Allowed

Punjab National Bank v. Sh. Mukhtiar Singh

DRT28 May 2024OA/747/2022

Case brief

AI extract

What is this about?

The DRT allowed an application filed by Punjab National Bank for recovery of a dues of Rs.34.14 lacs against a defaulter who mortgaged agricultural land. The Tribunal reduced the claimed interest rate to 8% per annum and directed sale of mortgaged properties for recovery.

What did the court decide?

Recovery of Rs.34,14,252.01 with costs and simple interest @8.00%p.a.; directions for issuance of Recovery Certificate and sale of mortgaged properties.

Punjab National Bank versus Sh. Mukhtiar Singh — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.747/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.03.2022

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DATE OF DECISION: 28.05.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Kohara, District Ludhiana, through General Power of Attorney Holder Sh. Ravinder Kumar, Senior Manager and Constituent Attorney.

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……..Applicant

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Versus

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Sh. Mukhtiar Singh S/o Sh. Jamna Singh, R/o Village Dholanwal, Tehsil and District Ludhiana

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….……Defendant

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant 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.34,14,252.01p (Rupees Thirty Four Lacs Fourteen Thousand Two Hundred Fifty Two and Paisa One only). The Original Application has been filed through Sh. Ravinder Kumar, Senior Manager and Constituent Attorney o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.06.1997, 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 bank for the grant of Agriculture Cash Credit Limit under Oriental Green Card Scheme of Rs.25.00 Lacs vide Application Form-

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Cum Process Note dated 19.02.2013, which is Annexure A2 to this OA and further for its renewal vide Renewal Application for Agriculture Credit, which is Annexure A9 to this OA.

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The applicant Bank sanctioned the Agriculture Cash Credit Limit under Oriental Green Card Scheme of Rs.25.00 Lacs vide Sanction Letter dated 28.02.2013, which is Annexure A4 to this OA and further renewed OGC facility vide Sanction Letter 05.11.2018, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 36K-13M detailed as: a. Land Measuring 13K-08M situated at Village Dholanwal, Hadbast No. 31, Tehsil & District Ludhiana, Punjab b. Land Measuring 18K-0M situated at Village Kalewal, Hadbast No. 32, Tehsil & District Ludhiana, Punjab c. Land Measuring 5K-05M situated at Village Salempur, Hadbast No. 33, Tehsil & District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika No. 1612 dated 01.03.2013 along with its English Translation, which are Annexures A6 to A6T to this OA. Documents executed: - Voter ID Proof of defendant in file 3, which is Annexure A3 to this OA; Agreement for Hypothecation dated 05.03.2013, which is Annexure A5 to this OA; Balance and Security Confirmation Letters dated 06.10.2015 & 24.01.2018, which are Annexures A7 & A8 to this OA and Statement of Account, which is Annexure A11 to this OA. 5. 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.34,14,252.01p, 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.

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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 28.05.2024. 7. In support of the OA, affidavit of Sh. Ravinder Kumar, Senior Manager and Constituent Attorney, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 Annexures A1 to A11 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.34,14,252.01p (Rupees Thirty Four Lacs Fourteen Thousand Two Hundred Fifty Two and Paisa One only) along with interest from the defendant, 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 @10.35%p.a. together with penal interest @2%p.a. with half yearly rests from 01.10.2021 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 nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.34,14,252.01p (Rupees Thirty Four Lacs Fourteen Thousand Two Hundred Fifty Two and Paisa One 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 the defendant 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 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 12.06.2024. 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. Pronounced by me in the open Tribunal. Dated: 28.05.2024

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

Punjab National Bank v. Sh. Mukhtiar Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Mukhtiar Singh

Case brief

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What did the court decide?

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