Allowed

Punjab National Bank v. Ram Kumar

DRT17 Oct 2024OA/523/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's Original Application for recovery of dues arising from a chit loan. It awarded the outstanding principal sum plus a uniform simple interest rate of 8% per annum, directing execution through the sale of hypo-ecated or mortgaged properties.

What did the court decide?

Declaration against defendant to pay Rs.21,60,117.86p plus current and future simple interest @ 8.00% p.a. from filing of OA till realization.

Punjab National Bank versus Ram Kumar — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.523/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.01.2024

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DATE OF DECISION: 17.10.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act, 1970 having the Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi 110075 and amongst others at branch office at Landran, Mohali are presented through its Constituted Attorney and Principal Officer others at branch office at SASTRA, Punjab National Bank, SCO 43, Phase 2, Mohali through Sh. Subhash Chandra, Senior Manager, Principal Officer and duly constituted attorney of the applicant bank.

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……..Applicant Versus

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Sh. Ram Kumar S/o Sh. Labh Singh, R/o village Machhali Kalan, Kharar, District SAS Nagar Mohali, Punjab-140307

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….……Defendant

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Advocates:

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Argued by Sh. Jas Bains, Nodal Officer of Applicant 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 defendant for recovery of Rs.21,60,117.86p (Rupees Twenty One Lacs Sixty Thousand One Hundred Seventeen and Paisa Eighty Six only). The Original Application has been filed through Sh. Subhash Chandra, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.07.2011, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of CC Limit of Rs.19.00 Lacs vide Loan application dated 13.06.2017, which is Annexure A2 to this OA. 3. The applicant sanctioned the CC Limit of Rs.19.00 vide Sanction Letter, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 20Bigha-5Biswa situated at Village Macchhli Kalan, Hadbast No.238, Tehsil Khara, District Mohali, Punjab vide Declaration u/s 4(1) bearing vasika no.78 dated 05.06.2017 , which is Annexure A5 to this OA.

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Documents executed: - Hypothecation Agreement dated 13.07.2017, which is Annexure A4 to this OA; Affidavit, which is Annexures A6 to this OA; Balance Confirmation dated 01.06.2020 and 30.05.2023, which are Annexures A8 & A9 to this OA; Statement of account along with certificate of Banker’s Book of Evidence, which is Annexure A7 to this OA and Recall Notice dated 19.09.2023 along with its Postal Receipt, which is Annexure A10 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.21,60,117.86p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 09.10.2024. 7. In support of the OA, affidavit of Sh. Subhash Chandra, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by Nodal Officer of the applicant 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 A10 to this OA, it is proved that the defendant approached applicant 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 applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.21,60,117.86p (Rupees Twenty One Lacs Sixty Thousand One Hundred Seventeen and Paisa Eighty Six 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 in relief clause has claimed interest @9.85%p.a. plus Penal Interest @2.00%p.a. from 27.04.2024 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

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Rs.21,60,117.86p (Rupees Twenty One Lacs Sixty Thousand One Hundred Seventeen and Paisa Eighty Six 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 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 applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.10.2024.

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Copy of this order be given dasti to the applicant 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.

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Pronounced by me in the open Tribunal.

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Dated: 17.10.2024

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

Punjab National Bank v. Ram Kumar

Case brief

What is this about?

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Punjab National Bank v. Ram Kumar

Case brief

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What did the court decide?

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