Allowed

Punjab Gramin Bank v. Kartar Singh and Another

DRT27 Sept 2024OA/450/2023

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDBFI Act, the applicant bank sought recovery of a debt of Rs.23.83 lakhs along with interest. The Tribunal, exercising its discretion, allowed the application and granted a uniform simple interest rate of 8% per annum.

What did the court decide?

Defendants declared liable to pay Rs.23,83,509.00 with costs and simple interest at 8% per annum from filing date. Recovery Certificate issued.

Punjab Gramin Bank versus Kartar Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.450/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.02.2023

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DATE OF DECISION: 27.09.2024

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No 21 of 1976 having its Head Office, at Jalandhar Road, Kapurthala (Pb) and having its branches at different places including one at Kotbudha, Tehsil Patti, District Tarn Taran (Pb) through its Constituted Attorney/Manager Sh. T.P. Singh.

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……..Applicant Bank Versus

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Sh. Kartar Singh S/o Sh. Mohan Singh R/o Village Rasulpur, Tehsil Patti, District Tarn Taran (Punjab).

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Sh. Ravinder Singh S/o Sh. Kartar Singh Village Rasulpur, Tehsil Patti, District Tarn Taran (Punjab).

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………. Defendants

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Advocates: Argued by Sh. Bhushan Bhatia, Advocate for the applicant (through VC) 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.23,83,509.00 (Rupees Twenty Three Lacs Eighty Three Thousand Five Hundred Nine Only). The Original Application has been filed through Sh. T.P. Singh, Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 19.10.2006, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of KCC Limit of Rs.14.64 Lacs vide Loan Application dated 12.12.2014, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.14.64 Lacs vide Sanction Letter dated 12.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 50K-00M situated in Village Rasulpur, Tehsil Patti, District Tarn Taran (Punjab) vide Declaration U/s 4(1) bearing v asika No.221 dated 2 6.12.2014, which is Annexure A5 to this OA.

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Documents executed:-Loan Agreement dated 02.01.2015, which is Annexure A4 to this OA; Legal Notice dated 19.01.2023, which is Annexure A6 to this OA; BC Letter dated 06.03.2017 & 02.03.2020, which are Annexures A7 & A7/1 to this OA And Statement of Account along with Certificate by the officer in-charge of computer system, which is Annexure A8 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.23,83,509.00, 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 09.09.2024.

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In support of the OA, affidavit of Sh. T.P. Singh, Manager, Punjab Gramin Bank h as 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 A8 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant

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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 is entitled to recover a sum of Rs.23,83,509.00 (Rupees Twenty Three Lacs Eighty Three Thousand Five Hundred Nine 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 @10.25%p.a. along with penal interest @2%p.a. with 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 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 @08.00%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 defendants are liable to pay to the applicant a total sum of Rs.23,83,509.00 (Rupees Twenty Three Lacs Eighty Three Thousand Five Hundred Nine Only) jointly and severally, with costs, current and future simple interest @08.00%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

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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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 19.10.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 27.09.2024

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

Punjab Gramin Bank v. Kartar Singh and Another

Case brief

What is this about?

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Punjab Gramin Bank v. Kartar Singh and Another

Case brief

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