Allowed

Punjab National Bank v. Messrs Nimrit International and Others

DRT24 Jan 2025OA/728/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal reviewed an original application filed by Punjab National Bank for recovery of a loan defaulted by M/s Nimrit International and its proprietors. After ex parte proceedings, the tribunal allowed the application, establishing liability for the principal amount and granting a uniform interest rate of 7.5% per annum until realization.

What did the court decide?

Recovery of Rs. 72,11,077/- jointly and severally with costs and future simple interest @ 7.50% p.a. until realization.

Punjab National Bank versus Messrs Nimrit International and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.728/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.03.2022

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DATE OF DECISION: 24.01.2025

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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 branch office amongst others at Branch offices Salem Tabri, Ludhiana (Punjab) through its General Power of Attorney Holder Sh. Ravinder Kumar Senior Manager of the Applicant.

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……..Applicant Versus

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M/s Nimrit International, R/o B-23-234/163, Kidwai Nagar, Ludhiana (Punjab) through its Proprietor Smt. Manpreet Kaur.

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2^nd Address : B-24, 3817/2, Street No.10, Jain Colony, Sunder Nagar, Ludhiana (Punjab)-141007.

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Smt. Manpreet Kaur R/o B-23-234/163, Kidwai Nagar Ludhiana (Punjab) Proprietor of M/s Nimrit International.

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Smt. Narinder Kaur W/o Sh. Satinderpal Singh R/o B-23/469/4, Kidwai Nagar, Ludhiana (Punjab)-141008

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….……Defendants

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Advocates: Argued by Sh. Banni Thomas, Advocate for 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.72,11,077.00p (Rupees Seventy Two Lacs Eleven Thousand Seventy Seven only). The Original Application has been filed through Sh. Ravinder Kumar Senior Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 05.06.1997, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 & 2 had approached the applicant for the MSME CC Limit (Hypo) of Rs.49.00 Lacs, GECL Term Loan of Rs.9.80 Lacs & Demand Loan COV of Rs.4.90 Lacs vide Loan Applications dated 16.07.2019 & 30.06.2020 which are Annexures A2 & A8 to this OA.

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The applicant sanctioned the MSME CC Limit (Hypo) of Rs.49.00 Lacs, GECL Term Loan of Rs.9.80 Lacs & Demand Loan COV of Rs.4.90 Lacs vide Sanction Letters dated 29.07.2019 & 30.06.2020, which are Annexures A3 & A9 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.3 had mortgage her immovable properties i.e. Plot no.17 measuring 200Sq.Yards Situated at Kakowal, Hadbast No.80, Abadi Jaspal Colony, Near Vishal Nagar, Ludhiana (Punjab ) vide Equitable Mortgage of Sale Deed bearing vasika no. 24644 dated 01.03.2012, Title search Report dated 27.03.2018, Valuation Report dated 17.07.2019 and jamabandi for the year 2005-2006 with its translations, which is Annexure A4 ( colly ) to this OA. Documents executed :-Hypothecation of goods & book debts to secure to secure cash Credit facility, Agreement of guarantee D-3, Undertaking for executed by necessary documents by defendants all dated 29.07.2019, which are Annexures A5 to A7 to this OA; Agreement for working capital Term loan (WCTL) for existing borrowers, Master agreement, Agreement of Guarantee D-3 all dated 30.06.2020, which are Annexures A10 to A12 to this OA; Notice under section 13(2) dated 08.09.2021, which is Annexure A13 to this OA and statements of accounts along with certificate banker’s books evidence, which is Annexure A14 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.72,11,077.00p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount,

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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 16.01.2025.
7. In support of the OA, affidavit of Sh. Ravinder Kumar Senior
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 theAnnexures 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.72,11,077.00p (Rupees Seventy Two Lacs Eleven Thousand
Seventy Seven 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.
10. In so far as pendent elite and future rate of interest is concerned,
the applicant in relief clause has claimed interest @8.70%p.a. CC Limit
& interest @7.5%p.a. Working capital Term Loan, interest @7.85%p.a.
Demand loan COV with monthly rests from 28.02.2022 till the
realization.
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

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the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7.50%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.72,11,077.00p (Rupees Seventy Two Lacs Eleven Thousand Seventy Seven only) jointly and severally, with costs, current and future simple interest @7.50%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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 06.03.2025. 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 .

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Dated: 24.01.2025

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

Punjab National Bank v. Messrs Nimrit International and Others

Case brief

What is this about?

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Punjab National Bank v. Messrs Nimrit International and Others

Case brief

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