Allowed

Punjab National Bank (erstwhile Oriental Bank of Commerce), v. Harchand Singh and Others

DRT2 Aug 2024OA/818/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application for recovery of Rs.46,49,657.00 against the borrowers and legal heirs of the deceased co-borrower. The court reduced the claimed interest rate to 8% p.a. and directed recovery from mortgaged and personal assets.

What did the court decide?

Recovery of Rs.46,49,657.00 with simple interest @8% p.a. from mortgaged and personal assets; issuance of Recovery Certificate.

Punjab National Bank (erstwhile Oriental Bank of Commerce)… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.818/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.05.2023 DATE OF DECISION: 02.08.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted, under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4,Sector 10, Dwarka, New Delhi and a branch situated at Punjab National Bank (erstwhile Oriental Bank of Commerce) SBS Nagar, Pakhowal Road District Ludhiana, Punjab through its General Power of Attorney Holder, Mr. Vineet Dhingra, Senior Manager, Punjab National Bank (erstwhile Oriental Bank of Commerce) SBS Nagar, Pakhowal Road District Ludhiana, Punjab who is duly Authorized and Principal Officer of the Applicant Bank. ……..Applicant Versus 1. Sh. Harchand Singh S/o Sh. Ranjit Singh, R/o H. No. 11, Village Dhalia, P.O. Kailay, Tehsil Raikot District Ludhiana, Punjab (Borrower/Mortgagor) 2. Sh. Parminder Singh S/o Sh. Harchand Singh (Co-Borrower) (Since Deceased, now represented through his legal Heirs) a) Mr. Harchand Singh S/o Sh. Ranjit Singh (Father) b) Mrs. Mahinder Kaur W/o Mr. Harchand Singh (Mother) Both R/o H. No. 11, Village Dhalia , P.O. Kailay, Tehsil Raikot District Ludhiana, Punjab ….……Defendants Advocates: Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Surinder Nath Sharma, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.46,49,657.00 (Rupees Forty Six Lac Forty Nine Thousand Six Hundred And Fifty Seven Only). The Original Application has been filed through Mr. Vineet Dhingra, Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.12.2005, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant Nos.1 and 2 (Since Deceased) had approached the applicant bank for the grant of KCC Loan of Rs.16.00 vide Loan Application dated 11.09.2010, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Loan of Rs.16.00 Lacs vide Sanction Letter dated 06.10.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants Nos.1 had mortgaged their immovable properties i.e. total land measuring 34 Kanal 17 situated at Village Dhalia, Tehsil Raikot District Ludhiana, Punjab vide Registered Mortgaged Deed bearing V asika No.2553 dated 27.09.2010 with its translation, which are Annexure A4 & A4T to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A1A to this OA; Advocate report of title dated 17.09.2010, which is Annexure A5 to this OA; Hypothecation agreement dated 06.10.2010, which is Annexure A6 to this OA; Balance and Security Confirmation Letter dated 31.07.2012, 31.12.2014, 11.02.2016 03.01.2019 and 31.12.2021, which are Annexure A7 to A11 to this OA; Notice of recall of Bank‘s Dues by Advocate dated 17.10.2022 and 12.12.2022 with postal receipts, which are Annexures A12 and A13

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to this OA and Statement of account with certificate, which is Annexure A14 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.46,49,657.00 which is recoverable and the defendants were served recall notices but they 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 27.05.2024.

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In support of the OA, affidavit of Mr. Vineet Dhingra, Senior Manager, Punjab National Bank has been filed.

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Heard ex parte arguments and perused record.

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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 Annexure A1 to A14 to this OA, it is proved that the defendant Nos.1 and 2 (Since Deceased) approached applicant bank 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 bank. defendant Nos.1 and 2 (Since Deceased) failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant Nos.1 and 2 (Since Deceased) 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.46,49,657.00 (Rupees Forty Six Lac Forty Nine Thousand Six Hundred And Fifty Seven Only) along with interest from the defendant no.1 and Legal Heirs of defendant no.2 i.e. 2a and 2b, 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 bank in relief clause has claimed interest @11.00% p.a. plus penal interest @2.00%p.a. with Half Yearly rests from 01.04.2023 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 defendant no.1 and Legal Heirs of defendant no.2 i.e. 2a and 2b are liable to pay to the applicant a total sum of Rs.46,49,657.00 (Rupees Forty Six Lac Forty Nine Thousand Six Hundred And Fifty Seven 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 bank shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant no.1 and Legal Heirs of defendant no.2 i.e. 2a and 2b 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 no.1 and Legal Heirs of defendant no.2 i.e. 2a and 2b. 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 23.08.2024.

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Copy of this order be given Dasti to the applicant bank and be sent to the defendant no.1 and Legal Heirs of defendant no.2 i.e. 2a and 2b 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: 02.08.2024

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

Punjab National Bank (erstwhile Oriental Bank of Commerce), v. Harchand Singh and Others

Case brief

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Punjab National Bank (erstwhile Oriental Bank of Commerce), v. Harchand Singh and Others

Case brief

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