Allowed

Punjab National Bank v. Gurmel Kaur and Others

DRT13 Sept 2024OA/55/2022

Case brief

AI extract

What is this about?

DRT-III, Chandigarh allowed the bank's recovery application for Rs.30.99 Lakh against defaulting borrowers. The court modified the claimed interest rate to 8% per annum and ordered issuance of a recovery certificate, permitting sale of mortgaged assets.

What did the court decide?

Declaratory order holding defendants liable to pay Rs.30,99,370.62p with 8% simple interest; Recovery Certificate issued; liberty to enforce claim via sale of assets.

Punjab National Bank versus Gurmel Kaur and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.55/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.12.2021

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DATE OF DECISION: 13.09.2024

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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 a branch amongst others at Raikot, Ludhiana erstwhile Oriental Bank of Commerce through its recovery vertical i.e. Punjab National Bank, Circle Sastra Centre (West), Circle Office, 5, Ferozepur Road, Ludhiana, Punjab-141109 through Sh. Sonu S/o Sh. Azad Singh, Chief Manager, Principal Officer and duly constituted attorney of the applicant.

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……..Applicant

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Versus

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Smt. Gurmel Kaur W/o Sh. Arjan Singh, # 35, VPO Kurar, Tehsil and District Barnala (Punjab)-148104.

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Sh. Amarjit Singh S/o Sh. Arjan Singh, # 35, VPO Kurar, Tehsil and District Barnala (Punjab)-148104.

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Smt. Maninder Kaur W/o Sh. Harjit Singh, #36, VPO Kurar, Tehsil and District Barnala (Punjab)-148104.

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Sh. Gurjit Singh S/o Sh. Sh. Paramjit Singh, #68, VPO Kurar, Tehsil and District Barnala (Punjab)-148104.

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….……Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,99,370.62p (Rupees Thirty Lacs Ninety Nine Thousand Three Hundred Seventy and Paisa Sixty Two only). The Original Application has been filed through Sh. Sonu, Chief Manager of the applicant, who

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is competent to institute the Original Application vide Power of Attorney dated 22.11.2014, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for the grant of Cash Credit Limit of Rs.15.00 Lacs under OGC Scheme vide Loan application dated 25.05.2011, which is Annexure A3 to this OA.

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The applicant sanctioned the Cash Credit Limit (CCCKL) of Rs.15.00 Lacs under OGC Scheme vide Sanction Letter dated 25.05.2011, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants Nos.1 to 3 had mortgaged their immovable properties i.e. total land measuring 20K-17M situated at Village Kurar, Tehsil and District Barnala (Punjab) vide Registered Mortgaged Deed bearing v asika No. 1278 dated 2 6.05.2011 along with its Translations, which is Annexure A11 to this OA.

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Documents executed:- Amalgamation, which is Annexure A1 to this OA; Agreement for Hypothecation of existing & Future Crops/ Movable Assets, Affidavit of Legal Heir, Declaration, Agreement of Guarantee all dated 08.06.2011, which are Annexures A5, A7, A9 & A12 to this OA; Affidavit of Legal heirs, Affidavit regarding acceptance of Terms both dated 02.06.2011, which are Annexures A6 & A8 to this OA; Legal Opinion dated 25.05.2011, which is Annexure A10 to this OA; Balance Confirmation Letter dated 02.06.2014, 01.06.2017 and 11.07.2019, which is Annexure A13 to this OA; Legal Notice dated 16.11.2021, which is Annexure A14 to this OA and Statement of Account with certificate dated 30.11.2021, which is Annexure A15 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.30,99,370.62p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 03.08.2024.

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In support of the OA, affidavit of Sh. Sonu, Chief Manager, Punjab National Bank h as been filed.

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Heard 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 had proved its case. From the perusal of all the Annexures A1 to A15 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.30,99,370.62p (Rupees Thirty Lacs Ninety Nine Thousand Three Hundred Seventy and Paisa Sixty Two 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 in relief clause has claimed interest @10.55%p.a. with half yearly rests from 01.11.2021 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

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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.30,99,370.62p (Rupees Thirty Lacs Ninety Nine Thousand Three Hundred Seventy and Paisa Sixty Two 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 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 applicant 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 09.10.2024. 15. Copy of this order be given dasti to the applicant 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: 13.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Gurmel Kaur and Others

Case brief

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Punjab National Bank v. Gurmel Kaur and Others

Case brief

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