Allowed

Punjab National Bank v. Jujhar Singh alias Jughar Singh and Another

DRT5 Sept 2024OA/891/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of Rs. 31,49,167 due from borrowers and guarantor. While acknowledging the bank's claim, the Tribunal modified the interest rate to a uniform 8% p.a. and ordered a Recovery Certificate under Section 19 RDBFI Act.

What did the court decide?

Liability to pay Rs. 31,49,167 with costs and 8% p.a. simple interest. Recovery Certificate issued.

Punjab National Bank versus Jujhar Singh alias Jughar Singh… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.891/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.04.2022 DATE OF DECISION: 05.09.2024 Punjab National Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and amongst other a Branch Office at G.T. Road, Moga, Tehsil and District Moga, Punjab through its Constituted Attorney and Senior Manager Sh. Sandeep Kumar posted at Circle Sastra, Moga. ……..Applicant Versus 1. Sh. Jujhar Singh @ Jughar Singh S/o Sh. Nishan Singh, resident of Village Chirag Shah Wala, Tehsil Dharamkot and District Moga. (Borrower/Mortgagor) 2. Sh. Partap Singh S/o Sh. Mehal Singh, resident of Village Kadarwala, Tehsil Dharamkot and District Moga. (Guarantor) . ….……Defendants Advocates: Argued by Ms. Sonal Chabra, Advocate proxy for Sh. Pankaj Beri, Advocate for the Applicant Defendants are ex-parte FINAL ORDER 1. 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.31,49,167.00 (Rupees Thirty One Lacs Forty Nine Thousand One Hundred Sixty Seven Only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General

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Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of KCC Limit of Rs.17.00 Under Oriental Green Card Scheme vide Loan Application dated 01.12.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit (Oriental Green Card) of Rs.17.00 Lacs vide Sanction Letter dated 14.12.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 39 Kanal 5 Marla situated at R/o Village Chirag Shah Wala, Tehsil Dharamkot, District Moga vide Registered Mortgage Deed bearing Vasika No.4540 dated 14.12.2011 with its translation, which is Annexure A4 to this OA. Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A/A to this OA; Agreement for Hypothecation and Agreement for Guarantee both dated 17.12.2011, which are Annexures A5 to A6 this OA; Legal Notice dated 07.02.2022 with postal receipts, which is Annexure A7 to this OA; Statement of account duly certified, which is Annexure A8 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.31,49,167.00 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 29.07.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, 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 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 A/A, A1 to A8 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was 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, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.31,49,167.00 (Rupees Thirty One Lacs Forty Nine Thousand One Hundred Sixty Seven 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 bank in relief clause has claimed interest @8.80%p.a. plus penal interest @2.00%p.a. with Half Yearly rests from 11.03.2022 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 @8.00% 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

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Rs.31,49,167.00 (Rupees Thirty One Lacs Forty Nine Thousand One Hundred Sixty Seven Only) jointly and severally, 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 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.

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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 30.09.2024.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 05.09.2024.

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

Punjab National Bank v. Jujhar Singh alias Jughar Singh and Another

Case brief

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Punjab National Bank v. Jujhar Singh alias Jughar Singh and Another

Case brief

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