Allowed

Punjab National Bank v. Sh. Gurmeet Singh

DRT13 Aug 2024OA/913/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a loan debt of over Rs. 40 Lacs mortgaged by the defendant. The court adjusted the interest rate from 10.80% to 8% per annum and directed the issuance of a recovery certificate. Pending applications were disposed of.

What did the court decide?

The defendant is liable to pay Rs. 40,43,210.77 with simple interest at 8% p.a.; Recovery Certificate issued; bank entitled to recover from sale of mortgaged and personal assets.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.913/2023

¶3

PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 31.07.2023

¶5

DATE OF DECISION: 13.08.2024

¶6

Punjab National Bank, a body corporate, constituted by and under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 Previously Oriental Bank of Commerce and one of its Branch at Patto Hira Singh, Tehsil and District Moga and Circle SASTRA Moga, Tehsil and District Moga (Punjab) through its General Power of Attorney holder Sh. Rajesh Sachdeva, Manager of the applicant bank.

¶7

……..Applicant

¶8

Versus

¶9

Sh. Gurmeet Singh S/o Sh. Bhura Singh @ Bharpur Singh Residents of Village Kauir Singh Wala, Tehsil Rampura Phul District Bhatinda, (Punjab)- 151108

¶10

….……Defendant

¶11

Advocates:

¶12

Argued by Sh. Aseem Kataria, Advocate for the applicant Defendant is already ex-parte

¶13

FINAL ORDER

¶14

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 defendant for recovery of Rs.40,43,210.77p (Rupees Forty Lacs Forty Three Thousand Two Hundred Ten And Paise Seventy Seven Only). The Original Application has been filed through Sh. Rajesh Sachdeva, Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 09.06.2017, which is Annexure A1 to this OA.

¶15

¶16

The brief facts of the OA are that the defendant had approached the applicant bank for the grant of OGC Limit of Rs.32.20 Lacs vide Loan application dated 15.01.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of of vRs.22.00 Lacs for the 1^st year and to be enhanced upto Rs.32.20 Lacs for the 5^th year vide Sanction Letter dated 16.01.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

¶17

Defendant had mortgaged his immovable properties i.e. total land measuring 54K-12M situated at Village Koer Singh Wala, Tehsil Rampura Phul District Bhatinda (Punjab) vide Registered Mortgaged Deed bearing vasika no.1615 dated 18.02.2013 along with its Translation and Jamabandi for the Year 2015-2016, which are Annexures A5, A5-T & A6 to this OA.

¶18

Documents executed:-Hypothecation Agreement dated 27.02.2013, which is Annexure A4 to this OA; Balance & Security Confirmation Letters dated 09.12.2015, 22.03.2018 & 20.03.2021, which are Annexures A7, A8 & A9 to this OA; Legal Notice dated 06.02.2023 with postal receipt, which is Annexure A10 to this OA and Statement of Account along with Certificate under Bankers Book Evidence Act, which is Annexure A11 to this OA.

¶19

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.40,43,210.77p, which is recoverable and the defendant was 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.

¶20

The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he is proceeded exparte on 31.05.2024.

¶21

¶22

In support of the OA, affidavit of Sh. Rajesh Sachdeva, Manager, Punjab National Bank has been filed.

¶23

Heard ex-parte arguments and perused record.

¶24

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 A11 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.40,43,210.77p (Rupees Forty Lacs Forty Three Thousand Two Hundred Ten And Paise Seventy Seven Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶25

In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed [email protected]%p.a. from 08.07.2023 till the realization.

¶26

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 defendant, 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 both 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.

¶27

¶28

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.40,43,210.77p (Rupees Forty Lacs Forty Three Thousand Two Hundred Ten And Paise Seventy 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 defendant 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 defendant. The applicant is at liberty to enforce the claim through due process of law.

¶29

Any other application pending stands disposed of.

¶30

Issue Recovery Certificate accordingly.

¶31

Parties to appear before Learned Recovery Officer of this Tribunal on 04.09.2024.

¶32

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.

¶33

Pronounced by me in the open Tribunal. Dated: 13.08.2024

¶34

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

Punjab National Bank v. Sh. Gurmeet Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sh. Gurmeet Singh

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

The Federal Bank Limited versus Atin Ahuja and Another

Indian Bank, versus Smt. Lakhwinder Kaur and Others

Axis Bank Limited versus Sh. Harpreet Singh

Punjab National Bank versus Sh. Gurcharan Singh

Punjab Gramin Bank, versus Sh. Baldev Singh

Central Bank of India versus Sh. Jaswinder Singh and Another