Allowed

Punjab National Bank, v. Messrs Sunil Steel Industries and Others

DRT15 Jan 2024OA/664/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal adjudicated an original application filed by Punjab National Bank against Surendra Kumar Steel Limited and others for recovery of Rs.45,16,101.00. The defendants appeared ex-parte. The bank proved its case and the Tribunal allowed the application, directing recovery of the principal amount with simple interest at 10% p.a. from the date of filing.

What did the court decide?

Application allowed; defendants liable to pay Rs.45,16,101.00 with costs and simple interest at 10% p.a. Recovery Certificate issued; enforcement through sale of properties permitted.

Punjab National Bank, versus Messrs Sunil Steel Industries and… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.664/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.04.2022

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DATE OF DECISION: 15.01.2024

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Punjab National Bank, 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-110075 and its Branch Offices throughout India including Branch Office at Punjab National Bank, Piran Wala Gate, Sunam, District Sangrur, Punjab148028 through its General Power of Attorney, Sh. Ramesh Dhir, Senior Manager, at Punjab National Bank, Circle Sastra Centre, Sangrur, Punjab- 148028

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……..Applicant Versus

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M/s Sunil Steel Industries, Gaushala Road, Sunam, District Sangrur, through its partners, Sh. Arun Jain and Smt. Kusamlata Jain, Bathinda Road, Sunam, District Sangrur-148028

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Sh. Arun Jain S/o Sh. Babu Ram Jain, R/o Village Lakhmiir Wala Road, Happy Home Colony, Sunam, District Sangrur-148028

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Smt. Kusamlata Jain W/o Sh. Parveen Jain, R/o H.No.243, Ward No.13, Mohalla Rajpuria, Sunam, District Sangrur-148028

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(Borrowers)

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Smt. Pushpa Jain W/o Sh. Ashok Kumar, R/o H.No.243, Ward No.13, Mohalla Rajpuria, Sunam, District Sangrur-148028 (Guarantor) ………Defendants Advocates: Argued by Sh. Neeraj Madaan, counsel 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.45,16,101.00 (Rupees Forty Five Lacs Sixteen Thousand One Hundred and One only). The Original Application has been filed through Sh. Ramesh Dhir, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 29.03.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its partners i.e. defendants no.2 and 3 had approached the applicant bank for the grant of Bank Guarantee of Rs.50.00 Lacs and for its several renewals vide Loan Application/Request letters for Renewal dated 09.06.2012, 01.06.2015, 02.06.2016, 29.05.2018, 20.05.2019 and 01.06.2019, which are Annexures A2, A5, A11, A19, A21, A25, A27 and A30 to this OA.

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The applicant Bank sanctioned the Bank Guarantee of Rs.50.00 Lacs and renewed it several times vide Sanction/Confirmation Letters dated 09.06.2012, 06.06.2013, 05.06.2014, 04.06.2015, 03.06.2017, 01.06.2018 and 03.06.2019, which are Annexures A3, A14, A15, A17, A18, A20, A22, A26 and A31 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.4 had mortgaged her immovable property i.e. All part and parcel of residential plot measuring 13-1/4 Marlas i.e. 400 Sq. Yards situated in the area of Sunam-B (Happy Home Colony), Plot No.7, Bathinda Road Sunam, Tehsil Udham Singh Wala, District Sangrur, Punjab vide Sale Deed bearing Vasika No.4110 dated 12.12.2011 and Jamabandi for the year 2009-10; along with their translations, which are Annexures A12, A12-A, A13 and A13-A to this OA.

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Documents executed:- Notification of amalgamation dated 04.03.2020, which is Annexure A1/A to this OA; Bank guarantee dated 09.06.2012, which is Annexure A4 to this OA; Confirmation Letter dated 11.06.2012, which is Annexure A6 to this OA; Common agreement, Undertaking, Agreement of guarantee and Counter guarantee agreement all dated 09.06.2012, which are Annexures A7 to A10 to this OA; Partnership Deed dated 01.04.2014 and 03.04.2017, which are Annexures A16 and A23 to this OA; Letter about the renewal of bank guarantee dated 01.06.2018, which his Annexure A24 to this OA; Letter dated 22.05.2019, which is Annexure A28 to this OA; Letter for Invocation of bank guarantee dated 30.05.2019, which is Annexure A29 to this OA; Office note for invocation of bank guarantee dated 17.12.2019, which is Annexure A32 to this OA; Copy of statement, which is Annexure A33 to this OA; Recovery notice dated 26.10.2020, which is Annexure A34 to this OA; Notice u/s 13(2) of the SARFAESI Act dated 27.04.2021, which are Annexures A35 and A36 to this OA and Statement of account alongwith interest chart and Certificate of computer system, which is Annexure A37 to this OA.

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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.45,16,101.00, which is recoverable and the defendants 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.

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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 21.11.2023. 7. In support of the OA, affidavit of Sh. Ramesh Dhir, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record.

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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 bank had proved its case. From the perusal of all the Annexures A1 to A37 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.45,16,101.00 (Rupees Forty Five Lacs Sixteen Thousand One Hundred and One 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 bank in relief clause has claimed interest @13.25%p.a. (inclusive of @2%p.a. penal interest) with monthly 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 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 @10.00%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. 11. 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.45,16,101.00 (Rupees Forty Five Lacs Sixteen Thousand One Hundred and One only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2024. 15. 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.

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Pronounced by me in the Open Tribunal. Dated: 15.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Messrs Sunil Steel Industries and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Messrs Sunil Steel Industries and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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