Allowed

Punjab National Bank v. Gurpreet Singh

DRT12 Dec 2024OA/632/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.26.13 lacs against the defendant who failed to repay a sanctioned loan. The Tribunal, in its discretion, modified the interest rate to 8% per annum and ordered a Recovery Certificate to be issued.

What did the court decide?

Recovery of Rs.26,13,433.71 with costs and interest @ 8% p.a.; Recovery Certificate issued; power to attach personal assets if dues remain unsatisfied.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.632/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.04.2023

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DATE OF DECISION: 12.12.2024

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Punjab National Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No.4, Sector10, Dwarka, New Delhi 110075 and amongst other a Branch Office at Baghapurana, District Moga, Punjab through its Constituted Attorney and Senior Manager Sh. Sandeep Kumar posted at Circle Sastra, Moga.

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……..Applicant Versus

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Sh. Gurpreet Singh S/o Sh. Jagjit Singh, R/o Village Nathuwala (w), Tehsil Baghapurana & District Moga.

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….……Defendant

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Advocates:

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Argued by Sh. Pankaj Beri, Advocate for Applicant Defendant is 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 defendant for recovery of Rs.26,13,433.71p (Rupees Twenty Six Lacs Thirteen Thousand Four Hundred Thirty Three and Paise Seventy One Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager o f the applicant bank, 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 that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.10.00 Lacs vide Loan Application dated 15.03.2011, which is Annexure A3 to this OA and

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further for its enhancement from Rs.10.00 Lacs to Rs.20.00 Lacs vide Loan application 08.02.2013, which is Annexure A7 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.10.00 Lacs vide Sanction Letter dated 15.03.2011, which is Annexure A4 to this OA and further sanctioned its enhancement from Rs.10.00 Lacs to Rs.20.00 Lacs vide Sanction Letter dated 08.02.2013, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 48Kanal-00Marla situated at Village Nathuwala Garbi, Tehsil Baghapurana & District Moga vide Registered Mortgage Deeds bearing V asika No.4137 dated 16.03.2011 and vasika no.4373 dated 08.02.2013 along with their translations, which are Annexures A6 & A11 to this OA. Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement for Hypothecation dated 17.03.2011, which is Annexure A5 to this OA; Agreement for Hypothecation & Supplemental Agreement dated 08.02.2013, which are Annexures A9 & A10 to this OA; Legal Notice dated 27.03.2023 along with postal receipts, which is Annexure A12 to this OA and Statement of Account 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.26,13,433.71p, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 09.12.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Senior 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 A13 to this OA, it is proved that the defendant 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 bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,13,433.71p (Rupees Twenty Six Lacs Thirteen Thousand Four Hundred Thirty Three and Paise Seventy One Only) along with interest from the defendant, 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 @11.50%p.a. with half yearly rests from 01.04.2023 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 defendant, 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 @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 defendant is liable to pay to the applicant a total sum of Rs.26,13,433.71p (Rupees Twenty Six Lacs Thirteen Thousand Four Hundred Thirty Three and Paise Seventy One Only) 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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 28.01.2025.

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Copy of this order be given Dasti to the applicant bank and be sent to defendant 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, DRT-III, Chandigarh

Punjab National Bank v. Gurpreet Singh

Case brief

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Punjab National Bank v. Gurpreet Singh

Case brief

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