Allowed

Punjab National Bank v. Smt. Jogta

DRT23 Jan 2024OA/937/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application for recovery of Rs.37,00,824 from borrowers and guarantor. The court ordered joint and several liability payable within prescribed interest rates and authorized execution via property sale if dues remained unsatisfied.

What did the court decide?

Application allowed; defendants liable to pay Rs.37,00,824 with interest @7.55%; Recovery Certificate issued; sale of properties authorized.

Punjab National Bank versus Smt. Jogta — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.937/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.03.2022

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DATE OF DECISION: 23.01.2024

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Punjab National Bank, a body corporate constituted under Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 and Branch Offices, amongst others at Branch Office Sarabha Nagar, Ludhiana, Punjab. Later on the account has been transferred to Punjab National Bank, Circle SASTRA Centre (West), Site No.5, PNB House, Ferozepur Road, Ludhiana (Punjab) through its General Power of Attorney holder, Sh. Sonu posted as Chief Manager of the applicant bank

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……..Applicant

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Versus

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1. Smt. Jogta W/o Sh. Munish Kumar, R/o B-1-704/12, Street No.12, Aare Wali Gali, Ward No.29, Prem Nagar, Ludhiana, Punjab

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1. Sh. Piyush Sharma S/o Sh. Munish Kumar, R/o B-1-704/12, Street No.12, Aare Wali Gali, Ward No.29, Prem Nagar, Ludhiana, Punjab (Borrowers)

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1. Sh. Munish Kumar S/o Sh. Ved Parkash Sharma, R/o B-1-704/12, Street No.12, Aare Wali Gali, Ward No.29, Prem Nagar, Ludhiana, Punjab (Guarantor)

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………Defendants

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Advocates: Argued by Sh. Sachin Sharma, counsel proxy for Sh. P.K. Khurana, counsel for the applicant Defendants are 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 defendants for recovery of Rs.37,00,824.00 (Rupees Thirty Seven Lacs Eight Hundred and Twenty Four only). The Original Application has been filed through Sh. Sonu, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 22.11.2014, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant nos.1 and 2 had approached the applicant bank for the grant of Housing Loan of Rs.32.00 Lacs vide Loan Application dated 13.05.2019, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Housing Loan of Rs.32.00 Lacs vide Sanction Letter dated 17.05.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged her immovable property i.e. all part and parcel of House No. B-1-704/12 measuring 99 Sq. yards situated at Village Muhal Bhaggat, H.B. No.164, Abadi Prem Nagar, Gali No.2, Civil Lines, Tehsil and District Ludhiana, Punjab vide Registered Sale Deed bearing Vasika No.1/5196 dated 24.05.2019, Title Investigation report dated 29.04.2019, Valuation report dated 25.03.2019 alongwith their translations and Mortgage Deed dated 17.05.2019, which are Annexures A4 (Colly) and A8 to this OA. Documents executed:- Agreement of housing loan and Agreement of guarantee both dated 17.05.2019, which are Annexures A5 and A6 to this OA; Property declaration form and Undertaking both dated 11.06.2019, which are Annexures A7 and A9 to this OA; Legal notice u/s 138 with registered postal receipt along with Return memo dated 17.01.2020 and 20.12.2019, which is Annexure A10 (Colly) to this

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OA; Notice u/s 13(2) and registered postal receipt dated 16.11.2021, which is Annexure A11 to this OA and Statement of account along with interest chart and Certificate under Banker’s Book of Evidence Act, 1891, which is Annexure A12 (Colly) 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.37,00,824.00, 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.

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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 29.12.2023.

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In support of the OA, affidavit of Sh. Sonu, Chief 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 A1 to A12 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.37,00,824.00 (Rupees Thirty Seven Lacs Eight Hundred and Twenty Four 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 @7.55%p.a. from the date of filing of this Application 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 @7.55%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.37,00,824.00 (Rupees Thirty Seven Lacs Eight Hundred and Twenty Four only) jointly and severally, with costs, current and future simple interest @7.55%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. 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 09.02.2024.

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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.

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Dated: 23.01.2024

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

Punjab National Bank v. Smt. Jogta

Case brief

What is this about?

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Punjab National Bank v. Smt. Jogta

Case brief

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