Allowed

Punjab National Bank v. Nirmala Rani Alias Devi and Another

DRT25 Sept 2024OA/905/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application under Section 19 RDBFI Act for recovery of Rs. 22,04,828.90. The bank proved the loan, mortgage, and default via documentary evidence filed ex-parte. The Tribunal granted automatic simple interest at 8% p.a. and directed issuance of a Recovery Certificate for execution against mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 22,04,828.90 plus costs and simple interest at 8% p.a.; Issuance of Recovery Certificate for execution.

Punjab National Bank versus Nirmala Rani Alias Devi and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.905/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.03.2022

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DATE OF DECISION: 25.09.2024

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Punjab National Bank, 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-110075 and the successor of Oriental Bank of Commerce/ United Bank of India, by Scheme of Amalgamation of Oriental Bank of Commerce / United Bank of India, passed by the Central Government under section 9 of the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980 through one of its Branch/ Department/ Division, having offices, one at Lehragaga, District Sangrur, (Punjab) through Shri Gurmeet Singh, General Attorney and Principal Officer of Circle SASTRA Centre, Sangrur.

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……..Applicant

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Versus

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Smt. Nirmala Rani @ Devi W/o of Sh. Kedar Nath resident of House No.138, Ward No.5, Bhutalia Mohalla, Lehragaga, District Sangrur, (Punjab).

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Sh. Sandeep Kumar S/o of Sh. Kedar Nath C/o M/s Ram Kumar Kedar Nath, Commission Agent, Lehragaga Lehra, District Sangrur, (Punjab)

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….……Defendants

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Advocates:

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Argued by Sh. Saurabh Bharadwaj, Advocate proxy for Sh. Arpit Chawla, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.22,04,828.90 (Rupees Twenty Two Lacs Four Thousand Eight

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Hundred Twenty Eight And Paise Ninety Only). The Original Application has been filed through Shri Gurmeet Singh, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 27.03.2008, 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 Term Loan (Oriental Mortgage Loan Scheme) of Rs.20.00 Lacs vide Loan application dated 03.09.2019, which is Annexure A2 to this OA. 3. The applicant sanctioned the Term Loan (Oriental Mortgage Loan Scheme) of Rs.20.00 Lacs vide Sanction Letter dated 03.09.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 & 2 had mortgaged his immovable properties i.e. a. total land measuring 02K-0M situated in Shiva Colony, Lehra, Distt. Sangrur vide Equitable Mortgage of Sale Deed bearing vasika no.698 dated 04.09.2019 with translations, which is Annexure A6 (Colly) to this OA owned by defendant no.1. b. total land measuring 0K-9-2/3M (291.67 Sq. Yards) situated in Shiva Colony, Lehra, Distt. Sangrur vide Sale Deed bearing vasika no. 350 dated 10.05.2016 with jamanbandi and their translations, w hich is Annexure A6(Colly) to this OA Documents executed:-Copy of Agreement of Term Loan, Copy of Common Agreement both dated 03.09.2019, which are Annexures A4 and A5 to this OA; Copy of Notice dated 29.07.2021, which is Annexure A7 to this OA and Copy of Statement of account, 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.22,04,828.90, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 13.09.2024.

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In support of the OA, affidavit of Shri Gurmeet Singh, 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 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 A1 to A8 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.22,04,828.90 (Rupees Twenty Two Lacs Four Thousand Eight Hundred Twenty Eight And Paise Ninety 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 [email protected]%p.a. from 01.02.2022 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

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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 Rs.22,04,828.90 (Rupees Twenty Two Lacs Four Thousand Eight Hundred Twenty Eight And Paise Ninety 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 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 17.10.2024.

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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: 25.09.2024

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

Punjab National Bank v. Nirmala Rani Alias Devi and Another

Case brief

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Punjab National Bank v. Nirmala Rani Alias Devi and Another

Case brief

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