Allowed

Punjab National Bank v. M/s East Walk Ville

DRT23 Aug 2024OA/400/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank against borrowers and guarantors. The court decreed the recovery of a principal sum of Rs. 44,00,203.45 along with costs and uniform simple interest at 8% per annum from the date of filing until realization.

What did the court decide?

Recovery of Rs. 44,00,203.45 as principal, costs, and simple interest at 8% per annum jointly and severally; issuance of Recovery Certificate.

Punjab National Bank versus M/s East Walk Ville — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.400/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.11.2022 DATE OF DECISION: 23.08.2024 Punjab National Bank, a Body Corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and Branch offices, amongst others at Branch Office at Sarabha Nagar, Ludhiana Punjab through its General Power of Attorney Holder Shri Chander Shekhar, Manager of the Applicant Bank. ……..Applicant Versus 1. M/s East Walk Ville, a proprietorship firm with principal place of business at #4, Block-L, BRS Nagar, Ludhiana-141012 through its proprietor Shri Navdeep Singh Sohal S/o Shri Baldev Singh (Proprietorship Firm) 2. Shri Navdeep Singh Sohal S/o Shri Baldev Singh, R/o H.No.4, Block-L, BRS Nagar, Ludhiana-141012 being the proprietor of M/s East Walk Ville. (Proprietor-Borrower-Hypothecator) 3. Smt. Neha W/o Shri Navdeep Singh Sohal, R/o H.No.4, Block-L, BRS Nagar, Ludhiana-141012 (Guarantor) 4. Shri Baldev Singh S/o Shri Tara Singh R/o H.No.4, Block-L, BRS Nagar, Ludhiana-141012 (Guarantor) ….……Defendants Advocates: Argued by Sh. Himanshu Sharma, Advocate for the applicant (through VC) Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank 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.44,00,203.45p (Rupees Forty Four Lacs Two Hundred Three and Forty Five Paisa only). The Original Application has been filed through Shri Chander Shekhar, Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.05.2019, which is Annexure A2 to this OA.

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The brief facts of the OA are that defendant No.1 through its Proprietor Defendant No.2 had approached the applicant bank for the grant of Cash Credit Limit of Rs.45.00 Lacs.

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The applicant Bank sanctioned the Cash Credit Limit of Rs.45.00 Lacs vide Sanction Letter dated 17.03.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 had mortgaged his immovable property i.e. Plot No. 123, 124, 125, 126, 127, ,152, 153, 154, 155, 156, 157 and 158 Measuring area 1188 sq. yds. situated at Akalgarh, Hadbast No.292 Abadi (East Villa), Akalgarh, Tehsil and District Ludhiana vide Equitable Mortgage of Transfer deed bearing vasika no. 2019-20/103/1/14540 dated 11.03.2020 along with its translation, which is Annexures A9 to this OA.

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Documents executed:- Valuation report dated 16.03.2020, which is Annexure A1 to this OA; Master Agreement, Hypothecation of goods and Book Debts to Secure Cash Credit Facility, Hypothecation of moveable assets forming part of fixed/block assets, Agreement of Guarantee by Defendant No.3 & 4 all dated 21.03.2020, which are Annexures A4 to A8 to this OA; Notice u/s 13(2) of SARFAESI Act dated 06.05.2022, which is Annexure A10 to this OA; Statement of account along with Certificate of Banker’s book of evidence, which is Annexure A11 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.44,00,203.45p, which is recoverable and the defendants

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were 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.

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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 18.07.2024.

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In support of the OA, affidavit of Shri Chander Shekhar, Manager, Punjab National Bank has been filed. 8. Heard ex parte arguments and perused record. 9. It was argued by learned 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 A11 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.44,00,203.45p (Rupees Forty Four Lacs Two Hundred Three and Forty Five 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.

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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. with half yearly rests from 01.10.2022 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.44,00,203.45p (Rupees Forty Four Lacs Two Hundred Three and Forty Five 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. 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 13.09.2024. 15. Copy of this order be given dasti to the applicant bank 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. Pronounced by me in the open Tribunal . Dated: 23.08.2024

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

Punjab National Bank v. M/s East Walk Ville

Case brief

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Punjab National Bank v. M/s East Walk Ville

Case brief

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