Allowed

Punjab National Bank v. Shri Guru Ravidass Mission Charitable Hospital and Educational Trust and Others

DRT6 Feb 2024OA/470/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab National Bank for recovery of outstanding dues of Rs. 2,75,23,743.34 from the hospital and its guarantors. The court approved a simplified interest rate of 10% per annum.

What did the court decide?

Recovery certificate issued directing the defendants to pay Rs. 2,75,23,743.34 with interest @ 10% p.a. jointly and severally.

Punjab National Bank versus Shri Guru Ravidass Mission… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.470/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.04.2023

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DATE OF DECISION: 06.02.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 and one of the Branch Office, amongst others at Dana Mandi, Banga, District SBS Nagar, through Sh. Mahinder Paul, Manager, Punjab National Bank, Dana Mandi, Banga, District SBS Nagar, duly constituted Attorney of the Applicant Bank

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……..Applicant

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Versus

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Sh. Guru Ravidass Mission Charitable Hospital and Educational Trust at Village Thandian PO Banga, District Shaheed Bhagat Singh Nagar, Punjab 144505

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Sh. Nam Dev Banger S/o Sh. Dalip Chand R/o Hous no.16/7, Panth Mata Sahib Kaur Banga, Nawashahr, Punjab (President/Guarantor)

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Sh. Raj Kumar S/o Sh. Yogi Ram Sharma R/o Ward no.8, Garhshankar Hoshiarpur, Punjab- 144527 (Cashier/Guarantor)

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Sh. Balwinder Ram Lakha S/o Sh. Sawarna Ram R/o Karnana, Shaheed Bhagat Singh Nagar, Punjab (Guarantor)

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Sh. Mukesh Kumar Upadhayay S/o Sh. Ramayan Upadhayay, R/o Near Sant Baba Sewa Singh gate, Garhshankar Road, Bal Clinic, Banga Shaheed Bhagat Singh Nagar, Punjab- 144505 (Guarantor)

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Sh. Balbir Singh S/o Sh. Parkash Ram, R/o Jindowal Banga, Nawashahar, Punjab- 144505 (Guarantor)

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………Defendants

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Advocates: Argued by Sh. P.S. Sobti, counsel for the applicant Defendants are ex-parte

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FINAL ORDER 1. 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 defendants for recovery of Rs.2,75,23,743.34p (Rupees Two Crores Seventy Five Lacs Twenty Three Thousand Seven Hundred Forty Three and Thirty Four Paisa only). The Original Application has been filed through Sh. Mahinder Paul, Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 04.02.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 through defendant nos.2 and 3 had approached the applicant bank for the grant of Term Loan facility of Rs.170.45 Lacs for construction of hospital building and Overdraft limit facility of Rs.50.00 Lacs for Working capital. The defendant No.1 through defendant nos.2 and 3 also approached for a Term loan of Rs.30.00 lacs for purchase of medical equipment/machinery and medicines etc. vide loan application dated 25.08.2017, which is Annexure A8 to this OA. 3. The applicant Bank sanctioned the Term Loan of Rs.170.00 Lacs and Overdraft limit facility of Rs.20.00 Lacs vide Sanction Letter dated 02.12.2016, which is Annexure A3 to this OA; and also sanctioned a Term loan of Rs.30.00 lacs vide Sanction letter dated 25.08.2017, which is Annexure A9 to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos.2 and 6 had mortgaged their immovable properties i.e. total land measuring 04 Kanal detailed as: - (i) land measuring 07-1/2M;

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(ii) land measuring 19-1/2M; and

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(iii) land measuring 02K-13M;

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all situated at Village Thandian, Hadbast no.102, Tehsil Banga, District SBS Nagar, Punjab; vide Registered Sale Deed bearing vasika no.1169 dated 09.11.2015 along with its translation, which are Annexures A5 and A5-A to this OA.

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Defendant nos. 2 and 6 have leased of their immovable property to defendant no.1 and defendant no.1 further mortgaged lease hold rights vide Lease deed dated 18.11.2016 along with relevant portion of true translation, which is Annexure A7 to this OA.

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Documents executed: - Resolution of members of trust dated 07.11.2016 along with its translation, which are Annexures A2 and A2-A to this OA; Agreement of Hypothecation dated 02.01.2017, which is Annexure A4 to this OA; Letter for creation of mortgage dated 03.01.2017, which is Annexure A6 to this OA; Agreement of Hypothecation and Agreement of Guarantee both dated 28.08.2017, which are Annexures A10 and A11 to this OA; Letter of Continuity dated 08.09.2017, which is Annexure A12 to this OA; Jamabandi for the year 2011-12 along with its translation, which are Annexures A13 and A13-A to this OA; Letter by applicant bank to the tehsildar dated 11.09.2017, which is Annexure A14 to this OA; Overdraft Agreement dated 13.10.2017, which is Annexure A15 to this OA; Charge entered in CERSAI dated 06.12.2017, which is Annexure A16 to this OA; Letters for restructuring dated 05.02.2019 and 21.07.2020, which are Annexures A17 and A18 to this OA; Notice dated 20.11.2020, which is Annexure A19 to this OA; Letter of Undertaking dated 24.06.2021, which is Annexure A20 to this OA; Notices dated 21.10.2021, which is Annexure A21 (Colly) to this OA; Recall notices dated 14.12.2021, which is Annexure A22 (Colly) to this OA; Notice u/s 13(2) dated 17.08.2022, which is Annexure A23 to this OA;

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Balance Confirmation letters dated 01.12.2019, 29.09.2021, 29.11.2021 and 30.11.2021, which are Annexures A24 (Colly) and A25 (Colly) to this OA; and Statements of accounts, which are Annexures A26 to A28 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.2,75,23,743.34p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant bank 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 and counsel appeared on behalf of defendants but did not file any WS. Later due to non-appearance, the defendants were proceeded ex-parte on 22.12.2023.

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In support of the OA, affidavit of Sh. Mahinder Paul, Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel for the applicant 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 A28 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants 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.2,75,23,743.34p (Rupees Two Crores Seventy Five Lacs Twenty Three Thousand Seven Hundred Forty Three and Thirty Four Paisa only) along with interest from the defendants, jointly

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and severally, from the date of filing of the present Original Application till realization of 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 @10.25%p.a. plus @2%p.a. penal interest with monthly rests, in all the loan accounts 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 @10.00%p.a. in all 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 defendants are liable to pay to the applicant a total sum of Rs.2,75,23,743.34p (Rupees Two Crores Seventy Five Lacs Twenty Three Thousand Seven Hundred Forty Three and Thirty Four Paisa only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in all the loan 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 defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of.

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Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 20.02.2024.

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Copy of this order be given dasti to the applicant bank 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: 06.02.2024

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

Punjab National Bank v. Shri Guru Ravidass Mission Charitable Hospital and Educational Trust and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Shri Guru Ravidass Mission Charitable Hospital and Educational Trust and Others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

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