Allowed

Punjab National Bank v. Amarjeet Singh

DRT16 Jan 2025OA/1295/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the applicant's request for recovery of Rs. 21,11,349.33p against the defendant for an irregular KCC loan. The court granted uniform simple interest at 8% per annum instead of the claimed rate.

What did the court decide?

Recovery of Rs. 21,11,349.33p with costs and simple interest at 8% p.a. Recovery Certificate issued.

Punjab National Bank versus Amarjeet Singh — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1295/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.10.2023

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DATE OF DECISION: 16.01.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970 having the head office at Plot No. 4, Sector 10, Dwarka, New Delhi 110075 and a branch amongst at Landran, through recovery vertical at Circle Sastra, SAS Nagar, Punjab 160055 through Sh. Maninder Pal Singh, Chief Manager, Principal Officer and duly constituted Attorney of the applicant.

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……..Applicant Versus Sh. Amarjeet Singh S/o Sh. Babu Singh, R/o #8, Village Chandiala, Tehsil Dera Bassi, District SAS Nagar, Punjab-140506

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….……Defendant

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Advocates:

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Argued by Sh. Anirudh 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.21,11,349.33p (Rupees Twenty One Lacs Eleven Thousand Three Hundred Forty Nine and Paisa Thirty Three only). The Original Application has been filed through Sh. Maninder Pal Singh, Chief Manager of the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 05.02.1998, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.12.50 Lacs vide application Form dated 04.09.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.12.50 Lacs vide sanction letter dated 24.09.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. total land measuring 16Bigha-0Biswa situated at Village Chadiala, Tehsil Dera Bassi, District SAS Nagar, Punjab vide Declaration u/s 4 (1) dated 09.09.2015 and along with its English Translation, which is Annexure A9 to this OA. Documents executed: Hypothecation Agreement, Letter of Undertaking, Declaration, Letter of Consent all dated 24.09.2015, which are Annexures A4 to A7 to this OA; Affidavit dated 24.08.2015, which is Annexure A8 to this OA; Letter of Creation of Charge dated 09.09.2015, which is Annexure A10 to this OA; Balance Confirmation Letter dated 01.09.2018 and 08.11.2021, which is Annexure A11 to this OA; Legal Notice dated 26.09.2023 along with its Postal Receipt, which is Annexure A12 to this OA and Statement of account along with Certificate which are Annexures A13 & A14 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.21,11,349.33p, 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 18.06.2024.

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In support of the OA, affidavit of Sh. Maninder Pal Singh, Chief Manager, Punjab National Bank has 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 A14 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.21,11,349.33p (Rupees Twenty One Lacs Eleven Thousand Three Hundred Forty Nine and Paisa Thirty Three 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 @11.50%p.a. along with penal interest @2.00%p.a. with yearly rests from 25.09.2023 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 @8.00%p.a. in

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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.21,11,349.33p (Rupees Twenty One Lacs Eleven Thousand Three Hundred Forty Nine and Paisa Thirty Three 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 25.02.2025. 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.

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Pronounced by me in the open Tribunal . Dated: 16.01.2025

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

Punjab National Bank v. Amarjeet Singh

Case brief

What is this about?

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Punjab National Bank v. Amarjeet Singh

Case brief

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