Allowed

Punjab National Bank v. Amarjit Singh and Another

DRT16 Jul 2024OA/61/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank against borrowers Amit Singh and Daljit Kaur for recovery of a housing loan deficit. The Tribunal set a uniform simple interest rate of 8% p.a. and issued a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs. 24,12,658.74p with 8% p.a. interest and issuance of Recovery Certificate.

Punjab National Bank versus Amarjit Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.61/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.09.2022

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DATE OF DECISION: 16.07.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at Morinda Road, Kurali Tehsil and District SAS Nagar Mohali through Sh. Ravi Kumar S/o Lt. Sh. Ram Kumar Thakur, posted as a Chief Manager and General Attorney of applicant bank posted at Circle Sastra Centre, SAS Nagar, Mohali.

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……..Applicant

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Versus

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Sh. Amarjit Singh S/o Sh. Veer Bhan Singh R/o House No. 14 B, First Floor, Drishti Homes Swaraj Enclave Landran Road (Santemajra), Tehsil Kharar and District SAS Nagar Mohali, Punjab (Borrower) II Address:- Village Balsuan, Near Gurudwara, Balsaun, District Patiala, Punjab-140401

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Smt. Daljit Kaur W/o Sh. Amarjit Singh R/o House No. 14 B, First Floor, Drishti Homes Swaraj Enclave Landran Road (Santemajra), Tehsil Kharar and District SAS Nagar Mohali, Punjab (Co-Borrower) II Address:- Village Balsuan, Near Gurudwara, Balsaun, District Patiala, Punjab-140401

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….……Defendants

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Advocates:

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Argued by Sh. Sumit Batra, Advocate for the applicant (through VC) 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.24,12,658.74p (Rupees Twenty Four Lacs Twelve Thousand Six

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Hundred Fifty Eight and Paisa Seventy Four only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager and General Attorney of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Housing Loan of Rs.20.00 Lacs vide Loan application, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Housing Loan of Rs.20.00 Lacs vide Sanction Letter dated 29.05.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 & 2 had equitable mortgaged their immovable property i.e. total land measuring 0K-1-1/9M (33.33 Square Yards) covered area First Floor 585 Sq. Feet situated at Santemajra, Hadbast No. 186, Tehsil Kharar, District Sahibzada Ajit Singh Nagar (Punjab) vide Equitable Mortgage of Sale Deed bearing vasika no. 201819/15/3587 dated 2 5.06.2018 along with its Translation, which is Annexure A5 to this OA and Letter of evidencing deposit of Title Deed dated 03.07.2019, which is Annexure A6 to this OA. Documents executed:- Agreement for Housing Loan dated 29.05.2018, which is Annexure A5 to this OA; Valuation Report dated 27.04.2022, which is Annexure A7 to this OA; Balance and Security Confirmation Letter dated 28.02.2021, which is Annexure A8 to this OA; Recall Notice dated 17.05.2021 with postal receipt, which is Annexure A9 to this OA and Statement of account along with Certificate of Banker Book Evidence Act, which is Annexure A10 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.24,12,658.74p, which is recoverable and the defendants 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.

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The defendants were served notices to appear before this Tribunal and defendants were appeared in person on 01.07.2023 and 15.07.2023. Again Sh. Amarjit Singh, Defendant no.1 appeared in person on 04.08.2023, 19.08.2023 and 02.09.2023 but have not engaged any counsel. Since no one appeared on behalf of the defendants, they were proceeded ex-parte on 17.05.2024.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager and General Attorney, 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 (through Video Conferencing) 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 A10 to this OA, it is proved that the defendants 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 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 bank is entitled to recover a sum of Rs.24,12,658.74p (Rupees Twenty Four Lacs Twelve Thousand Six Hundred Fifty Eight and Paisa Seventy Four 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 @9.50%p.a. (inclusive of penal interest @2%p.a.) with monthly rests from 01.09.2022 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

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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 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.24,12,658.74p (Rupees Twenty Four Lacs Twelve Thousand Six Hundred Fifty Eight and Paisa Seventy Four 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.08.2024.

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Copy of this order be given dasti to the applicant bank 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: 16.07.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Amarjit Singh and Another

Case brief

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Punjab National Bank v. Amarjit Singh and Another

Case brief

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