Allowed

Punjab National Bank v. Hardial Singh

DRT27 Sept 2024OA/793/2023

Case brief

AI extract

What is this about?

In an original application under Section 19 of the RDBFI Act, 1993, the Debts Recovery Tribunal allowed the bank's claim for recovery of outstanding dues totaling Rs.24,79,884.00 along with interest from the defendant who failed to repay a sanctioned loan facility.

What did the court decide?

Recovery of Rs.24,79,884.00 with costs and simple interest at 8% p.a. from the filing date of the OA till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.793/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.05.2023

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DATE OF DECISION: 27.09.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) act, 1970, having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi110075 (herein referred to as ‘the bank’) and having branches throughout India amongst others one branch at Aur, SBS Nagar, Punjab through Sh. Ankur Rawat, Senior Manager, Authorized Representative Circle SASTRA Centre, Punjab National Bank, Kapurthala being the Principal Officer of the applicant bank.

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……..Applicant

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Versus

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Sh. Hardial Singh S/o Sh. Daman Singh, R/o Village Julah Mazra, Tehsil and District SBS Nagar, Punjab-144518.

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….……Defendant

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Advocates:

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Argued by Ms. Anuradha Gupta, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.24,79,884.00 (Rupees Twenty Four Lacs Seventy Nine Thousand Eight Hundred and Eighty Four only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, 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 had already availing the facility of Rs.12.00 Lacs and further approached the

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applicant for its enhancement to Rs.20.00 Lacs vide Loan application dated 24.11.2017, which is Annexure A2 to this OA. 3. The applicant sanctioned the enhancement Limit to Rs.20.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. land measuring 38K-13M-06Sarsai situated at Village Julah Majra, Hadbast no.286, Tehsil and District SBS Nagar, Punjab vide Declaration u/s 4(1) dated 20.12.2017 and Jamabandi of the Year 2008-2009 along with its English Translation, which are Annexures A5 & A6 to this OA. Documents executed: - Agreement for Hypothecation dated 30.12.2017, which is Annexure A4 to this OA; Balance and Security Confirmation Letter dated 07.11.2020, which is Annexure A7 to this OA; Legal Notice dated 02.05.2023 along with its Postal Receipt, which are Annexures A8 & A9 to this OA; Statement of Account with certificate, which is Annexure A10 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.24,79,884.00, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant 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 exparte on 13.09.2024. 7. In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard 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 had proved its case. From the perusal of all the

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Annexures A1 to A10 to this OA, it is proved that the defendant approached applicant 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 applicant. 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 is entitled to recover a sum Rs.24,79,884.00 (Rupees Twenty Four Lacs Seventy Nine Thousand Eight Hundred and Eighty 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 in relief clause has claimed interest @9.35%p.a. plus Penal interest @2.00%p.a. with yearly rests from 01.04.2023 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,79,884.00 (Rupees Twenty Four Lacs Seventy Nine Thousand Eight Hundred and Eighty Four 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

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applicant 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 applicant 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 19.10.2024. 15. Copy of this order be given dasti to the applicant 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: 27.09.2024

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

Punjab National Bank v. Hardial Singh

Case brief

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Punjab National Bank v. Hardial Singh

Case brief

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