Allowed

Punjab National Bank v. Jarnail Singh and Another

DRT17 Dec 2024OA/974/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of Rs.23,39,832.05p against two defendants who failed to repay a KCC loan. The court appointed a uniform simple interest rate of 8% per annum and directed the issuance of a recovery certificate. The order also authorized recovery through property sale under the SARFAESI Act.

What did the court decide?

Recovery of Rs.23,39,832.05p with 8% per annum interest from filing date; order to issue Recovery Certificate; case remanded to Recovery Officer for enforcement proceedings.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.974/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.08.2024

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DATE OF DECISION: 17.12.2024

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Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1980, having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank, Village Sheikhupur, Distt. Kapurthala, Punjab through Sh. Ankur Rawat who is presently working as Senior Manager, Punjab National Bank, Circle Sastra, PNB House, Satyanarayan Bazar, Near Natraj Hotel, Kapurthala, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant

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Versus

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Sh. Jarnail Singh S/o Sh. Mohinder Singh R/o of Village Hussainabad, Tehsil and District Kapurthala, Punjab. 2. Sh. Balwant Singh S/o Sh. Tara Singh R/o of Village Jhal Bibri, PO Bhulana, Tehsil and District Kapurthala, Punjab.

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….……Defendants

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Advocates:

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Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Mohinder Nath Sharma, Advocate for 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.23,39,832.05p (Rupees Twenty Three Lacs Thirty Nine Thousand Eight Hundred Thirty Two and Five Paisa Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, who is competent to institute the Original Application

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vide General 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 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan application dated 20.01.2015 which is Annexure A2 to this OA and further approached the applicant for its renewal vide Loan Application dated 20.06.2022 which is Annexure A14 to this OA. 3. The applicant sanctioned KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 20.01.2015, which is Annexure A3 to this OA and thereafter renewed the same vide Process Note cum Sanction Letter dated 30.06.2022 which is Annexure A15 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. total Land Measuring 38Kanal-13Marla situated at Village Bibri, Tehsil and District Kapurthala vide Letter to Sub-Registrar for creation of Charge and Declaration U/s 4 bearing Rapat no. 848 dated 06.08.2001 along with its translation, Title Report, Affidavit and Declaration, which are Annexures A4, A5, A6, A-6T & A7 to this OA Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent and Agreement of Guarantee dated 01.09.2015, which are Annexures A8 to A11 to this OA; Balance Confirmation Letters dated 20.02.2018, 01.02.2021 & 03.01.2024 which are Annexures A12, A13 & A17 to this OA; Master Agreement dated 30.06.2022 which Annexure A16 to this OA; Legal Notices dated 18.04.2024, which is Annexure A18 to this OA and Statement of Accounts along with certificate, which is Annexure A19 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.23,39,832.05p, which is recoverable and the defendants were served recall notices but they did not repay the

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outstanding 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 12.12.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat , Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 Annexure A1 to A19 to this OA, it is proved that the defendants 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.23,39,832.05p (Rupees Twenty Three Lacs Thirty Nine Thousand Eight Hundred Thirty Two and Five Paisa Only) along with interest from the 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. together with penal interest @2.00% p.a. with half yearly rests from 02.09.2023 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

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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 @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 defendants are liable to pay to the applicant a total sum of Rs.23,39,832.05p (Rupees Twenty Three Lacs Thirty Nine Thousand Eight Hundred Thirty Two and Five Paisa 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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 31.01.2025.

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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: 17.12.2024.

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

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Punjab National Bank v. Jarnail Singh and Another

Case brief

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Punjab National Bank v. Jarnail Singh and Another

Case brief

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