Allowed

Punjab National Bank v. Narang Singh

DRT9 Sept 2024OA/39/2024

Case brief

AI extract

What is this about?

Applicant bank filed an original application for recovery of dues classified as NPA against the defendant. Tribunal held documentary evidence unrebutted and allowed the application, directing recovery of the principal sum along with uniform simple interest at 8.00%p.a. and ordering the issuance of a recovery certificate.

What did the court decide?

Defendant liable to pay Rs.26,28,292.50p with costs and simple interest @8.00%p.a.; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.39/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.10.2023

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DATE OF DECISION: 09.09.2024

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Punjab National Bank, a body corporate, constituted by and 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 a Branch amongst at Landran, through recovery vertical at Circle Sastra, SAS Nagar, Punjab 160055 through Sh. Maninder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the applicant bank.

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……..Applicant

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Versus

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Sh. Narang Singh S/o Sh. Saroop Singh R/o Village Pattran, Tehsil Kharar, District SAS Nagar, (Punjab)- 140307.

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….……Defendant

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Advocates:

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Argued by Sh. Anirudh Gupta, 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.26,28,292.50p (Rupees Twenty Six Lacs Twenty Eight Thousand Two Hundred Ninety Two And Paise Fifty Only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.02.1998, 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 KCC Limit of Rs.14.50 Lacs vide

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Loan application dated 03.08.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.14.50 Lacs vide Sanction Letter dated 03.08.2013, which is Annexure A3 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 25K-18M situated at Village Pattran, Hadbast No.297, Tehsil Kharar, District SAS Nagar, (Punjab) vide Registered Mortgaged Deed bearing vasika no.2918 dated 08.08.2013 along with its Translation, which is Annexure A10 to this OA. Documents executed:-Hypothecation Agreement, Letter of Undertaking, Declaration & Letter of Consent all dated 14.08.2013, which are Annexures A4 to A7 to this OA; Affidavit dated 05.08.2013, which is Annexure A8 to this OA; Legal Opinion dated 08.08.2013, which is Annexure A9 to this OA; Balance & Security Confirmation Letter dated 24.05.2016, 07.09.2018, 05.06.2021 & 17.03.2022, which is Annexure A11 to this OA; Recall Notice dated 13.10.2021 with postal receipt, which is Annexure A12 to this OA; Legal Notice dated 28.08.2023 with postal receipt, which is Annexure A13 to this OA and Statement of Account along with Certificate under Bankers Book Evidence Act with certificate dated 08.09.2023, which are Annexures A14 & A15 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 adebit of Rs.26,28,292.50p, 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 31.07.2024.

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In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A15 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.26,28,292.50p (Rupees Twenty Six Lacs Twenty Eight Thousand Two Hundred Ninety Two And Paise Fifty Only) along with interest from the defendant, 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 interest @11.50%p.a. along with penal interest @2%p.a. from 15.08.2023 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 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.26,28,292.50p (Rupees Twenty Six Lacs Twenty Eight Thousand Two Hundred Ninety Two And Paise Fifty 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 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 04.10.2024.

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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: 09.09.2024

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

Punjab National Bank v. Narang Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Narang Singh

Case brief

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