Allowed

Punjab National Bank v. Amandeep Singh and others

DRT6 Aug 2024OA/851/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application by Punjab National Bank for recovery of Rs. 32,76,423.19 against three respondents who had defaulted on multiple loans. The court exercised discretion to fix uniform simple interest at 8% p.a. and directed issuance of a recovery certificate pending realization.

What did the court decide?

Recovery of Rs. 32,76,423.19 with costs and simple interest @8.00%p.a. from date of AO; issuance of Recovery Certificate.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.851/2023

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 01.06.2023

¶5

DATE OF DECISION: 06.08.2024

¶6

Punjab National Bank, a body corporate, constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi (A Government of India Undertaking) an having one of its Branch situated at Punjab National Bank, Raikot Road, Mandi Mullanpur, District Ludhiana, Punjab through Mr. Rajesh Kumar Bagga who is presently working as Senior Manager, Punjab National Bank, Circle Sastra Centre, Plot No.5, Ferozepur road near wave mall, Ludhiana, Punjab constituted Power of Attorney Holder of the Bank and Principal Officer.

¶7

… …..Applicant

¶8

Versus

¶9

Sh. Amandeep Singh S/o Sh. Mohinder Singh, R/o Village Ranke, Tehsil Jagraon, District Ludhiana, Punjab. (Borrower/Mortgagor)

¶10

Sh. Nirmal Singh S/o Sh. Mohinder Singh, R/o Village Ranke, Tehsil Jagraon, District Ludhiana, Punjab.

¶11

(Co-Borrower/Mortgagor/Guarantor)

¶12

Mr. Ranjit Singh S/o Sh. Mohinder Singh, Address:

¶13

(i) Village Ranke, Tehsil Jagraon, District Ludhiana, Punjab.

¶14

(ii) VPO Braich, District Ludhiana, Punjab.

¶15

(Guarantor)

¶16

Advocates:

¶17

Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for the applicant Defendants are ex-parte

¶18

¶19

FINAL ORDER

¶20

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.32,76,423.19p (Rupees Thirty Two Lacs Seventy Six Thousand Four Hundred Twenty Three and Paise Nineteen Only). The Original Application has been filed through Mr. Rajesh Kumar Bagga, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 29.08.2022, which is Annexure A1 to this OA.

¶21

The brief facts of the OA are that the defendant no.1 & 2 had approached the applicant bank for grant of KCC Limit of Rs.13.00 Lacs vide Loan application dated 06.01.2014, which is Annexure A2 to this OA and Later defendant no. 1 & 2 had approached the applicant bank for grant of Debts Swap Term Loan of Rs.1.00 Lacs. Further for grant of Diary Working Capital Limit of Rs.2.50 Lacs vide Loan application dated 20.02.2016, which is Annexure A14 to this OA.

¶22

Later defendant no.1 & 2 had approached the applicant bank for enhancement of KCC Limit from Rs.13.00 Lacs to Rs.17.00 Lacs vide Loan Application dated 19.08.2017, which is Annexure A22 to this OA and Further for grant of Term Loan for purchase of Tractor of Rs.5.50 Lacs dated 03.10.2017, which is Annexure A35 to this OA.

¶23

The applicant Bank sanctioned the KCC Limit of Rs.13.00 Lacs vide Sanction Letter dated 07.01.2014, which is Annexure A3 to this OA and Later applicant bank sanctioned the Debts Swap Term Loan of Rs.1.00 Lacs vide Loan Application Cum Sanction Letter dated 16.12.2014, which is Annexure A9 to this OA. Further sanctioned the Diary Working Capital Limit of Rs.2.50 Lacs vide Sanction Letter dated 20.02.2016, which is Annexure A15 to this OA. Later the applicant Bank Sanctioned for enhancement of KCC Limit from 13.00 Lacs to 17.00 Lacs vide Sanction Letter dated

¶24

¶25

18.09.2017, which is Annexure A23 to this OA and Further, sanctioned the Term Loan for purchase of Tractor of Rs.5.50 Lacs vide Sanction Letter dated 03.10.2017, which is Annexure A36 to this OA and the terms and conditions were duly accepted by the defendants.

¶26

Defendant No.1 & 2 had mortgaged/hypothecated their immovable/moveable properties detailed as:-

¶27

(i) total land measuring 28K-00M situated at Village Ranke, Hadbast No.4, Sub-Tehsil Sidhwan Bet, Tehsil Jagraon, District Ludhiana, Punjab vide Registered Mortgaged Deed bearing V asika No.1357 dated

¶28

17.01.2014 along with its Translation, which are Annexures A5 & A- 5T to this OA and Declaration Under Section 4(1) bearing vasika no.176 dated 04.09.2017 along with its Translation, which are Annexures A25 & A-25T to this OA.

¶29

(ii) Hypothecated the vehicle namely Tractor Model No.5310PRMFWD of 55 HP Manufactured by John Deere India Pvt Ltd. bearing Engine No.PY3029H094884, Chassis No.IPY5310ECHA022944 & Registration No.PB10GK7420 vide Invoice dated 17.11.2017 and Registration Certificate dated 07.05.2018 which are Annexures A37 & A38 to this OA.

¶30

Documents executed:- Advocate Report on Title Deed dated 13.01.2014, which is Annexure A4 to this OA; Hypothecation Agreement, Letter of Undertaking and Letter of Consent all dated 22.01.2014, which are Annexures A6 to A8 to this OA; Affidavit by defendant no.1 dated 15.12.2014, which is Annexure A10 to this OA; Hypothecation Agreement, Letter by Borrower declaring acceptance of loan terms and conditions & Deed of Guarantee all dated 16.12.2014, which are Annexures A11 to A13 to this OA; Hypothecation Agreement, Letter of Undertaking & Letter by Borrower declaring acceptance of loan terms and conditions and Deed of Guarantee all dated 20.02.2016, which are Annexures A16 to A19 to this OA; Balance & Security Confirmation Letter dated 16.01.2017 and

¶31

¶32

06.06.2017, which are Annexures A20 and A21 to this OA; Advocate Report dated 29.08.2017, which is Annexure A24 to this OA; Affidavit by defendant no.2 dated 29.08.2017, which is Annexure A26 to this OA; Self-Declaration by defendant no.1 & 2, Declaration regarding Agriculture Land, Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Letter by Borrower declaring acceptance of loan terms and conditions, Deed of Guarantee & Letter by Guarantor declaring acceptance of loan terms and conditions all dated 18.09.2017, which are Annexures A27 to A34 to this OA; Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Letter by Borrower declaring acceptance of loan terms and conditions, Deed of Guarantee all dated 06.10.2017, which are Annexures A39 to A43 to this OA; Balance & Security Confirmation Letters dated 13.11.2018 & 02.06.2020, which are Annexures A44 to A48 to this OA; Notice of Recall of Bank’s Dues by Advocate dated 18.05.2023 with postal receipts, which is Annexure A49 to this OA and Statements of Accounts with certificate, which are Annexures A50 to A53 to this OA.

¶33

The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.32,76,423.19p 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. 6. 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 22.05.2024. 7. In support of the OA, affidavit of Mr. Rajesh Kumar Bagga, Senior Manager, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record.

¶34

¶35

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 A1 to A53 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 loans 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.32,76,423.19p (Rupees Thirty Two Lacs Seventy Six Thousand Four Hundred Twenty Three and Paise Nineteen 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.

¶36

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. along with penal interest @2%p.a. with half yearly rests in all the loan accounts from 01.04.2023 till the realization.

¶37

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 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.

¶38

¶39

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.32,76,423.19p (Rupees Thirty Two Lacs Seventy Six Thousand Four Hundred Twenty Three And Paise Nineteen 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 28.08.2024. 15. Copy of this order be given dasti to the applicant bank 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. Pronounced by me in the open Tribunal. Dated: 06.08.2024

¶40

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

Punjab National Bank v. Amandeep Singh and others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Amandeep Singh and others

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Union Bank of India versus Gursewak Singh and Another

Central Bank of India versus Avtar Singh and Others

Idbi Bank Limited versus Jasvir Singh and Another

Punjab National Bank versus Deepak Kumar and Another

Union Bank of India versus Smt. Khushvinder Kaur

Hdfc Bank Limited versus Palwinder Singh and Others