Allowed

Punjab National Bank v. Sh. Baldev Singh and Another

DRT1 Mar 2024OA/89/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the Original Application filed by Punjab National Bank to recover Rs. 29,42,708.74p from two borrowers who defaulted on a KCC loan of Rs. 18.00 Lacs secured by agricultural land. The Tribunal ordered recovery of the principal with simple interest at 10% per annum. Format.

What did the court decide?

Employees liable to pay Rs. 29,42,708.74p plus costs and simple interest at 10% p.a.; Recovery Certificate issued.

Punjab National Bank versus Sh. Baldev Singh and Another — Banking and Recovery | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.89/2023

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 13.10.2022

¶5

DATE OF DECISION: 01.03.2024

¶6

Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and one of its Branch at Sialba, SAS Nagar, Mohali and Circle SASTRA S.C.O. 43, Second Floor, Sector-54, Phase-II, SAS Nagar Mohali, District SAS Nagar, Mohali (Punjab), through its General Power of Attorney Holder, Sh. Ravi Kumar, Chief Manager of the applicant bank

¶7

……..Applicant Versus

¶8

Sh. Baldev Singh S/o Sh. Piara Singh (Borrower)

¶9

2. Sh. Paramjit Singh S/o Sh. Baldev Singh (Borrower)

¶10

Both residents of House No.35, Village Mianpur Chinger, Hadbast No.329, Sub Tehsil Majri, Tehsil Kharar, District SAS Nagar, Mohali, Punjab-140109

¶11

………Defendants

¶12

Advocates:

¶13

Argued by Sh. Aseem Kataria, counsel for the applicant Defendants are ex-parte

¶14

FINAL ORDER

¶15

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.29,42,708.74p (Rupees Twenty Nine Lacs Forty Two Thousand Seven Hundred Eight and Seventy Four Paisa only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager o f the applicant bank, who is competent to institute the Original

¶16

¶17

Application vide General Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

¶18

The brief facts of the OA are that the defendants had approached the applicant bank for grant of KCC Limit of Rs.18.00 Lacs vide Loan application dated 24.09.2014, which is Annexure A3 to this OA.

¶19

The applicant Bank sanctioned the KCC Limit of Rs.18.00 Lacs vide Sanction Letter dated 24.09.2014, which is Annexure A4 to this OA; and the terms and conditions were duly accepted by the defendants.

¶20

Defendants had mortgaged their immovable property i.e. agricultural land measuring 16 Kanal situated in the revenue estate of Village Mianpur, Hadbast No.324, Sub Tehsil Majri, District SAS Nagar, Mohali, Punjab; vide Declaration dated 29.09.2014 under Section 4(1) of the Punjab Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1978, which is Annexure A7 to this OA, Letter dated 29.09.2014 to the Naib Tehsildar/Joint Sub Registrar, Majri for submission of declaration, which is Annexure A8 to this OA and Jamabandi for the year 2008-2009 and its translation, which are Annexures A9 and A10 to this OA.

¶21

Documents executed: - Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA, Hypothecation Agreement, Letter of Undertaking and Supplemental Agreement all dated 05.11.2014, which are Annexures A5, A6 and A-6A to this OA; Balance and Security Confirmation letters dated 06.04.2017 and 11.02.2020, which are Annexures A11 and A12 to this OA, Notice dated 10.02.2020 for recovery of the loan along with its translation, which is Annexure A13 (colly) to this OA, Recall Notice dated 01.09.2022 along with its postal receipts, which is Annexure A14 (colly) to this OA and Statement of Account along with Certificate under Bankers Book Evidence Act, which is Annexure A15 to this OA.

¶22

The loan account became irregular and was declared NPA and after adjusting debit and credit entries in loan account there was debit

¶23

¶24

of Rs.29,42,708.74p, 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.

¶25

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 08.02.2024.

¶26

In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank, h as been filed.

¶27

Heard ex-parte arguments and perused record.

¶28

It was argued by learned 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 A15 to this OA, it is proved that the defendants approached applicant bank for taking the loan facility which was granted to them and they executed all the relevant documents but they did not pay the loan as per terms and conditions of the agreement and their account was declared NPA and from the documentary evidence it is proved that bank is entitled to recover a total sum of Rs.29,42,708.74p (Rupees Twenty Nine Lacs Forty Two Thousand Seven Hundred Eight and Seventy Four Paisa 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.

¶29

In so far as pendente lite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.75%p.a. with half yearly rests from 01.04.2022 till the realization.

¶30

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 properties, undertaking of the defendants, quantum of loan and prevalent market rates of

¶31

¶32

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 @10.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,42,708.74p (Rupees Twenty Nine Lacs Forty Two Thousand Seven Hundred Eight and Seventy Four Paisa only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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.

¶33

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 15.03.2024. 15. Copy of this order be given dasti to the applicant bank 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. Pronounced by me in the open Tribunal Dated: 01.03.2024

¶34

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

Punjab National Bank v. Sh. Baldev Singh and Another

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Baldev Singh and Another

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

Axis Bank Limited versus Sh. Heera Singh and Others

Canara Bank versus Sh. Gurdail Singh and Another

Axis Bank Ltd. versus Sh. Arpan Singh And Others

Punjab National Bank versus M/S Kathpal Dairies and Others

Hdfc Bank Limited versus Sh. Bhupinder Singh and Others

Axis Bank Limited versus Sh. Sukhwant Singh and Another