Allowed

Punjab National Bank v. Raghbir Singh

DRT20 Jan 2025OA/176/2024

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the applicants bank original application for recovery of Rs. 44 lakhs. The court reduced the claimed interest rate to 8% per annum considering market trends, and authorized enforcement via sale of mortgaged properties or personal assets if dues remained unsatisfied.

What did the court decide?

Recovery of Rs. 44,45,413.00 with simple interest @8% p.a. authorized, to be recovered from sale of mortgaged/mortgaged properties or personal assets.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.176/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.01.2024

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DATE OF DECISION: 20.01.2025

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Punjab National Bank, a body corporate constituted under Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and its substitution being the Transferee Bank to the then Applicant Bank i.e. erstwhile United Bank of India by virtue of Order of the Central Govt. Published in the Gazette Notification No.153(E) dated 04.03.2020; United Bank of India have been amalgamated with Punjab National Bank under Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 and Branch Offices, amongst others at Branch Office at Circle Office: Circle Sastra Centre, SAS Nagar (Mohali), 2^nd floor, SCO No.43, Sector 54, Phase II, SAS Nagar Mohali, Punjab 160055, through its General Power of Attorney Holder Sh. Ravi Kumar, Chief Manager of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Raghbir Singh S/o Sh. Sohan Singh, R/o H.No.122, Vill. Dahir, Tehsil Dera Bassi, District SAS Nagar (Mohali).

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….……Defendant

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Advocates:

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Argued by Ms. R.K. Grewal, Advocate for Applicant (through VC) Defendant 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.44,45,413.00 (Rupees Forty Four Lacs Forty Five Thousand Four

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Hundred Thirteen Only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager o f the applicant bank, who is competent to institute the Original Application.

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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.3.00 Lacs vide Loan Application dated 14.12.2011, which is Annexure A1 to this OA and further for its several enhancements from Rs.3.00 Lacs to Rs.10.00 Lacs vide Loan application, which is Annexure A7 to this OA. Thereafter, defendant again approached the applicant bank for enhancement of KCC Limit from Rs.10.00 Lacs to Rs.20.00 Lacs vide Loan application dated 04.08.2016, which is Annexure A15 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.3.00 Lacs vide Sanction Letter dated 12.12.2011, which is Annexure A2 to this OA and further sanctioned its enhancement from Rs.3.00 Lacs to Rs.10.00 Lacs vide Sanction Letter dated 27.02.2015, which is Annexure A8 to this OA. Thereafter, applicant sanctioned for enhancement of KCC Limit from Rs.10.00 Lacs to Rs.20.00 Lacs vide Sanction Letter dated 05.08.2016, which is Annexure A16 to this OA and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable properties i.e. (i) total land measuring 05 Bighas-09 Biswas situated at Village Lalru, H.B. No.218, Tehsil Dera Bassi, District SAS Nagar (Punjab) vide Declaration U/s 4(1) dated 21.02.2015, which is Annexure A12 to this OA.

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(ii) total land measuring 13Bighas-18Biswas-0Biswai situated at Village Jhajjon, H.B. No.229, Tehsil Banur, District SAS Nagar (Punjab) vide Declaration U/s 4(1) dated 12.08.2016, which is Annexure A20 to this OA. Documents executed:-Hypothecation Agreement, Containing terms and conditions, Consent form & Undertaking all dated 20.12.2011, which are Annexures A3 to A6 to this OA; Hypothecation Agreement,

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Containing terms and conditions, Supplemental Agreement, Consent form & Undertaking all dated 27.02.2015, which are Annexures A9 to A11 & A13 & A14 to this OA; Hypothecation Agreement, Containing terms and conditions, Supplemental Agreement, Consent form & Undertaking all dated 29.08.2016, which are Annexures A17 to A19 & A21 & A22 to this OA and Statements of Accounts with under Bankers Book of Evidence Act and I.T. Act dated 20.12.2023, which is Annexure A23 to this OA; Notice dated 30.05.2017 & A28.06.2017, which is Annexure A24 to this OA and Revival Letter dated 22.08.2018 & 19.01.202, which is Annexure A25 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.44,45,413.00, which is recoverable and the defendant were 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.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 19.08.2024.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed.

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Heard arguments and perused record

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It was argued by learned counsel through Video

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Conferencing 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 A25 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

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that applicant is entitled to recover a sum of Rs.44,45,413.00 (Rupees Forty Four Lacs Forty Five Thousand Four Hundred Thirteen 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 interest @11.50%p.a. with half yearly rests from 20.12.2023 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.44,45,413.00 (Rupees Forty Four Lacs Forty Five Thousand Four Hundred Thirteen 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. 12. 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 01.03.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 20.01.2025

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

Punjab National Bank v. Raghbir Singh

Case brief

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Punjab National Bank v. Raghbir Singh

Case brief

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