Allowed

Punjab National Bank v. Gurdip Kaur and Others

DRT27 Sept 2024OA/968/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Punjab National Bank against legal heirs for recovery of Rs.45.78 lakhs. The court accepted undisputed documentary evidence and granted uniform simple interest at 8.00% p.a., ordering recovery from mortgaged properties or attachment of assets.

What did the court decide?

Recovery of Rs.45,78,561.21p plus costs and simple interest at 8.00% p.a. from the mortgaged properties or by attachment and sale of personal assets.

Punjab National Bank versus Gurdip Kaur and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.968/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 13.06.2023

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DATE OF DECISION: 27.09.2024

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Punjab National Bank, a body corporate and a 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 Bholath, Tehsil and District Kapurthala thorugh its Constituted attorney and Principal Officer Sh. Ankur Rawat, Senior Manager posted at Circle Sastra Kapurthala, Punjab.

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……..Applicant

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Versus

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Smt. Gurdip Kaur W/o Sh. Nirmal Singh, R/o village Sidhwan Bet, Bholath, District Kapurthala, Punjab 144622 Represented through Legal Heir(s):-

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1(i) Sh. Kuldeep Singh S/o Sh. Nirmal Singh, R/o village Sidhwan Bet, Bholath, District Kapurthala, Punjab 144622 1(ii) Sh. Sukhjinder Singh S/o Sh. Nirmal Singh (also arrayed as defendant no. 2)

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2. Sh. Sukhjinder Singh S/o Sh. Nirmal Singh, R/o village Sidhwan Bet, Bholath, District Kapurthala, Punjab 144622

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………Defendants

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Advocates: Argued by Sh. Manish Singla, advocate for the applicant (through VC) 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 defendants for recovery of Rs.45,78,561.21p (Rupees Forty Five Lacs Seventy Eight Thousand

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Five Hundred Sixty One and Paisa Twenty One only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager who is competent to institute the Original Application vide Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 (since deceased) and defendant no.2 had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.20.00 Lacs vide Loan Application dated 30.12.2011, which is Annexure A3 to this OA.

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The applicant sanctioned the Cash Credit Limit (KCC) of 20.00 Lacs vide Sanction Letters dated 04.01.2012, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendant no.1 (since deceased) and defendant no.2. 4. Defendant no.1 (since deceased) had mortgaged her immovable properties i.e. total land measuring 32 Kanals situated at Village Sidhwan, Tehsil Bholath, District Kapurthala, Punjab vide Registered Mortgage Deed bearing vasika no.1937 dated 04.01.2012 along with its translations, which is Annexure A7 to this OA. Documents executed:- Amalgamation Scheme/ Gazette Notification dated 04.03.2020, which is Annexure A2 to this OA; Hypothecation Agreement, Common Agreement both dated 11.01.2012, which are Annexures A5 and A6 to this OA; Death Certificate dated 06.06.2022, which is Annexure A8 to this OA; Letter of Forbearance dated 22.07.2022, which is Annexure A9 to this OA; Balance and Security Confirmation letter dated 03.01.2015, 01.08.2017, 20.05.2019 and 24.07.2020, which are Annexures A10 to A13 to this OA; Notice dated 23.05.2023 with postal receipt, which is Annexure A14 to this OA and Statements of accounts duly Certified dated 13.06.2023, which is Annexure A15 to this OA.

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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.45,78,561.21p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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amount, therefore, the applicant 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 11.09.2024. 7. In support of the OA, affidavit of Sh. Ankur Rawat , Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 Annexures A1 to A15 to this OA, it is proved that the defendant no.1 (since deceased) and defendant no.2 approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.45,78,561.21p (Rupees Forty Five Lacs Seventy Eight Thousand Five Hundred Sixty One and Paisa Twenty One only) along with interest from the present defendants, jointly and severally, 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 in relief clause has claimed interest @11.50%p.a. plus penal Interest @2.00%p.a. with half yearly rests from 12.01.2023 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

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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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.45,78,561.21p (Rupees Forty Five Lacs Seventy Eight Thousand Five Hundred Sixty One and Paisa Twenty One only) jointly and severally, with costs, current and future simple interest @8.00%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 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 applicant 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 19.10.2024. 15. Copy of this order be given dasti to the applicant 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: 27.09.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Gurdip Kaur and Others

Case brief

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Punjab National Bank v. Gurdip Kaur and Others

Case brief

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