Allowed

Punjab National Bank v. Sh. Gurmeet Singh

DRT24 Jan 2024OA/480/2023

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed the applicant bank's original application for recovery of Rs. 27,87,937.43 principal plus new interest @8% per annum from filing date. The defendant was ordered to pay the amount with liberty to recover from sale of secured or personal assets.

What did the court decide?

Recovery of Rs. 27,87,937.43 plus simple interest @8% per annum from 04.03.2023. Recovery Certificate issued.

Punjab National Bank versus Sh. Gurmeet Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO. 480/2023

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DATE OF INSTITUTION: 04.03.2023

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DATE OF DECISION: 24^th DAY OF JANUARY, 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 Delhi and a Branch at Jundla, District Karnal-132036, through its Authorised Representative, Sh. Gurmeet Singh Kapoor, Senior Manager, Circle Sastra, Sector-12, Karnal-132001

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…..Applicant

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Versus

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Sh. Gurmeet Singh s/o Sh. Balkar Singh r/o House No. 89, Village Bansa, Tehsil and District, Karnal, Haryana-132036

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....Defendant

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Argued by: Sh. Rehan Chaudhary proxy counsel Sh. Krishan Kumar counsel for the applicant bank (through VC) Defendant ex parte vide order dated 05.10.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), a gainst the defendant for recovery of Rs.27,87,937.43/- (Rupees Twenty Seven Lakh Eighty Seven Thousand Nine Hundred Thirty Seven and Forty Three Paisa Only) . It has been filed through Sh. Gurmeet Singh Kapoor, Senior Manager of the applicant bank stated to be competent

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OA/480/2023 PUNJAB NATIONAL BANK VS GURMEET SINGH 2

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to institute the Original Application vide Power of Attorney dated 23.11.2001, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendant had approached the applicant bank for grant of KCC Limit of Rs. 20 lakh vide application Form dated 22.04.2016 for agricultural credit, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid facility to the defendant vide memorandum for sanction dated 26.04.2016, AnnexureA3 (copy) as per terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facility, the defendant executed hypothecation agreement dated 29.04.2016, Annexure-A6 (copy).

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The aforesaid loan facility was further secured by creation of registered mortgage by the defendant in respect of agricultural land measuring 56 Kanal 04 Marla situated in the revenue estate of Bansa, Tehsil and District, Karnal, Haryana, fully detailed in para No. 5(v) of the Original Application.

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The documents relating to the mortgage are as under:

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i. Request letter dated 29.04.2016 to the Tehsildar, Karnal, for entry/mutation of mortgaged property, Annexure-A4 (copy).

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ii. Copy of ‘Jamabandi’ for the years 2010-2011, Annexure-A5 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA on 30.09.2022. The defendant executed balance and security confirmation letter dated

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OA/480/2023 PUNJAB NATIONAL BANK VS GURMEET SINGH 3

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06.01.2022, Annexure-A7 (copy). The applicant bank recalled entire outstanding amount vide original legal notice dated 04.01.2023 along with its original postal receipt, Annexure-A8 (colly) (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.27,87,937.43/- (Rupees Twenty Seven Lakh Eighty Seven Thousand Nine Hundred Thirty Seven and Forty Three Paisa Only) , is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, 1891, Annexure-A9 (copy).

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Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant, thus, the defendant was proceeded against ex-parte vide order dated 05.10.2023 . 8. In support of contents of the OA, affidavit of evidence of Sh. Gurmeet Singh Kapoor, Senior Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the learned proxy counsel and gone through the record carefully.

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It was argued by the learned proxy counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A9 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant

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OA/480/2023 PUNJAB NATIONAL BANK VS GURMEET SINGH 4

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had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.27,87,937.43/-

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(Rupees Twenty Seven Lakh Eighty Seven Thousand Nine Hundred Thirty Seven and Forty Three Paisa Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief clause, has claimed rate of interest @8.85% plus penal interest @2% per annum. In hypothecation agreement dated 29.04.2016, Annexure-A6 (copy), the rate of interest has been mentioned @BR+2% per annum.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural , present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendant is liable to pay to the applicant bank a sum of Rs.27,87,937.43/- (Rupees Twenty Seven Lakh Eighty Seven Thousand Nine Hundred Thirty Seven and Forty Three Paisa Only)

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OA/480/2023 PUNJAB NATIONAL BANK VS GURMEET SINGH 5

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with current and future simple interest @8% per annum w.e.f. 04.03.2023 , till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendant in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets of the defendant. However, the applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 12.03.2024.

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Copy of this order be sent to the applicant bank and the defendant through registered/speed post. This order be uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. Sh. Gurmeet Singh

Case brief

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Punjab National Bank v. Sh. Gurmeet Singh

Case brief

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