Allowed

Punjab National Bank v. Sh. Amritpal Singh

DRT28 Aug 2024OA/823/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application by Punjab National Bank for recovery of dues. The court declared the defendant liable to pay Rs. 43,95,008.50 along with costs and simple interest at 8.00% p.a. Pending and future interest claims were adjusted.

What did the court decide?

Declaration of liability to pay Rs.43,95,008.50 with costs and simple interest at 8% p.a. from the date of filing till realization; issuance of Recovery Certificate.

Punjab National Bank versus Sh. Amritpal Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.823/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.04.2022

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DATE OF DECISION: 28.08.2024

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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 Delhi and its Branch Offices at Punjab National Bank, A.S College, Khanna, District Ludhiana, Punjab-141401 through its authorized representative Mr. Ravinder Kumar, Senior Manager, SASTRA Punjab National Bank, Site 5, 1^st Floor, Ferozepur Road, Ludhiana, Punjab-142023.

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……..Applicant Versus

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Sh. Amritpal Singh S/o Sh. Amar Singh, R/o Village Tanda Badha Kalan, Tehsil Amloh, District Fatehgarh Sahib Punjab-140407.

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….……Defendant

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Advocates:

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Argued by Sh. Rehan Chaudhary, Advocate for the applicant (through VC) 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.43,95,008.50p (Rupees Forty Three Lacs Ninety Five Thousand Eight And Fifty Paise only). The Original Application has been filed through Mr. Ravinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General 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 OGC Limit of Rs.15.00 Lacs and further approached the applicant bank for grant of KCC limit of Rs.15.00 Lacs vide Loan applications dated 21.03.2012 & 02.11.2012, which are Annexures A2 & A7 to the OA.

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The applicant Bank sanctioned the OGC Limit of Rs.15.00 Lacs and further sanctioned KCC limit of Rs.15.00 Lacs vide Sanction Letters dated 21.03.2012 & 02.11.2012, which are Annexures A3 & A8 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant h ad mortgaged his immovable properties i.e. Total Land measuring 60 Kanal 00 Marla, situated at Village Tanda Badha Kalan, Tehsil Amloh, District Fatehgarh Sahib, Punjab, vide Registered Mortgage deeds bearing Vasika No.2792, dated 27.03.2012 and Vasika No.1634, dated 06.11.2012 and J amabandi for the year 2007-08 & 2012-13 along with their translations , which are Annexures A5(colly), A6(Colly), A10(colly) and A11 (Colly) to this OA. Documents executed:- Agreements of Hypothecation dated 29.03.2012 & 21.11.2012, which are Annexures A4 & A9 to this OA; Balance & Security Confirmation Letters dated 02.01.2021 & 23.04.2020, which is Annexure A12(colly) to this OA; Recall Notice dated 04.03.2022 along with its postal receipt, which is Annexure A13(colly) to this OA and Statement of account along with Certificate which is Annexure A14(colly) to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries, in both the loan accounts there was a debit of Rs.43,95,008.50p, 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 19.07.2024.

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In support of the OA, affidavit of Sh. Mr. Ravinder Kumar, Senior Manager, Punjab National India h as been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A14(colly) to this OA, it is proved that the defendant approached applicant bank for availing of the loan facilities 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.43,95,008.50p (Rupees Fourty Three Lacs Ninety Five Thousand Eight And Fifty Paise only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the dues. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.25%p.a. plus penal interest @2%p.a. with yearly rests from 31.03.2022 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, 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

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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.43,95,008.50p (Rupees Forty Three Lacs Ninety Five Thousand Eight And Fifty Paise only) with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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 defendants. 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 20.09.2024.

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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.

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Dated: 28.08.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Amritpal Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Amritpal Singh

Case brief

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