Allowed

Punjab National Bank v. Harwinder Singh

DRT20 Dec 2024OA/887/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs.25,32,708.79p plus interest, holding the defendant liable despite his absence. The court awarded a uniform simple interest rate of 8.00%p.a. and directed issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued for Rs.25,32,708.79p plus costs and simple interest at 8.00%p.a.; attribution to sale of mortgaged or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.887/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.04.2024

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DATE OF DECISION: 20.12.2024

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Punjab National Bank, a body corporate and a nationalized Bank constituted under the provisions of the Banking Companies (Acquisition & Transfer of Undertakings) Act 5 of 1970 having its Head Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and amongst others a branch at VPO Bhamna, Tehsil Samana, Patiala 147101, Punjab through Sh. Sharanjit Singh, Senior Manager and Attorney holder posted at Punjab National Bank Branch Bhamna, Patiala. (Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant

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Versus

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Sh. Harwinder Singh S/o Sh. Narender Singh R/o Village Dhanauri, Tehsil Samana, District Patiala, Punjab. Pin code-147101.

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….……Defendant

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Advocates:

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Argued by Sh. Manish Singla, Advocate for applicant Defendant is 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.25,32,708.79p (Rupees Twenty Five Lacs Thirty Two Thousand Seven Hundred Eight And Seventy Nine Paisa Only). The Original Application has been filed through Sh. Sharanjit Singh, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 12.02.2015, 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 for the grant of KCC Limit of Rs.8.00 Lacs and Term Loan

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of Rs.2.00 Lacs vide Loan application dated 05.10.2010, which is Annexure A3 to this OA.

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The applicant sanctioned KCC Limit of Rs.8.00 Lacs & Term Loan of Rs.2.00 Lacs vide Sanction Letter dated 06.10.2010 filed in compliance of the order dated 14.11.2024 vide diary no.19840 dated 18.12.2024 and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 32K-0M situated at Village Dhanauri, Tehsil Samana, Distt. Patiala vide Registered Mortgage deed bearing Vasika no. 2242 dated 13.10.2010 along with its Translation, which is Annexure A6 to this OA. Documents executed: - Amalgamation Scheme/Gazette notification dated 05.10.2010, which is Annexure A2 to this OA; Agreement for Hypothecation & Agreement of Term Loan dated 16.10.2010, which are Annexures A4 & A5 to this OA; Balance and Security Confirmation Letters dated 05.06.2012, 08.09.2014, 27.06.2017, 06.02.2020 & 07.01.2022, which is Annexure A7 to this OA; Notice dated 24.04.2023 with postal receipt, which is Annexure A8 to this OA and Statement of Account dated 20.02.2024, which is Annexure A9 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.25,32,708.79p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte 11.11.2024.

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In support of the OA, affidavit of Sh. Sharanjit 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 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 A9 to this OA, it is proved that the defendant approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.25,32,708.79p (Rupees Twenty Five Lacs Thirty Two Thousand Seven Hundred Eight And Seventy Nine Paisa 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 in relief clause has claimed @11.50%p.a. for KCC Limit along with penal interest @2%p.a. with half yearly rests from 21.02.2024 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 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 @8.00%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.25,32,708.79p (Rupees Twenty Five Lacs Thirty Two Thousand Seven Hundred Eight And Seventy Nine Paisa Only), with costs, current and future simple interest @8.00%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 defendant 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 defendant. 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 06.02.2025. 15. Copy of this order be given dasti to the applicant 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: 20.12.2024

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

Punjab National Bank v. Harwinder Singh

Case brief

What is this about?

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Punjab National Bank v. Harwinder Singh

Case brief

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