Allowed

Punjab National Bank v. M/S Durga Enterprises and Another

DRT2 Feb 2024OA/62/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the bank applicant's original application for recovery of a loan amount of Rs. 26,48,959 plus interest against defendant proprietor of M/s Durga Enterprises who failed to repay the sanctioned credit card limit despite notices.

What did the court decide?

Recovery of Rs. 26,48,959 plus costs and simple interest at 9.95% p.a., along with issuance of Recovery Certificate.

Punjab National Bank versus M/S Durga Enterprises… — Contract and Commercial Disputes | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.62/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 13.01.2023

¶5

DATE OF DECISION: 02.02.2024

¶6

Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank (erstwhile Oriental Bank of Commerce), SBS Nagar, Pakhowal Road, District Ludhiana, Punjab through its General Power of Attorney holder, Mr. Daljit Singh, Manager, Punjab National Bank, Circle SASTRA Center, Plot No.5, Ferozepur Road, Near Wave Mall, Ludhiana, Punjab who is duly authorized and Principal Officer of the applicant bank

¶7

	……..Applicant
	Versus
1.	M/s Durga Enterprises, through its proprietor Sh. Deepak Bansal,
	R/o 339-D, Model Town Extension, Dugri Road, Ludhiana
2.	Sh. Deepak Bansal S/o Sh. Tarsem Chand (proprietor) M/s Durga
	Enterprises, Address:
	i. 339-D, Model Town Extension, Dugri Road, Ludhiana
	ii. 216-A, Model Town Extension, Near Krishna Mandir, Ludhiana, Punjab
	………Defendants
Ad Ar De	vocates: gued by Sh. Surinder Nath Sharma, counsel for the applicant fendants are ex-parte
	FINAL ORDER
1.	Present Original Application was instituted by the applicant bank
un	der Section 19 of the Recovery of Debts Due to Banks and Financial
In	stitutions Act, 1993, against the defendants for recovery of

¶8

¶9

Rs.26,48,959.00 (Rupees Twenty Six Lacs Forty Eight Thousand Nine Hundred and Fifty Nine only). The Original Application has been filed through Sh. Daljit Singh, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2020, which is Annexure A1 to this OA.

¶10

The brief facts of the OA are that the defendant No.1 through its proprietor i.e. defendant No.2 had approached the applicant bank for the grant of CC Limit of Rs.25.00 Lacs under CTGMSE Scheme vide Loan Application dated 25.12.2015, which is Annexure A2 to this OA.

¶11

The applicant Bank sanctioned the CC Limit of Rs.25.00 Lacs under CTGMSE Scheme vide Sanction Letter dated 28.12.2015, which is Annexure A3 to this OA and later on the limit was renewed at reduced level to Rs.20.00 Lacs vide Sanction Letter dated 29.08.2017, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants.

¶12

Defendant No.1 through its proprietor i.e. defendant No.2 had hypothecated its movable properties i.e. stock of raw material, semi finished goods and finished goods pertaining to manufacturing and assembling of RO systems and RO parts vide Agreement of hypothecation dated 29.12.2015, which is Annexures A6 to this OA. Documents executed:- Gazette notification dated 04.03.2020, which is Annexure A1-A to this OA; Affidavit of defendant No.2, Sole proprietorship letter and Common agreement all dated 29.12.2015, which are Annexures A4, A5 and A7 to this OA; Balance confirmation letters dated 30.08.2017, 07.01.2020 and 19.08.2020, which are Annexures A9, A11 and A12 to this OA; Demand notice u/s 13(2) of SARFAESI Act dated 01.12.2018, which is Annexure A10 to this OA; Recall notice by Advocate dated 17.10.2022, which is Annexure A13 to this OA and Statement of account, which is Annexure A14 to this OA.

¶13

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.26,48,959.00, which is recoverable and the defendants

¶14

¶15

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.

¶16

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 20.12.2023.

¶17

In support of the OA, affidavit of Sh. Daljit Singh, Manager, Punjab National Bank has been filed.

¶18

Heard ex-parte arguments and perused record.

¶19

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 A14 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.26,48,959.00 (Rupees Twenty Six Lacs Forty Eight Thousand Nine Hundred and Fifty Nine 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.

¶20

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.95%p.a. with monthly rests plus penal interest @2%p.a. from 01.01.2023 till the realization.

¶21

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

¶22

¶23

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 @9.95%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.

¶24

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.26,48,959.00 (Rupees Twenty Six Lacs Forty Eight Thousand Nine Hundred and Fifty Nine only) jointly and severally, with costs, current and future simple interest @9.95%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.

¶25

Any other application pending stands disposed of.

¶26

Issue Recovery Certificate accordingly.

¶27

Parties to appear before Learned Recovery Officer of this

¶28

Tribunal on 16.02.2024.

¶29

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.

¶30

Pronounced by me in the Open Tribunal.

¶31

Dated: 02.02.2024

¶32

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

Punjab National Bank v. M/S Durga Enterprises and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Durga Enterprises and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Hdfc Bank Limited versus Sh. Sukhwinder Singh and Others

Union Bank of India versus Smt. Sheilja Kanwar

Icici Bank Ltd. versus Sh. Rajesh Kumar Yadav and Others

Punjab National Bank versus Sh. Shiv Kumar Bagolia and Others

Hdfc Bank Limited, versus M/S Fortune Ventures and Others

Bank of India versus Sh.Charan Singh and Another