Allowed

Punjab National Bank v. Sh. Baldev Singh and Others

DRT29 Jul 2024OA/584/2023

Case brief

AI extract

What is this about?

DRT-III, Chandigarh adjudicated an Original Application under the Right to Recover Act. The Tribunal found the loan defaulted and allowed the recovery of the outstanding amount jointly and severally. The Tribunal granted uniform simple interest at 8% p.a. instead of the claimed composite interest.

What did the court decide?

Recovery of Rs. 24,29,120.56p with costs and future simple interest @8% p.a., issuance of Recovery Certificate, and liberty to recover via sale of mortgaged or personal assets.

Punjab National Bank versus Sh. Baldev Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.584/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.03.2023

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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 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Sarhali Kalan, District Taran Tarn through Sh. Kapil Sharma, Officer and Attorney holder presently posted at Punjab National Bank, Sarhali Kalan, District Taran Taran

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……..Applicant

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Versus

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Sh. Baldev Singh S/o Sh. Saradara Singh R/o House No.163 Village Bhathal Bhaike, Tehsil Taran Taran, District Amritsar, Punjab Pin Code -143409 (Borrower/Mortgagor)

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Since deceased survived by following legal heirs:

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a Smt. Harjinder Kaur w/o Late. Sh. Baldev Singh

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b Sh. Gurjant Singh S/o Late. Sh. Baldev Singh

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c Miss. Inderjit Kaur D/o Late. Sh. Baldev Singh

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All residents of House No. 163, Village Bhathal Bhaike, Tehsil Taran Taran, District Amritsar, Pin Code-143409

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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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.24,29,120.56p (Rupees Twenty Four Lacs Twenty Nine Thousand One Hundred Twenty and Fifty Six Paise only). The Original Application has been filed through Sh. Kapil Sharma, Officer of the applicant bank,

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who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) had approached the applicant bank for the grant of KCC Limit of Rs.15.00 Lacs vide Loan application dated 11.11.2014, which is Annexure A2 to this OA 3. The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 (since deceased) had mortgaged his immovable properties i.e. total land measuring 24K-00M situated at Village Bhatal Bhaike, Tehsil & District Tarn Taran vide Declaration under Section 4(1) Punjab Agriculture Credit Operations and Miscellaneous Provision (Banks) Act, 1978 bearing vasika no.42 dated 03.11.2014 with its translation and Letter to Sub registrar for creation of charge, which is Annexure A7 to this OA. Documents executed:- Agreement for Hypothecation, Letter of undertaking and Letter of Consent (Revised) all dated 11.11.2014, which are Annexures A4 to A6 to this OA; Balance and Security Confirmation Letters dated 21.10.2017 and 14.10.2020, which are Annexures A8 & A9 to this OA; Notice dated 13.03.2023, which is Annexure A10 to this OA and Statement of account with certificate dated 30.03.2023, 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 a debit of Rs.24,29,120.56p, which is recoverable and the legal heirs of deceased defendant no.1 i.e. defendant nos. 1a, 1b and 1c 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 08.05.2024.

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In support of the OA, affidavit of Sh. Kapil Sharma, Officer, Punjab National Bank h as 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 Annexures A1 to A11 to this OA, it is proved that the defendant no.1 (since deceased) 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 legal heirs of deceased defendant no.1 i.e. defendant nos. 1a, 1b and 1c failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant no.1 (Since Deceased) 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.24,29,120.56p (Rupees Twenty Four Lacs Twenty Nine Thousand One Hundred Twenty and Fifty Six Paise only) along with interest from the legal heirs of deceased defendant no.1 i.e. defendant nos. 1a, 1b and 1c, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @8.75%p.a. along with 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 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.24,29,120.56p (Rupees Twenty Four Lacs Twenty Nine Thousand One Hundred Twenty and Fifty Six Paise 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 legal heirs of deceased defendant no.1 i.e. defendant nos. 1a, 1b and 1c 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 legal heirs of deceased defendant no.1 i.e. defendant nos. 1a, 1b and 1c. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.08.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to the legal heirs of deceased defendant no.1 i.e. defendant nos. 1a, 1b and 1c 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. Baldev Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Baldev Singh and Others

Case brief

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What did the court decide?

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