Allowed

Punjab National Bank v. Sh. Kewal Chand

DRT29 Jul 2024OA/538/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.30.83 lakhs as an NPA loan. The court disregarded the claimed rates and deeded a uniform simple interest of 8% p.a. granted it the right to sell mortgaged properties or attach personal assets under SARFAESI.

What did the court decide?

Recovery Certificate issued. Structure to recover Rs.30,83,455.45 p via sale of mortgaged properties or attachment of personal assets with interest @8% p.a.

Punjab National Bank versus Sh. Kewal Chand — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.538/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.03.2023

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DATE OF DECISION: 29.07.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the banking companies (Acquisition and Transfer of Undertakings) Act 5 of 1970, having its Head Office at plot no 4, Sector 10 Dwarka, New Delhi 110075 and amongst others a Branch Office at Shaikhupur, Tehsil and District Kapurthala through its Constituted Attorney & Principal Officer Sh. Ankur Rawat, Senior Manager Posted at Circle Sastra, Kapurthala, Punjab

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……..Applicant

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Versus

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Sh. Kewal Chand S/o Sh. Taru Ram, resident of village Saido Bhulana, Bhulana, Distt. Kapurthala, Punjab, Pin code 144620.

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Borrower/Mortgagor …Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate for Applicant Defendants already 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.30,83,455.45p (Rupees Thirty Lakh Eighty Three Thousand Four Hundred Fifty Five and Forty Five paisa only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of 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 the defendant was already availing Kcc Limit of Rs.8.00 Lacs and had approached the applicant bank for enhancement of KCC Limit to Rs.16.00 Lacs vide Loan Application dated 22.07.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.16.00 Lacs 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 properties i.e. total land measuring 12 Kanal 09 Marla detailed as:a. land measuring 6 Kanal 0 Marla situated at Vilage Lodhi Bhulana, Tehsil and Distt. Kapurthala b. l and measuring 6 Kanal 9 Marla situated at Vilage Jalal Bhulana, Tehsil and Distt. Kapurthala vide Registered Mortgage Deed bearing Vasika No.1536 dated 24.07.2013 with its translation , which is Annexure A7 and A7T to this OA. Documents executed:-Hypothecation Agreement, Letter of undertaking, Letter of Consent (Revised) all dated 31.07.2013, which are Annexure A4, A5 & A6 to this OA; Balance and security Confirmation letter dated 30.10.2015, 27.03.2017, 02.03.2020 and 10.01.2023, which are Annexures A8 to A11 to this OA; Notice dated 25.08.2022 with postal receipt, which is Annexure A12 to this OA and Statement of account with certificate dated 07.03.2023, 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.30,83,455.45p which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested

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to accept the application and to issue Recovery Certificate accordingly.

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The defendant is served notices to appear before this Tribunal but no one appeared on behalf of defendant and he is proceeded ex-parte on 08.05.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, 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 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 Annexure 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 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 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.30,83,455.45p (Rupees Thirty Lakh Eighty Three Thousand Four Hundred Fifty Five and Forty Five paisa 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 @9.35%p.a. plus penal interest @2%p.a. with half yearly rests from 03.10.2022 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

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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% 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.30,83,455.45p (Rupees Thirty Lakh Eighty Three Thousand Four Hundred Fifty Five and Forty Five paisa 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 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 19.08.2024.

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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: 29.07.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Sh. Kewal Chand

Case brief

What is this about?

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Punjab National Bank v. Sh. Kewal Chand

Case brief

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What the court decided

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