Allowed

Punjab National Bank v. Messrs Fins Crop Science and Others

DRT18 Nov 2024OA/934/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the application by Punjab National Bank for recovery of dues of Rs. 23.43 lakhs from sole proprietorship and its owners. The court granted recovery of principal, interest at a reduced rate of 8% per annum, and issued a recovery certificate, allowing enforcement through hypothecated or personal assets.

What did the court decide?

Recovery of Rs. 23,43,616.00 plus simple interest at 08% p.a., issuance of Recovery Certificate, and authority to recover from hypothecated or personal assets.

Punjab National Bank versus Messrs Fins Crop Science and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.934/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.03.2022

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DATE OF DECISION: 18.11.2024

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Punjab National Bank, a body corporate and nationalized Bank constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertaking) Act 5 of 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110 075 and amongst others a branch at Shadiheri, Sangrur, Punjab through Sh. Ramesh Kumar Dhir, Officer and Attorney holder presently posted at Circle Sastra Centre, 2^nd Floor, BSNL Building Club Road, Sangrur.

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……..Applicant Versus

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M/s FNS Crop Science, a Sole Proprietorship Concern situated at Village Chunagra, Tehsil Patran District Patiala through its Proprietor Sh. Narinder Pal son of Late Sh. Raghu Ram.

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Sh. Narinder Pal son of Late Sh. Raghu Ram resident of Village Chunagra, Harayu Khurd, Tehsil Patran District Patiala.

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Smt. Parvesh Kumari wife of Sh. Narinder Pal resident of Village Chunagra, Harayu Khurd, Tehsil Patran District Patiala.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Singla, Advocate for the applicant None for Defendants

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FINAL ORDER

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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.23,43,616.00 (Rupees Twenty Three Lacs Forty Three Thousand Six Hundred Sixteen Only). The Original Application has been filed through Sh. Ramesh Kumar Dhir, Officer and Attorney holder of the applicant, who is competent to institute the Original Application vide General

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Power of Attorney dated 29.03.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 through its proprietor of defendant no.2 had approached the applicant for CC Limit of Rs.8.00 Lacs and Term Loan of Rs.10.00 Lacs vide Loan Application dated 14.01.2015, which is Annexure A3 to this OA. Further, defendant no.1 through its proprietor of defendant no.2 had again approached the applicant for enhancement of CC Limit Under CGTSME Scheme from Rs.08.00 Lacs to Rs.23.00 Lacs vide Loan Application dated 04.08.2015, which is Annexure A15 to this OA.

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The applicant sanctioned CC Limit of Rs.08.00 Lacs and Term Loan of Rs.10.00 Lacs vide Sanction Letter dated 19.02.2015, which is Annexure A4 to this OA and further enhanced CC Limit to Rs.23.00 Lacs and the terms and conditions were duly accepted by the defendants.

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Defendant no.1 had Hypothecated its movable properties, i.e. i.) Hypothecation of Stocks of Fertilizer, Machineries, Book Debts and other Moveable assets.

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ii.) Immovable industrial property measuring 03K-06M situated at Chunagra, Tehsil Patran, District Patiala, Punjab vide Registered Mortgage Deed bearing Vasika No.2812 dated 09.03.2015, along with its translation, which is Annexure A12 to this OA owned by defendant No.2.

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iii.) Equitable Mortgage of immovable Residential House measuring 00K-07M (240 Sq. Yds.) situated at Chunagra, Tehsil Patran, District Patiala, Punjab vide Equitable Mortgage of Title Deed bearing Vasika No.242 dated 14.05.2015, along with its translation which is Annexure A21 to this OA owned by defendant No.3.

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Documents executed:- Amalgamation Notification dated 04.03.2020, which is Annexure A2 to this OA; Demand Promissory Note, Agreement of Hypothecation, Agreement of Term Loan, Common

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Agreement, Agreement for Overdraft, Sole Proprietorship Letter, Agreement of Guarantee all dated 19.03.2015, which are Annexures A5 to A11 to this OA; Letter from Department of Town & Country Planning, Punjab along with NOC dated 15.07.2014 & 11.09.2014, which is Annexure A13 to this OA; Valuation Reports dated 22.06.2020, which are Annexures A14 & A23 to this OA; Agreement of hypothecation of assets, Common Agreement, Agreement for Overdraft, Supplementary Agreement to secure credit/loan facilities and Agreement of Guarantee all dated 12.08.2015, which are Annexures A16 to A20 to this OA; Letter Evidencing deposit of title deeds dated 12.08.2015, which is Annexure A22 to this OA; Balance and Security Confirmation Letter dated 12.08.2015, 28.02.2018, 23.03.2020 & 11.11.2021, which are Annexures A24 to A27 to this OA; Notices dated 09.12.2019, which is Annexure A28 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which is Annexure A29 to this OA.

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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.23,43,616.00, 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. Sh. Gulshan Mehta, Advocate appeared on behalf of defendants on 20.12.2023 and filed Power of Attorney but did not filed WS within stipulated period of time. Therefore, opportunity to file WS by the defendants was closed and defense was struck of on 07.10.2024. 7. In support of the OA, affidavit of Sh. Ramesh Kumar Dhir, Officer and Attorney holder, Punjab National Bank h as been filed. 8. Heard arguments of Ld. Counsel for applicant. None appeared on behalf of defendants for arguments. Perused record.

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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 Annexures A1 to A29 to this OA, it is proved that the defendants approached applicant for availing of the loans facilities which were 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.23,43,616.00 (Rupees Twenty Three Lacs Forty Three Thousand Six Hundred Sixteen 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 in relief clause has claimed interest @12.75%p.a. with monthly rests from 11.03.2022 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 @08.00%p.a. in the loan accounts 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 defendants are liable to pay to the applicant a total sum of Rs.23,43,616.00 (Rupees Twenty Three Lacs Forty Three Thousand Six Hundred Sixteen Only) jointly and severally, with costs, current and

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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 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 11.12.2024. 15. 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: 18.11.2024

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

Punjab National Bank v. Messrs Fins Crop Science and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Messrs Fins Crop Science and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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