Allowed

Punjab National Bank v. Gajjan Singh

DRT16 Dec 2024OA/964/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed by Punjab National Bank under RDBFI Act, 1993 against a defendant who defaulted on a KCC loan. The court approved recovery of the principal and moderated interest to 8% p.a., permitting recovery from mortgaged properties or personal assets under the SARFAESI Act.

What did the court decide?

Recovery of Rs.41,25,767.45 with costs and simple interest @08.00%p.a.; Recovery Certificate issued; Defendant liable to pay from sale of mortgaged properties.

Punjab National Bank versus Gajjan Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.964/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 31.07.2024

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DATE OF DECISION: 16.12.2024

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and one of its Branch at Nabha, Tehsil Nabha District Patiala and Circle SASTRA Patiala, Tehsil ad District Patiala (Punjab) through its General Power of Attorney holder Sh. Paramjit Singh Sapra, Senior Manager of applicant bank.

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……..Applicant Versus

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Sh. Gajjan Singh son of Sh. Joginder Singh residents of Village Lohar Majra, Tehsil Nabha District Patiala, Punjab-147201.

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….……Defendant

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Advocates:

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Argued by Sh. Aseem Kataria, Advocate for Applicant Defendant is 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 defendant for recovery of Rs.41,25,767.45p (Rupees Forty One Lacs Twenty Five Thousand Seven Hundred Sixty Seven and Paise Forty Five Only). The Original Application has been filed through Sh. Paramjit Singh Sapra, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 28.11.2013, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 22.04.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 31Kanal-15Marla situated at Village Lohar Majra, H.B. No.199, Tehsil Nabha, District Patiala, Punjab vide Declaration under Section 4(1) d ated 11.05.2015 as per Jamabandi for the year 20092010 along with their translations, which are Annexures A6 & A8 to this OA. Documents executed:- Hypothecation Agreement & Letter of Undertaking both dated 15.05.2015, w hich are Annexures A4 & A5 to this OA; Request Letter dated 11.05.2015, which is Annexure A7 to this OA; Balance and Security Confirmation Letters dated 15.01.2018 & 11.01.2021, which are Annexures A9 & A10 to this OA; R ecall Notice dated 27.07.2022 along with postal receipt, which is Annexure A11 to this OA and Statement of Account with certificate, which is Annexure A12 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 adebit of Rs.41,25,767.45p, which is recoverable and the defendant 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 10.12.2024. 7. In support of the OA, affidavit of Sh. Paramjit Singh Sapra, Senior Manager, Punjab National Bank h as been filed. 8. Heard arguments and perused record 9. It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the

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Annexures A1 to A12 to this OA, it is proved that the defendant approached applicant 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 bank. 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 is entitled to recover a sum of Rs.41,25,767.45p (Rupees Forty One Lacs Twenty Five Thousand Seven Hundred Sixty Seven and Paise Forty Five Only) along with interest from the defendant, 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 @10.80%p.a. with rests from 16.07.2024 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 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 @08.00%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 defendant is liable to pay to the applicant a total sum of Rs.41,25,767.45p (Rupees Forty One Lacs Twenty Five Thousand Seven Hundred Sixty Seven and Paise Forty Five Only) with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount

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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 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. 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 30.01.2025. 15. 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. Pronounced by me in the open Tribunal . Dated: 16.12.2024

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

Punjab National Bank v. Gajjan Singh

Case brief

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Punjab National Bank v. Gajjan Singh

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