Allowed

Punjab National Bank v. Baljit Singh

DRT6 Sept 2024OA/84/2024

Case brief

AI extract

What is this about?

In this Debt Recovery Tribunal judgment, the court allowed the applicant bank's application for recovery of a loan defaulting at Rs.30.25 lakhs. The bank, via its authorized representative, recovered interest obligations and secured a decree for the principal sum plus costs and adjusted interest.

What did the court decide?

Recovery of Rs.30,25,427.10p with costs and uniform simple interest @08.00%p.a. from the date of filing the OA until realization of the amount.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.84/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 18.10.2023

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DATE OF DECISION: 06.09.2024.

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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 Delhi 110075 and its Branch offices throughout India Including Branch Office at Punjab National Bank, Branch Patran, Tehsil Patran, Punjab 147105 through its General Power of Attorney Sh. Gurcharan Singh Senior Manager, Punjab National Bank, Circle Sastra Center, Second Floor, Opposite Improvement Trust Building, Choti Baradari Patiala and District Patiala, Punjab 147001.

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……..Applicant

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Versus

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Sh. Baljit Singh, S/o Sh. Ajaib Singh, R/o Village Khaspur, Tehsil Patran, District Patiala 147105. (Borrower) ….……Defendant

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Advocates:

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Argued by Sh. Lovish, Advocate proxy for Sh. Neeraj Madaan, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.30,25,427.10p (Rupees Thirty Lacs Twenty Five Thousand Four Hundred Twenty Seven and Ten Paise Only). The Original Application has been filed through Sh. Gurcharan Singh Senior Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 14.09.2007 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.17.00 Lacs vide Loan application dated 25.02.2010, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.17.00 Lacs vide Memorandum of Sanction dated 25.02.2010, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendants had mortgaged his immovable properties i.e. total land measuring 48 Kanal 0 Marla situated at R/o Village Khaspur, Tehsil Patran kakrala, District Patiala vide Registered Mortgage Deed bearing Vasika No.3448 dated 26.02.2010 and Jamabandi for the year 2006-2007 with their translations, which are Annexures A5 & A6 to this OA.

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Documents executed:- Gazette Notification dated 05.03.2020, which is Annexure A1A to this OA; Agreement for Hypothecation dated 26.02.2010, which is Annexure A4 to this OA; Balance Confirmation Letters dated 19.02.2013, 12.08.2015, 23.04.2018 and 02.11.2020, which are Annexures A7 to A10 to this OA; Legal Notice dated 14.01.2019 with certificate, which is Annexure A11 to this OA and Statement of account with certificate dated 18.10.2023, which is Annexure A12 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.30,25,427.10p which is recoverable and the defendant was 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 29.07.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh Senior Manager, Punjab National Bank has been filed.

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Heard 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 Annexures A1A, A1 to A12 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.30,25,427.10p (Rupees Thirty Lacs Twenty Five Thousand Four Hundred Twenty Seven and Ten Paise Only) along with interest from the defendant, 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 [email protected]%p.a. plus penal interest @2.00%p.a. with half yearly rests from 03.09.2023 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 @08.00%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.30,25,427.10p (Rupees Thirty Lacs Twenty Five Thousand Four Hundred Twenty Seven and Ten Paise Only Only) with costs, current and future simple interest @08.00%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 defendants 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 01.10.2024.

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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 . Dated: 06.09.2024.

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

Punjab National Bank v. Baljit Singh

Case brief

What is this about?

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Punjab National Bank v. Baljit Singh

Case brief

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What did the court decide?

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