The Delhi High Court affirmed the order of the DRT allowing the recovery of the loan amount with adjusted interest.
The application was allowed, declaring the defendants liable to pay the outstanding amount with costs and interest.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.954/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 15.06.2022
DATE OF DECISION: 20.07.2024
Punjab National Bank, a body corporate and nationalized Bank constituted 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 others a Branch at Nangal Township, Nangal, Disrict Ropar, Punjab and a Circle SASTRA Division SAS Nagar (Mohali) Tehsil and District SAS Nagar (Mohali) through its General Power of Attorney holder Sh. Ravi Kumar, Chief Manager presently posted at its Circle SASTRA Office at SAS Nagar (Mohali)
……..Applicant
Versus
(Partners/Borrowers/Guarantors/Mortgagors)
a) Smt. Sudesh, widow
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c) Ms. Renu, daughter
| R/o 93-94, Kiln Area, Nangal Township, District Ropar 8. Ms. Neha D/o Late Sh. Ashok Kumar, R/o 93-94, Kiln Area, Nangal Township, District Ropar |
|---|
| 9. Sh. Dilbagh Chand S/o Sh. Parmeshwari Dass, R/o 93-94, Kiln Area, Nangal Township, District Ropar (Guarantors/Mortgagors) |
| 10.Sh. Rajinder Pal Rana S/o Parmeshwari Dass, R/o 93-94, Kiln Area, Nangal Township, District Ropar (Guarantor) ….……Defendants Advocates: |
| Argued by Sh. Rajinder Kumar Joshi, Advocate for the applicant Sh. Akhilesh Vyas, Advocate for the defendant Nos.1 to 3 Defendant Nos.4 to 10 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.4,02,34,580.00 (Rupees Four Crores Two Lacs Thirty Four |
| Thousand Five Hundred and Eighty only). The Original Application has |
| been filed throughSh. Ravi Kumar, Chief Managerof the applicant |
| bank, who is competent to institute the Original Application vide Power of Attorney dated 17.11.2009, which isAnnexure A1to this OA. |
| 2. The brief facts of the OA are that the defendant No.1 through its |
| partners i.e. defendant Nos.2 and 3 were already availing credit facility |
| of Rs.2.00 Crores and had approached the applicant bank for its enhancement to Rs.3.00 Crores vide Loan Application Letter dated |
| 03.11.2012, which isAnnexure A3to this OA. Defendant No.4 to 10 stood as guarantors. |
| 3. The applicant Bank sanctioned the enhancement of Cash Credit |
| Limit to Rs.3.00 Crores vide Sanction Letter dated 03.11.2012, which isAnnexure A4to this OA and further renewed it vide Sanction Letter |
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dated 04.05.2018, which is Annexure A29 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties detailed as under:a) Land measuring 01 Kanal 09 Marla situated at Village Humbewal, H.B. No.281, Tehsil Nangal, District Ropar, Punjab owned by defendant Nos.3, 7 and 9 vide TDR creating/extending mortgage dated 06.11.20212, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika no.17 dated 05.04.2007 along with its translation, which are Annexures A8 to A10 and A10-T to this OA; b) Land measuring 00 Kanal 16 Marla situated at Village Humbewal, H.B. No.281, Tehsil Nangal, District Ropar, Punjab owned by defendant Nos.2 and 3 vide TDR creating/extending mortgage dated 06.11.2012, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika No.344 dated 29.05.2007 along with its translation, which are Annexures A11 to A13 and A13-T to this OA; c) Land measuring 00 Kanal 14 Marla situated at Village Agampur, H.B. No.360, Anandpur Sahib, Punjab owned by defendant Nos.5, 6 and 8 vide TDR creating/extending mortgage dated 06.11.2012, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika No.378 dated 17.08.1998 along with its translation, which are Annexures A14 to A16 and A16-T to this OA; d) Land measuring 00 Kanal 10 Marla situated at Village Humbewal, H.B. No.281, Tehsil Nangal, District Ropar, Punjab owned by defendant Nos.2, 3 and 8 vide TDR creating/extending mortgage dated 06.11.20212, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika No.816 dated 12.11.1998 along with its
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translation, which are Annexures A17 to A19 and A19-T to this OA;
e) Land measuring 01 Kanal 16 Marla situated at Village Dhobetta, H.B. No.280, Tehsil Nangal, District Ropar, Punjab owned by defendant Nos.2, 3 and 8 vide TDR creating/extending mortgage dated 06.11.20212, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika No.1001 dated 24.12.1998 along with its translation, which are Annexures A20 to A22 and A22-T to this OA;
f) Land measuring 01 Kanal 04 Marla situated at Village Dhobetta
now Preet Nagar, Nangal, Ropar, Punjab owned by defendant No.4 vide TDR creating/extending mortgage dated 06.11.20212, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika No.1322 dated 21.12.2009 along with its translation, which are Annexures A23 to A25 and A25-T to this OA;
g) Land measuring 00 Kanal 14 Marla situated at Village Dhobetta now Preet Nagar, Nangal, Ropar, Punjab owned by defendant No.4 vide TDR creating/extending mortgage dated 06.11.20212, Letter of continuity dated 07.11.2012 and Equitable mortgage of Sale Deed bearing vasika no.1525 dated 06.01.2009 along with its translation, which are Annexures A26 to A28 and A28-T to this OA.
Documents executed:- Partnership deed dated 19.05.2012, which is Annexure A2 to this OA; Deed of hypothecation of goods and book debts, Agreement of guarantee, all dated 06.11.2012, which are Annexures A5 and A6 to this OA; Undertaking, which is Annexure A2 to this OA; Balance and security confirmation letters dated 08.01.2015, 03.10.2017, 01.01.2018, 04.05.2018 and 10.06.2020, which are Annexures A30 to A34 to this OA; Recall notice/invocation of guarantee to defendants dated 30.06.2021 with postal receipts, which is Annexure A35 to this OA; Demand notice u/s 13(2) of
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SARFAESI Act dated 08.07.2021, which is Annexure A36 to this OA; Statements of accounts along with Rate of Interest charged, which are Annexures A37 to A39 to this OA; Non encumbrance certificate dated 05.12.2017 and 01.11.2017, which are Annexures A40, A42, A44, A46, A48, A50 and A52 to this OA; Valuation report dated 04.12.2017 and 02.12.2017, which are Annexures A41, A43, A45, A47, A49, A51 and A53 to this OA.
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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.4,02,34,580.00 (Rupees Four Crores Two Lacs Thirty Four Thousand Five Hundred and Eighty 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.
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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.4,02,34,580.00 (Rupees Four Crores Two Lacs Thirty Four Thousand Five Hundred and Eighty 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
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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 08.08.2024. 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: 20.07.2024
(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh
3 issues framed by the court
Whether the bank is entitled to recover the outstanding loan amount with interest from the borrowers and guarantors.
The appropriate rate of interest to be charged on the outstanding amount.
Whether the application for recovery certification and sale of properties should be allowed.
1 provisions across 1 enactments
Punjab National Bank
M/s R R Wine Traders
Sh. Raman Kumar
Sh. Sanjeev Kumar
Smt. Savitri Devi
Sh. Rajeev Kumar
MRIDULESH KUMAR SINGH
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
