Allowed

Punjab National Bank v. Gurbachan Singh and Another

DRT23 Dec 2024OA/626/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a loan of Rs.27.53 Lakhs with interest. The court adjusted the interest rate to 8.00% per annum and authorized recovery from mortgaged and personal assets under the SARFAESI Act.

What did the court decide?

Recovery of Rs.27,53,188.93 with interest at 8.00% p.a. Recovery Certificate issued. Claim to be enforced via sale of mortgaged or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.626/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.04.2022

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DATE OF DECISION: 23.12.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 having its Head office at Plot No. 4, Sector-10, Dwarka, New Delhi and a branch amongst at Punjab National Bank (erstwhile Oriental Bank of Commerce), VPO KIshanpura Kalan, District Moga, Punjab through its General Power of Attorney Holder Sh. Sandeep Kumar, Senior Manager, Punjab National Bank, Circle SASTRA Moga, 1^st Floor, Partap Road Branch, Moga-142001, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant

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Versus

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Sh. Gurbachan Singh S/o Sh. Kikkar Singh R/o Village Izzatwala, Tehsil and District Moga, Punjab

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Sh. Lakhwinder Singh S/o Sh. Jagtar Singh R/o Village Roshanwala, Tehsil and District Moga, Punjab

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….……Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for applicant None for Defendant no.1 Defendant no.2 is 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.27,53,188.93p (Rupees Twenty Seven Lacs Fifty Three Thousand One Hundred Eighty Eight and Ninety Three Paisa Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant, who is competent to institute the Original

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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 defendants had approached the applicant for the grant of KCC Limit of Rs.16.00 Lacs vide Loan application dated 27.07.2011, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.16.00 Lacs vide Sanction Letter dated 27.07.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant No.1s had mortgaged his immovable properties i.e. total land measuring 32Kanal-12Marla situated at V illage Izzatwala, Tehsil and District Moga, Punja b vide Registered Mortgage Deed bearing vasika no. 2446 dated 27.07.2011 along with its Translation, which are Annexures A4 and A4T to this OA. Documents executed: Amalgamation Notification dated 04.03.2020, which is Annexure A1/A to this OA Legal Search report and Affidavit bot dated 27.07.2011, which are Annexures A5 and A6 to this OA; Hypothecation Agreement and Agreement of Guarantee both dated 01.08.2011, which are Annexures A7 and A8 to this OA; Balance and Security Confirmation Letter dated 25.07.2014, 12.05.2016 and 27.02.2019, which are Annexures A9 to A11 to this OA; Notice dated 17.03.2022 with postal receipt, which is Annexure A12 to this OA and Account Statement with certificate, which is Annexure A13 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.27,53,188.93p, which is recoverable and the defendants were served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notice to appear before this Tribunal but no one appeared on behalf of defendant no.2 and he was

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proceeded ex-parte on 18.12.2024. Sh. Subham Pabbi, Advocate appeared on behalf of defendant no.1 and filed Power of Attorney but did not filed WS within stipulated period. Therefore, opportunity to file WS by defendant no.1 was closed and his defense was struck of on 18.12.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments Ld. Counsel for applicant. None appeared for defendants for arguments. 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/A, A1 to A13 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to him and for that he 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.27,53,188.93p (Rupees Twenty Seven Lacs Fifty Three Thousand One Hundred Eighty Eight and Ninety Three Paisa Only) along with interest from the defendants, 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 @8.85%p.a. plus penal interest @02.00%p.a. with half yearly rests from 01.04.2022 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 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.27,53,188.93p (Rupees Twenty Seven Lacs Fifty Three Thousand One Hundred Eighty Eight and Ninety Three Paisa Only) 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.02.2025.

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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 .

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Dated: 23.12.2024

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

Punjab National Bank v. Gurbachan Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Gurbachan Singh and Another

Case brief

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