Allowed

Punjab National Bank v. M/S Arshdeep Construction and Others

DRT13 Nov 2024OA/845/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application, declaring the defendants jointly and severally liable to repay the outstanding loan amount with modified interest rates.

What did the court decide?

Declaration of liability to pay Rs. 21,46,461.00 with simple interest at 8% p.a. from date of filing. Order for issue of Recovery Certificate and liberty to enforce against assets.

Punjab National Bank versus M/S Arshdeep Construction and Others — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.845/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.05.2024

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DATE OF DECISION: 13.11.2024

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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 branch amongst other places at Lalru District SAS Nagar Mohali represented by Circle Sastra Centre, SAS Nagar Mohali, through its authorized officer and duly constituted Attorney Sh. Subhash Chandra Son of Sh. Prabhu Ram.

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… …..Applicant

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Versus

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M/s Arshdeep Construction, through working partner Sh. Sarwan Kumar Saini S/o Sh. Jagdish Ram R/o Dhramgarh 143, PO Lalru, SAS Nagar (Mohali), Punjab-140501.

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Sh. Sarwan Kumar Saini S/o Sh. Jagdish Ram R/o Dhramgarh 143, PO Lalru, SAS Nagar (Mohali), Punjab-140501.

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Smt. Amarjeet Kaur W/o Sh. Sarwan Kumar Saini S/o Sh. Jagdish Ram R/o Dhramgarh 143, PO Lalru, SAS Nagar (Mohali), Punjab-140501.

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Smt. Rekha W/o Sh. Sukhjeet Singh R/o Dhramgarh 143, PO Lalru, SAS Nagar (Mohali), Punjab-140501.

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M/s Sarwan Kumar Saini Contractor Through PROP Sh. Sarwan Kumar Saini S/o Sh. Jagdish Ram R/o Dhramgarh 143, PO Lalru, SAS Nagar (Mohali), Punjab-140501.

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………. Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Sh. Inder Jeet Khattar, 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.21,46,461.00 (Rupees Twenty One Lac Forty Six Thousand Four Hundred & Sixty One Only). The Original Application has been filed through Sh. Subhash Chandra, Authorized officer o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.07.2011, which is Annexure A1 to this OA.

¶20

The brief facts of the OA are that the defendants had approached the applicant for grant of OD Limit of Rs.18.00 Lacs & Bank Guarantee Limit of Rs.5.00 Lac vide Loan Application dated 05.12.2019, which is Annexure A3 to this OA.

¶21

The applicant sanctioned OD Limit of Rs.18.00 Lacs & Bank Guarantee Limit of Rs.5.00 Lac vide Sanction Letters dated 18.12.2009, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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4. Defen	dant	no.2 had mortgage his immovable	prop	erty i.e.	total
land measur	ing	16 Biswa (801 Sq. Yards) situated	at	Village L	alru,
Hadbast no.	218,	Tehsil Dera bassi, District SAS N	agar	Mohali	vide
Equitable M	ortg	age Register Deed bearing vasika	no	.5287	dated
27.06.2011	&	vasika no.9927 dated 25.09.2	012	with	their
Translations,	whi	ch areAnnexure A13 to A15to this	OA	.
Documents	exe	cuted:- Copy of Amalgamation	Sch	eme/Ga	zette
Notification	date	d 04.03.2020, which isAnnexure	A2	to this	OA;
Agreement	of	Overdraft, Common Agreement,	Ag	reemen	t of
Guarantee,	Cou	nter Guarantee Agreement, Par	tner	ship L	etter,
Undertaking	&	Declaration, Master Undertakin	g,	Format	for
Cancellation	of	unavailed limits all dated 21.12.2	019	, which	are
Annexures	A5	to A11to this OA; Partners	hip	Deed	dated
24.07.2017,	whi	ch isAnnexure A12to this OA; Bala	nce	Confirm	ation
Letter dated	27.	12.2022, which isAnnexure A16	to t	his OA;	True

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¶24

Copy each of signed office copy of demand notice which were dispatched by post to the defendants dated 28.01.2021, 02.02.2021, 08.02.2021, 15.02.2021, 20.02.2021, 23.02.2021, 24.02.2021, 03.03.2021, 09.03.2021, 17.03.2021 and 24.11.2022 with postal receipts, which are Annexures A17 & A18 to this OA; Notice u/s 13(2) of SARFAESI Act dated 08.12.2022 with postal receipts, which is Annexure A19 to this OA; Legal Notice dated 16.04.2024 with postal receipts, which is Annexure A20 to this OA and Statement of Accounts, which is Annexure A21 to this OA.

¶25

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.21,46,461.00p, 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.

¶26

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 11.11.2024.

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In support of the OA, affidavit of Sh. Subhash Chandra, Authorized officer, Punjab National Bank h as been filed.

¶28

Heard arguments and perused record.

¶29

It was argued by learned proxy 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 A21 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,46,461.00p

¶30

¶31

(Rupees Twenty One Lac Forty Six Thousand Four Hundred & Sixty One Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

¶32

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.25%p.a. along with penal interest @2.00%p.a. with monthly rests from 07.05.2024 till the realization.

¶33

The Tribunal is of the considered opinion that sometimes inappropriate 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 both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶34

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.21,46,461.00 (Rupees Twenty One Lac Forty Six Thousand Four Hundred & Sixty One Only) jointly and severally, 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 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on. 07.12.2024. 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 .

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Dated: 13.11.2024.

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

Punjab National Bank v. M/S Arshdeep Construction and Others

Case brief

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Punjab National Bank v. M/S Arshdeep Construction and Others

Case brief

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