Allowed

Punjab National Bank v. Taranjit Singh and Others

DRT9 Oct 2024OA/829/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an original application filed by Punjab National Bank to recover a loan of approximately Rs.22.54 lakhs along with interest from three defendants who defaulted on an overdraft facility and mortgaged their property.

What did the court decide?

Recovery certificate issued; declared liability to pay Rs.22,54,709.88plus costs and simple interest @8% p.a.; liberty to enforce through sale of hypothecated/mortgaged properties or sale of personal

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.829/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 23.05.2023

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DATE OF DECISION: 09.10.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act 5 of 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst others a branch Model Town, Ludhiana, Punjab through Sh. Amit Thind, Deputy Manager and Attorney holder presently posted at Circle Sastra Centre, Ludhiana.(Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant

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Versus

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Sh. Taranjit Singh S/o Sh. Balbir Singh R/o H.No. 13, Baba Nand Singh Nagar, Near BCM School, Basant Avenue, Ludhiana, Punjab141001.

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Smt. Gagandeep Kaur W/o Sh. Taranjit Singh R/o H.No. 13, Baba Nand Singh Nagar, Near BCM School, Basant Avenue, Ludhiana, Punjab-141001.

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Sh. Balbir Singh S/o Sh. Kulwant Singh R/o H.No. 13, Baba Nand Singh Nagar, Near BCM School, Basant Avenue, Ludhiana, Punjab141001.

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….……Defendants

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Advocates:

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Argued by Sh. Manish Singla, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,54,709.88p (Rupees Twenty Two Lacs Fifty Four Thousand Seven Hundred Nine and Paisa Eighty Eight only). The Original Application has been filed through Sh. Amit Thind, Deputy Manager and Attorney holder of the applicant, who is competent to institute the

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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 defendants had approached the applicant for the grant of Over Draft facility of Rs.16.50 Lacs and further for its enhancement to Rs.20.00 Lacs, vide Loan applications dated 06.02.2013 and 25.07.2013 which are Annexures A3 and A11 to this OA. Later the defendants again requested the applicant for renewals of existing OD limit at Rs.20.00 Lacs, vide Loan applications dated 25.07.2014 and 25.07.2015, which are Annexures A16 & A18 to this OA.

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The applicant sanctioned the Over Draft facility of Rs.16.50 Lacs and further enhanced it to Rs.20.00 Lacs vide Sanction Letters dated 15.02.2013 and 25.07.2013 which are Annexures A4 and A12 to this OA. Later applicant sanctioned the renewals of existing OD Limit at Rs.20.00 Lacs vide Sanction Letters dated 25.07.2014 and 05.08.2015, which are Annexures A4, A12, A17, A19 & A20 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 had mortgaged his immovable properties i.e. Residential House No. 13 Baba Nand Singh Nagar near BCM School, Phullanwal, Tehsil and district Ludhiana measuring 207 Sq. yards (118.5+88.5) detailed as under:-

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(a) Property measuring 118.5 sq. yards situated at village Phullanwal, hasbast No. 278, Abadi Baba nand Singh Nagar, Tehsil and District Ludhiana, Punjab vide Registered Mortgaged Deed bearing v asika No.10583 dated 0 2.08.2004, which is Annexures A7 to this OA and (b) Property measuring 88.5 sq. yards situated at village Phullanwal, hasbast No. 278, Abadi Baba nand Singh Nagar, Tehsil and District Ludhiana, Punjab vide Registered Mortgaged Deed bearing v asika No.5063 dated 2 0.06.2012, which is Annexures A7 to this OA. The copy of Title Deed is filed in compliance of order dated 11.06.2024 vide diary no.10615 dated 11.07.2024.

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Documents executed:- Amalgamation Notification dated 04.03.2020,

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which is Annexure A2 to this OA; Agreement for Overdraft, Common Agreement, Letter Evidencing deposit of Title Deed all dated 16.02.2013, which are Annexures A5, A6 & A9 to this OA; Valuation Report dated 01.04.2022, which is Annexure A10 to this OA; Agreement for Overdraft, Common Agreement, Letter of extension of Mortgage all dated 25.07.2013, which are Annexures A13 to A15 to this OA; Balance Confirmation Letters dated 22.07.2016, 29.03.2019 and 27.12.2021, which is Annexure A21 to this OA; Notice dated 06.04.2023 along with its translations and postal Receipts, which is Annexure A22 to this OA and Statement of Account duly Certified, which is Annexure A23 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.22,54,709.88p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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 05.06.2024.

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In support of the OA, affidavit of Sh. Amit Thind, Deputy Manager and Attorney holder, Punjab National Bank h as been filed. 8. Heard arguments and perused record.

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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 Annexures A1 to A23 to this OA, it is proved that the defendants approached applicant 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 applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From

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the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,54,709.88p (Rupees Twenty Two Lacs Fifty Four Thousand Seven Hundred Nine and Paisa Eighty Eight only) along with interest from the defendants, 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 in relief clause has claimed interest @11.75%p.a. plus penal interest @2%p.a. with monthly 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 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 defendants are liable to pay to the applicant a total sum of Rs.22,54,709.88p (Rupees Twenty Two Lacs Fifty Four Thousand Seven Hundred Nine and Paisa Eighty Eight 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 shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 24.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendants 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: 09.10.2024

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

Punjab National Bank v. Taranjit Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Taranjit Singh and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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