Allowed

Punjab National Bank v. Manjeet Singh Alias Manjit Singh and Another

DRT5 Dec 2024OA/478/2024

Case brief

AI extract

What is this about?

中国人民银行 (Punjab National Bank) applied for recovery of dues from two defendants under the Recovery of Debts Act. The Tribunal found the claim proved, allowed the application, modified the interest rate to 8% p.a., and ordered a Recovery Certificate to be issued.

What did the court decide?

Recovery Certificate issued. Debt of Rs. 55,45,386.00 with simple interest at 8% p.a. to be recoverable.

Punjab National Bank versus Manjeet Singh Alias Manjit Singh… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.478/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.02.2024

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DATE OF DECISION: 05.12.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act 5, 1970 with its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi 110 075 and amongst others a branch at VPO Bhamna Tehsil Samana, Patiala 147101, Punjab through Sh. Sharanjit Singh, Manager and Attorney holder posted at Punjab National Bank Branch Bhamna, Patiala. (Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant

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Versus

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Sh. Manjeet Singh @ Sh. Manjit Singh son of Sh. Naranjan Singh @ Sh. Niranjan Singh, resident of Village Bakraha, Tehsil Patran, District Patiala, Punjab.

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Sh. Surjit Singh son of Sh. Naranjan Singh @ Sh. Niranjan Singh, resident of Village Bakraha, Tehsil Patran, District Patiala, Punjab.

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….……Defendant

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Advocates:

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Argued by Sh. Manish Singla, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.55,45,386.00 (Rupees Fifty Five Lacs Forty Five Thousand Three Hundred Eighty Six only). The Original Application has been filed through Sh. Sharanjit Singh, Manager o f the applicant, who is

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competent to institute the Original Application vide General Power of Attorney dated 12.02.2015, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 & 2 had approached the applicant for the grant of CC Limit of Rs.3.00 Lacs & Term Loan of Rs.4.50 Lacs vide Loan application dated 13.06.2008, which is Annexure A3 to this OA.

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The applicant sanctioned the CC Limit of Rs.3.00 Lacs & Term Loan of Rs.4.50 Lacs vide Sanction Letter dated 13.06.2008 filed in compliance of order dated 08.11.2024 vide diary no.18822 dated 03.12.2024 and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 & 2 had mortgaged their immovable property i.e. land measuring 23K-10M situated at Village Bakraha, Tehsil Patran, District Patiala, Punjab vide Registered Mortgage Deed bearing vasika no.1061 dated 24.06.2008, along with their English Translation, which is Annexure A9 to this OA.

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Documents executed: - Gazette Notification dated 04.03.2011, which is Annexure A2 to this OA; DP Note, Hypothecation Agreement, Agreement of Overdraft, Agreement of Term Loan, Common Agreement all dated 01.07.2008, which are Annexures A4 tos A8 to this OA; Balance and Security Confirmation Letters dated 02.06.2011, 03.01.2014, 01.11.2016, 03.09.2019 & 01.09.2022, which is Annexure A10 to this OA; Notice dated 23.11.2023 along with Postal Receipt, which is Annexure A11 to this OA and Statements of accounts with certificate, which is Annexure A12 to this OA. 5. 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.55,45,386.00, which is recoverable and the defendants was served recall notice 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 notice to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 05.11.2024. 7. In support of the OA, affidavit of Sh. Sharanjit Singh, Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. 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 A12 to this OA, it is proved that the defendants approached applicant 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 applicant. The defendants failed to pay back the loan 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 is entitled to recover a sum of Rs.55,45,386.00 (Rupees Fifty Five Lacs Forty Five Thousand Three Hundred Eighty Six only) jointly and severally, along with interest from the defendants, 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 @14.00%p.a. including penal interest @2.00%p.a. with half yearly rests from 10.02.2024 till the realization. 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 @8.00%p.a. in 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.55,45,386.00 (Rupees Fifty Five Lacs Forty Five Thousand Three Hundred Eighty Six only), jointly and severally with costs, current and future simple interest @8.00%p.a. in the loan accounts 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.01.2025. 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.

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Pronounced by me in the open Tribunal.

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Dated: 05.12.2024

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

Punjab National Bank v. Manjeet Singh Alias Manjit Singh and Another

Case brief

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Punjab National Bank v. Manjeet Singh Alias Manjit Singh and Another

Case brief

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