Allowed

Punjab National Bank v. Lakhvir Alias Lakhveer Singh

DRT12 Dec 2024OA/962/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the petition filed by Punjab National Bank to recover Rs. 25,59,076 along with costs from an agrarian drying-up loan. The court exercised discretion to grant uniform simple interest at 8% p.a., despite the claim of 13.5% plus penal interest. A recovery certificate was issued.

What did the court decide?

Recovery of Rs. 25,59,076 plus costs and simple interest at 8% p.a.; Issue of recovery certificate.

Punjab National Bank versus Lakhvir Alias Lakhveer Singh — Specific Performance | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.962/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.07.2023

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DATE OF DECISION: 12.12.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No.4, Sector 10 Dwarka, New Delhi 110075 and Branch Offices, amongst others at Branch Office at Sastra, Punjab National Bank, SCO 43, Phase 2, Mohali through Sh. Maninder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the Applicant.

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……..Applicant

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Versus

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Sh. Lakhvir Singh @ Lakhveer Singh son of Sh. Puran Singh, resident of Village Dharamgarh, Tehsil Dera Bassi, District S.A.S. Nagar

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….……Defendant

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Advocates:

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Argued by Sh. Jas Bains, Nodal Officer for Applicant Defendants are ex-parte

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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 defendant for recovery of Rs.25,59,076.00 (Rupees Twenty Five Lacs Fifty Nine Thousand And Seventy Six Only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.02.1998, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for grant of KCC Limit of Rs.14.00 Lacs vide Loan Application dated 14.06.2013, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.14.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA, and the terms and conditions were duly accepted by the defendants. 4. Defendant had mortgaged his immovable property i.e. total land measuring 6B-0B situated at Village Dharamgarh, Tehsil Dera Bassi Distt. SAS Nagar, Punjab vide Registered Mortgage deed bearing Vasika No. 3668 dated 25.06.2013, which is Annexure A10 to this OA. Documents executed:- Hypothecation Agreement, Letters of Undertaking, Letter of consent and Supplementary agreement all dated 29.06.2013, which are Annexures A4 to A8 to this OA; Affidavit dated 19.06.2013, which is Annexure A9 to this OA; Balance Confirmation Letters are dated 02.02.2015, 03.01.2018 & 29.12.2020, which are Annexures A11 to A13 to this OA; Legal Notice dated 06.09.2023, which is Annexure A14 to this OA; Statement of Account, which is Annexure A15 to this OA and Certificate of Banker’s book of evidence to this OA. 5. 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.25,59,076.00 which is recoverable and the defendant was 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 09.12.2024. 7. In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by Nodal Officer of applicant 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

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Annexures A1 to A15 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.25,59,076.00 (Rupees Twenty Five Lacs Fifty Nine Thousand And Seventy Six Only) along with interest from the defendant, 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 @13.50%p.a. plus penal interest @2%p.a. with yearly rests from 01.04.2023 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 defendant, quantum of loans 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 accounts 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 defendant is liable to pay to the applicant a total sum of Rs.25,59,076.00 (Rupees Twenty Five Lacs Fifty Nine Thousand And Seventy Six 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

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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 applicant 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 28.01.2025 15. Copy of this order be given Dasti to the applicant 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: 12.12.2024

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

Punjab National Bank v. Lakhvir Alias Lakhveer Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Lakhvir Alias Lakhveer Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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