Allowed

Punjab National Bank v. Ajit Singh and Another

DRT30 Nov 2024OA/476/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's original application for recovery of Rs.34,66,888 from the respondents. The court found the case proved via documentary evidence, closed the defense, and ordered repayment with 8% simple interest and costs.

What did the court decide?

Amount of Rs.34,66,888.00 awarded with 8% simple interest and costs; Recovery Certificate issued to enforce claim against mortgaged properties.

Punjab National Bank versus Ajit Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.476/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.03.2024

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DATE OF DECISION: 30.11.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi-110075 and amongst others a branch office at Sidhwadona, Tehsil and District Kapurthala through its Constituted Attorney & Principal Officer Sh. Ankur Rawat, Senior Manager posted at Punjab National Bank, Circle Sastra Centre Kapurthala, Punjab.

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……..Applicant Versus

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Sh. Ajit Singh son of Sh. Inder Singh resident of House No.3, Village Kesarpur, PO Sandhu Chatha, Tehsil and District Kapurthala.

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Sh. Kulwant Singh son of Sh. Ajit Singh resident of House No.3, Village Kesarpur, PO Sandhu Chatha, Tehsil and District Kapurthala.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant None for Defendants

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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.34,66,888.00 (Rupees Thirty Four Lacs Sixty Six Thousand Eight Hundred Eighty Eight Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, 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 KCC Limit of Rs.10.00 Lacs vide Loan Application dated 28.03.2011, which is Annexure A2 to this OA. Further, defendants had again approached the applicant for enhancement of KCC Limit from Rs.10.00 Lacs to Rs.20.00 Lacs vide Loan Application dated 27.07.2012, which is Annexure A7 to this OA. 3. The applicant sanctioned KCC Limit of Rs.10.00 Lacs and further enhanced it to Rs.20.00 lacs vide Sanction Letter dated 27.07.2012, which is Annexure A8 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 31 Kanal-11 Marla detailed as: a. Land measuring 26 Kanal-09 Marla situated at Village Kesarpur, Tehsil and District Kapurthala b. Land measuring 05 Kanal-02 Marla situated at Village Nihaluwal, Tehsil and District Kapurthala vide Registered Mortgaged Deeds bearing vasika no.6176 dated 29.03.2011 & vasika no.2111 dated 06.08.2012 along with their translations, which are Annexures A6 & A12 to this OA. Documents executed:- Agreement for hypothecation, Letter of Undertaking & Letter of Consent all dated 05.04.2011, which are Annexures A3 to A5 to this OA; Agreement for hypothecation, Letter of Undertaking & Letter of Consent all dated 09.08.2012, which are Annexures A9 to A11 to this OA; Balance and Security Confirmation Letter dated 24.06.2014, 16.09.2016, 10.07.2018 & 03.06.2021, which is Annexure A13 to this OA; Notice along with postal receipts dated 19.07.2018, which is Annexure A14 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A15 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 debit of Rs.34,66,888.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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. Sh. Nitin Sherwal, Advocate appeared on behalf of both the defendants and filed his Power of Attorney but did not filed WS with in stipulated period of time. Therefore, opportunity to file WS by defendants was closed and defense was struck of on 28.11.2024. 7. In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments of Ld. Counsel for applicant. None appeared for defendants for arguments. Perused record. 9. 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 A15 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 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.34,66,888.00 (Rupees Thirty Four Lacs Sixty Six Thousand Eight Hundred Eighty Eight 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. along with penal interest @2% with half rests from 01.10.2023 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 @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.34,66,888.00 (Rupees Thirty Four Lacs Sixty Six Thousand Eight Hundred Eighty Eight 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 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 08.01.2025.

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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: 30.11.2024

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

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Punjab National Bank v. Ajit Singh and Another

Case brief

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Punjab National Bank v. Ajit Singh and Another

Case brief

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