Allowed

Punjab National Bank, v. Sh. Mela Singh and Others

DRT16 Jan 2024OA/944/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs. 23.10 lakhs against four respondents. The court upheld the bank's claim based on documentary evidence and fixed the interest rate at 10% p.a., ordering recovery via sale of mortgaged or personal assets.

What did the court decide?

Recovery of Rs. 23,10,810.00 with order to pay costs and future interest @10.00%p.a.; Recovery Certificate issued.

Punjab National Bank, versus Sh. Mela Singh and Others — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.944/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 25.04.2022

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DATE OF DECISION: 16.01.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi110075 and w.e.f. 01.04.2020 being the successor to Oriental Bank of Commerce in terms of Gazette of India Notification No. G.S.R. 153(E) dated 04.03.2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), after consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of the erstwhile Oriental Bank of Commerce into Punjab National Bank Scheme, 2020. The erstwhile Oriental Bank of Commerce’s Branch Office at Raikot, District Ludhiana (Punjab) now known as Punjab National Bank (E-OBC), Raikot, District Ludhiana (Punjab). Later on, the account has been maintained by Punjab National Bank, Circle SASTRA (West), Site No.5, PNB House, Ferozepur Road, Ludhiana (Punjab), through its General Power of Attorney holder, Sh. Ramesh Kumar Aggarwal posted as Deputy Manager of the Applicant Bank

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	…… Versus	Applicant
1.	Sh. Mela Singh S/o Sh. Kehar Singh, R/o Village Mange and District Barnala (Haryana)	wal, Tehsil
2.	Sh. Harmail Singh S/o Sh. Kehar Singh, R/o Village	Mangewal,
	Tehsil and District Barnala (Haryana)
3.	Sh. Hakam Singh S/o Sh. Kehar Singh, R/o Village	Mangewal,
	Tehsil and District Barnala (Haryana).

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Sh. Bhola Singh S/o Sh. Dhanna Singh, R/o Village Mangewal, Tehsil and District Barnala (Haryana)

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……Defendants

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Advocates:

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Argued by Sh. G.P. Bharti, 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.23,10,810.00 (Rupees Twenty Three Lacs Ten Thousand Eight Hundred and Ten only). The Original Application has been filed through Sh. Ramesh Kumar Aggarwal, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 24.09.2013, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of OGC Limit of Rs.12.00 Lacs vide Application Form-cum-Process Note for OGC Facility dated 13.01.2011, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the OGC Limit of Rs.12.00 Lacs vide Sanction Letter dated 11.02.2011, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant Nos. 1 to 3 had mortgaged his immovable properties i.e. total land measuring 23 Kanal 08 Marla situated in the area of Village Mangewal, Tehsil Barnala (Punjab), vide Registered Mortgage Deed bearing Vasika No.6999, Legal Scrutiny Report, Affidavit, Non Encumbrance Certificate all dated 13.01.2011 and Jamabandi for the

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year 2011-12; along with the translations, which is Annexure A4 (Colly) to this OA.

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Documents executed: - Agreement of Hypothecation dated 11.02.2011, which is Annexure A5 to this OA; Agreement of Guarantee dated 11.02.2011, which is Annexure A6 to this OA; Letter dated 11.07.2018, which is Annexure A7 to this OA; Balance and Security Confirmation Letters dated 23.12.2013, 30.12.2013, 20.12.2016 and 17.12.2019, which is Annexure A8 (colly) to this OA and Statement of account duly certified, which is Annexure A9 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.23,10,810.00, 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 21.11.2023.

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In support of the OA, affidavit of Sh. Ramesh Kumar Aggarwal, Deputy Manager, Punjab National Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A9 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

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NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.23,10,810.00 (Rupees Twenty Three Lacs Ten Thousand Eight Hundred and Ten 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 @10.60%p.a. with half yearly rests 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 @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.

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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.23,10,810.00 (Rupees Twenty Three Lacs Ten Thousand Eight Hundred and Ten only) jointly and severally, with costs, current and future simple interest @10.00%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

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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 05.02.2024. 15. 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. Pronounced by me in the Open Tribunal. Dated: 16.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank, v. Sh. Mela Singh and Others

Case brief

What is this about?

What did the court decide?

Punjab National Bank, v. Sh. Mela Singh and Others

Case brief

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