Allowed

Punjab National Bank v. Rajinder Singh and Another

DRT17 Oct 2024OA/390/2024

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an original application under Section 19 RDBFI Act, 1993 filed by Punjab National Bank for recovery of Rs. 26.63 Lacs. The defendants failed to appear, and the Tribunal approved interest at 8% p.a., permitting recovery through hypothecated properties or attachment of assets.

What did the court decide?

Recovery of Rs. 26,63,541.43 plus costs and simple interest @ 8% p.a. until realization; issuance of Recovery Certificate.

Punjab National Bank versus Rajinder Singh and… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.390/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.04.2024

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DATE OF DECISION: 17.10.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), 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 (erstwhile Oriental Bank of Commerce), VPO Hambran, District Ludhiana, Punjab through Mr. Navin Kumar Bansal, who is presently working as Senior Manager, Punjab National Bank, Circle SASTRA Centre, Plot No.5, Ferozepur road, near wave mall, Ludhiana, Punjab constituted Power of Attorney Holder of the applicant and Principal Officer

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……..Applicant

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Versus

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Mr. Rajinder Singh S/o Sh. Charan Singh, R/o VPO Hambran, District Ludhiana, Punjab

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Mr. Gurmail Singh (Deceased) S/o Sh. Charan Singh, through its Lrs:

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(i) Mrs. Jarnail Kaur W/o Late. Mr. Gurmail Singh (ii) Mr. Jagdev Singh S/o Late. Mr. Gurmail Singh (iii) Ms. Sandeep Kaur D/o Late. Gurmail Singh

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Address of all above: VPO Hambran, District Ludhiana, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Surinder Nath Sharma, Advocate proxy for Sh. Mohinder Nath Sharma, 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

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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.26,63,541.43p (Rupees Twenty Six Lacs Sixty Three Thousand Five Hundred Forty One and Forty Three Paise only). The Original Application has been filed through Sh. Navin Kumar Bansal, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Kisan Cash Credit Limit of Rs.20.00 Lacs vide Loan application dated 31.10.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the Kisan Cash Credit Limit of Rs.20.00 Lacs vide Sanction Letter dated 31.10.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 32K-00M situated at Village Hambran, Hadbast No.2J, Tehsil and District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing vasika No.11752 dated 01.11.2012 along with English Translation, which are Annexures A6 and A6T to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A1A to this OA; Advocate Report on Title, Affidavit by Mr. Rajinder Singh and Affidavit by Mr. Gurmail Singh (now deceased) all dated 31.10.2012, which are Annexures A4, A5 & A8 to this OA; Agreement for Hypothecation and Agreement of Guarantee both dated 05.11.2012, which are Annexures A7 & A9 to this OA; Balance & Security Confirmation Letters dated 29.10.2015, 28.04.2018 and 22.04.2021, which are Annexures A10 to A12 to this OA; Notice of Recall of Bank’s Dues by Advocate dated 20.03.2024 with postal receipts, which is Annexure A13 to this OA and Statement of Account with certificate, which is Annexure A14 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

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debit of Rs.26,63,541.43p, 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 09.10.2024.

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In support of the OA, affidavit of Sh. Navin Kumar Bansal, Senior 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 proxy 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 A1A, A1 to A14 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 applicant. 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.26,63,541.43p (Rupees Twenty Six Lacs Sixty Three Thousand Five Hundred Forty One and Forty Three Paise 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 @10.05%p.a. (along with additional/penal interest @2.00%p.a.) with half yearly rests from 06.11.2023 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

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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 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.26,63,541.43p (Rupees Twenty Six Lacs Sixty Three Thousand Five Hundred Forty One and Forty Three Paise 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.10.2024.

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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 .

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Dated: 17.10.2024.

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

Punjab National Bank v. Rajinder Singh and Another

Case brief

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Punjab National Bank v. Rajinder Singh and Another

Case brief

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