Allowed

Punjab National Bank v. Jagsir

DRT22 Jan 2025OA/1270/2023

Case brief

AI extract

What is this about?

The DRT allowed an application by Punjab National Bank for recovery of Rs. 26,78,277.87p against a borrower who failed to repay a sanctioned KCC loan. The Tribunal decreed the principal amount plus 8% simple interest from the date of filing, ordering recovery from mortgaged and personal assets.

What did the court decide?

Recovery of Rs. 26,78,277.87p with costs and simple interest @ 8% p.a. from the date of filing till realization.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1270/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.10.2023

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DATE OF DECISION: 22.01.2025

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Punjab National Bank, a Body Corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No.4, Sector-10, Dwarka New Delhi110075 and branch offices amongst others at Branch Office Badhai Tehsil and District Shri Muktsar Sahib (Punjab). Later on the account has been maintained by Punjab National Bank, Circle Sastra, Abohar Road, Fazilka (Punjab) through its Senior Manager cum Dy. Circle Sastra Head who is constituted Attorney and Principal Officer.

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……..Applicant

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Versus

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Sh. Jagsir S/o Sh. Mukhtiar Singh, R/o Village Ramgarh, Tehsil and District Muktsar Sahib (Punjab).

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….……Defendant

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Advocates:

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Argued by Sh. P.K. Khurana, Advocate for Applicant Defendants is ex parte

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.26,78,277.87p (Rupees Twenty Six Lacs Seventy Eight Thousand Two Hundred Seventy Seven and Paise Eighty Seven Only). The Original Application has been filed through Sh. Ravinder Mohan Goyal, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 16.03.2007, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 08.01.2018, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 19.01.2018 filed in compliance of the order dated 19.08.2024 vide diary no.15369 dated 25.09.2024 and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable properties i.e. total land measuring 80Kanal-00Marla situated at Village Ramgarh, Hadbast No.115, Tehsil and District Sri Muktsar Sahib (Punjab) vide Declaration u/s 4(1) dated 19.01.2018, which is Annexure A3 to this OA. Documents executed:- Hypothecation agreement, Letter of Undertaking, Letter of consent, Consent Letter, Declaration all dated 19.04.2018, which are Annexures A4 to A8 to this OA; Letters/ Communication & Legal Notice dated 08.08.2019 & 25.04.2023, which is Annexure A9 to this OA; Balance & security confirmation dated 23.12.2020, which is Annexure A10 to this OA and Statement of Account with certificate under Banker’s Books Evidence, which is Annexure A11 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.26,78,277.87p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 11.07.2024. 7. In support of the OA, affidavit of Sh. Ravinder Mohan Goyal, Branch Manager, Punjab National Bank h as been filed. 8. 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 A11 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 bank. 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.26,78,277.87p (Rupees Twenty Six Lacs Seventy Eight Thousand Two hundred seventy seven and paise Eighty Seven 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 bank in relief clause has claimed [email protected]%p.a. along with penal interest @2.00%p.a. with half yearly rests from 31.07.2023 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 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 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.26,78,277.87p (Rupees Twenty Six Lacs Seventy Eight Thousand

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Two hundred seventy seven and Paise Eighty Seven Only) 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 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 04.03.2025.

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Copy of this order be given Dasti to the applicant bank 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: 22.01.2025

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

Punjab National Bank v. Jagsir

Case brief

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Punjab National Bank v. Jagsir

Case brief

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What did the court decide?

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