Allowed

Punjab National Bank v. Manjit Singh

DRT5 Dec 2024OA/914/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant bank's original application filed under Section 19 of the RDBFI Act, 1993. The court held the defendant liable to repay the outstanding loan amount, adjusted interest, and costs, permitting recovery from mortgaged or personal assets.

What did the court decide?

Recovery of Rs.25,72,984.00 with costs and simple interest at 8% per annum from the filing date until realization.

Punjab National Bank versus Manjit Singh — Contract and Commercial Disputes | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.914/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 19.07.2023

¶4

DATE OF DECISION: 05.12.2024

¶5

Punjab National Bank, a Body Corporate under Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its Head Office at Plot No.4, Sector-10, Dwarka New Delhi, 110075 and having its branch office at different places including one at Malwal, Distt. Ferozepur through its Attorney holder & Officer Sh. Rajesh Sachdeva, Manager, Circle Sastra, Moga Circle.

¶6

……..Applicant

¶7

Versus

¶8

Sh. Manjit Singh S/o Sh. Gurmukh Singh, R/o 23, New Model Town, Malwal Road, Near H.M. School, Ferozepur City, Distt. Ferozepur now R/o H.No.155, Golden Enclave, Ferozepur City, Tehsil and Distt. Ferozepur (Punjab) also r/o Village HussaiN Shah wala, Khai Pene Ki, Distt. Ferozepur, Punjab.

¶9

….……Defendant

¶10

Advocates:

¶11

Argued by Sh. Raghav Sharma, Advocate for Applicant (through VC) Defendants is ex parte

¶12

FINAL ORDER

¶13

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.25,72,984.00 (Rupees Twenty Five Lacs Seventy Two Thousand Nine Hundred Eighty Four 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.

¶14

¶15

The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC (OGC) Limit of Rs.21.00 Lacs vide Loan Application dated 04.02.2012, which is Annexure A2 to this OA. Further, defendant had approached the applicant bank for Renewal of KCC (OGC) Limit of Rs.21.00 Lacs.

¶16

The applicant Bank sanctioned the KCC (OGC) Limit of Rs.21.00 Lacs vide Sanction Letter dated 15.02.2012, which is Annexure A3 to this OA. Further, applicant Bank sanctioned for Renewal of KCC (OGC) Limit of Rs.21.00 Lacs vide Renewal Application Cum Sanction Letter dated 17.02.2017, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total Agriculture Land measuring 79 Kanal-06Marla situated at Village Hussain Shah Wala, Hadbast No.270, Tehsil and Distt. Ferozepur, Punjab vide Registered Mortgage Deed bearing V asika No.1927 dated 05.03.2012 and Jamabandi for the year 2016-2017 along with their translations, which are Annexures A5 & A6 to this OA.

¶17

Documents executed:- Hypothecation Agreement dated 12.03.2012, which is Annexure A4 to this OA; Balance & Security Confirmation Letter dated 05.06.2014, 08.12.2016, 10.06.2019 22.01.2020 & 13.12.2022, which is Annexure A8 to this OA; Statement of Account with certificate, which is Annexure A9 to this OA & Legal Notice along dated 27.08.2022, 30.12.2022 & 24.05.2023 with their translation and postal receipts, which is Annexure A10 to this OA.

¶18

The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in loan account there was adebit of Rs.25,72,984.00, 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.

¶19

¶20

The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.12.2024.

¶21

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

¶22

Heard arguments and perused record

¶23

It was argued by learned counsel through Video Conferencing 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 A10 to this OA, it is proved that the defendant approached applicant 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 loan 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 is entitled to recover a sum of Rs.25,72,984.00 (Rupees Twenty Five Lacs Seventy Two Thousand Nine Hundred Eighty Four Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.5%p.a. along with penal interest @2% with half yearly rests from 13.03.2023 till the realization.

¶24

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 @08.00%p.a. in

¶25

¶26

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

In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.25,72,984.00 (Rupees Twenty Five Lacs Seventy Two Thousand Nine Hundred Eighty Four Only) 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the 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.

¶28

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶29

Parties to appear before Learned Recovery Officer of this Tribunal on 16.01.2025.

¶30

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.

¶31

Pronounced by me in the open Tribunal . Dated: 05.12.2024

¶32

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

Punjab National Bank v. Manjit Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Manjit 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

Punjab National Bank versus Baljit Kaur

Asset Reconstruction Company (India) Limited, versus Sukhjit Kaur and Others

Hdfc Bank Ltd. versus Ess Ess Technofabs Private Limited and Others

Canara Bank versus M/s Shree Balaji Industries and Others

Punjab National Bank versus Manjeet Singh Alias Manjit Singh and Another

Punjab National Bank versus Balwinder Singh