Allowed

Punjab National Bank v. Bohar Singh and Another

DRT19 Oct 2024OA/554/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Bank's application under S.19 RDBFIL Act for recovery of Rs.41.05 lakh outstanding on a KCC loan. The Tribunal decreed payment of principal with simple interest at 8% p.a. and ordered issuance of a Recovery Certificate after defaulting defendants failed to appear ex-parte.

What did the court decide?

Declared defendants liable to pay Rs.41,05,131.00 plus interest at 8% p.a. Issued Recovery Certificate. Order enforceable via sale of mortgaged or personal assets under SARFAESI Act.

Punjab National Bank versus Bohar Singh and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.554/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.04.2024

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DATE OF DECISION: 19.10.2024

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Punjab National Bank, a body corporate duly constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (V of 1970) having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi, carrying on business of banking and having amongst other branches at various places, a Branch Office is known as Circle Sastra Centre Moga through Sh. Rajesh Sachdeva, its Principal Officer and General Attorney.

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……..Applicant

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Versus

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Sh. Bohar Singh S/o Sh. Dalip Singh, R/o Village Dhole-wala, Tehsil Dharamkot, District Moga, Punjab, 142042.

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Sh. Mukhtiar Singh S/o Sh. Fauja Singh, R/o, Village Rajawala, Tehsil Dharamkot, District Moga, Punjab, 142042.

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….……Defendants

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Advocates:

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Argued by Sh. Gulshan Mehta, Advocate proxy for Sh. Inderjeet Khattar, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.41,05,131.00 (Rupees Forty One Lacs Five Thousand One Hundred Thirty One Only). The Original Application has been filed through Sh. Rajesh Sachdeva, Principal Officer and General Attorney o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 09.06.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no. 1 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 24.06.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter, 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 63K-17M, situated at Village Dholewala, H.B.No 237, Tehsil Dharamkot, District Moga, Punjab vide Letter to Sub Registrar for Creation of Charge , Declaration U/s 4(1) both dated 21.05.2015 and Jamabandi for the year 2009-2010 with its Translations, which is Annexure A12 to A14 to this OA. Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent Revised, Voucher Authorizing release of limit, Declaration regarding Agricultural Land with Affidavit, Supplementary agreement and Guarantee deed all dated 01.07.2015, which are Annexures A4 to A6 and A8 to A11 to this OA; Letter of request for cover under personal Accident Insurance scheme, which is Annexure A7 to this OA; Balance Confirmation Letters dated 09.05.2018 & 28.03.2021, which are Annexures A15 & A16 to this OA; Demand notices dated 19.09.2015, 11.10.2018, 21.11.2018, 05.01.2019, 18.04.2019 along with their translations, which is Annexure A17 to this OA; Legal notice dated 22.02.2019 with postal receipt, which is Annexure A18 to this OA and Statement of Account duly certified under the Banker’s Books evidence Act, 1891, which is Annexure A19 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.41,05,131.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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 15.10.2024.

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In support of the OA, affidavit of Sh. Rajesh Sachdeva, Principal Officer and General Attorney, Punjab National Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 A19 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.41,05,131.00 (Rupees Forty One Lacs Five Thousand One Hundred Thirty One 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 @10.00%p.a. with half yearly rests from 23.03.2024 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

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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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.41,05,131.00 (Rupees Forty One Lacs Five Thousand One Hundred Thirty One 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 30.10.2024. 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. Pronounced by me in the open Tribunal . Dated: 19.10.2024

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

Punjab National Bank v. Bohar Singh and Another

Case brief

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Punjab National Bank v. Bohar Singh and Another

Case brief

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