Allowed

Punjab National Bank v. Sh. Kaur Singh

DRT19 Feb 2024OA/426/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of ₹28.11 Lakhs interest in unpaid agricultural loan. The court reduced claimed interest to 10% p.a. and ordered recovery from mortgaged or personal assets.

What did the court decide?

Recovery of ₹28.11 Lakhs plus costs and simple interest at 10% p.a.; Recovery Certificate issued; enforcement via sale of mortgaged or personal assets authorized.

Punjab National Bank versus Sh. Kaur Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.426/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.03.2023

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DATE OF DECISION: 19.02.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on banking business and having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and one of the Branch Office, amongst others at Circle SASTRA Center, Railway Road, Moga (Punjab)-142001 through its constituted attorney and Principal Officer, Sh. Sandeep Kumar, Senior Manager of the applicant bank

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……..Applicant Versus

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Sh. Kaur Singh S/o Sh. Nihal Singh, R/o VPO Bhagta Bhai Ka, Tehsil Rampuraphul, Bhatinda, Punjab-151206 (Borrower)

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………Defendant

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Advocates:

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Argued by Sh. Rakesh Gupta, counsel proxy for Ms. Anuradha Gupta, counsel for the applicant Defendant is ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.28,11,703.00 (Rupees Twenty Eight Lacs Eleven Thousand Seven Hundred and Three only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of Agriculture Credit Facility of

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Rs.35.09 Lacs under OGC Scheme vide Loan Application dated 26.11.2012, which is Annexure A3 to this OA. Later, the defendant requested for renewal of the limit vide Renewal Application for Agricultural Credit.

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The applicant Bank sanctioned the Agriculture Credit Facility under OGC Scheme of Rs.24.00 Lacs for the 1^st year which will be enhanced every year upto the limit of Rs.35.09 Lacs till the start of 5^th year vide Sanction Letter dated 27.11.2012, which is Annexure A4 to this OA; and the terms and conditions were duly accepted by the defendant. Later, the applicant bank renewed the limit on request of the defendant vide Sanction Note dated 09.05.2018, which is Annexure A8 to this OA.

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Defendant had mortgaged his immovable property i.e. land measuring 56K-18M situated in the revenue estate of Village Bhagta, Tehsil Nihal Singh Wala, District Bathinda, Punjab vide Registered Mortgage Deed bearing Vasika No.1289 dated 17.12.2012 and Jamabandi for the year 2016-17, which are Annexures A6 and A7 to this OA. Documents executed: - Gazette notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement for hypothecation dated 18.12.2012, which is Annexure A5 to this OA; Balance confirmation letters dated 28.05.2015, 09.05.2018 and 20.03.2020, which are Annexures A9 to A11 to this OA; Legal notice and Postal receipt dated 06.03.2023, which are Annexures A12 and A13 to this OA and Statement of account, 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 debit of Rs.28,11,703.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount,

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therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 24.01.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned proxy counsel 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 A14 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he 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 bank is entitled to recover a sum of Rs.28,11,703.00 (Rupees Twenty Eight Lacs Eleven Thousand Seven Hundred and Three only) along with interest from the defendant, 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 bank in relief clause has claimed interest @11.25%p.a. along with @2%p.a. penal interest with half yearly rests from 01.03.2023 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

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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 @10.00%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 defendant is liable to pay to the applicant a total sum of Rs.28,11,703.00 (Rupees Twenty Eight Lacs Eleven Thousand Seven Hundred and Three only) with costs, current and future simple interest @10.00%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 defendant 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 defendant. 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 06.03.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 19.02.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Kaur Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Kaur Singh

Case brief

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What did the court decide?

What the court decided

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