Allowed

Punjab National Bank v. Harkewal Singh

DRT18 Jul 2024OA/700/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's ex-parte application for recovery of a loan of Rs.20,25,517.10p denied by the defendant. The court approved the recovery claim along with costs and adjusted the interest rate to 8% per annum.

What did the court decide?

Recovery of Rs.20,25,517.10p with costs and future simple interest @8% p.a. until realization, with authorization to enforce via sale of assets.

Punjab National Bank versus Harkewal Singh — Service and Employment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.700/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.12.2021

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DATE OF DECISION: 18.07.2024

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Punjab National Bank, a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi through one of its Branch Office at Hari Ke Kalan, Tehsil and District Mukatsar and through its General Power of Attorney holder Sh. Paramjit Singh, Senior Manager, presently posted at Circle SASTRA, Fazilka of the applicant bank

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……..Applicant

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Versus

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Sh. Harkewal Singh S/o Sh. Sham Singh, R/o H.No.97, Village Hari Ke Kalan, District Muktsar, Punjab

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….……Defendant

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Advocates:

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Argued by Sh. Manu Loona, Advocate for the 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.20,25,517.10p (Rupees Twenty Lacs Twenty Five Thousand Five Hundred Seventeen and Ten Paisa only). The Original Application has been filed through Sh. Paramjit Singh, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 12.03.1998, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.14.00 Lacs vide Loan Application dated 16.03.2017, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.14.00 Lacs vide Sanction Letter, 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 properties i.e. total land measuring 42 Kanal 12 Marla situated at Village Bara Hari-2, H.B. No.89, Tehsil and District Muktsar Sahib, Punjab vide Declaration u/s 4(1) dated 20.03.2017, Self declaration affidavit of defendant dated 17.03.2017, Legal search report, Non-encumbrance certificate with its translation and Mutation certificate all dated 20.03.2017, which are Annexures A9 to 13 to this OA.

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Documents executed:- Agreement for hypothecation, Letter of undertaking-I and Letter of undertaking-II all dated 28.03.2017, which are Annexures A4 to A6 to this OA; Letter of request, which is Annexure A7 to this OA; Declaration regarding agricultural land, which is Annexure A8 to this OA; Recall notices dated 22.06.2021 and 12.03.2020, which are Annexures A14 and A15 to this OA; Balance and security confirmation letter dated 04.03.2020, which is Annexure A16 to this OA and Statement of account along with Certificate dated 01.12.2021 under Banker’s Books Evidence Act, which are Annexures A17 and A18 to this OA.

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The loan account became irregular and was classified as NPA and after adjusting debit and credit entries, there was a debit of Rs.20,25,517.10p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 17.05.2024. 7. In support of the OA, affidavit of Sh. Paramjit Singh, Senior Manager, Punjab National Bank has been filed. 8. Heard ex-parte 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 bank had proved its case. From the

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perusal of all the Annexures A1 to A18 to this OA, it is proved that the defendant 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 defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.20,25,517.10p (Rupees Twenty Lacs Twenty Five Thousand Five Hundred Seventeen and Ten Paisa only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the dues.

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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 @8.85%p.a. with half yearly rests along with @2%p.a. penal interest from 01.12.2021 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, 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 defendant is liable to pay to the applicant a total sum of Rs.20,25,517.10p (Rupees Twenty Lacs Twenty Five Thousand Five Hundred Seventeen and Ten Paisa 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

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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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 07.08.2024. 15. Copy of this order be given dasti to the applicant bank 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: 18.07.2024

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

Punjab National Bank v. Harkewal Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Harkewal Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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