Allowed

Punjab National Bank v. Chander Shekhar Arora

DRT22 Jul 2024OA/964/2022

Case brief

AI extract

What is this about?

This court allowed an Original Application filed by Punjab National Bank for recovery of a debt of Rs.57.73 lakhs against three respondents. It modified the claimed interest rate and directed the issuance of a Recovery Certificate and attachment of properties.

What did the court decide?

Recovery of Rs.57,73,206.04 p plus costs and simple interest at 7.75% p.a.; issuance of Recovery Certificate; liberty to enforce through due process.

Punjab National Bank versus Chander Shekhar Arora — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.964/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.04.2022

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DATE OF DECISION: 22.07.2024

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Punjab National Bank, a body corporate, duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, with its Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075 and one of the branch at Retail Asset branch, Partap Road, Moga, Punjab, through its authorized officer and General Attorney Sh. Sandeep Kumar, Senior Manager, Circle Sastra, 1^st Floor, Partap Road, Branch-Moga, 142001, Punjab

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……..Applicant

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Versus

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Sh. Chander Shekhar Arora S/o Sh. Rakesh Kumar

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Smt. Riphy Arora W/o Sh. Chander Shekhar Arora

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Smt. Sunita Rani W/o Sh. Rakesh Kumar

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All Residents of Flat No. A1, Roop Vihar, Arra Road, Near Arun Aggarwal Nursing Home, Moga-142001, Punjab

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2^nd Address:- All Residents of V.P.O. Fatehgarh, Panjtoor Moga, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, counsel proxy for Sh. Sumeet Sehgal, 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.57,73,206.04p (Rupees Fifty Seven Lacs Seventy Three Thousand Two Hundred Six and Paisa Four only). The Original Application has been filed through Sh. Sandeep Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application

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vide Power of Attorney dated 04.11.2016, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant bank for the grant of Term Loan of Rs.67.00 Lacs under Mortgage Loan Scheme and Vehicle Loan of Rs. 10.00 Lacs vide Loan application dated 25.07.2017 and 28.07.2017, which are Annexures A3 & A4 to this OA. Defendant No. 3 stood as guarantor. 3. The applicant Bank sanctioned the Term Loan of Rs.67.00 Lacs under Mortgage Loan Scheme vide Memorandum of Sanction dated 31.08.2017, which is Annexure A5 to this OA and sanctioned Vehicle Loan of Rs. 10.00 Lacs vide Sanction Letter dated 28.07.2017, which is Annexures A6 to this OA and the terms and conditions were duly accepted by the defendants. 4. (a) Defendant No.3 had mortgaged her immovable commercial properties i.e. total land measuring 0K- 06M through equitable mortgage detailed as:-

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(i) Land measuring 0K-02M situated at Mohalla Angandpura, Area Kishanpura, Moga Jeet Singh-1, Tehsil and District Moga (Punjab) vide equitable mortgage of Sale Deed bearing vasika No.3433 dated 26.11.2015 and (ii) Land measuring 0K-04M situated at Mohalla Angandpura, Area Kishanpura, Moga Jeet Singh-1, Tehsil and District Moga (Punjab) vide equitable mortgage of Sale Deed bearing v asika No.5237 dated 15.10.2007 along with their Translations, which are Annexures A13 to A16 to this OA; Jamabandi for the year 2013-14 with lien mark in favour of applicant bank, along with its translation, which are Annexures A11 & A12 to this OA and LTR 21 dated 01.09.2017, which is Annexure A9 to this OA. (b) Defendant No.1 has also hypothecated movable property i.e. Car namely Hyundai Creta 1.4 S DSL (White Colour) bearing registration No. PB-29Z-7927, Engine No. D4FCHM387137 and Chassis Number MALC281RLHM285752 vide Agreement of Term

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Loan dated 28.07.2017, which is Annexures A18 to this OA and Certificate of Registration of Vehicle dated 29.07.2017 bearing hypothecation in favour of the applicant bank, which is Annexure A19 to this OA.

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Documents executed:- Gazette Notification, which is Annexure A1 to this OA; Common Agreement, Agreement of Term Loan both dated 31.08.2017, which are Annexures A7 & A8 to this OA; Balance and Security Confirmation dated 27.02.2020, which are Annexures A10 & A20 to this OA; Common Agreement dated 28.07.2017, which is Annexures A17 to this OA; Notices dated 01.11.2019 u/s 13(2) of SARFAESI Act along with postal Receipts, which are Annexures A21 to A30 to this OA and Account Statements along with Certificate regarding the Computer System and the genuineness of the Statement of Account being prepared through Computer System, which are Annexures A31 & A32 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.57,73,206.04p, 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 18.05.2024.

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In support of the OA, affidavit of Attorney Sh. Sandeep Kumar, Senior Manager, Punjab National Bank h as 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 A32 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

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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, accounts of the defendants 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.57,73,206.04p (Rupees Fifty Seven Lacs Seventy Three Thousand Two Hundred Six and Paisa 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 accounts.

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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 @9.50% p.a. plus penal interest @2%p.a. in Term Loan Account and @7.75%p.a. plus penal interest @2%p.a. in Vehicle Loan Account with monthly rests in both, from 25.03.2022 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 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 @7.75%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.57,73,206.04p (Rupees Fifty Seven Lacs Seventy Three Thousand Two Hundred Six and Paisa Four only) jointly and severally, with costs, current and future simple interest @7.75%p.a. in 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 defendants in execution proceedings if not sold earlier under the

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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 09.08.2024. 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.

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Pronounced by me in the open Tribunal . Dated: 22.07.2024

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

Punjab National Bank v. Chander Shekhar Arora

Case brief

What is this about?

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Punjab National Bank v. Chander Shekhar Arora

Case brief

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