Allowed

Punjab National Bank v. M/S Dinesh Creations

DRT1 Jan 2024TA/1/2023

Case brief

AI extract

What is this about?

The tribunal allowed an original application under RDB Act for recovery of a bank loan. After an ex-parte hearing, the court validated the claim and granted a Recovery Certificate for the principal amount plus 9% simple interest per annum.

What did the court decide?

Issued a Recovery Certificate for Rs. 43,65,950 plus 9% simple interest per annum from 08.06.2023. Directed execution against mortgaged property or personal assets if dues remain unsatisfied.

Punjab National Bank versus M/S Dinesh Creations — Execution and Attachment | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

¶2

TRANSFER APPLICATION NO.01/2023

¶3

DATE OF INSTITUTION: 08.06.2023

¶4

DATE OF DECISION: 01^st DAY OF JANUARY, 2024

¶5

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, and its Branches at different places including one at Chowk Amar Bhavan, Panipat, District Panipat (presently account is at Circle SASTRA Centre, Panipat, as per arrangement of the Bank for handling NPA accounts), through its Constituted Attorney/Senior Manager, Sh. Subhash Chander

¶6

…..Applicant

¶7

Versus

¶8

M/s Dinesh Creations, through Sole Proprietor, Sh. Parveen Pandey s/o Sh. Ashok Pandey r/o Samsan Road, Prachin Shiv Mandir Street, Desraj Colony, Panipat, District Panipat, Haryana132103

¶9

Sh. Parveen Pandey s/o Sh. Ashok Pandey

¶10

Smt. Shraddha Pandey w/o Sh. Ashok Pandey

¶11

Sh. Ashok Pandey s/o Sh. Brahmdev Pandey

¶12

All residents of House No. 78, Old Housing Board Colony, Panipat, District Panipat, Haryana-132103

¶13

…..Defendants

¶14

Argued by: Sh. Karan Dev Ray proxy counsel for Sh. Bhushan Bhatia, Advocate for the applicant bank Defendants ex parte vide order dated 30.12.2023

¶15

TA/01/2023 PUNJAB NATIONAL BANK Vs M/S DINESH CREATIONS AND OTHERS 2

¶16

FINAL ORDER

¶17

Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.43,65,950/(Rupees Forty Three Lac Sixty Five Thousand Nine Hundred and Fifty Only) . It has been filed through Sh. Subhash Chander, Constituted Attorney/Senior Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 01.06.2007, Annexure-A1 (copy).

¶18

The brief facts of the case of the applicant as per Original Application are that defendant No. 1 through defendant No. 2 had approached the applicant bank for grant of cash credit facility of Rs. 40 lac vide loan application dated 10.10.2016, Annexure-A2/1 (copy). Defendant Nos. 3 and 4 stood as guarantors for repayment of the loan.

¶19

The applicant bank sanctioned aforementioned credit facility to the vide sanction letter dated 19.10.2016, Annexure-A3 (copy), as per terms and conditions which were duly accepted by the defendants.

¶20

In order to secure the aforementioned credit facility, the defendants executed hypothecation of goods and book debts to secure cash credit facility agreement dated 20.10.2016, Annexure-

¶21

A4 (copy).

¶22

TA/01/2023 PUNJAB NATIONAL BANK Vs M/S DINESH CREATIONS AND OTHERS 3

¶23

The aforesaid loan was further secured by creation of mortgage by defendant No. 3 in respect of property measuring 65 Square Yard situated at House No. 78, EWS, Old Housing Colony within the limits of M.C. Panipat, Haryana, fully detailed in para No. 5.6 of the Original Application.

¶24

The documents relating to the mortgage are as under:

¶25

i. Registered sale deed dated 13.09.2005, Annexure-A5 (copy).

¶26

ii. Extract dated 21.10.2016 of title deed Register, AnnexureA5/1 (copy).

¶27

It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA on 12.09.2022. The defendants executed balance and security confirmation letter dated 29.04.2019 and 21.04.2022, AnnexuresA7 and A7/1 (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 16.09.2022 along with its postal receipts, Annexure-A6 (colly) (copy), but to no avail.

¶28

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.43,65,950/- (Rupees Forty Three Lac Sixty Five Thousand

¶29

Nine Hundred and Fifty Only) , is recoverable against the defendants as per statement of account, certified under Bankers’ Books Evidence Act, 1891, Annexure-A8 (copy).

¶30

Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

¶31

TA/01/2023 PUNJAB NATIONAL BANK Vs M/S DINESH CREATIONS AND OTHERS 4

¶32

Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, the defendants were proceeded against ex-parte vide order dated 30.12.2023 .

¶33

In support of contents of the OA, affidavit of evidence of Sh. Subhash Chander, Authorised Officer/Senior Manager of the applicant bank was filed.

¶34

This Tribunal has heard ex-parte arguments advanced by the learned proxy counsel and gone through the record carefully.

¶35

It was argued by the learned proxy counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A8 , it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.43,65,950/- (Rupees Forty Three

¶36

Lac Sixty Five Thousand Nine Hundred and Fifty Only) from the defendants.

¶37

In so far as pendent lite and future interest is concerned, the applicant bank in relief clause, has claimed rate of interest

¶38

@9.90% per annum plus penal interest @2% per annum. In

¶39

TA/01/2023 PUNJAB NATIONAL BANK Vs M/S DINESH CREATIONS AND OTHERS 5

¶40

sanction letter dated 19.10.2016, Annexure-A3 (copy), rate of interest has been mentioned @10.95% per annum.

¶41

This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. business , quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 3 being a female, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @9% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

¶42

In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.43,65,950/- (Rupees Forty Three Lac Sixty Five Thousand Nine Hundred and Fifty Only) with current and future simple interest @9% per annum w.e.f. 08.06.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at

¶43

TA/01/2023 PUNJAB NATIONAL BANK Vs M/S DINESH CREATIONS AND OTHERS 6

¶44

liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.

¶45

Issue Recovery Certificate accordingly.

¶46

Parties to appear before Recovery Officer concerned on 22.02.2024 .

¶47

Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be uploaded on the official website of this Tribunal.

¶48

Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Punjab National Bank v. M/S Dinesh Creations

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Dinesh Creations

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Vijay Thakur versus Punjab National Bank

Punjab National Bank versus Sh. Same Singh

Ms Shyam Trading Company and others versus Canara Bank

Laxmi Chaudhary versus Icici Bank Limited

Canara Bank versus Fathimabi

Icici Bank Limited versus Sh. Amarjeet Singh Bhatia