Allowed

Punjab National Bank v. M/S Khurana Trading Company and Others

DRT18 Sept 2024OA/321/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant's Original Application filed under Section 19 RDBFI Act. After hearing ex-parte respondents and examining documentary evidence, the Tribunal decreed recovery of principal sum and reduced the interest rate to 7.65% p.a. It directed issuance of Recovery Certificate and enforcement via SARFAESI Act if dues remain unsatisfied.

What did the court decide?

Decreed payment of Rs.52,23,862.89p plus simple interest at 7.65% p.a.; issued Recovery Certificate; directed enforcement under SARFAESI Act.

Punjab National Bank versus M/S Khurana Trading Company and… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.321/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.02.2023

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DATE OF DECISION: 18.09.2024

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Punjab National Bank, a body corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act V of 1970 having its Head Office at Plot No. 4, Sector 10, Dwarka, Delhi110075 and one of its branch office at fazilka, Circle SASTRA, Abohar Road, Fazilka, District Fazilka Punjab through its duly Constituted Attorney Sh. Rakesh Valecha, Deputy Manager.

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……..Applicant

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Versus

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M/s Khurana Trading Company, Shop No. 3, New Grain Market, Malout, Tehsil Malout, District Sri Muktsar Sahib through its Sole Proprietor Smt. Lajwanti W/o Sh. Gurnam Singh R/o village Aulakh, Tehsil Malout, District Sri Muktsar Sahib, Punjab.

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Smt. Lajwanti W/o Sh. Gurnam Singh (daughter of Sh. Sukhram Dass) R/o village Aulakh, Tehsil Malout, District Sri Muktsar Sahib, Punjab.

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Smt. Amandeep Kaur W/o Sh. Paramjeet Singh, R/o VPO Badian, Tehsil Malout, District Sri Muktsar Sahib, Punjab.

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Smt. Nisha Rani W/o Sh. Labh Chand, R/o village Aulakh, Tehsil Malout, District Sri Muktsar Sahib, Punjab.

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………Defendants

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Advocates:

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Argued by Sh. Tajinder Pal Singh Makkar, Advocate for the applicant (through VC) 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

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Rs.52,23,862.89p (Rupees Fifty Two Lacs Twenty Three Thousand Eight Hundred Sixty Two and Paisa Eighty Nine only). The Original Application has been filed through Sh. Rakesh Valecha, Deputy Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant no.2 had approached the applicant for the grant of OD Limit of Rs.44.00 Lacs and further from time to time approached the applicant for its renewals vide Renewal Application dated 30.08.2017 and 26.10.2020, which are Annexures A13 and A17 to this OA. The defendants again approached the applicant for the renewal cum reduction of the OD Limit to Rs.28.00 Lacs. Thereafter defendants approached the applicant for the grant of Term Loan of Rs.8.00 Lacs under GECL scheme vide Loan application dated 26.11.2020, which is Annexure A19 to this OA

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The applicant sanctioned the Cash Credit Limit of Rs.44.00 Lacs and further from time to time sanctioned its renewals vide Sanction Letters dated 31.08.2017, 28.12.2017 and 05.11.2020, which are Annexures A14, A16 and A18 . The applicant also sanctioned reduced OD Limit of Rs. 28.00 Lacs. The applicant later sanctioned a Term loan of Rs.8.00 Lacs under GECL scheme vide Sanction Letters dated 26.11.2020, which is Annexure A20 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.3 & 4 had mortgaged their immovable properties i.e. Residential Plot measuring 533.33 Sq. yards Hargobind Nagar, Main Road, Ward No.21, Malout, Tehsil Malout, District Sri Muktsar Sahib (Punjab) vide Equitable Mortgage of Sale Deed bearing v asika No.275 dated 2 6.04.2011 and Jamabandi for the year 2014-2015 along with their Translations, which are Annexures A9 & A10 to this OA.

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Documents executed:- Arrangement for overdraft, Agreements for Guarantee, Hypothecation Agreement, Letters of undertaking and Equitable Mortgage Register all dated 15.05.2014, which are Annexures A2 to A8 and A11 to this OA; Deposit of Original Title Deed dated 16.05.2014, which is Annexure A12 to this OA; Undertaking dated and 01.09.2017 and 26.11.2020, which are Annexures A15 & A21 to this OA; Draft Letter of Continuity, Agreement for Working Capital Term Loan, Master Agreement, Extension of Charge all dated 27.11.2020, which are Annexures A22 to A25 to this OA; Balance and Confirmation Letters dated 26.08.2015, 31.08.2017, 17.01.2019 and 04.11.2020, which are Annexures A26 to A37 to this OA; Legal Notices dated 29.11.2022 with Postal Receipts, which are Annexures A38 to A41 to this OA and Accounts Statements, which are Annexures A40 to A42 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.52,23,862.89p, 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 09.07.2024.

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In support of the OA, affidavit of Sh. Rakesh Valecha, Deputy Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A42 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which

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were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, both the accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.52,23,862.89p (Rupees Fifty Two Lacs Twenty Three Thousand Eight Hundred Sixty Two and Paisa Eighty Nine only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @11.75%p.a. in OD Limit and @7.65%p.a. in Term Loan plus penal interest @2%p.a. in both from date of filing this OA 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 exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7.65%p.a. in 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.

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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.52,23,862.89p (Rupees Fifty Two Lacs Twenty Three Thousand Eight Hundred Sixty Two and Paisa Eighty Nine only) jointly and severally, with costs, current and future simple interest @7.65%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled

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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 applicant 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 10.10.2024. 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.

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Pronounced by me in the open Tribunal .

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Dated: 18.09.2024

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

Punjab National Bank v. M/S Khurana Trading Company and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Khurana Trading Company and Others

Case brief

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What did the court decide?

What the court decided

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