Allowed

Punjab National Bank v. Babu Singh and Others

DRT19 Nov 2024OA/907/2022

Case brief

AI extract

What is this about?

The Recovery Tribunal allowed the bank's application for recovery of Rs.41.21 Lakhs owed by borrowers and a guarantor. The court deemed it appropriate to grant a uniform simple interest rate and ordered the issuance of a Recovery Certificate for execution against mortgaged and personal assets.

What did the court decide?

Recovery of Rs.41,21,795 with 8% simple interest; Recovery Certificate issued; Liberty to enforce through execution or attachment/sale of assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.907/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.05.2022

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DATE OF DECISION: 19.11.2022

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi110075 having one of its branch office at Payal, Tehsil & District Ludhiana, Punjab through Sh. Dharam Pal Malik, Senior Manager, Punjab National Bank Circle Sastra Centre, Ludhiana East, Ferozepur Road, Ludhiana its Principal Officer General Attorney of the applicant.

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……..Applicant

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Versus

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Sh. Babu Singh son of Sh. Sarwan Singh, R/o Street turning from Kaddon Road, Ward No.1, Backside HDFC Bank, Village Payal, Tehsil Payal, Distt.Ludhiana-141416.

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Sh. Jagjit Singh son of Sh. Babu Singh, R/o Street turning from Kaddon Road, Ward No.1, Backside HDFC Bank, Village Payal, Tehsil Payal, Distt.Ludhiana-141416.

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Smt. Beena Rani W/o Sh. Jagjit Singh R/o Street turning from Kaddon Road, Ward No.1, Backside HDFC Bank, Village Payal, Tehsil Payal, Distt.Ludhiana-141416.

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Sh. Lakhwinder Singh S/o Sh. Malkit Singh R/o Kalsi Denting Painting, Malerkotla Road, Village Payal, Tehsil Payal, Distt. Ludhiana.

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………. Defendants

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Advocates:

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Argued by Sh. Bharat Kawal, Advocate proxy for Sh. P.S. Sobti, 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.41,21,795.00p (Rupees Forty One Lac Twenty One Thousand Seven Hundred Ninety Five Only). The Original Application has been filed through Sh. Dharam Pal Malik, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.02.2003, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no. 1 to 3 had approached the applicant for grant of Housing Loan of Rs.30.00 Lacs. Defendant no.4 stood as a Guarantor.

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The applicant sanctioned Housing Loan of Rs.30.00 Lacs vide Sanction Letter dated 26.06.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.2 had mortgaged his immovable properties i.e. Constructed house measuring 7Biswas 10Biswasi situated at revenue estate of Village Payal 2, Tehsil Payal, District Ludhiana vide Equitable mortgage of Sale Deed bearing vasika no.800 dated 08.06.2012 and Jamabandi for the year 2017-2018 al ong with its translation, which are Annexures A4, A6 & A7 to this OA. Documents executed:- Agreement for Housing Loan, Letter of Continuity and Agreement of Guarantee all dated 20.06.2014, which are Annexures A3, A5 & A8 to this OA; Notice u/s 13(2) of SARFAESI Act dated 17.05.2018 with postal receipts, which is Annexure A9 to this OA; Balance Confirmation Letters dated 18.02.2017 & 30.12.2019, which are Annexures A10 & A11 to this OA; Possession Notice dated 12.09.2018, which is Annexure A12 to this OA; Notice u/s 13(4) of SARFAESI Act dated 07.02.2020, which is Annexure A13 to this OA and Statement of Account with certificate dated 06.05.2022, which is Annexure A14 to this OA.

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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.41,21,795.00p, which is recoverable and the 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 defendant no.4 and he was proceeded ex-parte on 15.11.2023. Sh. Impinder Singh Dhaliwal, Advocate appeared on behalf of defendant no.1 to 3 and filed Memo of appearance on 13.04.2023 and later filed Power of Attorney on 15.11.2023. Since no one appeared on behalf of defendant nos.1 to 3, they were proceeded ex-parte on 13.11.2024.

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In support of the OA, affidavit of Sh. Dharam Pal Malik, 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 had proved its case. From the perusal of all the Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant for availing of the loans 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 is entitled to recover a sum of Rs.41,21,795.00p (Rupees Forty One Lac Twenty One Thousand Seven Hundred Ninety Five 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 @8.30%p.a. along with penal interest @2%p.a. with monthly rests from 01.04.2022 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 just and appropriate to grant uniform simple interest @08.00%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.

¶30

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.41,21,795.00p (Rupees Forty One Lac Twenty One Thousand Seven Hundred Ninety Five Only) jointly and severally, with costs, current and future simple interest @08.00%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

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Tribunal on 12.12.2024.

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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 .

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Dated: 19.11.2024.

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

Punjab National Bank v. Babu Singh and Others

Case brief

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Punjab National Bank v. Babu Singh and Others

Case brief

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