Allowed

Punjab National Bank v. Sh. Sukhpal Singh and Another

DRT25 Jan 2024OA/712/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank against borrowers and a guarantor. The court declared the respondents liable to repay the outstanding loan of Rs. 27,62,565.59 along with costs and interest at 8.85% p.a. An order for recovery certificate was passed.

What did the court decide?

Decreed amount of Rs. 27,62,565.59 with costs and interest @8.85% p.a. ordered to be recovered from sale of assets; Recovery Certificate issued.

Punjab National Bank versus Sh. Sukhpal Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.712/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.04.2022

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DATE OF DECISION: 25.01.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst others at Punjab National Bank (erstwhile Oriental Bank of Commerce), VPO Kishanpura Kalan, District Moga, Punjab through its General Power of Attorney Holder, Sh. Sandeep Kumar, Senior Manager, Punjab National Bank, Circle Sastra Moga, 1st Floor, Pratap Road Branch, Moga-142001, Punjab, who is duly authorized and Principal Officer of the Applicant Bank

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……..Applicant

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Versus

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Sh. Sukhpal Singh S/o Sh. Kikkar Singh, R/o Village Izzatwala,

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Tehsil and District Moga (Borrower)

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Sh. Lakhwinder Singh S/o Sh. Jagtar Singh, R/o Village

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Roshanwala, Tehsil and District Moga (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Mohinder Nath Sharma, 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.27,62,565.59p (Rupees Twenty Seven Lacs Sixty Two Thousand Five Hundred Sixty Five and Fifty Nine Paise only). The Original

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Application has been filed through Sh. Sandeep Kimar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of OGC/KCC Limit of Rs.16.00 Lacs vide Loan application dated 27.07.2011, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the OGC/KCC Limit of Rs.16.00 Lacs vide Sanction Letter dated 27.07.2011, 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 had mortgaged his immovable properties i.e. total land measuring 32K-12M situated at Village Izzatwala, Tehsil and District Moga, Punjab vide Registered Mortgaged Deed bearing vasika no.2440 dated 27.07.2011 along with English Translation, which are Annexures A4 & A-4/T to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A-1A to this OA; Advocate Report on Title and Affidavit by the Borrower both dated 27.07.2011, which are Annexures A5 & A6 to this OA; Hypothecation Agreement and Agreement of Guarantee both dated 01.08.2011, which are Annexures A7 & A8 to this OA; Balance and Security Confirmation letters dated 25.07.2014, 20.07.2016 & 27.02.2019, which are Annexures A9 to A11 to this OA; Notice of Recall of Bank’s dues by the Advocate dated 17.03.2022, which is Annexure A12 to this OA and Statement of Account, which is Annexure A13 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.27,62,565.59p, 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 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 14.11.2023.

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In support of the OA, affidavit of Sh. Sandeep Kumar, 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 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 A13 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.27,62,565.59p (Rupees Twenty Seven Lacs Sixty Two Thousand Five Hundred Sixty Five and Fifty Nine Paise 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 @8.85%p.a. along with @2%p.a. penal interest with half yearly rests from 01.04.2022 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 @8.85%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 Rs.27,62,565.59p (Rupees Twenty Seven Lacs Sixty Two Thousand Five Hundred Sixty Five and Fifty Nine Paise only) jointly and severally, with costs, current and future simple interest @8.85%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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 13.02.2024.

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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. Pronounced by me in the open Tribunal. Dated: 25.01.2024

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

Punjab National Bank v. Sh. Sukhpal Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Sh. Sukhpal Singh and Another

Case brief

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