Allowed

Punjab National Bank v. M/S Krishna Feed and Oil Mill and Others

DRT1 Jan 2025OA/862/2023

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs. 21,38,875. It declared the defendants jointly liable and granted uniform simple interest at 8% per annum from the date of filing.

What did the court decide?

Recovery certificate issued; defendants ordered to pay Rs. 21,38,875 plus simple interest at 8% p.a. from filing date.

Punjab National Bank versus M/S Krishna Feed and Oil Mill and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.862/2023 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 28.06.2023

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DATE OF DECISION:01.01.2025

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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 Delhi110075,(here in after referred to as “the Bank”) and having branches throughout India amongst others one branch at Malkana, Samana, Punjab through Sh. Gurcharan Singh, Senior Manager, Authorized Representative Circle Sastra Center, Punjab National Bank, Patiala being the Principal Officer of the Applicant.

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……..Applicant

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Versus

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M/s Krishna Feed & Oil Mills, through its proprietor at Sr No.2 having registered office at Kularan Road, Village Dorda, Tehsil Samana, District Patiala, Punjab-147101.

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Smt. Krishna Devi W/o Sh. Suresh Kumar, (Sole Proprietor of M/s Krishna Feed & Oil Mill), H.No.85/4, Ward 5, Gharami Patti, Samana, Punjab-147101.

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Sh. Jagat Kumar S/o Sh. Suresh Kumar, H.No.93, Ward 5, Gharami Patti, Samana, Punjab-147101.

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….……Defendants

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Advocates:

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Argued by Sh. Amandeep Singh Sobti, Advocate proxy for Ms. Anuradha Gupta, Advocate for applicant None for Defendants

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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.21,38,875.00p (Rupees Twenty One Lacs Thirty Eight Thousand Eight Hundred Seventy Five only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager, Authorized Representative of the applicant, who is competent to institute the

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Original Application vide Power of Attorney dated 11.10.2007, 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 grant of CC Limit of Rs.15.00 Lacs vide Copy of Loan Application dated 25.09.2017, which is Annexure A2 to this OA. 3. The applicant sanctioned the CC Limit of Rs.15.00 Lacs vide Copy of Sanction Letter dated 25.09.2017, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no.2 had mortgaged his immovable properties i.e. Factory and Building Land Measuring 01Kanal-01Marla situated at Village Dodra, Tehsil Samana, Patiala, Punjab as per Jamabandi for the year 2012-2013 vide Sale Deed bearing Vasikano.160 , along with its Translations, which are Annexures A7 & A8 to this OA. Documents executed:- Agreement for Hypothecation, Letter of Undertaking, Agreement of Guarantee, EM Register, Annexure-II, Annexure-III all dated 25.09.2017, which are Annexures A4 to A6, A9 to A11 to this OA; Balance & Security Confirmation Letter dated 01.09.2020, which is Annexure A12 to this OA; Legal Notice dated 26.04.2023 with Postal Receipts, which are Annexures A13 and A14 to this OA and Account Statement with certifiacte, which is Annexure A15 to this OA.

¶20

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.21,38,875.00p, 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. Defendants appeared through their counsel and filed Power of Attorney. Counsel for defendants has filed WS on 23.03.2024 beyond stipulated period, which was not taken on record.

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In support of the OA, affidavit of Sh. Gurcharan Singh, Senior Manager or Authorized Representative , Punjab National Bank, h as been filed.

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Heard arguments of Ld. Counsel for applicant. None appeared for defendants for arguments. 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 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.21,38,875.00p (Rupees Twenty One Lacs Thirty Eight Thousand Eight Hundred Seventy Five 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 @10.75%p.a. with monthly rests from 01.06.2023 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 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.21,38,875.00p (Rupees Twenty One Lacs Thirty Eight Thousand Eight Hundred Seventy Five 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 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 01.02.2025.

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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 . Dated:01.01.2025.

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

Punjab National Bank v. M/S Krishna Feed and Oil Mill and Others

Case brief

What is this about?

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Punjab National Bank v. M/S Krishna Feed and Oil Mill and Others

Case brief

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