Allowed

Punjab National Bank, v. Messrs Gaurav Electronics

DRT1 Jan 2024OA/792/2022

Case brief

AI extract

What is this about?

Debt Recovery Tribunal allowed an Original Application filed by Punjab National Bank against M/s Gaurav Electronics for recovery of Rs.28.51 Lacs. The Tribunal deemed it just to grant simple interest at 10% per annum and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs.28,51,064.00 with 10% p.a. interest from hypothecated/mortgaged or personal assets of the defendant and issue of Recovery Certificate.

Punjab National Bank, versus Messrs Gaurav Electronics — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.792/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.04.2022

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DATE OF DECISION: 01.01.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 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 04.03.2020 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) and Branch at Gill Road, Ludhiana (Punjab), B.K. Tower, B-XXI, 2480/1, Near Grewal Hospital, Gill Road, Ludhiana (Punjab), through its General Power of Attorney holder, Sh. Amit Thind posted as Deputy Manager of the Applicant Bank

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……..Applicant Versus

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M/s Gaurav Electronics, #1138, Phase-I, Urban Estate, Dugri, Ludhiana (Punjab), through its Proprietor, Sh. Vipul Gupta

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Second Address: House No. 1731/8-A, Street No.15, Block-D, Gurunanak Colony, Near GNE College, Ludhiana (Punjab)

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Third Address: 2481, Janta Nagar, Ludhiana (Punjab)

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Fourth Address: 2272, Street No.9, Janta Nagar, Ludhiana (Punjab) Fifth Address: 1138, Phase-I, Urban Estate, Dugri, Ludhiana (Punjab) ………Defendant

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Advocates: Argued by Sh. Banni Thomas, counsel 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.28,51,064.00 (Rupees Twenty Eight Lacs Fifty One Thousand and Sixty Four only). The Original Application has been filed through Sh. Amit Thind, Deputy Manager, who is competent to institute the Original Application vide General Power of Attorney dated 28.03.2017, 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 Cash Credit (Hypothecation) Limit of Rs.25.00 Lacs under CGTMSE scheme vide Loan Application dated 27.02.2020 and Application form dated 18.03.2020, which is Annexure A2 (colly) to this OA.

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The applicant Bank sanctioned the Cash Credit (Hypothecation) Limit of Rs.25.00 Lacs under CGTMSE scheme vide Sanction letter dated 19.03.2020, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had hypothecated its movable properties i.e. stock of household electronic goods etc. vide Agreement of Hypothecation of Assets dated 19.03.2020, which is Annexure A4 to this OA. Documents executed: - Sole proprietorship letter dated 19.03.2020, which is Annexure A5 to this OA; Common agreement dated 19.03.2020, which is Annexure A6 to this OA; Undertaking dated 19.03.2020, which is Annexure A7 to this OA; affidavit of legal heirs dated 19.03.2020, which is Annexure A8 to this OA and Statement of account along with certificate under the Banker’s Books Evidence Act, which is Annexure A9 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.28,51,064.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount,

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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 29.09.2023.

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In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A9 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.28,51,064.00 (Rupees Twenty Eight Lacs Fifty One Thousand and Sixty Four only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @11.55%p.a. from the date of filing of this Application 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 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 @10.00%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 are liable to pay to the applicant a total sum of Rs.28,51,064.00 (Rupees Twenty Eight Lacs Fifty One Thousand and Sixty Four only) with costs, current and future simple interest @10.00%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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 17.01.2024. 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: 01.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Messrs Gaurav Electronics

Case brief

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Punjab National Bank, v. Messrs Gaurav Electronics

Case brief

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