Allowed

Punjab Gramin Bank v. Late Sh. Parkash Singh

DRT21 Aug 2024OA/70/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 22.17 lakhs from the deceased borrower's legal heirs. The Tribunal refused interest patently claimed at 10% to treat the account with interest at a reduced uniform rate of 8% simple interest.

What did the court decide?

Legal heirs ordered to pay Rs. 22,17,111/- with 8% simple interest; recovery permitted via sale of mortgaged properties or attachment of personal assets.

Punjab Gramin Bank versus Late Sh. Parkash Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.70/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.11.2023

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DATE OF DECISION: 21.08.2024

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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 Jalandhar Road, Kapurthala (Pb) and having its brancesh at different places including one at B.O. Noor Di Adda, Tarn Taran, (Pb) through its Authorized Representative Sh. Manish Garg.

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……..Applicant Versus

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Late Sh. Parkash Singh through LRs:-

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Smt. Sukhwinder Kaur wd/o Late Parkash Singh

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Sh. Satnam Singh s/o Late Parkash Singh

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Ms. Kuldip Kaur d/o Late Parkash Singh

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Ms. Harjinder Kaur d/o Late Parkash Singh

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All R/o VPO Bhaini Mutuan, Tehsil and District Tarn Taran

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.……Defendants

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Advocates:

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Argued by Sh. Tejinder Singh, Advocate proxy for Sh. Ankit Kaushal 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,17,111.00 (Rupees Twenty Two Lacs Seventeen Thousand One Hundred and Eleven Only). The Original Application has been filed through Sh. Manish Garg , Authorized Officer of applicant bank, w ho is competent to institute the Original Application vide General Power of Attorney dated 28.06.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that Late Parkash Singh had approached the applicant bank for grant of KCC Limit of Rs.08.00 Lacs, vide Loan Applications dated 29.03.2012, which is Annexures A2 to this OA.

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The applicant Bank sanctioned KCC Facility of Rs.08.00 Lacs vide Memorandum of Sanction Letter dated 23.05.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Late Sh. Parkash Singh had mortgaged his immovable properties i.e. total land measuring 32K-00M, situated at Village Bhaini Mataun, Tehsil & District Tarn Taran, Punjab vide Registered Mortgage Deed bearing Vasika No.2, dated 02.04.2012 along with its translation, which is Annexures A5 to this OA.

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Documents executed:- Agreement of Hypothecation, dated 23.05.2012, which is Annexure A4 to this OA; of Statement of Account with Certificate which are Annexures A6 & A7 to this OA; Balance Confirmation Letters dated 29.03.2014, 17.05.2016, 20.04.2018 & 27.11.2020, which are Annexures A8 to A11 to this OA and Legal Notice dated 23.08.2022 along with postal receipt, which is Annexures A12 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.22,17,111.00 which is recoverable and Late Parkash Singh 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. 6. The legal heirs of Late Parkash Singh i.e. Defendant nos.1 to 4 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 15.07.2024.

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In support of the OA, affidavit of Sh. Manish Garg , Authorized Officer, Punjab Gramin Bank h as been filed.

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Heard ex parte arguments and perused record.

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It was argued by learned proxy counsel 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 Annexure A1 to A12 to this OA, it is proved that the Late Parkash Singh approached applicant bank 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 legal heirs of Late Parkash Singh i.e. Defedant nos.1 to 4 f ailed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of late Sh. Parkash Singh 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.22,17,111.00 (Rupees Twenty Two Lacs Seventeen Thousand One Hundred and Eleven Only) along with interest from the legal heirs of Late Parkash Singh i.e. Defendant nos.1 to 4, 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 @10.00%p.a. including penal interest @2.00%p.a. with yearly rests from 20.04.2023 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 legal heirs of Late Parkash Singh i.e. Defendant nos.1 to 4 are liable to pay to the applicant a total sum of Rs.22,17,111.00 (Rupees Twenty Two Lacs Seventeen Thousand One Hundred and Eleven Only) 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 bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of that the legal heirs of Late Parkash Singh i.e. Defendant nos.1 to 4 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 that the legal heirs of Late Parkash Singh i.e. Defendant nos.1 to 4. 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 11.09.2024. 15. Copy of this order be given Dasti to the applicant bank and be sent to that the legal heirs of Late Parkash Singh i.e. Defendant nos.1 to 4 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: 21.08.2024

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

Punjab Gramin Bank v. Late Sh. Parkash Singh

Case brief

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Punjab Gramin Bank v. Late Sh. Parkash Singh

Case brief

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