Certificate against mortgaged property.

What did the court decide?

Recovery of Rs.25,97,231.00 with costs and simple interest @08.00%p.a; issuance of Recovery Certificate; authority to enforce against mortgaged/personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.287/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.12.2023

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DATE OF DECISION: 18.12.2024

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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 Delhi110075 and a Branch amongst others at Mukandpur, Nawanshahr, Punjab 144507 through Sh. Ankur Rawat, Senior Manager, Principal Officer and duly constituted Attorney of the Applicant.

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……..Applicant Versus

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Sh. Ranjit Singh S/o Sh. Sucha Singh, R/o Village Rehpa, PO Hakimpur, District Nawanshahr (Punjab) Pin code 144507

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………. Defendant

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Advocates:

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Argued by Sh. Rajesh Gupta, Advocate proxy for Sh. Anirudh Gupta, Advocate for 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.25,97,231.00 (Rupees Twenty Five Lacs Ninety Seven Thousand Two Hundred Thirty One Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.10.00 Lacs vide Loan Application dated 02.02.2013, which is Annexure A3 to this OA. Further, defendant again approached the applicant for enhancement of KCC Limit to Rs.18.00 Lacs vide Loan Application dated 30.08.2013,

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which is Annexure A7 to this OA. Thereafter defendant approached the applicant for renewal of KCC Limit of Rs.18.00 Lacs vide Renewal Application dated 15.05.2018, which is Annexure A12 to this OA.

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The applicant sanctioned KCC Limit of Rs.10.00 Lacs vide Sanction Letter dated 02.02.2013, which is Annexure A4 to this OA. Further, applicant again sanctioned the enhancement of KCC Limit to Rs.18.00 Lacs dated 30.08.2013, which is Annexure A8 to this OA. Thereafter applicant sanctioned the renewal of KCC Limit of Rs.18.00 Lacs and the terms and conditions were duly accepted by the defendants

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Defendant had mortgaged his immovable property i.e. Agriculture land measuring 25K-12M situated at Village Rehpa, Tehsil Banga, District Shaheed Bhagat Singh Nagar vide Registered Mortgaged Deeds bearing Vasika No. 2730 dated 18.02.2013 and Vasika No. 1090 dated 03.09.2013 with their translations, w hich are Annexures A6, A6T and A10 to this OA.

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Documents executed:- Amalgamation dated 04.03.2020, which is

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Annexure A1 to this OA; Hypothecation Agreements dated 26.02.2013 & 11.09.2013 which are Annexures A5 & A9 to this OA; Balance Confirmation letters dated 04.07.2016, 15.05.2018, 25.03.2021 & 03.06.2021, which is Annexure A11 to this OA; Legal Notice dated 28.08.2023, which is Annexure A13 to this OA; Statement of Account with Certificate dated 16.11.2023, which are Annexures A14 & A15 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 the loan account there was a debit of Rs.25,97,231.00, 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.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 13.12.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, 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 A15 to this OA, it is proved that the defendant approached applicant for availing of the loans 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 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.25,97,231.00 (Rupees Twenty Five Lacs Ninety Seven Thousand Two Hundred Thirty One 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 in relief clause has claimed interest @9.75%p.a. with half yearly rests from 01.11.2023 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

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both 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.25,97,231.00 (Rupees Twenty Five Lacs Ninety Seven Thousand Two Hundred Thirty One Only) 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 defendant 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 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2025. 15. Copy of this order be given dasti to the applicant 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: 18.12.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Ranjit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Ranjit Singh

Case brief

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What did the court decide?

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