Allowed

Punjab National Bank v. Mukhtiar Singh

DRT25 Sept 2024OA/443/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an application under Section 19 RDBFI Act seeking recovery of Rs.29,62,512.71 against a defaulting borrower. Irrebutted documentary evidence proved the loan and default. The Tribunal granted a recovery certificate and fixed uniform simple interest at 8%. Recovery can be effected via sale of mortgaged properties under SARFAESI Act.

What did the court decide?

Original Application allowed; Recovery Certificate issued; Defendant liable to pay Rs.29,62,512.71 with interest @8% p.a.; Applicant may recover dues by auction of mortgaged/mortgagably goods/properti

Punjab National Bank versus Mukhtiar Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.443/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.11.2021

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DATE OF DECISION: 25.09.2024

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Punjab National Bank, a body corporate, having common seal and perpetual succession, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, carrying on the 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 head, BSNL exchange,2^nd Floor, Club Road, Sangrur (Punjab)-148001, through Sh. Gurmeet Singh, Senior Manager.

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……..Applicant

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Versus

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Sh. Mukhtiar Singh S/o Sh. Harnam Singh, R/o Village and Post Office: Tolewal, Tehsil: Malerkotla, District Sangrur, Punjab-142022.

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….……Defendant

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Advocates: Argued by Sh. Virender Sood, 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.29,62,512.71p (Rupees Twenty Nine Lacs Sixty Two Thousand Five Hundred Twelve and Paisa Seventy One only). The Original Application has been filed through Sh. Gurmeet Singh, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 27.03.2008, 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.5.00 Lacs and further for

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its enhancement to Rs.20.00 Lacs vide Loan Application dated 23.12.2009.

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The applicant sanctioned the KCC Limit of Rs.5.00 Lacs and further enhanced it to Rs.20.00 Lacs vide Sanction Letters dated 14.01.2010 and 04.09.2015 which are Annexures A2 & A8 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. a) land measuring 15Bighe-02Biswe situated at Village Tolewal, Tehsil Malerkotla, District Sangrur, Punjab vide Registered Mortgage Deed bearing vasika no.854 dated 01.01.2010 along with its English Translation, which are Annexures A6 and A7 to this OA.

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b) Land measuring 18Bighe-15Biswe situated at Village Tolewal, Tehsil Malerkotla, District Sangrur, Punjab vide Declaration under Section 4(1) of Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) act 1978 dated 04.09.2015 and Mutation entry vide Rapat No.7 along with jamanbandi and their English Translation, which are Annexures A6, A7, A14, A15, A15(a) to this OA. Documents executed: - Hypothecation agreement, Letter of Confirmation and Unconditional cancellation of limit, Master Undertaking all dated 14.01.2010, which are Annexures A3 to A5 to this OA; Hypothecation agreement, Letter of Undertaking, Letter of Consent, Master Undertaking, Declaration regarding Agricultural land all dated 18.09.2015, which are Annexures A9 to A13 to this OA; Balance and Security Confirmation Letter dated 08.05.2012, 14.05.2014, 08.05.2017 and 16.03.2020, which are Annexures A16 to A19 to this OA; Legal Recall Notice dated 11.10.2021 along with its Postal Receipt, which is Annexure A20 to this OA; Statement of account in KCC accompanies by the Certificate under Banker’s Book of Evidence act-1882, which is Annexure A21 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

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debit of Rs.29,62,512.71p, 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 21.08.2024.

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

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Heard arguments and perused record.

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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 had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendant approached applicant 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 applicant. 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.29,62,512.71p (Rupees Twenty Nine Lacs Sixty Two Thousand Five Hundred Twelve and Paisa Seventy One 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 @13.15%p.a. (inclusive of penal interest @2%p.a.) from 01.11.2021 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

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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 @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 defendant is liable to pay to the applicant a total sum of Rs.29,62,512.71p (Rupees Twenty Nine Lacs Sixty Two Thousand Five Hundred Twelve and Paisa Seventy One only), 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of applicant the 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 17.10.2024. 15. 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. Pronounced by me in the open Tribunal. Dated: 25.09.2024

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

Punjab National Bank v. Mukhtiar Singh

Case brief

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Punjab National Bank v. Mukhtiar Singh

Case brief

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