Allowed

Punjab National Bank v. Major Singh and Others

DRT27 Sept 2024OA/419/2022

Case brief

AI extract

What is this about?

DRT-III, Chandigarh disposed of an Original Application under the RDDBFI Act, 1993. The bench allowed the bank's claim for recovery of Rs. 22.58 lakhs from mortgage defaulted borrowers. The court granted a recovery certificate and ordered principal with simple interest at 8% p.a..

What did the court decide?

Recovery certificate issued; Defendants ordered to pay Rs. 22,58,991 with simple interest at 8% p.a.; Right to recover via sale of mortgaged or personal assets enforced.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.419/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.12.2021

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DATE OF DECISION: 27.09.2024

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Punjab National Bank, a body corporate, Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and the successor of Oriental Bank of Commerce, by Scheme of Amalgamation of Oriental Bank of Commerce dated 04.03.2020, passed by the Central Government under section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act,1980, having one of its Branch office at Model Town, Ludhiana, Punjab, through Shri Sonu, Chief Manager, Punjab National Bank, Circle Sastra Centre, Ludhiana West, Ferozepur Road, Ludhiana, Principal Officer and duly constituted Attorney of the Applicant. (Erstwhile Oriental Bank of Commerce, Branch office at Model Town, Ludhiana, Punjab).

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……..Applicant

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Versus

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Sh. Major Singh S/o Sh. Harchand Singh, R/o Village Assi Kalan, Sub Tehsil Dehlon, District Ludhiana.

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Sh. Balraj Singh S/o Sh. Major Singh, R/o Village Assi Kalan, Sub Tehsil Dehlon, District Ludhiana.

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Sh. Jagjeet Singh S/o Sh. Major Singh, R/o Village Assi Kalan, Sub Tehsil Dehlon, District Ludhiana.

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….……Defendants

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Advocates:

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Argued by Sh. Amandeep Singh Sobti, Advocate for the Applicant Defendants are 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

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Rs.22,58,991.00 (Rupees Twenty Two Lac Fifty Eight Thousand Nine Hundred & Ninety One Only). The Original Application has been filed through Shri Sonu, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 22.11.2014, which is Annexure A2 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 OGC Limit of Rs.15.00 Lacs vide Loan Application dated 22.09.2011, which is Annexure A3 to this OA.

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The applicant sanctioned the OGC Limit of Rs.15.00Lacs vide Sanction Letter dated 23.09.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged her immovable properties i.e. total land measuring 3 Bigha 2 Biswa 1 Biswasi situated at Village Assi Kalan, Hadbast No.283, Sub Tehsil Dehlon, District Ludhiana vide Registered Mortgage Deed bearing Vasika No.1122 d ated 23.09.2011 and Jamabandi of the year 2006-2007 with their Translations, which are Annexures A5 to A6 to this OA. Documents executed:-Gazette Notification dated 04.03.2020, which is Annexure A1 to this OA; Hypothecation Agreement dated 24.09.2011, which is Annexure A4 to this OA; Balance confirmation Letters dated 17.06.2014 and 07.06.2017, which are Annexures A7 to A8 to this OA; Notice dated 08.12.2021 with postal receipts, which is Annexure A9 to this OA; Statement of account with certificate dated 31.12.2021, which is Annexure A10 to this OA and Order of Hon’ble Supreme Court of India dated 23.09.2021, 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.22,58,991.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 05.09.2024.

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In support of the OA, affidavit of Shri Sonu, Chief 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 counsel 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 A11 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.22,58,991.00 (Rupees Twenty Two Lac Fifty Eight Thousand Nine Hundred & Ninety One 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 @10.50%p.a. plus penal interest @2.00%p.a. with half yearly rests from 01.10.2021 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 defendants, quantum of loan and prevalent market rates of

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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.22,58,991.00 (Rupees Twenty Two Lac Fifty Eight Thousand Nine Hundred & Ninety One 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.10.2024. 15. 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: 27.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Major Singh and Others

Case brief

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Punjab National Bank v. Major Singh and Others

Case brief

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