Allowed

Punjab National Bank v. M/S Rana Partners and Others

DRT25 Nov 2024OA/927/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank to recover Rs.84,27,740.00 from defendants who were granted but failed to repay bank guarantees and other loan facilities. The Tribunal issued a recovery certificate and granted interest at 8% p.a.

What did the court decide?

Recovery certificate issued for Rs.84,27,740.00 with costs and simple interest at 8% p.a.; applicant entitled to sale of mortgaged/attatched properties.

Punjab National Bank versus M/S Rana Partners and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.927/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.03.2022

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DATE OF DECISION: 25.11.2024

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Punjab National Bank, is a Bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No.4, Sector-10, Dwarka, New Delhi (110075) and its Branch Offices throughout India along with an Office at Circle Sastra Center, Circle Offices S.A.S. Nagar (Pb) through Sh. Ravi Kumar Chief Manager of the said office, who is also one of the Principal Officers and General Attorney of the Applicant.

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……..Applicant

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Versus

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M/s Rana Partners through its partners Sh. Rajesh Kumar and Sh. Harpreet Singh, #15 DR-Main Market Nangal, Tehsil Nangal, District Rupnagar (Pb)-140124.

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Sh. Rajesh Kumar S/o Sh. Kesar Singh, Partner of M/s Rana Partners # Ward No.1, Dubeta, Nangal Tehsil Nangal, District Rupnagar (Pb)-140124.

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Sh. Harpreet Singh S/o Sh. Dharam Singh, Partner of M/s Rana Partners #12-AA, Nangal Township, Tehsil Nangal, District Rupnagar (Pb)-140124.

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Sh. Sunil Rana S/o Sh. Dilbagh Chand, House No.93-94, Kiln Area Nangal, Tehsil Nangal, District Rupnagar (Pb)-140124.

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Sh. Rajeev Rana S/o Sh. Rajinder Pal, House No.93-94, Kiln Area Nangal, Tehsil Nangal, District Rupnagar (Pb)-140124.

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Shri Sanjeev Rana S/o Shri Rajinder Pal, House no.93-94, Kiln area Nangal, Tehsil Nangal, District Rupnagar(Pb)-140124

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………. Defendants

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Advocates: Argued by Sh. Rajindra Kumar Joshi, Advocate for the applicant Ms. Seerat, Advocate proxy for Sh. Akhilesh Vyas, Advocate for Defendants

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FINAL ORDER 1. 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.84,27,740.00 (Rupees Eighty Four Lacs Twenty Seven Thousand Seven Hundred Forty Only). The Original Application has been filed through Sh. Ravi Kumar Manager, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 through its partners defendant no.2 & 3 had approached the applicant for issuance of Bank Guaranties of Rs.69,99,179.00 vide Application for Issuing a Guarantee dated 06.06.2018, which is Annexure A3 to this OA. 3. The applicant issued Bank Guaranties of Rs.69,99,179.00 vide Sanction Letter dated 06.06.2018, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.4 & 5 had mortgaged their immovable properties i.e. a. total Land measuring 24Bigha-12Biswa situated at Mauja-Goyal Jamala, H.B. No.77, Tehsil Nalagarh, District Solan (HP) vide Deed Endorsement Details Registration no.942/2018 and Mortgaged Deed both dated 05.06.2018 and Jamabandi for the year 2016-2017 along with their translation, which is Annexure A7 to this OA. b. FDR of Rs.81.62 Lacs & Rs.29.00 Lacs dated 05.06.2018 & 06.06.2018 respectively, which are Annexures A13 and A14 to this OA It is pertinent to mention here that the said FDRs have been adjusted in the loan account. Documents executed:-Partnership Deed dated 12.03.2018, which is Annexure A2 to this OA; Agreement of Counter Indemnity,

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Agreement of Guarantee & Guarantee Bond No.0359ILG001118 all dated 06.06.2018, which are Annexures A5, A6 & A8 to this OA; Guarantee Bond Nos.0359ILG002618, 0359ILG002818, 359ILG002918 & 0359ILG003118 all dated 07.06.2018, which are Annexures A9 to A12 to this OA; Letters of Excise department Kully, Hamirpur & Bilaspur for invocation of Bank Guarantee dated 28.03.2019, 26.03.2019 & 22.03.2019, which are Annexures A15 to A17 to this OA; Letters of the Bank demanding payment of the invoked BGs dated 31.03.2019 & 06.05.2019, which are Annexures A18 & A19 to this OA; Legal demand Notices to defendant Nos.2,3,4,5, & 6 dated 20.05.2019, which are Annexures A20 to A24 to this OA; Statements of BG Accounts and List of rate of interests charged in the Current/Overdraft account for different periods since commencement, which are Annexures A25 to A27 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the BG accounts there was a debit of Rs.84,27,740.00, 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. 6. The defendants were served notices to appear before this Tribunal. Ms. Seerat, Advocate proxy for Sh. Akhilesh Vyas, Advocate for defendants appeared and filed Memo of Appearance but did not filed WS within stipulated period. Therefore, opportunity to file WS was closed and defense was struck off on 19.11.2024. 7. In support of the OA, affidavit of Sh. Ravi Kumar Manager, Chief Manager, Punjab National Bank has been filed. 8. Heard arguments of Ld. Counsel for applicant. Ld. Counsel for defendants has not advanced any arguments. Perused record. 9. It was argued by learned 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

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Annexures A1 to A27 to this OA, it is proved that the defendants approached applicant 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 is entitled to recover a sum of Rs.84,27,740.00 (Rupees Eighty Four Lacs Twenty Seven Thousand Seven Hundred Forty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the BG accounts.

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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 @13.35%p.a. along with penal interest @2% with monthly rests from the date of institution 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 all the BG accounts 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.84,27,740.00 (Rupees Eighty Four Lacs Twenty Seven Thousand Seven Hundred Forty Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in all the BG account from the date of filing of OA till the date of realization of the amount.

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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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 20.12.2024.

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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 . Dated: 25.11.2024

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

Punjab National Bank v. M/S Rana Partners and Others

Case brief

What is this about?

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Punjab National Bank v. M/S Rana Partners and Others

Case brief

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