Allowed

Punjab National Bank v. Prabhjot Singh and Another

DRT25 Nov 2024OA/891/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of a loan of Rs.27,69,037.99dp along with interest. After hearing, the court reduced the claimed interest rate to 8% per annum and directed the issue of a Recovery Certificate.

What did the court decide?

Directed the defendants to pay Rs.27,69,037.99dp with simple interest @8.00%p.a. and directed the issue of a Recovery Certificate to be served on the defendants.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.891/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.07.2024

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DATE OF DECISION: 25.11.2024

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Punjab National Bank, (erstwhile Oriental Bank of Commerce), a Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, sector-10, Dwarka, New Delhi and having one of its Branch situated at Punjab National Bank (Erstwhile Oriental Bank of Commerce) Village Kala Sanghian, District Kapurthala, Punjab through its General Power of Attorney Holder Sh. Ankur Rawat who is presently working as Senior Manager, Punjab National Bank Circle Sastra PNB House, Satyanarayan Bazar, Near Natraj Hotel, Kapurthala, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant Versus

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Mr. Prabhjot Singh S/o Sh. Gurdev Singh R/o Village Rahimpur, Tehsil Nakodar, District Jalandhar, Punjab.

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Mr. Harpreet Pal Singh S/o Sh. Gurdev Singh R/o Sh. Village Rahimpur, Tehsil Nakodar, District Jalandhar, Punjab.

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………. Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, 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.27,69,037.99p (Rupees Twenty Seven Lacs Sixty Nine Thousand Thirty Seven and Ninety Nine Paise Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager o f the applicant, 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.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for grant of Term Loan of Rs.25.00 Lacs (Term Loan for Shed of Rs.15.00 Lacs & Term Loan for Grader of Rs.10.00 Lacs) and CC Limit of Rs.63000.00 vide Loan Applications dated 26.07.2016, which are Annexures A2 and A3 to this OA. 3. The applicant sanctioned Term Loan of Rs.25.00 Lacs (Term Loan for Shed of Rs.15.00 Lacs & Term Loan for Grader of Rs.10.00 Lacs) vide Sanction Letter dated 27.09.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 29K-11M situated in Village Rahimpur, H.B.No. 146, Tehsil Nakodar, Distt. Jalandhar vide Declaration u/s 4(1) with its translation and Letter to Sub Registrar for Creation for Charge both dated 30.09.2016, which are Annexures A8 & A9 to this OA. Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A1A to this OA; Affidavit by Mr. Prabhjot Singh, Affidavit/Declaration by Mr. Prabhjot Singh both dated 23.09.2016, which are Annexures A5 and A6 to this OA; Affidavits, Agreement of Term Loan, Common Agreement, Affidavits by Mr. Harpreetpal Singh and Agreement of Guarantee dated 28.09.2016, which are Annexures A7, A10 to A13 to this OA; Balance & Security Confirmation Letters dated 26.06.2019, 31.03.2020, 12.07.2022, which are Annexures A14 to A16 to this OA; Notice of Recall of Banks’s Dues by Advocate dated 12.06.2024 with postal receipts, which is Annexure A17 to this OA and Statements of Accounts with certificate, which are Annexure A18 & A19 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 both loan accounts there was a debit of Rs.27,69,037.99p, which is recoverable and the

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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 13.11.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy 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 A1A, A1 to A19 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 applicant. 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.27,69,037.99p (Rupees Twenty Seven Lacs Sixty Nine Thousand Thirty Seven and Ninety Nine 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 @8.55%p.a. along with penal interest @2%p.a. with half yearly rests from 01.04.2024 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

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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 both 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.27,69,037.99p (Rupees Twenty Seven Lacs Sixty Nine Thousand Thirty Seven and Ninety Nine Paise Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both 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 Tribunal on 20.12.2024.

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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 . Dated: 25.11.2024

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

Punjab National Bank v. Prabhjot Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Prabhjot Singh and Another

Case brief

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