Allowed

Punjab National Bank v. Sukhdev Kaur and Another

DRT24 Oct 2024OA/467/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of Rs. 28,21,690. The court granted a recovery certificate and a uniform simple interest rate of 8% per annum, permitting recovery via mortgaged properties or attachment of personal assets.

What did the court decide?

Recovery Certificate issued; Defendants liable to pay Rs. 28,21,690 plus 8% simple interest; Applicant entitled to recover via sale of mortgaged properties or attachment of personal assets.

Punjab National Bank versus Sukhdev Kaur and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.467/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.04.2023

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DATE OF DECISION: 24.10.2024

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Punjab National Bank, is a Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and its Branch Offices throughout India along with a Office at Circle Sastra Centre, Circle Offices S.A.S. Nagar (Punjab) through Sh. Ravi Kumar, Chief Manager of the said office, who is also one of the Principal Officers and General Attorney of the Applicant.

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……..Applicant

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Versus

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Smt. Sukhdev Kaur W/o Sh. Baldev Singh, Village Talapur, Tehsil Chamkaur Sahib, Distict Rupnagar (Punjab)-140001.

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Sh. Jagdish Singh son of Sh. Baldev Singh, Village Talapur, Tehsil Chamkaur Sahib, Distict Rupnagar (Punjab)-140001.

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………. Defendants

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Advocates:

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Argued by Sh. Rajindra Kumar Joshi, 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.28,21,690.00 (Rupees Twenty Eight Lacs Twenty One Thousands Six Hundred Ninety Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs.15.00 Lacs vide Loan Application dated 09.09.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 24.09.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged her immovable properties i.e. total land measuring 12 Bigha-05 Biswa situated at Village Talapur, H.B. No.159, Tehsil Chamkaur Sahib, Distict Rupnagar (Punjab)vide Declaration under Section 4(1) dated 15.09.2015 and Mutation No..621 in favour of the Applicant Bank in the revenue record dated 16.09.2015 along with their translation, which are Annexures A10 and A11 to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking, , Declaration regarding Agriculture Land & Agreement of Guarantee executed by defendant no.2 all dated 24.09.2015, which are Annexures A4, A5, A8 and A9 to this OA; Letter of Consent dated 25.09.2015, which is Annexure A6 to this OA; Consent Letter, which is Annexure A7 to this OA;; Balance and Security Confirmation Letters executed by defendant no.1 dated 14.09.2018 & 28.03.2021, which are Annexures A12 & A13 to this OA; Recall Notice issued to defendants dated 14.05.2020, which is Annexure A14 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act and Record of Memoranda of account, which are Annexures A15 & A16 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.28,21,690.00, 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 21.10.2024

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief 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 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 A16 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 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.28,21,690.00 (Rupees Twenty Eight Lacs Twenty One Thousands Six Hundred Ninety Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the

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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 @8.50%p.a. along with penal interest @2%p.a. with half yearly rests from the date of filing the OA 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.28,21,690.00 (Rupees Twenty Eight Lacs Twenty One Thousands Six Hundred Ninety 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 execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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 05.11.2024. 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: 24.10.2024

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

Punjab National Bank v. Sukhdev Kaur and Another

Case brief

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Punjab National Bank v. Sukhdev Kaur and Another

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