Allowed

Punjab National Bank v. Banta Singh and Another

DRT20 Nov 2024OA/881/2024

Case brief

AI extract

What is this about?

The DRT allowed an Original Application filed under Section 19 of the RDBFI Act, 1993 by Punjab National Bank against two defendants. Presuming the defendants as liability to pay the outstanding amount along with simple interest at 8% per annum and directions for recovery via SARFAESI Act.

What did the court decide?

Declaring defendants liable to pay Rs.25,89,290.41p with costs and simple interest at 8% per annum; directed to recover via sale of hypothecated properties under SARFAESI Act and attachment of persona

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.881/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.06.2024

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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 & Transfer of Undertakings) Act V of 1970 with its Head Office at Plot no.4, Sector 10, Dwarka, New Delhi-110075 and amongst others a branch at Kakrala Tehsil Samana District Patiala, Punjab through Sh. Bhuwan Garg son of Sh. Sham Lal Garg, Branch Manager and Attorney holder.

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……..Applicant

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Versus

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Sh. Banta Singh son of Sh. Shingara Singh resident of Dera Bohar Wala, Village Shutrana, Tehsil Patran District, Patiala.

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Sh. Mehanga Singh son of Sh. Banta Singh resident of Dera Bohar Wala, Village Shutrana, Tehsil Patran District, Patiala.

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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.25,89,290.41p (Rupees Twenty Five Lacs Eighty Nine Thousand Two Hundred Ninety and Paise Forty One Only). The Original Application has been filed through Sh. Sham Lal Garg, Branch Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 22.12.2022, 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 OGC Limit of Rs.4.00 Lacs and Term Loan of Rs.5.00 vide Loan Applications dated 03.03.2010, which are Annexures A3 and A6 to this OA.

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The applicant sanctioned OGC Limit of Rs.4.00 Lacs and Term Loan of Rs.5.00 Lacs vide Sanction Letter dated 03.03.2010, which are Annexures A4 and A7 to this OA.

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Defendant no.1 had mortgaged his movable properties, i.e. Agriculture Land measuring 32K-00M situated at Village Shutrana, Tehsil Patran, District Patiala vide Registered Mortgaged Deed bearing vasika no.3539 dated 10.03.2010 along with its translation, w hich is Annexure A9 to this OA. Documents executed:-Amalgamation Scheme/Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Agreement for Hypothecation & Agreement of Term Loan both dated 11.03.2010, which are Annexures A5 & A8 to this OA; Balance Confirmation Letters dated 31.12.2012, 30.09.2015, 05.09.2018 & 27.08.2021, which is Annexure A10 to this OA; Notice dated 26.12.2023, which is Annexure A11 to this OA and Statement of Accounts along with Certificate under Banker’s Book Evidence Act, which are Annexures A12 & A13 to this OA.

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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.25,89,290.41p, 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 14.11.2024. 7. In support of the OA, affidavit of Sh. Sham Lal Garg, Branch 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 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 A13 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 is entitled to recover a sum of Rs.25,89,290.41p (Rupees Twenty Five Lacs Eighty Nine Thousand Two Hundred Ninety and Paise Forty One Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the accounts.

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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 @11.50%p.a. for OGC and @12.25%p.a. for Term Loan along with penal interest @2% with half yearly rests in both from 12.06.2024 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 accounts 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.25,89,290.41p (Rupees Twenty Five Lacs Eighty Nine Thousand Two Hundred Ninety and Paise Forty One Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan accounts 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 17.12.2024.

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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: 20.11.2024

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

Punjab National Bank v. Banta Singh and Another

Case brief

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Punjab National Bank v. Banta Singh and Another

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