Allowed

Punjab National Bank v. Rawail Kaur Alias Rawel and Another

DRT20 Nov 2024OA/878/2024

Case brief

AI extract

What is this about?

The DRT allowed an ex parte application by Punjab National Bank for recovery of Rs. 22,24,217.88 owed by two borrowers. The Tribunal fixed simple interest at 8% p.a. and directed the issuance of a Recovery Certificate enforceable under the SARFAESI Act.

What did the court decide?

Issuance of Recovery Certificate; Defendants liable to pay principal with simple interest at 8% p.a. from the date of filing till realization.

Punjab National Bank versus Rawail Kaur Alias Rawel and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.878/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.04.2024

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DATE OF DECISION: 20.11.2024

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Punjab National Bank is a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act 5 of 1970 with Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110 075 and amongst others a branch at VPO Nadala, District Kapurthala, Punjab 144802 through Sh. Ankur Rawat, Senior Manager and Attorney holder posted at Circle Sastra Centre Kapurthala.

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……..Applicant Versus

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Smt. Rawail Kaur @ Smt. Rawel wife of Sh. Parkash Singh resident of VPO Nadala Tehsil Bholath District Kapurthala 144624.

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Sh. Jagbir Singh son of Sh. Parkash Singh, resident of VPO Nadala Tehsil Bholath District Kapurthala 144624.

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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.22,24,217.88p (Rupees Twenty Two Lacs Twenty Four Thousand Two Hundred Seventeen and Eighty Eight Paise Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, 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 grant of KCC Limit of Rs.15.00 Lacs vide Loan Application dated 14.11.2013, which is Annexure A2 to this OA. 3. The applicant sanctioned CC Limit of Rs.15.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged her immovable properties i.e. total Land measuring of 12K-00M situated at Village Nadala Patti, Naraungpur, District Kapurthala, Punjab vide Registered Mortgaged Deeds bearing v asika No.339 dated 16.05.2012 and vasika no.1724 dated 1 4.11.2013 along with their translations, which are Annexures A7, A-7T, A8 & A-8T to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent dated 12.12.2013, which are Annexures A4 to A6 to this OA; Balance and Security Confirmation Letters dated 13.06.2016, 10.06.2019 & 09.06.2022, which is Annexures A9 to this OA; Recall Notice dated 05.05.2023, which is Annexure A10 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A11 to this OA. 5. 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.22,24,217.88p, 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. 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 14.11.2024. 7. In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has 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 A11 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.22,24,217.88p (Rupees Twenty Two Lacs Twenty Four Thousand Two Hundred Seventeen and Eighty Eight Paise 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 @13.50%p.a. including penal interest @2%p.a. with half yearly rests from 13.12.2023 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 @08.00%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.22,24,217.88p (Rupees Twenty Two Lacs Twenty Four Thousand

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Two Hundred Seventeen and Eighty Eight Paise Only) jointly and severally, 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 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. 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 16.12.2024. 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. Pronounced by me in the open Tribunal . Dated: 20.11.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Rawail Kaur Alias Rawel and Another

Case brief

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Punjab National Bank v. Rawail Kaur Alias Rawel and Another

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