Allowed

Punjab National Bank v. Mukhtar Singh and Another

DRT17 Jan 2025OA/179/2023

Case brief

AI extract

What is this about?

In an exparte application, the DRT declared respondents liable to pay the applicant a loan sum of Rs.32.46 lakhs. The court ordered recovery via sale of mortgaged properties or by attaching personal assets if dues remained unsatisfied, allowing a uniform simple interest rate of 8.00%. The court also issued a recovery certificate.

What did the court decide?

Respondents declared liable to pay Rs.32,46,552.20 jointly and severally with 8.00% simple interest; recovery via sale of mortgaged properties or attachment of personal assets; Recovery Certificate is

Punjab National Bank versus Mukhtar Singh and Another — Cheque Dishonour | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.179/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 30.07.2022

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DATE OF DECISION: 17.01.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act having its Head Office at Sector 10, Dwarka, New Delhi and one of its branch office amongst other at Sarai Amanat Khan, District Tarn Taran and its circle sastra center at Amritsar (South) through its General Power of Attorney Holder Sh. Balwinder Singh.

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……..Applicant

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Versus

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Sh. Mukhtar Singh S/o Sh. Kartar Singh, R/o Abadi Manakpura VPO Sarai Amanat Khan, Tehsil and District Tarn Taran, Punjab.

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Sh. Dalbir Singh S/o Sh. Mukhtar Singh R/o Abadi Manakpura VPO Sarai Amanat Khan, Tehsil and District Tarn Taran, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Anirudh Gupta, Advocate for the applicant Defendants are 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.32,46,552.20p (Rupees Thirty Two Lacs Forty Six Thousand Five Hundred Fifty Two and Paisa Twenty only). The Original Application has been filed through Sh. Balwinder Singh, General Power of Attorney Holder of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 07.03.2020, which is Annexure A13 to this OA.

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The brief facts of the OA are that the defendants’ no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application for Loan dated 22.09.2016, which is Annexure A3 to this OA

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs, vide Recommendations of the appraising officer along with Memorandum for sanction dated 22.09.2016, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No. 1 had mortgaged her immovable properties i.e. total land measuring 48K-0M situated at Village Sarai Amanat Khan, Hadbast No. 173, Tehsil and District Tarn Taran (Punjab) vide Letter to Sub Registrar for C reation of Charge and Declaration under Section 4 (1) dated 2 1.09.2016, which are Annexures A1 and A2 to this OA. Documents executed:- Declaration regarding Agriculture Land, Consent Clause, Hypothecation Agreement all dated 27.09.2016, which are Annexures A5 to A7 to this OA; Balance and Security Confirmation dated 26.04.2019 and 25.04.2022, which are Annexures A8 & A9 to this OA; Recall Notice dated 20.04.2021, which is Annexure A10 to this OA; Account Statement along with Certificate under the Banker’s Books Evidence Act, which are Annexures A11 & A12 to this OA and I/D Proof in file 3, which is Annexure 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.32,46,552.20p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 08.01.2025. 7. In support of the OA, affidavit of Sh. Balwinder Singh, General Power of Attorney Holder, 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

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Annexures A1 to A14 to this OA, it is proved that the defendants approached applicant for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,46,552.20p (Rupees Thirty Two Lacs Forty Six Thousand Five Hundred Fifty Two and Paisa Twenty only) along with interest from the defendants, jointly and severally, 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 @8.80%p.a. along with Penal Interest @2.00%p.a. with half yearly rests from 30.04.2022 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 defendants, 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 defendants are liable to pay to the applicant a total sum of Rs.32,46,552.20p (Rupees Thirty Two Lacs Forty Six Thousand Five Hundred Fifty Two and Paisa Twenty only) jointly and severally, 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

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aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants 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 defendants. 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 27.02.2025. 15. Copy of this order be given dasti to the applicant and be sent to defendants 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: 17.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Mukhtar Singh and Another

Case brief

What is this about?

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Punjab National Bank v. Mukhtar Singh and Another

Case brief

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