Allowed

Punjab National Bank v. Harpal Singh

DRT7 Oct 2024OA/434/2024

Case brief

AI extract

What is this about?

In an exparte recovery proceeding under the RDBFI Act, the Tribunal found the defendant liable for a loan default. The court allowed the application and directed the defendant to pay the principal amount with uniform simple interest at 8% p.a., permitting recovery via sale of mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued for Rs.42,33,268 plus simple interest at 8% p.a.; entitlement to recover via sale of mortgaged properties or attachment of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.434/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.03.2024

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DATE OF DECISION: 07.10.2024

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Punjab National Bank, a body corporate and a nationalized bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and amongst others a branch at Langrova Tehsil Nawanshahar District SBS Nagar, Punjab through Sh. Ankur Rawat, Senior Manager and Attorney Holder.

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……..Applicant Versus

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Sh. Harpal Singh S/o Sh. Mohinder Singh, R/o VPO Mazara Kalan, Tehsil Nawanshahar District SBS Nagar, Punjab, 144515.

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….……Defendant

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Advocates:

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Argued by Sh. Manish Singla, Advocate 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.42,33,268.00 (Rupees Forty Two Lacs Thirty Three Thousand Two Hundred and Sixty Eight only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager and Attorney Holder o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of KGS Limit of Rs.32.00 Lacs vide Loan application dated 22.11.2021, which is Annexure A2 to this OA and further for Term Loan (Car Loan) of Rs.9.00 Lacs.

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The applicant sanctioned the KGS Limit of Rs.32.00 Lacs and further sanctioned Term Loan (Car Loan) of Rs.9.00 Lacs vide Sanction Letters dated 22.12.2021 and 12.01.2023, which are Annexures A3 & A8 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 72K-01M-02Sar detailed as:(i) land measuring 30K-14M-4S situated at Village Ranewal, Tehsil Nawanshahr, District SBS Nagar, Punjab

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(ii) land measuring 34K-6M-7S situated at Village Salempur, Tehsil Nawanshahr, District SBS Nagar, Punjab (iii) land measuring 07K-00M situated at Village Mazara Kalan, Tehsil Nawanshahr, District SBS Nagar, Punjab vide Declaration u/s 4(1) dated 24.12.2024 along with its English Translation, which is Annexure A7 to this OA. Documents executed: - Hypothecation Agreement, Letter of Undertaking, Master Agreement all dated 23.12.2021, which are Annexures A4 to A6 to this OA; Letter of Hypothecation dated 12.01.2023, which is Annexure A9 to this OA; Provisional Registration Certificate dated 09.03.2023, which is Annexure A10 to this OA; Recall Notice dated 15.01.2024 along with its Postal Receipt, which is Annexure A11 to this OA; Statement of accounts (KGS & Term Loan) duly Certified, , which are Annexures A12 & A13 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.42,33,268.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant 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 27.09.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager and Attorney Holder, Punjab National Bank has been filed. 8. 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 A13 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.42,33,268.00 (Rupees Forty Two Lacs Thirty Three Thousand Two Hundred and Sixty Eight only) along with interest from the defendant, 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 @10.65%p.a. in KGS and @8.40%p.a. in Term Loan along with penal interest @2.00%p.a. with half yearly rests in both from 29.01.2024 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in both 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 Rs.42,33,268.00 (Rupees Forty Two Lacs Thirty Three Thousand Two Hundred and Sixty Eight only) with costs, current and future simple interest @8.00%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 defendant 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 defendant. 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 22.10.2024.

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Copy of this order be given dasti to the applicant 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.

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Pronounced by me in the open Tribunal.

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Dated: 07.10.2024

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

Punjab National Bank v. Harpal Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Harpal Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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