Allowed

Punjab National Bank v. Sh. Gurcharan Singh and Another

DRT6 Jun 2024OA/924/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of dues classified as NPA. Despite proceedings in absentia, the court found evidence uncontradicted and granted uniform simple interest at 8% p.a. instead of the claimed rate. Recovery is ordered from mortgaged properties or personal assets.

What did the court decide?

Order to pay Rs. 34,82,427.00 with costs and simple interest @8.00% p.a. from filing date till realization. Recovery to be enforced via sale of mortgaged/mortgaged properties or attachment of personal

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.924/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.04.2022

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DATE OF DECISION: 06.06.2024

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Punjab National Bank, a body corporate and nationalized Bank under the provisions of The Banking Companies (Acquisition and Transfer of Undertakings) Act 5 of 1970 with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and amongst other a Branch Office at Nihal Singh Wala, District Moga, Punjab through its Constituted Attorney and Senior Manager Sh. Sandeep Kumar posted at Circle Sastra, Moga. (Transferee Bank from erstwhile Oriental Bank of Commerce)

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……..Applicant Versus 1. Sh. Gurcharan Singh S/o Sh. Karnail Singh, R/o Village Raiya, Tehsil Phul, District Bathinda. Borrower/Mortgagor 2. Sh. Bhajan Singh S/o Sh. Joginder Singh, R/o Village Dina, Tehsil and District Moga.

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Guarantor ….……Defendants Advocates: Argued by Ms. Sonal Chabra, Advocate proxy for Sh. Pankaj Beri, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. 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.34,82,427.00 (Rupees Thirty Four Lacs Eighty Two Thousand Four Hundred and Twenty Seven only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant

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bank, who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of Agriculture Cash Credit Limit under Oriental Green Card of Rs.18.00 Lacs vide Loan application dated 30.12.2010, which is Annexure A2 to this OA. Defendant no.2 stood as guarantor. 3. The applicant Bank sanctioned the Agriculture Cash Credit Limit under Oriental Green Card of Rs.18.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 50K-00M situated at Village Raiya, Tehsil Phul, District Bathinda (Punjab) vide Registered Mortgaged Deed bearing vasika No.4490 dated 30.12.2010 along with its Translations, which is Annexure A4 to this OA.

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Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A to this OA; Agreement for Hypothecation, Agreement of Guarantee both dated 14.01.2011, which are Annexures A5 & A6 to this OA; Legal Notice dated 07.02.2022 with postal receipts, which is Annexure A7 to this OA and Statement of account duly Certified, 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.34,82,427.00, which is recoverable and the defendants were 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. 6. 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 09.04.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Senior Manager, Punjab National Bank has been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A, A1 to A8 to this OA, it is proved that the defendants approached applicant bank 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 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 bank is entitled to recover a sum of Rs.34,82,427.00 (Rupees Thirty Four Lacs Eighty Two Thousand Four Hundred and Twenty Seven 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 bank in relief clause has claimed interest @8.80%p.a. plus penal interest @2%p.a. with yearly rests from 26.03.2022 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 @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.34,82,427.00 (Rupees Thirty Four Lacs Eighty Two Thousand Four

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Hundred and Twenty 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 defendants 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 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

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21.06.2024.

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Copy of this order be given dasti to the applicant bank 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: 06.06.2024

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

Punjab National Bank v. Sh. Gurcharan Singh and Another

Case brief

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Punjab National Bank v. Sh. Gurcharan Singh and Another

Case brief

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