Allowed

Punjab National Bank v. Sh. Arun Sharma

DRT18 Sept 2024OA/503/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Punjab National Bank for the recovery of Rs.23,14,944/- with interest against two defendants, one of whom was a guarantor and had mortgaged agricultural land. The liability was declared joint and several.

What did the court decide?

Recovery of Rs.23,14,944/- with interest @10.85% per annum from 11.03.2022, sale of mortgaged land, and issuance of Recovery Certificate.

Punjab National Bank versus Sh. Arun Sharma — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 503/2022 Date of Institution: 11.03.2022 Date of Decision: 18.09.2024

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Punjab National Bank, one of the branch offices amongst others at Circle Sastra Centre, Mandi, Himachal Pradesh – 175001.

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……..Applicant

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Vs.

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Sh. Arun Sharma S/o Sh. Shakti Dutt, R/o H.No.222/1, Haripur, VPO Sunder Nagar, District Mandi, H.P – 175002. 2^nd Address :- Jagdamba Brick Traders (Prop. Sh. Arun Sharma), Village Bhatoli P.O. Jukhala District Bilaspur H.P. – 174401.

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Sh. Ramesh Kumar S/o Sh. Man Chand, R/o Village Banesh, P.O. Kanda, Tehsil Thunag and District Mandi, H.P. – 175035.

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……….Defendants

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Advocates

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Sh. Virneder Sood, Counsel for the applicant bank. Defendants – ex parte

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OA for the Recovery of Rs.23,14,944/- with interest @10.85% per annum with yearly rests from 11.03.2022.

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ORDER

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Punjab National Bank, (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.23,14,944/- with interest against Sh. Arun Sharma and another (defendants).

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Bank’s case is that on 16.03.2016, it had granted a KCC Limit of Rs.20.00 Lacs to defendant No.1 for agricultural purpose. Defendant No.2 had stood guarantor. To secure the loan, Defendant No.1 had mortgaged his agricultural land (fully detailed in para No.3(A) of the application). The loan was chargeable to interest @10.85% per annum with yearly rests. On 11.03.2022, a sum of Rs.23,14,944/- was due from the defendants. On 12.03.2019, defendant No.1 had executed balance

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and security confirmation letter vide (Exhibit A-8). Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 31.03.2022, summonses were sent to the defendants by registered post, which were duly served. Though, defendants put in appearance, yet they failed to filed written statement and vide order dated 24.05.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Mr. Rajesh Kumar, Senior Manager along with the loan and security documents and marked them as Exhibit A-1 to A-11.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.20.00 Lacs and on 11.03.2022, a sum of Rs.23,14,944/- was due.

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Accordingly, the application of the bank for the recovery of Rs.23,14,944/- (Rupees Twenty Three Lacs Fourteen Thousand Nine Hundred and Forty Four Only) with interest @10.85% per annum with yearly rests from 11.03.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged agricultural land fully detailed in para No.3(A) of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 21.10.2024, who is directed to distribute the sale proceeds of the mortgage land and standing crops as per the provisions of Section 19(20AB) of the Act .

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A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 18.09.2024 Presiding Officer DRT-1, Chandigarh Pankaj

Punjab National Bank v. Sh. Arun Sharma

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Arun Sharma

Case brief

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What did the court decide?

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