Allowed

Punjab National Bank v. Nirpal Singh and Another

DRT24 Sept 2024OA/66/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application to recover Rs. 48,23,005.25 from defaulting borrowers jointly and severally. The court fixed uniform simple interest at 8.00% p.a. and ordered issuance of a recovery certificate.

What did the court decide?

Declaration of liability to pay Rs. 48,23,005.25 with interest at 8% p.a.; Recovery Certificate issued; liberty to enforce through sale of properties.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.66/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.12.2021

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DATE OF DECISION: 24.09.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi-110075 and a branch amongst others at Raikot, Ludhiana erstwhile Oriental Bank of Commerce through its Recovery Vertical i.e. Circle Sastra Center (West), Circle Office, 5, Ferozepur Road, Ludhiana, Punjab141109 through Sh. Sonu S/o Sh. Azad Singh, Chief Manager, Principal Officer and duly constitute attorney of the applicant.

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……..Applicant

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Versus

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Sh. Nirpal Singh S/o Sh. Sher Singh, # 134, Village Moom, Tehsil Barnala, District Sangrur (Punjab)-148100

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Sh. Hardev Singh S/o Sh. Mehar Singh, Village Moom, Tehsil and Dsitrict Barnala (Punjab)-148100

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….……Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.48,23,005.25p (Rupees Forty Eight Lacs Twenty Three Thousand Five and Paisa Twenty Five only). The Original Application has been filed through Sh. Sonu, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 22.11.2014, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit of Rs.20.00

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Lacs vide Loan application dated 16.04.2012, which is Annexure A3 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.20.00 Lacs vide Sanction Letter dated 16.04.2012, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 32K-11M situated at Village Moom, Hadbast no. 25, Tehsil and District Barnala (Punjab) vide Registered Mortgaged Deed bearing v asika No.56 dated 1 9.04.201 2 along with its Translations, which are Annexure A9 and A9T to this OA. Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A1 to this OA; Agreement for Hypothecation of existing and Future crops/movable assets dated 23.04.2012, which is Annexure A5 to this OA; Affidavit of Legal Heir, which are Annexures A6 & A7 to this OA; Legal Opinion dated 12.04.2012, which is Annexure A8 to this OA; Agreement of Guarantee dated 23.04.2024, which is Annexure A10 to this OA; Balance Confirmation Letter dated 19.12.2014, 21.10.2016 and 31.12.2018, which is Annexure A11 to this OA; Recall Notice dated 03.04.2015 and 01.07.2015, which is Annexure A12 to this OA; Legal Notice dated 16.11.2021 along with postal Receipts, which is Annexure A13 to this OA and Statement of Account along with Certificate dated 30.11.2021, which are Annexures A14 & A15 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.48,23,005.25p, which is recoverable and the defendants were served recall notices but they 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 notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 28.08.2024.

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In support of the OA, affidavit of Sh. Sonu, Chief 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 A15 to this OA, it is proved that the defendants approached applicant 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 is entitled to recover a sum of Rs.48,23,005.25p (Rupees Forty Eight Lacs Twenty Three Thousand Five and Paisa Twenty Five 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 in relief clause has claimed interest @10.55%p.a. from 01.11.2021 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 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

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Rs.48,23,005.25p (Rupees Forty Eight Lacs Twenty Three Thousand Five and Paisa Twenty Five 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 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 16.10.2024.

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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 . Dated: 24.09.2024

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

Punjab National Bank v. Nirpal Singh and Another

Case brief

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Punjab National Bank v. Nirpal Singh and Another

Case brief

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