Allowed

Punjab National Bank v. Sukhdev Singh

DRT18 Nov 2024OA/995/2023

Case brief

AI extract

What is this about?

The DRT allowed the bank applicant's application for recovery of Rs. 26,65,713.24 from the defendant, validating the loan agreement and NPA classification. The court awarded 08% simple interest pending realization and authorized recovery via sale of mortgaged or personal assets.

What did the court decide?

Directed payment of Rs.26,65,713.24 with 08% simple interest, allowing recovery from mortgaged or personal assets, and issue of Recovery Certificate.

Punjab National Bank versus Sukhdev Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.995/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.07.2023

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DATE OF DECISION: 18.11.2024

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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 office at Basantpura, Rajpura, Patiala, Punjab through Sh. Gurcharan Singh, Senior Manager and Attorney holder presently posted at Circle Sastra Centre, Patiala.

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……..Applicant

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Versus

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Sh. Sukhdev Singh son of Sh. Gurbax Singh resident of Village Balsuan PO Basantpura, Rajpura, Patiala-140401.

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….……Defendant

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Advocates: Argued by Sh. Manish Singla, Advocate for the applicant Defendant is 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.26,65,713.24p (Rupees Twenty Six Lacs Sixty Five Thousand Seven Hundred Thirteen and Paise Twenty Four Only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.02.2019, 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 the grant of KCC Limit of Rs.17.00 Lacs and Term

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Loan of Rs.1.00 Lacs vide Loan Application dated 25.05.2015, which is Annexure A2 to this OA.

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The applicant sanctioned KCC Limit of Rs.17.00 Lacs and Term Loan of Rs.1.00 Lacs vide Sanction Letter dated 25.05.2015 in compliance of order dated 06.09.2024 vide diary no.15930 dated 05.10.2024 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. Agriculture Land measuring 20Bigha-10Biswa situated at Village Balsua, Tehsil Rajpura & District Patiala vide Registered Mortgaged Deeds bearing vasika No. 6129 dated 26.03.2002 & vasika No.4437 dated 16.08.2011 and Declaration under Section 4(1) dated 01.06.2015 along with their translations, which are Annexures A6 to A8 to this OA.

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Documents executed:- Hypothecation Agreement, Letter of Undertaking & Letter of Undertaking all dated 08.06.2015, which are Annexures A3 to A5 to this OA; Balance and Security Confirmation Letters dated 02.06.2016, 22.06.2018, 01.06.2019 & 15.06.2021, which are Annexures A9 to A14 to this OA; Notice dated 15.06.2022, which is Annexure A15 to this OA and Statement of Accounts duly certified, which are Annexures A16 & A17 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.26,65,713.24p, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 06.08.2024.

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In support of the OA, affidavit of Sh. Gurcharan Singh, 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 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 Annexures A1 to A17 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities 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 loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,65,713.24p (Rupees Twenty Six Lacs Sixty Five Thousand Seven Hundred Thirteen and Paise Twenty Four Only) along with interest from the defendant, 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 in relief clause has claimed interest @12.00%p.a. along with penal interest @2% with half 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 @08.00%p.a. in

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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.26,65,713.24p (Rupees Twenty Six Lacs Sixty Five Thousand Seven Hundred Thirteen and Paise Twenty Four Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in 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 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.

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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 11.12.2024.

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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 .

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Dated: 18.11.2024

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

Punjab National Bank v. Sukhdev Singh

Case brief

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Punjab National Bank v. Sukhdev Singh

Case brief

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