Allowed

Punjab National Bank v. Pritam Singh and Others

DRT12 Dec 2024OA/560/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application for recovery of Rs. 29,70,818.17p outstanding from respondents who defaulted on a KCC loan. The decree grants interest at 8% p.a. and allows recovery via sale of mortgaged assets or by attaching personal assets.

What did the court decide?

Recovery of Rs. 29,70,818.17p with simple interest at 8% p.a. from date of filing till realization, enforceable via sale of mortgaged or personal assets.

Punjab National Bank versus Pritam Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.560/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.02.2024

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DATE OF DECISION: 12.12.2024

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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 at Village Jagpalpur Tehsil Phagwara District Kapurthala, Punjab through Sh. Ankur Rawat, Branch Manager and Attorney holder posted at Circle Sastra Centre, Kapurthala.

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……..Applicant

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Versus

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Sh. Pritam Singh son of Sh. Sardara Singh resident of Village Bohani, PO Ranipur, Tehsil Phagwara, District Kapurthala, Punjab.

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Sh. Gurdeep Singh son of Sh. Pritam Singh resident of Village Bohani, PO Ranipur, Tehsil Phagwara, District Kapurthala, Punjab.

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Sh. Darshan Singh son of Sh. Swarn Singh, Village Jagpalpur, Tehsil Phagwara, District Kapurthala, Punjab.

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Sh. Jaswant Singh son of Sh. Mohinder Singh Village Jagpalpur, Tehsil Phagwara, District Kapurthala, Punjab.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Singla, 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

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Rs.29,70,818.17p (Rupees Twenty Nine Lacs Seventy Thousand Eight Hundred Eighteen And Paise Seventeen Only). The Original Application has been filed through Sh. Ankur Rawat, Branch Manager o f the applicant, 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 no.1 & 2 had approached the applicant for grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 04.10.2016, which is Annexure A2 to this OA to this OA. 3. The applicant sanctioned 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 properties i.e. total land measuring 40Kanal situated at Village Bohani, Tehsil Phagwara District Kapurthala, Punjab vide Declaration under Section 4(1) dated 0 6.08.2014 along with its translation, which is Annexure A8 to this OA. Documents executed:- Hypothecation Agreement, Letter of Undertaking, Deed of Guarantee executed by defendant no.3 & 4 all dated 22.11.2016, which are Annexures A4 to A7 to this OA; Balance Confirmation Letters dated 06.03.2019 & 03.01.2022, which is Annexure A9 to this OA; Recall Notice dated 25.03.2021 with postal receipt, which is Annexure A10 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A11 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 adebit of Rs.29,70,818.17p, 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. SH. Jaswant Singh, defendant no.4 appeared in person 11.09.2024 and sought time to engage an Advocate. Thereafter no one appeared on behalf of defendants and they were proceeded ex-parte on 09.12.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, Branch Manager, Punjab National Bank has 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 A11 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 is entitled to recover a sum of Rs.29,70,818.17p (Rupees Twenty Nine Lacs Seventy Thousand Eight Hundred Eighteen And Paise Seventeen 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 @9.35%p.a. along with penal interest @2%p.a. with yearly rests from 05.12.2023 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 @08.00%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.29,70,818.17p (Rupees Twenty Nine Lacs Seventy Thousand Eight Hundred Eighteen And Paise Seventeen Only) jointly and severally, with costs, current and future simple interest @08.00%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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.01.2025.

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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: 12.12.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Pritam Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Pritam Singh and Others

Case brief

What is this about?

What did the court decide?

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