Allowed

Punjab and Sind Bank v. M/s Hamchiri Car Palace and Others

DRT7 Dec 2024OA/449/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the recovery application filed by Punjab and Sind Bank against defendants involved in a defaulted overdraft facility. The court, applying its discretionary powers, ordered a uniform simple interest rate of 8.00% p.a. and directed the issuance of a recovery certificate with liberty to attach and sell assets.

What did the court decide?

Declaration of liability to pay Rs.35,76,485.00 with costs and future simple interest @8.00%p.a.; issuance of recovery certificate.

Punjab and Sind Bank versus M/s Hamchiri Car Palace and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.449/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.03.2023

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DATE OF DECISION: 07.12.2024

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Punjab and Sind Bank, A body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 (Act No.40 of 1980) with its Head Office at 21, Rajindera Place, New Delhi and Branches amongst other places, one at Patran, District Patiala, through Sh. Amish Kumar Ranjan, Manager.

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……..Applicant

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Versus

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M/s Hamchiri Car Palace, through its Proprietor Sh. Darshan Gir S/o Chotta Gir, Narwana Road, Patran, District Patiala.

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Sh. Darshan Gir S/o Sh. Chotta Gir, R/o Village & Post office Hamchiri, Tehsil Patran, District Patiala.

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Sh. Chotta Gir S/o Sh. Mangat Gir, R/o Village & Post office Hamchiri, Tehsil Patran, District Patiala.

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Sh. Baldev Singh S/o Nand Singh, R/o Sunair Basti, Patran, Tehsil Patran, District Patiala.

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….……Defendants

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Advocates:

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Argued by Sh. Sukhvinder Singh, Advocate proxy for Sh. A.B.S. Sidhu, 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 Rs.35,76,485.00p (Rupees Thirty Five Lacs Seventy Six Thousand Four Hundred Eighty Five only). The Original Application has been filed through Sh. Amish Kumar Ranjan, Manager of the applicant, who is competent to institute the Original Application vide Authorization Letter dated 02.03.2023, which is Annexure A1 to this OA and General Power Attorney dated 09.08.2017, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant 1 & 2 had approached the applicant for the grant of Overdraft Limit of Rs.9.00 Lacs vide Loan Application dated 13.08.2009, which is Annexure A3 to this OA.

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The applicant sanctioned the Overdraft Limit of Rs.9.00 Lacs vide Sanction Letter dated 13.08.2009, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.3 had mortgaged his immovable properties i.e. all part and parcel of property measuring 01Kanal 0Marla situated at Village & Post office Hamchiri, Tehsil Patran, District Patiala vide Registered Mortgage Deed bearing vasika no.1426 dated 12.08.2009 & Sale Deed bearing vasika no.4085 dated 26.03.2008 along with their Translations, which are Annexures A18 & A20 to this OA.

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Documents executed:- Form No.14 R-Demand Promissory Note, Form No.106, Form No.126, Form No.159, Form No.291, Form No.412, Form No.199, Form No.192, CIBIL consent by borrower, Form No.256 Guarantee Agreement, Cibil Consents by guarantor all dated 13.08.2009, which are Annexures A5 to A17 to this OA; Form No.84-A dated 14.08.2009, which is Annexure A19 to this OA; Valuation report dated 30.03.2022, which is Annexure A21 to this OA; Form No.14, Form No.106, Form No.126, Form No.291, Form No.412 and Form No.159 all dated 20.06.2011, which are Annexures A22 to A27 to this OA; Revival Letter dated 24.04.2014, 13.04.2017 & 19.03.2020, which are Annexures A28 to A30 to this OA; Notice u/s 13(2) dated 23.09.2017 with postal receipts, which is Annexure A31 to this OA; Possession Notice dated 02.08.2018, which is Annexure A32 to this OA; DM Order dated 17.09.2018 with its Translations, which is Annexure A33 to this OA and Statement of account with certificate, which are Annexures A34 & A35 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.35,76,485.00p, which is recoverable and the defendants were served recall notices but they 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 05.12.2024.

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In support of the OA, affidavit of Sh. Amish Kumar Ranjan, Manage r, Punjab and Sind Bank, has been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A35 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.35,76,485.00p (Rupees Thirty Five Lacs Seventy Six Thousand Four Hundred Eighty Five 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 @13.75%p.a. along with penal interest @2.00%p.a. with monthly 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

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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 Rs.35,76,485.00p (Rupees Thirty Five Lacs Seventy Six Thousand Four Hundred Eighty Five 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 20.01.2025. 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: 07.12.2024

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

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Punjab and Sind Bank v. M/s Hamchiri Car Palace and Others

Case brief

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Punjab and Sind Bank v. M/s Hamchiri Car Palace and Others

Case brief

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