Allowed

Punjab National Bank v. Gurmukh Singh and Others

DRT21 Oct 2024OA/662/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant bank's claim for recovery of Rs.24,59,151.17p from the defendants who failed to repay an agricultural loan. The court granted recovery with interest at 8% per annum from the date of filing and directed issuance of a recovery certificate.

What did the court decide?

Recovery of Rs.24,59,151.17p with interest at 8% per annum; issuance of Recovery Certificate; liberty to execute against mortgaged and personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.662/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 27.05.2024

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DATE OF DECISION: 21.10.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 and the successor of Oriental Bank of Commerce, passed by the Central Bank under Section 9 of the Banking Companies(Acquisition and Transfer of Undertakings) Act, 1980, and one of its Branch Office at Dharamkot, District Moga, Punjab, through its General Power of Attorney Holder Mr. Rajesh Sachdeva son of Sh. Jagdish Chander.

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……..Applicant Bank Versus

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Sh. Gurmukh Singh son of Sh. Malook Singh resident of Galoti Road, Kot Isse Khan, Village Ramgarh, District Moga.

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Smt. Sukhwinder Singh wife of Sh. Jugraj Singh resident of Galoti Road, Kot Isse Khan, Village Ramgarh, District Moga.

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Sh. Om Parkash son of Sh. Nihal Chand resident of Said Mohammed, Tehsil and District Moga.

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………. Defendants

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Advocates:

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Argued by Ms. Shivya Sehgal, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.24,59,151.17p (Rupees Twenty Four Lacs Fifty Nine Thousand One

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Hundred Fifty One And Paise Seventeen Only). The Original Application has been filed through S h. Rajesh Sachdeva, Principal Officer o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 09.06.2017, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 and 2 being borrowers had approached the applicant for grant of Agriculture Credit Limit of Rs.18.00 Lacs vide Loan Application dated 02.06.2011 which is Annexure A2 to this OA. 3. The applicant sanctioned Agriculture Credit Limit of Rs.18.00 Lacs vide Sanction Letter dated 22.06.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 & 2 being borrower had mortgaged their immovable properties i.e. total land measuring 41K-15½M situated in Rakba Village Ramgarh, Tehsil & District Moga vide Registered Mortgaged Deed bearing vasika No.1564 dated 1 3.06.2011 along with its translation, which is Annexure A5 to this OA. Documents executed:- Hypothecation Agreement & Agreement of Guarantee both dated 22.06.2011, which are Annexures A4 & A6 to this OA; Balance & Security Confirmation Letters dated 24.04.2014, 07.12.2016, 15.07.2019, 30.12.2020 & 14.07.2022, which are Annexures A7 to A11 to this OA; Legal Notices along with postal receipts dated 17.07.2021 & 14.02.2022, which are Annexures A12 & A13 to this OA and Statement of Account duly certified along with Calculation Sheet, which is Annexure A14 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.24,59,151.17p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 17.10.2024. 7. In support of the OA, affidavit of S h. Rajesh Sachdeva, Principal Officer, Punjab National Bank h as been filed. 8. Heard arguments and perused record. 9. 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 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 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.24,59,151.17p (Rupees Twenty Four Lacs Fifty Nine Thousand One Hundred Fifty One And Paise Seventeen 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @10.05%p.a. along with penal interest @2%p.a. with half yearly rests from 01.05.2024 till the realization. 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 @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 defendants are liable to pay to the applicant a total sum of Rs.24,59,151.17p (Rupees Twenty Four Lacs Fifty Nine Thousand One Hundred Fifty One And Paise Seventeen Only) jointly and severally, 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 defendants 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 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 01.11.2024.

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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 .

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Dated: 21.10.2024

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

Punjab National Bank v. Gurmukh Singh and Others

Case brief

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Punjab National Bank v. Gurmukh Singh and Others

Case brief

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