Allowed

Punjab National Bank v. Sh. Jagjit Singh

DRT8 Feb 2024OA/959/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's application under Section 19 RDBFI Act for recovery of Rs. 33,38,662 owed by the defendant. The Banker was served a recall notice which remained uncomplied with, leading to an ex-parte order declaring liability for the principal sum, costs, and future interest.

What did the court decide?

Declaratory order that defendant is liable to pay principal sum with simple interest at 10% per annum from the date of filing till realization, enforceable via sale of hypothecated properties.

Punjab National Bank versus Sh. Jagjit Singh — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.959/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 06.06.2022

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DATE OF DECISION: 08.02.2024

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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 Delhi 110075 and the successor of Oriental Bank of Commerce by Scheme of Amalgamation of Oriental Bank of Commerce, passed by the Central Government under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980, through one of its Branch amongst others at Patiala Circle, Sastra Centre, 2^nd Floor, Opposite Improvement Trust Building, Chotti Baradari, Patiala (Punjab) - 147101, through Sh. Abhinandan Modi, Senior Manager ……..Applicant Versus Sh. Jagjit Singh S/o Sh. Kirpal Singh R/o House No.102, Part1, Village Shergarh, Teshsil Patran & District Patiala, Punjab-147105 (Borrower) ….……Defendant Advocates: Argued by Sh. Ankit Kaushal, Advocate proxy for Sh. Ankit Sood, Advocate for the applicant Defendant is 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.33,38,662.00 (Rupees Thirty Three Lacs Thirty Eight Thousand Six Hundred Sixty Two only). The Original Application has been filed through Sh. Abhinandan Modi, Senior Manager of the applicant bank,

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who is competent to institute the Original Application vide Power of Attorney dated 30.12.2013, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant bank for the grant of OGC (Oriental Green Card) Limit of Rs.7.00 Lacs and Term Loan of Rs.8.00 Lacs vide Loan applications dated 05.01.2011. 3. The applicant Bank sanctioned the OGC (Oriental Green Card) Limit of Rs.7.00 Lacs and Term Loan of Rs.8.00 Lacs vide Loan applications dated 05.01.2011 and Sanction Letters dated 06.01.2011, which is Annexure A2 (Colly) to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. total agricultural land measuring 44K-18M situated at Village Shergarh, Tehsil Patran and District Patiala, Punjab vide Registered Mortgaged Deed bearing vasika no.4192 dated 06.01.2011 along with its English Translation , which is Annexure A3 (Colly) to this OA. Documents executed:- Agreement for Hypothecation, Agreement of Term Loan and Common Agreement all dated 07.01.2011, which are Annexures A4 to A6 to this OA; Balance Confirmation Letters dated 21.11.2013, 14.06.2016 & 26.05.2019, which are Annexures A7 to A9 to this OA; Recall Notice dated 02.12.2021, which is Annexure A10 to this OA; Statement of account along with certificate under Banker’s Book Evidence Act, which is Annexure A11 (Colly) to this OA and Voter Card, which is Annexure A12 to this OA. 5. The loan accounts became irregular and were classified as NPA on 30.12.2015 and after adjusting debit and credit entries in loan accounts there was a debit of Rs.33,38,662.00, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 26.12.2023.

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In support of the OA, affidavit of Sh. Abhinandan Modi, Senior 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 A12 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facilities which were granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.33,38,662.00 (Rupees Thirty Three Lacs Thirty Eight Thousand Six Hundred Sixty Two only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @12.50%p.a. along with @2%p.a. penal interest with half yearly rests in OGC and Term Loan Facility from 01.05.2022 till the realization. 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 defendant, 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

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just and appropriate to grant uniform simple interest @10.00%p.a. in both 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 defendant is liable to pay to the applicant a total sum of Rs.33,38,662.00 (Rupees Thirty Three Lacs Thirty Eight Thousand Six Hundred Sixty Two only), with costs, current and future simple interest @10.00%p.a. in both the loan accounts 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 defendant 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 defendant. 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 22.02.2024.

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Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 08.02.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. Sh. Jagjit Singh

Case brief

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Punjab National Bank v. Sh. Jagjit Singh

Case brief

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