Allowed

Punjab National Bank v. Arjan Singh and Another

DRT8 Oct 2024OA/343/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank for recovery of Rs. 42,57,211 from two borrowers who defaulted on a term loan and overdraft facility. The court reduced the claimed interest rate to 8% simple annum.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 42,57,211 with costs and 8% p.a. simple interest; enforcement via sale of properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.343/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.02.2023

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DATE OF DECISION: 08.10.2024

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Punjab National Bank, a body corporate and a nationalized Bank Constituted under the Provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Shaheed Bhagat Singh Nagar District Ludhiana through Sh. Daljit Singh, Manager and Attorney holder presently posted at Circle SASTRA Centre, Ludhiana.

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……..Applicant

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Versus

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Sh. Arjan Singh S/o Sh. Sukhwant Singh R/o H.No.343, Street No.9, Block-B, Bhai Himmat Singh Nagar, Ludhiana.

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Also at : House No.377, Street No.9, Near Shalimar Park, Bhai Himmat Singh Nagar, Near Shalimar Park, Dugri, Ludhiana, District Ludhiana, Punjab.

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Smt. Jagjeet Kaur W/o Sh. Sukhwant Singh R/o H.No.343, Street No.9, Block-B, Bhai Himmat Singh Nagar, Ludhiana.

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Also at : House No.377, Street No.9, Near Shalimar Park, Bhai Himmat Singh Nagar, Near Shalimar Park, Dugri, Ludhiana, District Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Manish Singla, 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

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Institutions Act, 1993, against the defendants for recovery of Rs.42,57,211.00p (Rupees Forty Two Lac Fifty Seven Thousand Two Hundred Eleven Only). The Original Application has been filed through Sh. Daljit Singh, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant for the grant of Term Loan (Housing Loan) Rs.16.00 Lacs and Defendant no.1 again requested later for OD Limit of Rs.8.50 Lacs vide Loan applications dated 12.01.2015 & 28.01.2015, which are Annexures A3 & A10 to this OA. 3. The applicant sanctioned the Term Loan (Housing Loan) Rs.16.00 Lacs vide Sanction Letter dated 22.01.2015, which is Annexure A4 to this OA and further sanctioned OD Limit of Rs.8.50 Lacs and the terms and conditions were duly accepted by the defendants. 4. Defendants No.2 had mortgaged his immovable properties i.e. total land measuring 100 Sq Yds situated at Village GILL-2, Hadbast No.263, Abadi Bhai Himmat Singh Nagar, Tehsil and District Ludhiana vide Registered Sale Deed bearing V asika No.10954 dated 24.01.2011, with its translation, which is Annexure A7 to this OA. Documents executed:-Amalgamation Scheme/ Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement of Individual Housing Loan, Common Agreement both dated 23.01.2015, which are Annexures A5 & A6 to this OA; LTR 21 executed by defendant no.2 dated 24.01.2015, which is Annexure A8 to this OA; Valuation report dated 16.06.2021, which is Annexure A9 to this OA; Agreement for Overdraft, Common Agreement, Agreement of Guarantee, LTR 22 executed by defendant no.2 all dated 30.01.2015, which are Annexures A11 to A14 to this OA; Balance & Security Confirmation Letters dated 24.07.2017 and 29.02.2020, which are

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Annexures A15 & A16 to this OA; Notice U/s 13(2) of SARFAESI Act dated 01.01.2016, which is Annexure A17 to this OA an d Statement of Accounts duly Certified both dated 31.01.2023, which are Annexures A18 & A19 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.42,57,211.00, which is recoverable and the defendants were 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.

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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 24.09.2024.

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In support of the OA, affidavit of Sh. Daljit Singh, Manager, Punjab National Bank h as been filed.

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Heard arguments and perused record.

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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 bank had proved its case. From the perusal of all the Annexure A1 to A19 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.42,57,211.00 (Rupees Forty Two Lac Fifty Seven Thousand Two Hundred Eleven Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all 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 @8.80%p.a. in Term Loan and interest @11.05%p.a. in OD Limit along with penal interest @2%p.a. in both with monthly rests from 01.02.2023 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 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 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.42,57,211.00 (Rupees Forty Two Lac Fifty Seven Thousand Two Hundred Eleven Only) jointly and severally, with costs, current and future simple interest @8.00%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 bank 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. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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5 14. Parties to appear before Learned Recovery Officer of this Tribunal on 23.10.2024. 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. Pronounced by me in the open Tribunal . Dated: 08.10.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Arjan Singh and Another

Case brief

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Punjab National Bank v. Arjan Singh and Another

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