Allowed

Punjab National Bank v. Messrs Meghraj and Sons and Others

DRT15 May 2025OA/805/2024

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal adjudicated an application by Punjab National Bank for recovery of a loan of approximately Rs. 23 lacs. The court allowed the application, ordered reduction of interest to 8% p.a., and directed issuance of a recovery certificate.

What did the court decide?

Declaring respondents liable to pay Rs. 23,08,437.18 with interest at 8% p.a. from filing date; directing issuance of Recovery Certificate.

Punjab National Bank versus Messrs Meghraj and Sons and Others — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.805/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.06.2024

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DATE OF DECISION: 15.05.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition & Transfer of Undertakings) Act 1970 having its Head Office at Plot No.4, Sector-10, Dwarka, New Delhi 110075 and branch offices amongst others at branch office at Dehlon, Ludhiana Punjab through its vertical recovery Circle office: Circle SASTRA Centre Ludhiana Punjab and its General Power of Attorney holder Shri Sukhpal Grewal, Deputy Manager of the applicant.

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……..Applicant

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Versus

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1. M/s Megh Raj & Sons a proprietorship firm with principal place of business at # Grain market VPO Gopalpur, Ludhiana Punjab through its proprietor Shri Pankaj Sharma S/o Late Shri Megh Raj Sharma.

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1. Shri Pankaj Sharma S/o Late Shri Megh Raj R/o House No.186/2, St. No.2, Railway Crossing Jagerah Road, Ahmedgarh, District Malerkotla 148021 Being the proprietor of M/s Megh Raj & Sons.

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Shri Manoj Kumar S/o Late Shri Megh Raj R/o House No.186/2, St. No.2, Railway Crossing Jagerah Road, Ahmedgarh, District Malerkotla 148021.

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Smt. Kamla Devi W/o Late Shri Megh Raj R/o House No.186/2, St. No.2, Railway Crossing Jagerah Road, Ahmedgarh, District Malerkotla 148021 (since deceased) through its legal heirs:I. Shri Pankaj Kumar S/o Late Shri Megh Raj II. Shri Manoj Kumar S/o Late Shri Megh Raj

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….……Defendants

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Advocates:

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Argued by Sh. Anup Prajapati, Advocate proxy for Sh. Himanshu Sharma, Advocate for applicant Defendants are ex parte

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2 OA NO.805/2024 PUNJAB NATIONAL BANK VS MEGH RAJ AND SONS AND OTHERS

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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.23,08,437.18p (Rupees Twenty Three Lacs Eight Thousand Four Hundred Thirty Seven And Eighteen Paisa only). The Original Application has been filed through Shri Sukhpal Grewal, Deputy Manager of the applicant, who is competent to institute the Original Application vide General Power of attorney dated 11.09.2023, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendant no.2 being the proprietor defendant no.1 had approached the applicant for the grant of Overdraft Limit of Rs.17.00 Lacs vide Loan application dated 10.09.2018, which is Annexure A4 to this OA. Defendant no.2 being the proprietor defendant no.1 had approached the applicant for the grant of Overdraft Limit of Rs.18.00 Lacs to Rs.17.00 Lacs dated 30.08.2019 to this OA.

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The applicant sanctioned the Overdraft Limit of Rs.17.00 Lacs vide Sanction Letter dated 30.08.2019, which is Annexure A8 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant nos.3 and 4 had mortgaged his immovable properties

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i.e.

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I. Residential Building measuring 300 sq. yards situated at Bahadurgarh, Ward No.2, Dr. Ambedkar Nagar, Mandi Ahmedgarh District Malerkotla, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.1422 dated 24.12.2008 with its translation, which is Annexure A9 this OA.

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II. Residential Building measuring 200sq. yards situated at Bahadurgarh Ward No.2, Dr. Ambedkar Nagar, Mandi Ahmedgarh,

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3 OA NO.805/2024

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PUNJAB NATIONAL BANK VS MEGH RAJ AND SONS AND OTHERS

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District Malerkotla, Punjab vide Equitable Mortgage of Sale Deed bearing vasika no.145 dated 28.04.2010 with its translation, which is Annexure A10 this OA

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Documents executed: - Valuation report dated 03.08.2018, which is Annexures A1 to this OA; Supplemental agreement to secure credit/ Loan facilities dated 08.07.2013, which is Annexure A3 to this OA; Agreement for hypothecation, Agreement of guarantee, all dated 26.09.2018, which are Annexures A5 to A7 to this OA; Balance & Security conformation letter dated 25.07.2014, 13.07.2017, 02.11.2019 & 15.06.2021, which is Annexure A11 to this OA; Copy of Request letter for renewal of limit dated 08.07.2021, which is Annexure A12 to this OA; Notice u/s 13(2) dated 23.11.2021 which is Annexure A13 to this OA; Copy of death certificate dated 27.11.2022, which is Annexure A14 to this OA and Statement of account with certificate, which is Annexure A15 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.23,08,437.18p, 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 09.05.2025.

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In support of the OA, affidavit of Shri Sukhpal Grewal, Deputy Manager, Punjab National Bank, h as been filed. 8. 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

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4 OA NO.805/2024

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PUNJAB NATIONAL BANK VS MEGH RAJ AND SONS AND OTHERS

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Annexures A1 to A15 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.23,08,437.18p (Rupees Twenty Three Lacs Eight Thousand Four Hundred Thirty Seven And Eighteen Paisa only) rest 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 @10.70%p.a. along with penal interest @2.00%p.a. with half yearly rests from 31.05.2024 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.23,08,437.18p (Rupees Twenty Three Lacs Eight Thousand Four Hundred Thirty Seven And Eighteen Paisa only) jointly and severally,

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5 OA NO.805/2024

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PUNJAB NATIONAL BANK VS MEGH RAJ AND SONS AND OTHERS

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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 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 30.05.2025.

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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: 15.05.2025.

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

Punjab National Bank v. Messrs Meghraj and Sons and Others

Case brief

What is this about?

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Punjab National Bank v. Messrs Meghraj and Sons and Others

Case brief

What is this about?

What did the court decide?

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