Allowed

Punjab National Bank v. Darshan Singh

DRT21 Jan 2025OA/1143/2024

Case brief

AI extract

What is this about?

The DRT allowed an Original Application under Section 19 RDBFI Act for recovery of a defaulted agricultural loan. The bank proved the loan and security documents via ex-parte procedure. The Tribunal adjusted the claimed interest rate to 8% p.a. and issued a recovery certificate.

What did the court decide?

Recovery Certificate issued for Rs.26,49,196.50p plus costs and simple interest at 8% p.a. from the date of filing the OA.

Punjab National Bank versus Darshan Singh — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1143/2024

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.02.2024

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DATE OF DECISION: 21.01.2025

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Punjab National Bank, (Erstwhile Oriental Bank of Commerce) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No. 04, Sector 10 Dwarka, New Delhi 110075 and amongst others a Branch Office at Mukar Polytechnic Rajpura Branch, District Patiala, Punjab through Sh. Gurcharan Singh, Senior Manager and Attorney Holder, presently at Circle SASTRA Centre, Patiala.

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……..Applicant Versus Sh. Darshan Singh S/o Sh. Ujagar Singh, R/o Village Rurki, Sub-Tehsil Ghanour, Tehsil Rajpura, District Patiala (Punjab)

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….……Defendant

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Advocates:

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Argued by Ms. Anuradha Gupta, 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 defendants for recovery of Rs.26,49,196.50p (Rupees Twenty Six Lacs Forty Nine Thousand One Hundred Ninety Six and Fifty Paise 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 14.09.2007, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant had approached the applicant for the grant of OGC Limit of Rs.10.00 Lacs vide Loan application dated 05.09.2012, which is Annexure A2 to this OA.

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The applicant sanctioned the OGC Limit of Rs.10.00 Lacs vide Sanction Letter dated 05.09.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. agricultural land measuring 9B-16B situated at Village Ghanour, Tehsil Rajpura, District Patiala, Punjab vide Registered Mortgaged Deed bearing vasika No. 1034 dated 03.09.2012 along with its English Translation, which are Annexures A5 & A6 to this OA. Documents executed:- Copy of Agreement for Hypothecation and Copy of First to Fifth Schedule both dated 05.09.2019, which are Annexures A4 & A7 to this OA; Copy of Balance Confirmation Letter dated 25.02.2021, which is Annexure A8 to this OA; Copy of Statement of Account, which is Annexure A9 to this OA; Copy of Legal Notice dated 21.12.2023, which is Annexure A10 to this OA and Copy of Certificate, which is Annexure A11 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.26,49,196.50p, which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 10.01.2025.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager, Punjab National Bank, h as been filed. 8. Heard arguments and perused record. 9. 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 A11 to this OA, it is proved that the defendant

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approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.26,49,196.50p (Rupees Twenty Six Lacs Forty Nine Thousand One Hundred Ninety Six and Fifty Paise only) along with interest from the defendant, 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 @11.50%p.a. along with penal interest @2.00%p.a. with monthly rests from 15.02.2024 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 defendant, 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 @8.00%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 defendant is liable to pay to the applicant a total sum of Rs.26,49,196.50p (Rupees Twenty Six Lacs Forty Nine Thousand One Hundred Ninety Six and Fifty Paise only), 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

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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 applicant 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.03.2025. 15. 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. Pronounced by me in the open Tribunal. Dated: 21.01.2025

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

Punjab National Bank v. Darshan Singh

Case brief

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Punjab National Bank v. Darshan Singh

Case brief

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