Allowed

Punjab National Bank v. Gurbachan Singh and Others

DRT25 Sept 2024OA/296/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's Original Application for recovery of Rs.29.16 lakhs along with interest. The Tribunal ex-parte proceedings observed in favor of the bank but adjusted the interest rate to 8% p.a. from the filing date.

What did the court decide?

Declaratory that respondents are liable to pay Rs.29,16,247 with costs and simple interest at 8% p.a. from filing date, enforceable via sale of mortgaged or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.296/2024 PRESIDED OVER BY MRIDULESH 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 Undertaking) Act, 1971 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at New Anaj Mandi, Ghanaur District Patiala through its General Power of Attorney holder Sh. Gurcharan Singh, Senior Manager and Constituted Attorney at Circle Sastra Patiala.

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……..Applicant

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Versus

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Sh. Gurbachan Singh S/o Sh. Pritam Singh, R/o House No. 59, Village Sandhrasi, Sub Tehsil Ghanaur, Tehsil Rajpura, District Pataila, Punjab.

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Sh. Balbir Singh S/o Sh. Gurbachan Singh, R/o House No. 59, Village Sandhrasi, Sub Tehsil Ghanaur, Tehsil Rajpura, District Pataila, Punjab.

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Sh. Gurmeet Singh S/o Sh. Gurbachan Singh, R/o House No. 59, Village Sandhrasi, Sub Tehsil Ghanaur, Tehsil Rajpura, District Pataila, Punjab.

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Pooja Sharma, 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.29,16,247.00 (Rupees Twenty Nine Lacs Sixteen Thousand Two Hundred and Forty Seven only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 14.09.2007, which is Annexure A1 to this OA.

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¶17

The brief facts of the OA are that the defendants no.1 to 3 had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.10.00 Lacs vide Loan application dated 26.07.2011, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit (KCC) of Rs.10.00 Lacs vide Sanction Letter dated 26.07.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 to 3 had mortgaged their immovable properties i.e. total land measuring 18 Bigha situated at Village Sandhrasi, Tehsil Rajpura, District Patiala (Punjab) vide Registered Mortgaged Deed bearing v asika No.832 dated 1 8.07.2011 along with its Translations , which are Annexures A5 & A5T to this OA.

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Documents executed:- Agreement for Hypothecation, Common Agreement both dated 26.07.2011, which are Annexures A4 & A6 to this OA; Balance and Security Confirmation dated 17.12.2013, 01.06.2015, 12.05.2017, 31.03.2020 and 30.10.2021 which are Annexures A7 to A11 to this OA; Recall Notices dated 03.08.2016 with translation, which are Annexures A12 & A12T to this OA; Legal Notice dated 18.04.2019, 06.09.2021 and 05.01.2024 along postal Receipts, which are Annexures A13 to A15 to this OA and Statement of Account with certificate, which is Annexure A16 to this OA.

¶20

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.29,16,247.00, 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 11.09.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed.

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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 A16 to this OA, it is proved that the defendants 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.29,16,247.00 (Rupees Twenty Nine Lacs Sixteen Thousand Two Hundred and Forty Seven 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.

¶26

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. (including of penal interest @2%p.a.) with half yearly rests from 07.01.2024 till the realization.

¶27

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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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,16,247.00 (Rupees Twenty Nine Lacs Sixteen Thousand Two Hundred and Forty Seven 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 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 bank 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 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 . Dated: 25.09.2024

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

Punjab National Bank v. Gurbachan Singh and Others

Case brief

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Punjab National Bank v. Gurbachan Singh and Others

Case brief

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