Allowed

Punjab National Bank v. M/S Umesh Chauhan

DRT7 Mar 2025OA/925/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an original application filed by Punjab National Bank for recovery of Rs. 98,94,170 from five defendants. The court proved the loan default based on documentary evidence. While granting recovery, the Tribunal modified the interest rate from 15.35% to a uniform rate of 8% per annum.

What did the court decide?

Order for recovery of Rs. 98,94,170 jointly and severally with simple interest @8% p.a. from filing date till realization, enforceable via sale of mortgaged or personal assets.

Punjab National Bank versus M/S Umesh Chauhan — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.925/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.03.2022

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DATE OF DECISION: 07.03.2025

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Punjab National Bank, a bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Corporate Office at Plot No. 4, Sector-10, Dwarka, New Delhi-110075 and its Branch Offices throughout India along with a office at Circle Sastra Centre, Circle Office, SAS Nagar, Mohali (Punjab) through Sh. Ravi Kumar, Chief Manager, of the said branch, who is also one of the Principal Officers and General Attorney of the Applicant.

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……..Applicant

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Versus

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M/s Umesh Chauhan, through its proprietor Sh. Umesh Chauhan, #15 DR-Main Market Nangal, Tehsil Nangal- Township, district Rupnagar, Punjab-140124

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Sh. Umesh Chauhan S/o Sh. Chet Ram, proprietor of M/s Umesh Chauhan #Chauhan Villa, near SCERT, Saproon, Solan (HP)-173211

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Sh. Sunil Rana S/o Sh. Dilbagh Chand, House No. 93-94, Kiln Area Nangal, Tehsil Nangal, District Rupnagar (Punjab)- 140124

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Sh. Rajeev Rana S/o Sh. Rajinder Pal, House No. 93-94, Kiln Area Nangal, Tehsil Nangal, District Rupnagar (Punjab)- 140124

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Sh. Sanjeev Rana S/o Sh. Rajinder Pal, House No. 93-94, Kiln Area Nangal, Tehsil Nangal, District Rupnagar (Punjab)- 140124

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………Defendants

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Advocates:

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Argued by Sh. Rajindra Kumar Joshi, Advocate for the applicant Sh. Akhilesh Vyas, Advocate for Defendants (through VC) .

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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.98,94,170.00 (Rupees Ninety Eight Lacs Ninety Four Thousand One Hundred and Seventy only). The Original Application has been filed through Sh. Ravi Kumar, Chief Manager w ho is competent to institute the Original Application vide General Power of Attorney dated 17.11.2009, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its Proprietor i.e. defendant no.2 h ad approached the applicant for the grant of ILG/BG Limit of Rs. 83,03,375.00 vide Request of defendants for ILG/BG dated 06.06.2018, which is Annexure A2 to this OA.

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The applicant sanctioned ILG/BG Limit of Rs. 83,03,375.00 vide Sanction by the Applicant dated 06.06.2018, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No. 3 & 4 had mortgaged their immovable properties i.e. Commercial Property comprised of Land measuring 24Bighas-12Biswas, situated in the area of Mauja Goyal Jamala, hadbast no. 77, Pragna Plassi, Tehsil Nalagarh, District Solan, Himachal Pradesh vide Registered Mortgage deed bearing vasika No. 942 dated 05.06.2018, along with its English Translation, which is Annexure A6 to this OA.

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Documents executed:- Agreement of Counter Indemnity, Agreement of Guarantee both dated 06.06.2018, which are Annexures A4 & A5 to this OA; Guarantee Bond No. 0359ILG001218 dated 06.06.2018, 07.06.2018, which are Annexures A7 to A11 to this OA; FDR dated 06.06.2018 and 16.06.2018, which are Annexures A12 & A13 to this OA; Letter of Excise Department Kullu in R/o invocation of Bank Guarantee dated 26.03.2019, which is Annexure A14 to this OA; Letter of Excise Department Bilaspur in R/o invocation of Bank Guarantee dated 22.03.2019, which is Annexure A15 to this OA;

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Letter of Excise Department Hamirpur in R/o invocation of Bank Guarantee dated 26.03.2019, which is Annexure A16 to this OA; Letter of the Bank demanding payment of the invoked BGS dated 31.03.2019 and 06.05.2019, which are Annexures A17 & A18 to this OA; Legal Notices to defendants No. 1 to 5 dated 20.05.2019 with Postal Receipts, which are Annexures A19 to A22 to this OA Statement of Current/Overdraft account with Bankers Books of Evidence Act-Certificate and Statement of Current/Overdraft Memoranda account along with List of rate of interest charged in the Current/Overdraft account for different periods since commencement, which are Annexures A23 to A25 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 the loan account there was a debit of Rs.98,94,170.00, 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 and Sh. Akhilesh Vyas, advocate appeared for defendants and filed his Vakalatnama on behalf of all the defendants but did not filed WS within stipulated period. Therefore, opportunity to file WS was closed and their defense was struck of 21.06.2024. It was further argued that applicant had proved the case by filing documentary evidence, which is unrebutted.

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In support of the OA, affidavit of Sh. Ravi Kumar, Chief Manager, Punjab National Bank has been filed. 8. Heard arguments of Ld. Counsel for applicant. Ld. Counsel for defendants appeared through video conferencing has not advanced any arguments. 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 A25 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 Rs.98,94,170.00 (Rupees Ninety Eight Lacs Ninety Four Thousand One Hundred and Seventy only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of 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 @13.35%p.a. plus penal interest @2.00%p.a. with monthly rests from 04.03.2022 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.98,94,170.00 (Rupees Ninety Eight Lacs Ninety Four Thousand One Hundred and Seventy 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.

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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 09.04.2025.

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Copy of this order be given dasti to the applicant and be sent to

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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: 07.03.2025

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(MRIDULESH KUMAR SINGH) Presiding Officer,

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DRT-III, Chandigarh

Punjab National Bank v. M/S Umesh Chauhan

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S Umesh Chauhan

Case brief

What is this about?

What did the court decide?

What the court decided

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Statutes considered

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