Allowed

Punjab National Bank v. Bhagwant Singh

DRT26 Aug 2024OA/300/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.38,95,668 due to a defaulted OGC limit. The tribunal fixed uniform simple interest at 8% p.a. and directed recovery via sale of mortgaged properties or attachment of assets.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs.38,95,668 with costs and simple interest @8% p.a.; Entitlement to recover via sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.300/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.01.2022

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DATE OF DECISION: 26.08.2024

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Punjab National Bank (Erstwhile Oriental Bank of Commerce) 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 inter-alia, one of its Branch office at Dehlon, District: Ludhiana-(Punjab) through its Authorized Person and General Attorney.

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……..Applicant

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Versus

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Sh. Bhagwant Singh S/o Sh. Jaspal Singh r/o Ruraka, Tehsil Dehlon District Ludhiana. (Borrower/Mortgagor)

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….……Defendant

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Advocates:

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Argued by Sh. Dinesh Maurya, Advocate proxy for Sh. Sonia G. Singh Samber, Advocate for the applicant Defendant is 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.38,95,668.00 (Rupees Thirty Eight Lacs Ninety Five Thousand Six Hundred Sixty Eight Only). The Original Application has been filed through Sh. Ravinder Kumar, Authorized Officer o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.06.1997, 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.15.00 Lacs and further for its enhancement to Rs.22,71,457.00 vide Loan application

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dated 14.03.2011 and 16.09.2014, which are Annexures A3 & A4 to this OA.

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The applicant Bank sanctioned the OGC Limit of Rs.15.00 Lacs and further enhanced it to Rs.22,71,457.00 vide Sanction Letter dated 15.03.2011 & 16.09.2014, which are Annexure A5 & A6 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 27K-09M situated at Village Ruraka, H.B. No.330, Tehsil Dehlon District Ludhiana vide Registered Mortgaged Deed bearing vasika no.2630 dated 21.03.2011 and as per Jamabandi for the Year 2013-2014 along with their Translations, which are Annexures A12 & A12T and A13 & A13T to this OA. Documents executed:- Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement for Hypothecation, Schedule-I & Schedule-II all dated 22.03.2011, which are Annexures A7 to A9 to this OA; Supplementary Agreement & Schedule-I both dated 16.09.2014, which are Annexures A10 & A11 to this OA Bank Statement, which is Annexure A14 to this OA; Legal Notices along all dated 22.10.2019 & 15.09.2021 with postal receipts, which are Annexures A15 to A17 to this OA and Certificate by the officer in charge of computer system, which is Annexure A18 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.38,95,668.00, 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 but no one appeared on behalf of defendant and he is proceeded exparte on 20.07.2024.

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In support of the OA, affidavit of Sh. Ravinder Kumar, Authorized Officer, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned proxy 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 A18 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.38,95,668.00 (Rupees Thirty Eight Lacs Ninety Five Thousand Six Hundred Sixty Eight Only) along with interest from the defendant, 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 bank in relief clause has claimed [email protected]%p.a. with half yearly rests in the loan account on 01.04.2021 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

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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.38,95,668.00 (Rupees Thirty Eight Lacs Ninety Five Thousand Six Hundred Sixty Eight 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 18.09.2024.

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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.

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Pronounced by me in the open Tribunal . Dated: 26.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Bhagwant Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Bhagwant Singh

Case brief

What is this about?

What did the court decide?

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