Allowed

Punjab National Bank v. Bhag Singh and Others

DRT23 Sept 2024OA/741/2022

Case brief

AI extract

What is this about?

In an ex-parte application under RDBFI Act, 1993, the Tribunal declared that the bank was entitled to recover the outstanding principal sum of Rs.22,68,364.00 jointly and severally from the defendants. The Tribunal adjusted the interest rate to a uniform simple interest of 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.22,68,364.00 with interest at 8% p.a. to be recoverable from hypothecated properties or personal assets.

Punjab National Bank versus Bhag Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.741/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.02.2022

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DATE OF DECISION: 23.09.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and w.e.f 01.04.2020 being the successor to Oriental Bank of Commerce in terms of Gazette of India Notification No. G.S.R. 153 (E) dated 04^th March, 2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), after consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of the erstwhile Oriental Bank of Commerce into Punjab National Bank Scheme,2020. The erstwhile Oriental Bank of Commerce’s Branch Office at Rajkot Road, Pakhowal, Ludhiana (Punjab) now known as Punjab National Bank (e-OBC), Raikot Road, Pakhowal, Ludhiana (Punjab). Lateron, the account has been maintained by Punjab National Bank, Circle SASTRA (West), Site No. 5, PNB House, Ferozepur Road, Ludhiana (Punjab) through its General Power of Attorney holder Sh. Ramesh Kumar Aggarwal posted as Deputy Manager of the Applicant.

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……..Applicant Versus
1. Sh. Bhag Singh S/o Sh. Kartar Singh, R/o Village Sheikhupur Kalan, Tehsil Malerkotla District Sangrur (Punjab).
2. Sh. Daljit Singh S/o Sh. Bhag Singh, R/o Village Sheikhupur Kalan,
Tehsil Malerkotla, District Sangrur (Punjab)
3. Sh. Kuldeep Singh S/o Sh. Nachhattar Singh, R/o Village Manna
Kheri, Tehsil Malerkotla, District Sangrur (Punjab) ….……Defendants

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Advocates: Argued by Sh. Banni Thomas, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,68,364.00 (Rupees Twenty Two Lakh Sixty Eight Thousand Three Hundred & Sixty Four Only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, Deputy Manager, of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 24.09.2013, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant No. 1 & 2 had approached the applicant for the grant of Cash Credit Limit facility of Rs.14.00 Lacs under OGC Schme vide Loan Application Form-cumProcess Note for OGC Facility (LF-5) along with Credit Report dated 17.11.2011, which is Annexure A2 (colly) to this OA.

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The applicant sanctioned the Cash Credit Limit facility of Rs. 14.00 lacs vide Sanction Letter dated 18.11.2011, 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. land measuring 18K-0M situated at Village Sheikhupur Kalan, Tehsil Malerkotla District Sangrur (Punjab) vide Registered Mortgage deed bearing Vasika No. 3044 dated 15.12.2021, Legal Scrutiny Report (LSR)/Legal Opinion by empanelled Advocate dated 21.12.2011, Verification Report of Mortgaged Land verified by Advocate Sh. Amardeep Modi dated 11.12.2012, Non-Encumbrance Certificate and Fard showing ownership of agricultural land on Jamabandi, along with their translation, which are Annexures A4 (colly) to this OA. Documents executed:- Agreement for Hypothecation of Existing & Future Crops/Moveable Assets/Live Stock to Secure a Cash Credit

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Account of Oriental Green Card (Doc.45), Agreement of Guarantee (Doc.11) executed by Defendant No.2 on behalf of Defendant No.1 both dated 21.12.2011, which is Annexure A5 & A6 to this OA; Legal notices dated 11.04.2014 & 26.09.2014 with registered postal receipts, which is Annexure A7 (colly) to this OA; Balance & Security Confirmation Letters dated, 22.11.2014, 08.06.2017, 07.12.2019, which is Annexure A8 (colly) to this OA; Statement of Account dated, Certified under Banker Books Evidence Act, 1891, which is Annexure A9(colly) 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.22,68,364.00, which is recoverable and the defendants were 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 23.08.2024.

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In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Deputy Manager, Punjab National Bank has been filed. 8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A9(colly) to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.22,68,364.00 (Rupees

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Twenty Two Lakh Sixty Eight Thousand Three Hundred & Sixty Four 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 in relief clause has claimed interest @10.50%p.a. with yearly rest from 31.01.2022 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 @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 defendants are liable to pay to the applicant a total sum of Rs.22,68,364.00 (Rupees Twenty Two Lakh Sixty Eight Thousand Three Hundred & Sixty Four Only) jointly and severally, 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 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 applicant 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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12.	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 15.10.2024.

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Copy of this order be given dasti to the applicant 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.

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Dated: 23.09.2024

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

Punjab National Bank v. Bhag Singh and Others

Case brief

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Punjab National Bank v. Bhag Singh and Others

Case brief

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