Allowed

Punjab National Bank v. Nirmal Singh

DRT23 Jan 2025OA/1237/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Punjab National Bank against Nirmal Singh for recovery of Rs.24,33,883.69. The court fixed a uniform simple interest rate of 8% per annum from the filing date and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendant declared liable to pay Rs.24,33,883.69 with simple interest at 8% p.a. from date of filing; Enforcement via sale of mortgaged and personal assets directed.

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

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1237/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 14.09.2023

¶4

DATE OF DECISION: 23.01.2025

¶5

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 a branch at Deepanwali, Gurudwara Bebe Nanki Ji, Sultanpur Lodhi, District Kapurthala, Punjab through Sh. Ankur Rawat, Senior Manager, posted at Circle Sastra Centre Kapurthala, Punjab and Attorney Holder.

¶6

……..Applicant Versus

¶7

Sh. Nirmal Singh S/o Sh. Jodh Singh, R/o Village Chananwindi PO Gidderpindi Sultanpur Lodhi, District Kapurthala, Punjab-144626

¶8

….……Defendant

¶9

Advocates:

¶10

Argued by Sh. Manish Singla, Advocate for the applicant Defendant is ex-parte

¶11

FINAL ORDER

¶12

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.24,33,883.69p (Rupees Twenty Four Lacs Thirty Three Thousand Eight Hundred Eighty Three and Paisa Sixty Nine only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

¶13

The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.5.00 Lacs and further for its enhancement to Rs.20.00 Lacs. Thereafter defendant again

¶14

¶15

approached the applicant for the Term Loan of Rs.1.00 Lacs and OD Limit of Rs. 00.50 Lacs.

¶16

The applicant sanctioned the KCC Limit of Rs.5.00 Lacs and further for its enhancement to Rs.20.00 Lacs vide Loan Application cum Sanction Letter dated 03.12.2011, which is Annexure A2 to this OA. The applicant further sanctioned the Term Loan of Rs.1.00 Lacs and OD Limit of Rs. 00.50 Lacs vide Loan Application cum Sanction Letters dated 19.01.2017 and 03.06.2020, which are Annexures A7 & A9 to this OA and the terms and conditions were duly accepted by the defendant.

¶17

Defendant had mortgaged his immovable property i.e. total land measuring 38K-11M situated at Village Chananwindi, Hadbast No. 183, Tehsil Sultanpur Lodhi, District Kapurthala, Punjab vide Registered Mortgage Deed bearing vasika no. 2624 dated 05.01.2012 and along with its English Translation, which is Annexure A6 to this OA. Documents executed: - Hypothecation Agreement, Letter Of Undertaking, Letter of Consent (Revised) all dated 11.01.2012, which are Annexures A3 to A5 to this OA; Hypothecation Agreement dated 19.01.2017 and 03.06.2020, which are Annexures A8 & A10 to this OA; Master Agreement dated 03.06.2020, which is Annexure A11 to this OA; Balance Confirmation Letters dated 30.10.2014, 04.03.2017, 26.09.2019, 17.10.2019 and 13.10.2022, which is Annexure A12 to this OA; Notice dated 20.03.2023 along with its Postal Receipt, which is Annexure A13 to this OA and Statement of accounts duly Certified (KCC), (TL) and (OD), which are Annexures A14 to A16 to this OA. 5. 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.24,33,883.69p, 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.

¶18

¶19

The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 26.06.2024

¶20

In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

¶21

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 A16 to this OA, it is proved that the defendant 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.24,33,883.69p (Rupees Twenty Four Lacs Thirty Three Thousand Eight Hundred Eighty Three and Paisa Sixty Nine only) along with interest from the defendant, from the date of filing of the present Original Application till realization of the account.

¶22

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed 10.50%p.a.in KCC, @11.15%p.a. in Term Loan and @9.10%p.a. in OD plus penal Interest @2.00%p.a. with half yearly rests in all from 01.04.2023 till the realization.

¶23

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

¶24

¶25

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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,33,883.69p (Rupees Twenty Four Lacs Thirty Three Thousand Eight Hundred Eighty Three and Paisa Sixty Nine 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 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 05.03.2025. 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: 23.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Nirmal Singh

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Nirmal Singh

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

Punjab National Bank versus Naresh Kumar and Others

Punjab National Bank versus Jagsir

Punjab National Bank versus Darshan Singh

Punjab National Bank versus Gurmit Singh and Another

Bank of Baroda versus Messrs Jain Mobile Centre and Gift Gallery and Another

Bank of Baroda versus Messrs Vivek Agro Industries and Another