Allowed

Punjab National Bank v. Karnail Singh and Another

DRT17 Feb 2025OA/661/2024

Case brief

AI extract

What is this about?

Applicant bank approached Tribunal for recovery of outstanding loan. Defendants defaulted on KCC facility secured by mortgaged properties. Tribunal ex-parte allowed application, declared liability, and prescribed 8% per annum simple interest. Recovery to be effected via sale of mortgaged assets or attachment of personal assets.

What did the court decide?

Recovery of Rs.27,28,050.36 plus uniform simple interest at 8% per annum; allowable sale of hypothecated/mortgaged properties for recovery; obligation to pay costs.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.661/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.04.2024

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DATE OF DECISION: 17.02.2025

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Punjab National Bank, (Erstwhile Oriental Bank of Commerce) a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi-110075 and one of its Branch Situated at Shaikhpur, Kapurthala, Punjab through its Authorized Officer Sh. Ankur Rawat, presently at Punjab National Bank, Circle Sastra Centre, Kapurthala.

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……..Applicant

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Versus

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Sh. Karnail Singh son of Sh. Gurnam Singh, resident of Village Biharipur, Tehsil & District Kapurthala.

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Sh. Palwinder Singh son of Sh. Karnail Singh, R/o Village

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Biharipur, Tehsil & District Kapurthala.

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………. Defendants

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Advocates:

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Argued by Sh. Manish Luthra, Advocate proxy for Sh. Iqbal Mohammed, 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.27,28,050.36p (Rupees Twenty Seven Lacs Twenty Eight Thousand Fifty And Paise Thirty Six Only). The Original Application has been filed through Sh. Ankur Rawat, Authorized Officer o f 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.

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The brief facts of the OA are that the defendants had approached the applicant for grant of KCC Limit of Rs.12.00 Lacs vide

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Loan Application dated 20.05.2013, which is Annexure A2 to this OA to this OA. 3. The applicant sanctioned KCC Limit of Rs.12.00 Lacs vide Sanction Letter dated 07.06.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants had mortgaged their immovable properties i.e. total land measuring 21K-5½M detailed as: a. land measuring 8K-1M situated at Village Biharipur, Tehsil & District Kapurthala b. l and measuring 13K-4½M situated at Village Bhalaipur, Tehsil & District Kapurthala vide Registered Mortgage Deed bearing vasika no.837 dated 28.05.2013, which is Annexure A9 to this OA. Documents executed:-Hypothecation Agreement, Letter of Undertaking, Letter of Consent, Declaration & Mandate in case of joint borrower all dated 07.06.2013, which are Annexures A4 to A8 to this OA; Legal Opinion & Affidavit dated 24.05.2013, which are Annexures A10 & A12 to this OA; Non Encumbrance Certificate dated 22.05.2013, which is Annexure A11 to this OA; Balance Confirmation Letters dated 13.08.2015, 08.08.2018 & 05.08.2021, which are Annexures A13 to A15 to this OA; Recall Notice dated 10.04.2024, which is Annexure A16 to this OA and Statement of Account along with Certificate under Banker’s Book Evidence Act, which are Annexures A17 & A18 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 adebit of Rs.27,28,050.36p, 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.

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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 03.02.2025.

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In support of the OA, affidavit of Sh. Ankur Rawat, Authorized Officer, Punjab National Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned proxy 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 A18 to this OA, it is proved that the defendants approached applicant for availing of the loans facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. 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.27,28,050.36p (Rupees Twenty Seven Lacs Twenty Eight Thousand Fifty And Paise Thirty Six 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 @12.50%p.a. along with penal interest @2.00%p.a. with monthly rests from 22.09.2023 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 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

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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 defendants are liable to pay to the applicant a total sum of Rs.27,28,050.36p (Rupees Twenty Seven Lacs Twenty Eight Thousand Fifty And Paise Thirty Six Only) jointly and severally, 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 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.

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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 19.03.2025.

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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.

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Pronounced by me in the open Tribunal .

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Dated: 17.02.2025

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

Punjab National Bank v. Karnail Singh and Another

Case brief

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Punjab National Bank v. Karnail Singh and Another

Case brief

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