Allowed

Punjab National Bank v. Ravinder Singh and Others

DRT24 Sept 2024OA/366/2022

Case brief

AI extract

What is this about?

The DRT allowed an original application filed by Punjab National Bank for recovery of Rs.26,70,827.00 outstanding as a housing loan. The court granted uniform simple interest at 8% p.a. and issued a recovery certificate against the ex-parte defendants.

What did the court decide?

Declaration of joint and several liability to pay Rs.26,70,827.00 with 8% p.a. interest; issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.366/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.02.2022

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DATE OF DECISION: 24.09.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and branch amongst at SBS Nagar, Ludhiana, through General Power of Attorney holder Sh. Vineet Dhingra, Branch Manager and Constituted Attorney.

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……..Applicant

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Versus

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Sh. Ravinder Singh S/o Sh. Gujjar Singh, R/o H. No. 7191/2, Street No. 16, New Janta Nagar, Ludhiana, Punjab.

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Smt. Neelam Kumari W/o Sh. Ravinder Singh, R/o H. No. 7191/2, Street No. 16, New Janta Nagar, Ludhiana, Punjab.

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Sh. Harjinder Singh S/o Sh. Tarsem Singh, R/o H. No. 7656, Street No.14, Guru Angad Dev Colony, ATI Road, New Janta Nagar, Miller

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Ganj, Ludhiana, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Ms. Puja 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.26,70,827.00 (Rupees Twenty Six Lacs Seventy Thousand Eight Hundred and Twenty Seven only). The Original Application has been filed through Sh. Vineet Dhingra, Branch Manager of the applicant who is competent to institute the Original Application vide Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Term Loan (Housing Loan) of Rs.20.00 Lacs vide Loan application dated 08.06.2015, which is Annexure A2 to this OA.

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The applicant sanctioned the Term Loan (Housing Loan) of Rs.20.00 Lacs vide Model Sanction Letter dated 26.06.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No. 2 had mortgaged her immovable properties i.e. Residential Plot measuring 102 sq. yards situated at Village Gill no. 1, Hadbast No. 263, Locality Isher Nagar, Block-C, Tehsil and District Ludhiana (Punjab) vide Registered Title Deed bearing vasika No.3438 dated 0 3.08.2015 along with its Translations, which are Annexures A7 & A7T to this OA. Documents executed:- I.D. Proof of Defendants, which is Annexure A4 to this OA; Agreement of Individual Housing Loan, Agreement of Guarantee, Common Affidavit for Housing Loans, Common Agreement all dated 26.06.2015, which are Annexures A5, A6, A9 & A11 to this OA; Letter Confirming Deposit of Title deed dated 06.08.2015, which is Annexure A8 to this OA; Affidavit dated 08.06.2015, which is Annexure A10 to this OA; Balance and Security Confirmation dated 30.03.2016 and 28.02.2019, which are Annexures A12 & A13 to this OA; Statement of account with certificate, which is Annexure A14 to this OA and Demand Notice under section 13(2) of SARFAESI Act, 2002 dated 05.07.2017 along with postal Receipts, which is Annexure A15 to this OA and

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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.26,70,827.00, 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 28.08.2024.

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In support of the OA, affidavit of Sh. Vineet Dhingra, Branch 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 A15 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.26,70,827.00 (Rupees Twenty Six Lacs Seventy Thousand Eight Hundred and Twenty 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.

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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 @8.50%p.a. plus penal interest @2%p.a. with monthly rests from 05.02.2022 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

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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.26,70,827.00 (Rupees Twenty Six Lacs Seventy Thousand Eight Hundred and Twenty 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 16.10.2024.

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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: 24.09.2024

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

Punjab National Bank v. Ravinder Singh and Others

Case brief

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Punjab National Bank v. Ravinder Singh and Others

Case brief

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