Allowed

Punjab National Bank v. Messrs Onkar Hp Centre and Another

DRT9 Dec 2024OA/394/2022

Case brief

AI extract

What is this about?

The DRT-III, Chandigarh allowed the bank's application for recovery of a defaulted cash credit limit of Rs. 50.41 Lakhs. The court adjudicated the sum payable including interest at 8% p.a. and authorized recovery via sale of secured properties under the SARFAESI Act.

What did the court decide?

Directed respondents to pay Rs. 50,41,336.57 with costs and simple interest at 8% p.a.; authorized recovery via enforcement proceedings under SARFAESI Act.

Punjab National Bank versus Messrs Onkar Hp Centre and Another — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.394/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.12.2021

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DATE OF DECISION: 09.12.2024

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Punjab National Bank, a Body Corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and amongst others one of its Branch i.e. Payal through its constituent attorney Sh. Dharam Pal Malik presently posted as Manager at Circle Sastra Centre (Ludhiana East), Circle Office PNB Building, Site No.5, Ferozepur Road, Ludhiana, Punjab.

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……..Applicant

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Versus

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M/s Onkar H.P. Centre, a Proprietorship concern having its office at Rara Sahib Road, Payal, District Ludhiana through its Sole Proprietor

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Sh. Amandeep Singh son of Harbans Singh sole proprietor of M/s Onkar H.P. Centre, resident of Village Hindo Patti (Ghudana Khurd), Payal, District Ludhiana- 141416.

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….……Defendants

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Advocates:

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Argued by Sh. Davis Jindal, Advocate proxy for Sh. Harsh Garg, Advocate for Applicant (through VC) None for Defendants

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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.50,41,336.57p (Rupees Fifty Lacs Forty One Thousand Three Hundred Thirty Six And Fifty Seven Paisa Only). The Original Application has been filed through Sh. Dharam Pal Malik, Manager of the applicant, who is competent to institute the Original Application

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vide Power of Attorney dated 28.02.2003, 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 grant of CC Limit of Rs.40.00 Lacs. 3. The applicant sanctioned CC Limit of Rs.40.00 Lacs vide sanctioned letter dated 19.08.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant had mortgaged his immovable property i.e. total land measuring 3B-0B-1/3B situated at Village Payal II, Hadbast no.235, Tehsil Payal, Distt, Ludhiana vide Equitable Mortgage of Transfer deeds vasika No. 2692 dated 07.01.2011 and Bearing vasika no.1784 dated 13.10.2010 and jamabandi for the year 2012-2013, with its translation, which is Annexure A5 to this OA.

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Documents executed:- Hypothecation of goods and book debts to secure cash credit facility, which is Annexure A2 to this OA; Supplementary Agreement dated 09.01.2018, which is Annexure A4 to this OA; Balance and security confirmation letter dated 12.04.2019, which is Annexure A6 to this OA; Recall Notice dated 13.03.2020 with its translation, which is Annexure A7 to this OA; Statement of account along with Banker’s Book Evidence Certificate dated 30.11.2021, which is Annexure A8 to this OA and Collector Rate 2021-22, which is Annexure A9 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.50,41,336.57p, 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. 6. The defendants were served notice to appear before this Tribunal. Sh. Hitesh Ghai, Advocate appeared for both the defendants and filed Power of Attorney but did not filed WS. Therefore,

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opportunity to file WS by defendants was closed and defense was struck of on 06.12.2024.

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In support of the OA, affidavit of Sh. Dharam Pal Malik, Manager, Punjab National Bank has been filed. 8. Heard arguments of Ld. Counsel for applicant. None appeared for defendants for arguments. Perused record. 9. 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 bank had proved its case. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendants approached applicant bank 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 bank is entitled to recover a sum of Rs. Rs.50,41,336.57p (Rupees Fifty Lacs Forty One Thousand Three Hundred Thirty Six And Fifty Seven Paisa 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. 10. In so far as pendent elite and future rate of interest is concerned the applicant in relief clause has claimed interest @09.30%p.a. with monthly rests, from 01.12.2021 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 loans 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

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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.50,41,336.57p (Rupees Fifty Lacs Forty One Thousand Three Hundred Thirty Six And Fifty Seven Paisa 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 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.

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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 22.01.2025.

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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: 09.12.2024

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

Punjab National Bank v. Messrs Onkar Hp Centre and Another

Case brief

What is this about?

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Punjab National Bank v. Messrs Onkar Hp Centre and Another

Case brief

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What did the court decide?

What the court decided

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