Allowed

Punjab National Bank v. Sh. Gurcharan Singh

DRT13 Aug 2024OA/51/2024

Case brief

AI extract

What is this about?

This Tribunal allowed an original application filed by Punjab National Bank under Section 19 RDBFI Act for recovery of Rs.26,76,663.95 against borrowers. After verifying documentary evidence ex-parte, the court granted uniform simple interest at 8% p.a. and directed recovery from hypothecated properties.

What did the court decide?

Recovery of Rs.26,76,663.95 with interest @8% p.a. from filing of OA. Entitlement to recover from sale of mortgaged properties under SARFAESI Act.

Punjab National Bank versus Sh. Gurcharan Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.51/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.11.2023

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DATE OF DECISION: 13.08.2024.

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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 110075 and its branch offices throughout India Including Branch Office at Punjab National Bank, Branch Gagan Chowk, Kalka Road Rajpura, District Patiala, Punjab-140401 through its General Power of Attorney Holder, Sh. Gurcharan Singh, Senior Manager at Punjab National Bank, Circle Sastra, Patiala and District Patiala, Punjab147001

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……..Applicant

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Versus

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Sh. Gurcharan Singh S/o Sh. Kehar Singh, R/o Village Alluna, Tehsil Rajpura, District Patiala, Pin - 140401

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Sh. Gurinder Kaur Wife of Sh. Gurcharan Singh, R/o Village Alluna, Tehsil Rajpura, District Patiala, Pin-140401

(Borrowers)

….……Defendants

Advocates:

Argued by Sh. Lovish, Advocate proxy for Sh. Neeraj Madaan, Advocate for Applicant Defendants are 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 defendants for recovery of Rs.26,76,663.95p (Rupees Twenty Six Lakh Seventy Six Thousand Six Hundred Sixty Three And Paisa Ninety Five Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant bank, who is competent to institute the

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Original Application vide General Power of Attorney dated 11.10.2007, 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 bank for the grant of KGC Limit of Rs.20.00 Lacs Vide Loan Application dated 14.06.2019 and Further approached the applicant bank for the grant of KSS Term Loan of Rs.1.00 Lacs vide Loan Application dated 05.07.2019, which are Annexures A2 & A4 to this OA. 3. The applicant Bank sanctioned the KGC Limit of Rs.20.00 Lacs vide Sanction Letter dated 28.06.2019 and Further sanctioned the KSS Loan of Rs.1.00 Lacs vide Sanction Letter dated 19.07.2019, which are Annexures A3 & A5 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 56 Bigha 06 Bisha detailed as a. t otal land measuring 36 Bigha-0 Biswa situated at R/o Village Ram Nagar@ Sounti, Tehsil Rajpura, Distt. Patiala b. t otal land measuring 20 Bigha- 6 Biswa situated at R/o Village Bakhshiwala, Tehsil Rajpura, Distt. Patiala vide Letter to Tehsildar for creation of charge bearing vasika no.168, Declaration U/s 4(1) both d ated 27.06.2019 and Jamanbandi for the year 2017-2018 along with translation, which are Annexure A12, A14 & A14-A to this OA. Documents executed:- Letter of Consent, Letter of Undertaking, Supplementary Agreement, Hypothecation Agreement, all dated 28.06.2019, Which are Annexure A6, A7, A9 and A10 to this OA; Text of the consent and Declaration, which are Annexures A8 and A13 to this OA; Agreement of Hypothecation dated 19.07.2019, Which is Annexure A11 to this OA; Balance confirmation letters dated 28.06.2021, which are Annexure A15 & A16 to this OA; Legal notice dated 13.05.2023, which is Annexure A17 to this OA; Statements of accounts, which are Annexures A18 and A19 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.26,76,663.95 which is recoverable and the defendants were served recall notices but they 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 11.06.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed.

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Heard ex parte arguments and perused record.

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It was argued by learned proxy counsel 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 A19 to this OA, it is proved that the defendants approached applicant bank for availing of the loan 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.26,76,663.95 (Rupees Twenty Six Lakh Seventy Six Thousand Six Hundred Sixty Three And Paisa Ninety Five 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.

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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 @9.85%p.a. plus penal interest @2.00%p.a. with half yearly rests from 06.06.2023 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

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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 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 defendants are liable to pay to the applicant a total sum of Rs.26,76,663.95 (Rupees Twenty Six Lakh Seventy Six Thousand Six Hundred Sixty Three And Paisa Ninety Five Only) jointly and severally, 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 defendants 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 attachment and sale of personal assets of the defendants. 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.09.2024.

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Copy of this order be given Dasti to the applicant bank 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 . Dated: 13.08.2024.

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

Punjab National Bank v. Sh. Gurcharan Singh

Case brief

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Punjab National Bank v. Sh. Gurcharan Singh

Case brief

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