Allowed

Punjab National Bank v. Smt. Jaspal Kaur

DRT12 Sept 2024OA/41/2024

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 of the RDBFI Act for recovery of a loan with interest, noted the ex-parte proceedings due to the defendant's absence, and allowed the application. The court adjusted the claimed interest rate to 8% per annum and ordered the issuance of a recovery certificate.

What did the court decide?

Issuance of Recovery Certificate. Defendant liable to pay principal of Rs.23,15,988.87p with simple interest @8% p.a. from filing of OA till realization. Costs awarded.

Punjab National Bank versus Smt. Jaspal Kaur — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.41/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.11.2023

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DATE OF DECISION: 12.09.2024

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Punjab National Bank, a body corporate constituted, under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch Office at Sastra, Punjab National Bank, SCO 43, Phase 2, Mohali through Sh. Subhash Chandra, Senior Manager and duly Constituted Attorney of the Applicant.

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……..Applicant Versus Smt. Jaspal Kaur W/o Sh. Baldev Singh, R/o Village Sarsini, Lalru, Tehsil Derabassi, Distt. SAS Nagar, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. B.S. Wala, Advocate for the applicant (through VC) 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 defendants for recovery of Rs.23,15,988.87p (Rupees Twenty Three Lacs Fifteen Thousand Nine Hundred Eighty Eight And Paise Eighty Seven Only). The Original Application has been filed through Sh. Subhash Chandra, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.07.2011, 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.18.00 Lacs vide Loan application dated 29.11.2016, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.18.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged her immovable property i.e. total land measuring 10 Bigha 0 Biswas situated at Village Sarsini, Tehsil Derabassi, Distt. SAS Nagar, Punjab Letter to Sub Registrar for creation of charge and Declaration under section 4(1) dated 06.12.2016, which is Annexure A9 to this OA. Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Supplementary Agreement all dated 19.12.2016, which are Annexures A4 to A7 to this OA; Affidavit dated 05.12.2016, which is Annexure A8 to this OA; Account Statement with certificate dated 25.10.2023, which is Annexure A10 to this OA; Balance Confirmation Letter dated 18.12.2019 and 22.11.2022, which are Annexures A11 & A12 to this OA; Recall Notice dated 04.11.2022, which is Annexure A13 to this OA and Legal Notice dated 24.10.2023 with postal receipt, which is Annexure A14 to this OA. 5. 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.23,15,988.87p, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and she was proceeded ex-parte on 02.08.2024. 7. In support of the OA, affidavit of Sh. Subhash Chandra, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned counsel through Video

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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 A1 to A14 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to her and for that she had executed all the relevant documents in favour of the bank. 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.23,15,988.87 (Rupees Twenty Three Lacs Fifteen Thousand Nine Hundred Eighty Eight And Paise Eighty Seven Only) along with interest from the defendant, 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 @9.35% p.a. plus penal interest @2.00%p.a. rests from 01.04.2023 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 @08.00%p.a. in the loan accounts 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

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Rs.23,15,988.87p (Rupees Twenty Three Lacs Fifteen Thousand Nine Hundred Eighty Eight And Paise Eighty Seven Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 08.10.2024.

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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. Pronounced by me in the open Tribunal . Dated: 12.09.2024.

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

Punjab National Bank v. Smt. Jaspal Kaur

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Punjab National Bank v. Smt. Jaspal Kaur

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