Allowed

Punjab National Bank v. Darshan Singh

DRT27 Sept 2024OA/373/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a defaulted KCC loan of Rs.31.41 Lakrs from the defendant. The court affirmed liability, granted interest at 8% p.a., and ordered issuance of a Recovery Certificate with direction to recover dues via sale of mortgaged or personal assets.

What did the court decide?

Defendant declared liable to pay Rs.31,41,636.10p with 8% p.a. interest; Recovery Certificate issued; authority to recover via sale of mortgaged or personal assets under SARFAESI Act.

Punjab National Bank versus Darshan Singh — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.373/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2022

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DATE OF DECISION: 27.09.2024

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Punjab National Bank, 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 (A government of India Undertaking) and having one of its branch situated at Punjab National Bank, Bhunerheri, District Patiala, Punjab through Sh. Gurcharan Singh who is presently working as Senior Manager, Punjab National Bank, Circle SASTRA, SCO-146, 2^nd Floor, Improvement Trust Complex, Chhoti Baradari, Patiala, Punjab constituted Power of Attorney Holder of the bank and Principal Officer.

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……..Applicant

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Versus

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Sh. Darshan Singh, S/o Sh. Dalip Singh, R/o village Kheri Raju Singh, PO Gharami, Tehsil and Dudhan Sadhan, District Patiala, Punjab.

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….……Defendant

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.31,41,636.10p (Rupees Thirty One Lacs Forty One Thousand Six Hundred Thirty Six and Paisa Ten only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 14.07.2007, 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 for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 02.02.2017, which is Annexure A3 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs for the vide Sanction Letter dated 02.02.2017, which is Annexure A4 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 19B-04B situated at Village Kheri Raju Singh, Sub Tehsil Dudhan Sadhan, District Patiala Punjab vide Declaration u/s 4(1) dated 07.02.2017 along with its English Translation, which are Annexures A5 & A5T to this OA.

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Documents executed: - Notification dated 04.03.2020, which is Annexure A1A to this OA; Confidential Report dated 02.02.2017, which is Annexure A2 to this OA; Letter of Consent, Letter of Undertaking, Hypothecation Agreement, Supplementary Agreement all dated 09.02.2017, which are Annexures A6 to A9 to this OA; Letter to the bank by borrower regarding acceptance of all rules and regulations from time to time, Letter by borrower declaring acceptance of the consent clause, which are Annexures A10 & A11 to this OA; Balance and Security Confirmation dated 22.12.2018, which is Annexure A12 to this OA; Legal Notice regarding Recall of Bank’s dues dated 20.02.2019, 23.07.2019, 11.10.2019, 02.11.2019, 02.12.2019, 31.12.2019, 15.01.2020, 05.03.2020, 15.04.2020 and 02.07.2020 along with its Postal Receipt, which are Annexures A13 to A22 to this OA and Statement of account with certificate, which is Annexure A23 to this OA.

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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.31,41,636.10p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount,

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therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 20.08.2024.

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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 A23 to this OA, it is proved that the defendant approached applicant 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 applicant. The defendant failed to pay back the loan 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 is entitled to recover a sum of Rs.31,41,636.10p (Rupees Thirty One Lacs Forty One Thousand Six Hundred Thirty Six and Paisa Ten only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. 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 @2.00%p.a. with half yearly rests from 12.02.2022 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 defendant, quantum of loan and prevalent market rates of

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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 defendant is liable to pay to the applicant a total sum of Rs.31,41,636.10p (Rupees Thirty One Lacs Forty One Thousand Six Hundred Thirty Six and Paisa Ten only), 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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.10.2024. 15. Copy of this order be given dasti to the applicant 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. Pronounced by me in the open Tribunal . Dated: 27.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Darshan Singh

Case brief

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What did the court decide?

Punjab National Bank v. Darshan Singh

Case brief

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