Allowed

Punjab National Bank v. Jagdev Singh and Another

DRT30 Jul 2024OA/534/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank for recovery of Rs. 29,55,249.00 from two borrowers and a guarantor. The court declared the amount payable jointly and severally, ordered uniform interest at 8.00% p.a., and directed the issuance of a Recovery Certificate, permitting recovery via sale of mortgaged and personal assets.

What did the court decide?

Declaration that defendants are liable to pay Rs. 29,55,249.00 jointly and severally with interest at 8.00% p.a.; order for issue of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.534/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2023

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DATE OF DECISION: 30.07.2024

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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 Delhi110075 previously Oriental Bank of Commerce and one of its Branch at Baghapurana, Tehsil Baghapurana, District Moga and Circle SASTRA Moga, Tehsil and District Moga (Punjab) through its General Power of Attorney holder Sh. Sandeep Kumar, Manager of the applicant bank

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……..Applicant

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Versus

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Sh. Jagdev Singh S/o Sh. Jarnail Singh, R/o VPO Smalsar, Tehsil Bagha Purana, District Moga, Punjab

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Sh. Jaswant Singh S/o Sh. Niranjan Singh, R/o VPO Kaleke, Tehsil Bagha Purana, District Moga, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Kamal Dev Sharma, Advocate proxy for Sh. Aseem Kataria, Advocate for the 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.29,55,249.00 (Rupees Twenty Nine Lacs Fifty Five Thousand Two Hundred and Forty Nine only). The Original Application has been filed through Sh. Sandeep Kumar, Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that defendant No.1 had approached the applicant bank for the grant of OGC Limit of Rs.20.00

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Lacs vide Application Form dated 19.12.2012, which is Annexure A2 to this OA. Defendant No.2 stood as guarantor.

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The applicant Bank sanctioned the OGC Limit of Rs.20.00 Lacs vide Sanction Letter dated 21.12.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. total land measuring 42 Kanal 04 Marla situated at Village Smalsar-III, Tehsil Bagha Purana, District Ludhiana, Punjab vide Registered Mortgage deed bearing Vasika No.3700 dated 24.12.2012 and Jamabandi for the year 2012-13 along with their translations, which are Annexures A6, A6-T and A7 to this OA.

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Documents executed:- Hypothecation agreement and Agreement of guarantee both dated 28.12.2012, which are Annexures A4 and A5 to this OA; Balance and security confirmation letters dated 25.09.2015, 26.09.2017, 28.06.2018 and 02.02.2021, which are Annexures A8 to A11 to this OA; Legal notice dated 11.02.2023 with postal receipts, which is Annexure A12 to this OA and Statement of account along with Certificate, which is Annexure A13 to this OA. 5. 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.29,55,249.00, 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. 6. 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 21.05.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Manager, Punjab National Bank h as been filed. 8. 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 A13 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, account of the defendants 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.29,55,249.00 (Rupees Twenty Nine Lacs Fifty Five Thousand Two Hundred and Forty Nine 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 @10.80%p.a. from 15.03.2022 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 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.29,55,249.00 (Rupees Twenty Nine Lacs Fifty Five Thousand Two Hundred and Forty Nine only) jointly and severally, with costs, current

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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 21.08.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 30.07.2024

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

Punjab National Bank v. Jagdev Singh and Another

Case brief

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Punjab National Bank v. Jagdev Singh and Another

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