Allowed

Punjab Gramin Bank v. Jasmer Singh

DRT23 Oct 2024OA/695/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs.30,49,455 against the defendant who failed to repay sanctioned loans. The tribunal ordered recovery with 8% simple interest and directed issuance of a recovery certificate.

What did the court decide?

Defendant to pay Rs.30,49,455 with costs and interest @8% p.a. Recovery Certificate issued. Entitled to recover via sale of mortgaged property or attachment of personal assets.

Punjab Gramin Bank versus Jasmer Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.695/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.01.2024

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DATE OF DECISION: 23.10.2024

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Punjab Gramin Bank, a body corporate constituted under the Regional Rural Bank Act 1976, Act No 21 of 1976 having its Head Office, at Markfed Road Kapurthala (Pb) and having its branches at different places including one at Bhankhar, Tehsil & Distt Patiala (Pb) through its Constituted Attorney/ Manager Sh. Deepak Kumar.

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……..Applicant

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Versus

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Sh. Jasmer Singh S/o Sh. Nar Singh, R/o Village Ballan, PO Bhankhar, Tehsil and Distt Patiala (Pb)- 147103.

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….……Defendant

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Advocates:

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Argued by Sh. Bhushan Bhatia, Advocate for Applicant (through VC) Defendant 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 defendant for recovery of Rs.30,49,455.00 (Rupees Thirty Lacs Forty Nine Thousand Four Hundred Fifty Five Only). The Original Application has been filed through Sh. Deepak Kumar, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.09.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit I of Rs.6.00 Lacs, KCC Limit II of Rs.6.60 Lacs and Term Loan of Rs.1.00 Lacs vide Loan application dated 30.05.2016, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit I of Rs.6.00 Lacs, KCC Limit II of Rs.6.60 Lacs and Term Loan of Rs.1.00 Lacs vide Sanction Letters

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dated 06.06.2016, which is Annexure A3 to this OA, and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. total land measuring 15Bigha-00Biswa situated at Village Ballan, PO Bhankhar, Tehsil and Distt Patiala vide Letter to Sub Registrar for Creating the Charge and Declaration under section 4(1) dated 07.06.2016, which is Annexure A5 to this OA.

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Documents executed:- DP Notes along with Loan Agreements and Letters of Undertaking all Dated 15.06.2016, which is Annexure A4 to this OA; Notice dated 22.10.2021 with postal receipt, which is Annexure A6 to this OA; BC letters dated 26.07.2018 & 06.01.2021, which are Annexures A7, A7/1 and A7/2 & A7/3, A7/4 and A7/5 to this OA and Statements of Accounts with certificate, which is Annexure A-8, A-8/1 and A-8/2 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.30,49,455.00, which is recoverable and the defendant was 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.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 19.10.2024.

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In support of the OA, affidavit of Deepak Kumar, Manager, Punjab Gramin Bank h as been filed. 8. Heard 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 A8, A8/1 and A8/2 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facilities which were granted to him and for that he had

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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, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.30,49,455.00 (Rupees Thirty Lacs Forty Nine Thousand Four Hundred Fifty Five Only) along with interest from the defendant, 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 @10.00%p.a. plus penal interest @2.00%p.a. with half yearly rests from 01.01.2024 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 loans 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 all the loan accounts 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.30,49,455.00 (Rupees Thirty Lacs Forty Nine Thousand Four Hundred Fifty Five Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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 defendant in execution proceedings if not sold earlier under the

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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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.11.2024.

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Copy of this order be given Dasti to the applicant 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 .

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Dated: 23.10.2024

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

Punjab Gramin Bank v. Jasmer Singh

Case brief

What is this about?

What did the court decide?

Punjab Gramin Bank v. Jasmer Singh

Case brief

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What did the court decide?

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