Allowed

Punjab National Bank v. Gurmel Singh and Others

DRT9 Sept 2024OA/441/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for recovery of Rs. 29,75,442 from three respondents who defaulted on a KCC loan with mortgage. The court awarded uniform simple interest at 8% p.a. and authorized realization from mortgaged properties.

What did the court decide?

Recovery of Rs. 29,75,442 with costs and simple interest at 8% p.a. The bank is entitled to recover from mortgaged properties or sale of personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.441/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.11.2021

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DATE OF DECISION: 09.09.2024 Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi (110075) and having its branches at different places including one at Ludhiana Circle Shastra Centre-West, Ferozepur Road, Ludhiana (Punjab) through its Constituted Attorney /Chief Manager Sh. Sonu.

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……..Applicant Versus 1. Sh. Gurmel Singh S/o Sh. Hari Singh, Resident of VPO Lohgarh, Tehsil Moga, Punjab. (Borrower) 2. Sh. Tarsem Singh S/o Sh. Jarnail Singh, R/o Village Lohgarh, Tehsil and District Moga, Punjab. (Guarantor) 3. Sh. Gurdev Singh S/o Sh. Inder Singh, R/o Village Lohgarh, Tehsil and District Moga, Punjab. (Guarantor) ….……Defendants

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Advocates: Argued by Sh. Vinish Singla, 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 Institutions Act, 1993, against the defendants for recovery of Rs.29,75,442.00 (Rupees Twenty Nine Lacs Seventy Five Thousand Four Hundred & Forty Two Only). The Original Application has been filed through Sh. Sonu, Chief Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 22.11.2014 which is P/A to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC of Rs.6.25 Lacs

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vide Loan Application dated 04.12.2010, which is Annexure A1 to this OA and further for its enhancement to Rs.12.00 Lacs

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The applicant Bank sanctioned the KCC Limit of Rs.6.25 Lacs vide Sanction Letter dated 17.12.2010, which is Annexure A2 to this OA and Further sanctioned the enhancement of KCC Limit to Rs.12.00 Lacs and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged her immovable properties i.e. total land measuring 13Kanal 0Marla situated at R/o Village Lohgarh, Tehsil Dharamkot District Moga vide Registered Mortgage Deed bearing V asika No.3753 dated 17.12.2010 and Vasika No.2325 dated 07.11.2012 with their translations, which are Annexures A5 and A8 to this OA. Documents executed:-Copy of Hypothecation Agreement, Copy of Guarantee Agreement both dated 21.12.2010, which are Annexures A3 to A4 to this OA; Copy of Supplementary Agreement, Copy of Guarantee Agreement both dated 07.12.2012,which are Annexures A6 to A7 to this OA; Legal Notice dated 05.10.2021, which is Annexure A9 to this OA; Copy of BC Letter dated 12.01.2018, which is Annexure A10 to this OA and statement of account with certificate, 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.29,75,442.00 which is recoverable and the defendants 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. 6. 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 15.07.2024. 7. In support of the OA, affidavit of Sh. Sonu, Chief Manager, Punjab National Bank has been filed.

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Heard 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 P/A, 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.29,75,442.00 (Rupees Twenty Nine Lacs Seventy Five Thousand Four Hundred & Fourty Two 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @13.8%p.a. plus penal interest @2.00%p.a. with half yearly rests from 20.10.2021 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 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

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Rs.29,75,442.00 (Rupees Twenty Nine Lacs Seventy Five Thousand Four Hundred & Fourty Two Only)jointly and severally, with costs, current and future simple interest @8.00%p.a. inthe loan accountfrom 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.

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Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.10.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 09.09.2024.

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Gurmel Singh and Others

Case brief

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Punjab National Bank v. Gurmel Singh and Others

Case brief

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