Allowed

Punjab National Bank v. Sh. Joginder Singh

DRT29 Jan 2024OA/922/2022

Case brief

AI extract

What is this about?

The DRT allowed an original application by Punjab National Bank for recovery of Rs.38,16,330.38p from a defaulter. The court declared the defendant liable and directed recovery from mortgaged properties or personal assets under SARFAESI Act provisions.

What did the court decide?

Recovery of Rs.38,16,330.38p including 10% p.a. interest directed to be recovered from hypothecated properties or personal assets.

Punjab National Bank versus Sh. Joginder Singh — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.922/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.05.2022

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DATE OF DECISION: 29.01.2024

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Punjab National Bank, 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 Khatkar Kalan, Tehsil Nawanshahr, District SBS Nagar (Pb.), through its Authorised Officer, Sh. Kishan Pal

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……..Applicant Versus

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Sh. Joginder Singh S/o Sh. Jhalman Singh R/o VPO Khatkar Kalan, Banga, District SBS Nagar

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….……Defendant

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Advocates:

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Argued by Sh. Ankit Kaushal, Advocate for the applicant Defendant is 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 defendant for recovery of Rs.38,16,330.38p (Rupees Thirty Eight Lacs Sixteen Thousand Three Hundred Thirty and Thirty Eight Paise only). The Original Application has been filed through Sh. Kishan Pal, Authorised Officer of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 05.02.2018, 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 bank for the grant of KCC Limit of Rs.30.00 Lacs vide Loan application, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.30.00 Lacs vide Sanction Letter dated 21.11.2017, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. (i) Land measuring 28K-11M; (ii) Land measuring 8K-00M; Both situated at Village Khatkar Kalan, Hadbast no.103, Tehsil Banga, District SBS Nagar, Punjab vide Declaration u/s 4(1) dated 29.07.2016 and 24.11.2017, which is Annexure A5 (Colly) to this OA. Documents executed: - Agreement for Hypothecation dated 24.11.2017, which is Annexure A4 to this OA; Security Confirmation Letter (KCC) dated 07.08.2019, which is Annexure A6 to this OA; Notice dated 20.06.2021, which is Annexure A7 to this OA; Statement of Account, which is Annexure A8 to this OA and Certificate by Officer Incharge of the Computer System, which is Annexure A9 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.38,16,330.38p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 03.01.2024. 7. In support of the OA, affidavit of Sh. Kishan Pal, Authorised Officer, Punjab National Bank h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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the applicant bank had proved its case. From the perusal of all the Annexures A1 to A9 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 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 bank is entitled to recover a sum of Rs.38,16,330.38p (Rupees Thirty Eight Lacs Sixteen Thousand Three Hundred Thirty and Thirty Eight Paise only) along with interest from the defendant, 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 bank in relief clause has claimed interest @11.35%p.a. (inclusive of @2%p.a. penal interest) with yearly rests from the date of filing of this OA 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 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 @10.00%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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.38,16,330.38p (Rupees Thirty Eight Lacs Sixteen Thousand Three Hundred Thirty and Thirty Eight Paise only), with costs, current and future simple interest @10.00%p.a. in the loan account from the date

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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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 13.02.2024. 15. 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. Pronounced by me in the open Tribunal. Dated: 29.01.2024

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

Punjab National Bank v. Sh. Joginder Singh

Case brief

What is this about?

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Punjab National Bank v. Sh. Joginder Singh

Case brief

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What did the court decide?

What the court decided

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