Allowed

Punjab National Bank v. Krishan Singh

DRT18 Jul 2024OA/780/2023

Case brief

AI extract

What is this about?

The DRT allowed a recovery application filed by Punjab National Bank against Krishan Singh for Rs.28.65 lakhs. The defendant was absent. The court adjusted interest to 8% per annum and directed issuance of a recovery certificate and sale of mortgaged properties.

What did the court decide?

Order to pay principal of Rs.28,65,799.35 with 8% p.a. interest and costs; issuance of Recovery Certificate.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.780/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 01.06.2023

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DATE OF DECISION: 18.07.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under The Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch at circle SASTRA Kapurthala office at 3^rd Floor Neeraj Natraj Hotel Satyanarayan Bazar Kapurthala Punjab-144601 through it Senior Manager and General Power of Attorney Sh. Ankur Rawat S/o Sh. K.S. Rawat

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……..Applicant

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Versus

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Sh. Krishan Singh S/o Sh. Malkiat Singh R/o House No.162 B Village and Post Office Rehpa, Tehsil Banga, District Sahid Bhagat Singh Nagar, Punjab

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….……Defendant

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Advocates: Argued by Ms. Hemlata Issar, 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.28,65,799.35p (Rupees Twenty Eight Lacs Sixty Five Thousand Seven Hundred Ninety Nine and Thirty Five Paise only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant bank, who is competent to institute the Original

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Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1to 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.20.00 Lacs vide
Loan application dated 28.12.2017.
3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs
vide Letter of Sanction dated 03.01.2018, which isAnnexure A2to
this OA and the terms and conditions were duly accepted by the
defendant.
4. Defendant had mortgaged his immovable property i.e.
agricultural land measuring 25Kanals-19Marlas-8½Sarsahiessituated
at Village Mukandpur, Tehsil Banga, District SBS Nagar, Punjab vide Declaration under Section 4(1) of Punjab Agricultural Credit Operations
and Miscellaneous Provisions (Banks) Act, 1978 dated 04.01.2018, which isAnnexure A3to this OA.
Documents executed:- Hypothecation Agreement and Undertakings
dated 16.01.2018, which isAnnexure A4 (Colly)to this OA;
Statement of account with certificate dated 29.04.2023, which is
Annexure A5to this OA and Balance Confirmation Letter dated
07.01.2021, which isAnnexure A6to 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.28,65,799.35p, 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 ex-
parte on 17.05.2024.
7. In support of the OA, affidavit ofSh. Ankur Rawat, Senior
Manager, Punjab National Bankhas been filed.

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Heard ex-parte arguments and perused record.

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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 perusal of all the Annexures A1 to A6 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.28,65,799.35p (Rupees Twenty Eight Lacs Sixty Five Thousand Seven Hundred Ninety Nine and Thirty Five Paise 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 @11.75%p.a. including penal interest @2%p.a. with half yearly rests from 01.04.2022 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 defendant, 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.28,65,799.35p (Rupees Twenty Eight Lacs Sixty Five Thousand Seven Hundred Ninety Nine and Thirty Five Paise 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 06.08.2024.

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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. Dated: 18.07.2024

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

Punjab National Bank v. Krishan Singh

Case brief

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Punjab National Bank v. Krishan Singh

Case brief

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What did the court decide?

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