Allowed

Punjab National Bank v. M/S Som Nath and Bros. and Others

DRT8 Jan 2025OA/1061/2024

Case brief

AI extract

What is this about?

In an original application under the RDBFI Act, the Debts Recovery Tribunal allowed the bank's claim for the recovery of an NP A loan of Rs. 84,08,895.21 from the sole proprietor and his legal heirs and mortgagor. The Tribunal awarded simple interest at 8% per annum.

What did the court decide?

Recovery Certificate issued; Amount of Rs. 84,08,895.21 to be paid with 8% annual interest.

Punjab National Bank versus M/S Som Nath and Bros. and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1061/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.08.2024

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DATE OF DECISION: 08.01.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi 110075 and Branch office at New Anaj Mandi, Patiala, Punjab amongst others at Circle Office: Circel SASTRA Centre, Patiala, Punjab, through its General Power of Attorney Holder Sh. Paramjit Singh Sapra, Senior Manager of the applicant.

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……..Applicant Versus

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M/s Som Nath & Bros, a proprietorship concern having its place of business at SCF-45, New Grain Market, Phase-I, Sirhind Road, Patiala, Punjab-147001 through its Proprietor Sh. Rajesh Goyal S/o Shri Somnath.

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Sh. Rajesh Goyal (Since deceased) through his legal heirs:

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i.) Smt. Kanchan w/o Late Sh. Rajesh Goyal R/o SCF-45, New Grain Market, Phase-I, Sirhind Road, Patiala, Punjab- 147001.

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ii.) Shri Akshat Goyal S/o Late Sh. Rajesh Goyal, r/o SCF-45, New Grain Market, Phase-I, Sirhind Road, Patiala, Punjab147001.

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iii.) Smt. Eekshita Goyal d/o Late Sh. Rajesh Goyal, r/o SCF45, New Grain Market, Phase-I, Sirhind Road, Patiala, Punjab-147001.

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Smt. Santosh Rani w/o Late Sh. Som Nath r/o SCF-45, New Grain Market, Phase-I, Sirhind Road, Patiala, Punjab-147001.

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………. Defendants

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Advocates: Argued by Sh. Mohan Prasad, Advocate proxy for Sh. Pancham Sharma, Advocate for the applicant 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.84,08,895.21p (Rupees Eighty Four Lacs Eight Thousand Eight Hundred Ninety Five and Twenty One Paise Only). The Original Application has been filed through Sh. Paramjit Singh Sapra, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 28.11.2013, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant no.1 through its proprietor of defendant no.2 (since deceased) was already availing the Loan Facility of CC Limit Rs.5.00 Lacs and further from time to time approached the applicant for its enhancement upto Rs.80.00 Lacs and thereafter approached the applicant for GECL Term Loan of Rs.9.70 Lacs vide Loan Application dated 17.08.2020, which is Annexure A16 to this OA. 3. The applicant sanctioned CC Limit of Rs.5.00 Lacs and further sanctioned its renewal-cum-enhancement to Rs.80.00 Lacs vide Sanction Letters dated 07.06.2017, 27.07.018, 09.10.2020, 25.08.2022, which are Annexures A12 to A15, A18 & A19 to this OA and also sanctioned GECL Term Loan of Rs.9.70 Lacs vide Sanction Letter dated 18.02.2022 which is Annexure A17 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.3 had mortgaged her immovable properties, i.e. All Part and parcel of Plot No.R-15 now a commercial Shop bearing no.R-15 measuring 186.66 Sq. Yards situated at New Grain Market, Patiala, Punjab, vide Equitable Mortgaged of Sale Deed bearing vasika no.8438 dated 03.08.2004 which is Annexure A23 to this OA.

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Documents executed:- Sole Proprietorship Letter dated 19.07.2024, which is Annexure A1A to this OA; Agreement of Overdraft, Common Agreement and Agreement of Guarantee all dated 06.07.2013, which are Annexures A2 to A4 to this OA; Agreement of Overdraft, Common Agreement and Agreement of Guarantee all dated 19.07.2014, which are Annexures A5 to A7 to this OA; Supplementary Agreement, Agreement of Hypothecation of assets, Common Agreement and Agreement of Guarantee dated 24.06.2016 which are Annexures A8 to A11 to this OA; Master Agreement, Hypothecation of Goods and Book Debts and Agreement of Guarantee all dated 30.08.2022, which are Annexures A20 to A22 to this OA; Letter of Continuity dated 30.08.2022, which is Annexure A24 to this OA; Notice U/s 13(2) dated 06.11.2023, along with postal receipts which is Annexure A25 to this OA; Possession Notice dated 23.02.2024, which is Annexure A26 to this OA and Statement of Accounts along with Certificate under Banker’s Book Evidence Act, which is Annexure A27 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.84,08,895.21p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant no.1, legal heirs of deceased defendant no.2 i.e. 2(i), 2(ii) and 2(iii) and defendant no. 3 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 04.01.2025. 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.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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the applicant had proved its case. From the perusal of all the Annexures A1A, A1 to A27 to this OA, it is proved that the defendant no.1 through its proprietor defendant no.2 (since deceased) approached applicant for availing of the loans 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.84,08,895.21p (Rupees Eighty Four Lacs Eight Thousand Eight Hundred Ninety Five and Twenty One Paise 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.

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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 @11.40%p.a. with monthly rests from 01.07.2024 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 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 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 no.1, legal heirs of deceased defendant no.2 i.e. 2(i), 2(ii) and 2(iii) and defendant no.3 are liable to pay to the applicant a total sum of Rs.84,08,895.21p (Rupees Eighty Four Lacs Eight Thousand Eight Hundred Ninety Five and Twenty One Paise Only) jointly and

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severally, 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 from the sale of hypothecated/mortgaged properties of the defendant no.1, legal heirs of deceased defendant no.2 i.e. 2(i), 2(ii) and 2(iii) and defendant no.3 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 defendant no.1, legal heirs of deceased defendant no.2 i.e. 2(i), 2(ii) and 2(iii) and defendant no.3. 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 15.02.2025.

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Copy of this order be given dasti to the applicant and be sent to defendant no.1, legal heirs of deceased defendant no.2 i.e. 2(i), 2(ii) and 2(iii) and defendant no.3 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: 08.01.2025

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

Punjab National Bank v. M/S Som Nath and Bros. and Others

Case brief

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Punjab National Bank v. M/S Som Nath and Bros. and Others

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