Allowed

Punjab National Bank v. Amar Singh

DRT26 Aug 2024OA/490/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application under Section 19 RDBFI Act, 1993. The court held the defendant liable to pay the outstanding loan amount with uniform simple interest at 8% per annum and directed the issuance of a recovery certificate.

What did the court decide?

Ordered recovery of Rs.24,03,338.95p plus costs and simple interest at 8% p.a.; directed issuance of Recovery Certificate; applicant entitled to recover via sale of mortgaged/personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.490/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.02.2022

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DATE OF DECISION: 26.08.2024

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Punjab National Bank, A.S. College, Khanna, District Ludhiana-141401 through its Authorized Representative Mr. Ravinder Kumar, Senior Manager, Sastra, Punjab National Bank, Site 5, 1^st Floor, Ferozepur Road, Ludhiana -142023 through its Authorized Representative Mr. Ravinder Kumar, Senior Mananger, SASTRA, Punjab National Bank, Site No.5, 1^st Floor, Ferozpur Road, Ludhiana

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……..Applicant

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Versus

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Amar Singh S/o Ram Singh, H.No. 61, Village Tanda Badha Kalan, Tehsil Amloh, District Fatehgarh Sahib-140407

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….……Defendant

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Advocates: Argued by Sh. Rehan Chaudhary, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.24,03,338.95p (Rupees Twenty Four Lacs Three Thousand Three Hundred Thirty Eight and Ninety Five Paise Only). The Original Application has been filed through Mr. Ravinder Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant had approached the applicant bank for the grant of crop loan under KCC Limit of Rs.15.00 Lacs vide loan application dated 02.11.2012, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 32K-0M situated in the Revenue Estate of tanda badda kalan, tehsil Amloh, District Fatehabad Sahib vide Registered Mortgage deed bearing vasika no.1633 dated 06.11.2012 and j amabandi of year 2007-0 8 along with their translations, which are Annexures A5 (Colly) and A6(Colly) to this OA.

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Documents executed:- Hypothecation Agreement dated 20.11.2012, which is Annexure A4 to this OA; Balance and security confirmation letter dated 04.01.2021, which is Annexure A7 to this OA; Recall notice dated 07.02.2022 with postal receipt, which is Annexure A8 to this OA and Statement of account with certificate, which is Annexure A9 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.24,03,338.95p, which is recoverable and the defendant was served recall notices but he 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 20.07.2024.

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In support of the OA, affidavit of Mr. Ravinder Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard ex parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A9 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the

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parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.24,03,338.95p (Rupees Twenty Four Lacs Three Thousand Three Hundred Thirty Eight and Ninety Five Paise Only) along with interest from the defendant 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 bank in relief clause has claimed interest @9.25%p.a. with yearly rests along with @2%p.a. from 30.09.2021 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 defendant, 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 @8.00%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 defendant is liable to pay to the applicant a total sum of Rs.24,03,338.95p (Rupees Twenty Four Lacs Three Thousand Three Hundred Thirty Eight and Ninety Five Paise Only) with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant 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

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attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 18.09.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 26.08.2024

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

Punjab National Bank v. Amar Singh

Case brief

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Punjab National Bank v. Amar Singh

Case brief

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