Allowed

Punjab National Bank v. Sh. Karanhar Singh

DRT3 Jun 2024OA/453/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application filed for recovery of an outstanding allotment of Rs.28.74 lakhs. The court fixed uniform simple interest at 8.00% p.a., decided lower than the claimed rate, and issued a recovery certificate.

What did the court decide?

Recovery Certificate issued. Respondent ordered to pay Rs.28,74,632.93 with costs and simple interest @ 8.00%p.a. from filing date till realization.

Punjab National Bank versus Sh. Karanhar Singh — Company and Corporate | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.453/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.03.2023

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DATE OF DECISION: 03.06.2024 Punjab National Bank, a body corporate under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank, Village Bamial, Tehsil and District Pathankot, Punjab through its General Power of Attorney Holder, Sh. Pawan Kumar, Chief Manager, Punjab National Bank, Circle Sastra, Near Kamal Sweets, Sailli Road, Pathankot, Punjab, who is duly Authorised and Principal Officer of the Applicant Bank ……..Applicant Versus Sh. Karanhar Singh S/o Sh. Nidhan Singh R/o Village Muthi, Post Office Janial, Tehsil and District Pathankot, Punjab (Borrower/Mortgagor) ….……Defendant

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Advocates: Argued by Sh. Surinder Nath Sharma, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.28,74,632.93p (Rupees Twenty Eight Lacs Seventy Four Thousand Six Hundred Thirty Two and Ninety Three Paise only). The Original Application has been filed through Sh. Pawan Kumar, Chief Manager of the applicant bank, who is competent to institute the Original

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Application vide Power of Attorney dated 28.07.2011, which is Annexure A1 to this OA.

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2. The brief facts of the OA are that the defendant had approached
the applicant bank for the grant of KCC Limit(KGS) of Rs.20.00 Lacs
and Term Loan for Purchase of Tractor of Rs.4,87,500.00 vide Loan applications dated 17.09.2014 and 19.10.2016, which areAnnexures A2 & A10to this OA.
3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs
and Term Loan for Purchase of Tractor of Rs.4,87,500.00 vide
Memorandums of Sanction dated 17.09.2014 and 19.10.2016, which areAnnexures A3 & A11to this OA and the terms and conditions
were duly accepted by the defendant.
4. Defendant had mortgaged his immovable and movable
properties detailed as i.e.
(i) Land measuring 40K-00M situated at Hadbast No.33, Village
Muthi, Bamial, District Pathankot, vide Declaration u/s 4(1) dated
12.12.2014 with letter to Sub Registrar for creation of charge Bearing
Mutation no. 27 dated 02.01.2015 and its translation, which is
Annexure A4, A5 and 5Tto this OA.
(ii) Land measuring 13K-04M situated at Hadbast No.33, Village
Muthi, Bamial, District Pathankot, vide Declaration u/s 4(1) with letter
to Sub Registrar for creation of charge Bearing Mutation no. 34 dated
19.10.2016, which isAnnexure A13 and 14to this OA
b. Hypothecation of tractor namely Sonalika DI-750 III bearing Chassis
No. DZZDF58909653, Engine No. 4100EL63I584869F16 and
Registration no.PB35Z2358 Vide Agreement of Hypothecation dated
19.10.2016, which isAnnexure A15to this OA and Certificate of
Registration bearing Vehicle No.PB35Z2358, which isAnnexure A18 to this OA.
Documents executed:- Hypothecation Agreement, Letter of
Undertaking and Letter of Consent (Revised) dated 06.01.2015, which

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are Annexures A6 to A8 to this OA; Advocate Reports on Title dated 18.02.2015 and 19.10.2016, which are Annexures A9 & A12 to this OA; Letter of Undertaking dated 19.10.2016, which is Annexure A16 to this OA; Copy of Invoice and Receipt by M S Tractors dated 29.10.2016, which is Annexure A17 to this OA; Balance and Security Confirmation Letters (KCC Account No.1293008800007325) dated 17.07.2017 and 09.07.2020, which are Annexures A19 and A21 to this OA; Balance and Security Confirmation Letters (TL Account No.129300AU00001633) dated 30.09.2019 and 24.03.2022, which are Annexures A20 and A22 to this OA; Notice of Recall of Bank’s dues by the Advocate dated 26.07.2022 with postal receipts, which is Annexure A23 to this OA and Statement of account (KCC Account No. 1293008800007325) and Statement of account (TL Account No.129300AU00001633) with certificate, which are Annexures A24 & A25 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.28,74,632.93p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.04.2024. 7. In support of the OA, affidavit of Sh. Pawan Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel appeared 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 A1 to A25 to this OA, it

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is proved that the defendant approached applicant bank 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 bank. 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 bank is entitled to recover a sum of Rs.28,74,632.93p (Rupees Twenty Eight Lacs Seventy Four Thousand Six Hundred Thirty Two and Ninety Three Paise only) along with interest from the defendant, from the date of filing of the present Original Application till realization of both the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @8.50%p.a. along with penal interest @2%p.a. with yearly rests from 23.03.2023 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 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 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.28,74,632.93p (Rupees Twenty Eight Lacs Seventy Four Thousand Six Hundred Thirty Two and Ninety Three Paise only) with costs, current and future simple interest @8.00%p.a. in both the loan

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accounts from 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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.06.2024. 15. Copy of this order be given dasti to the applicant bank 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: 03.06.2024

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

Punjab National Bank v. Sh. Karanhar Singh

Case brief

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Punjab National Bank v. Sh. Karanhar Singh

Case brief

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