Allowed

Punjab National Bank v. Sri. Deelip Kumar

DRT14 Mar 2025OA/974/2022

Case brief

AI extract

What is this about?

The Tribunal examined an Original Application filed by a bank for issuance of a Recovery Certificate against borrowers defaulting on a housing loan. Accepting the bank's uncontroverted evidence of loan availment and default despite ex parte proceedings, the Tribunal allowed the application and awarded interest.

What did the court decide?

Issuance of Recovery Certificate for Rs. 35,89,846/- with interest @ 10.5% p.a. (simple); liberty to proceed against mortgaged property or defendants personally if sale proceeds are insufficient; cost

Punjab National Bank versus Sri. Deelip Kumar — Execution and Attachment | DRT (2025)

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IN THE DEBTS RECOVERY TRIBUNAL II, KARNATAKA AT BENGALURU

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Dated this 14th day of March 2025

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PRESENT: SHRI T. RAJESH PRESIDING OFFICER

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OA No.974/2022

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Punjab National Bank, V.V. Market Branch, Mysore 570 004.

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Rep. through its Stressed Assets

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Targeted Resolution and Action (SASTRA) Division, At # 100, Frazer Town, Mosque Road, Bangalore 560 005 and Authorised Officer and GPA Holder, Sri Nagaraja

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... Applicant

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Versus

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Mr Deelip Kumar, Aged about 34 years, S/o. Mr Oka Ram, Residing at No.842/1, 3 rd Cross, Old Santhepet, Mysore 570 024.

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Mr. Oka Ram, Aged about 54 years, S/o. Mr Samelaji, Residing at No.842/1, 3rd Cross, Old Santhepet, Mysore 570 024.

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Mr Babulal, S/o. Mr Modaram, Age: 54 years,

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al 97.4 2022

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Residing at: 362/A, Shivayaja Mutt Street, Devraj Urs Road, Mysore 570 008.

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Also at: No.354, A Ramanna Street, D Mohalla, Mysore 570 024.

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... Defendants

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Ld. Counsels on record / appeared :

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For Applicant^� : Shri S.R. Narayanappa For Defendants :Ex parte

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FINAL ORDER

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This Original application (OA) has been filed u/s 19 of the Recovery of Debts and Bankruptcy Act (Act' in short) seeking issuance of a Recovery Certificate for Rs.35,89,846/- (Rupees thirty five lakh eighty nine thousand eight hundred and forty six only) allegedly due under the loan facility availed by Defendants along with further interest thereon and costs.

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It is the case of the applicant that the Defendant Nos.1 & 2 approached the applicant seeking Loan facility for purchase of residential property (OA schedule property) and considering the same, the applicant sanctioned Term Loan (Housing Loan) of

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O. 9 -4 2022

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Rs.24,00,000/- (Rupees twenty four lakh only) with the condition that the loan should be secured with collateral security of the schedule property and a guarantor. Defendants have acknowledged the terms of sanction on 24.08.2012 and accepted the terms of sanction.

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To secure the loan facilities, the Defendants, apart from executing necessary loan documents which includes the Agreement for Housing Loan dated 24.08.2012 and Letter of Undertaking dated 24.08.2012. Defendant No.3 executed Agreement of Guarantee on 24.08.2012 to secure the loan facility availed by Defendants 1 & 2 and had also created Mortgage charge over the OA schedule property.

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It is further submitted that though the Defendants obliged to pay back the amount promptly and regularly, the repayment was defaulted and despite demand by the applicant, no payment was made by the Defendants. Hence the present OA has been filed seeking recovery of the loan amount due from the Defendants.

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0.-1 9'4 2022

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Summons was taken out to Defendants. Summons duly served on

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Defendant No.3. There was no appearance for the Defendant Nos.1 & 2 despite taking out summons through newspaper publication. Despite giving sufficient time, Defendants to 1,2 & 3 failed to appear and hence they were placed ex parte on 05.09.2024.

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The applicant bank let-in evidence through Applicant's Witness (AW-1) who filed the Proof affidavit in terms of the OA and produced and marked Exts.A3 to A15. Defendants failed to challenge the OA claim and the Evidence of AW.1 remains uncontroverted.

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Heard the counsel for the applicant on 10.02.2025 and case was posted for Orders.

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The following issues arise for consideration in the light of pleadings and evidence.

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(a) Whether the evidence tendered by the applicant is sufficient

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to prove the OA claim and the Applicant is entitled for a

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Recovery Certificate?

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OA 974 2022

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(b) If so, to what extent?

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Both these issues are gone into and decided together.

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The only evidence available in this matter is the uncontroverted evidence as put forth by way of Proof affidavit and the documents marked as Ext.A3 to A15 by Applicant. The loan documents such as Sanction Letter, Agreement for Housing Loan, Agreement of Guarantee, Letter of Undertaking, Title Deed Register extract and the balance confirmation letter are sufficient to prove the availment of credit facility and the liability of the defendants. The statement of accounts produced and marked as Exh.A15 evidences the amount as claimed in the OA.

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In view of the above, this Tribunal is satisfied that the applicant is entitled to get the OA allowed in their favour. In respect of the interest to be awarded, this Tribunal, considering the nature of the loan availed and the fact that the the OA claim is arrived at by calculating interest at the agreed rate, the pendente lite and future interest is awarded @ 10.5% per annum (simple).

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6 (1 9'4 2022

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In respect of cost to be awarded there cannot be any dispute as to the entitlement of the cost by the applicant as the Defendants

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by their conduct had forced the applicant to initiate the legal proceedings by approaching this Tribunal.

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In the result :-

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i) O.A. No.974 of 2022 stands allowed.

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ii) The applicant is entitled to recover an amount of Rs.35,89,846/- (Rupees thirty five lakh eighty nine thousand eight hundred and forty six only) with pendente lite and future interest @ 10.5% p.a. (simple) from the date of filing of the application till realization from the Defendants jointly, severally and personally;

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iii) In case of failure of Defendants to pay the amount as ordered above, after adjusting the amounts received and realized during the pendency of the OA, Applicant is at liberty to proceed against the properties described in the Schedule to the OA; the Properties Schedule to the OA be the Schedule to Recovery Certificate;

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7 OA 9 74 2022

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iv) If the sale proceeds of the schedule properties are insufficient to cover the balance amount due, the applicant is at liberty to proceed against the Defendants personally and their other assets in the manner known to law;

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v) Applicant is permitted cost of the proceedings for which applicant to file cost memo in seven days from the date of receipt of the order.

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vi) A Recovery Certificate to be drawn in terms of this Final Order to enable recovery of the amount due;

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vii) Interim Application pending, if any, stands disposed of with this Final order.

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A copy of this order be communicated to the parties concerned in

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terms of Sec.19(21)(i) of the Recovery of Debts and Bankruptcy Act 1993 read with Rule 16 of DRT (Procedure) Rules 1993.

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(Dictated to my PA directly on the Computer, corrected and pronounced by me in the open Court on this the 14th day of March 2025)

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(T. RAJESH)

PRESIDING OFFICER

0:19'4 2022

LIST OF DOCUMENTS

Si No.	Description of documents	Exhibit No.
1	Evidence Affidavit	Al
2	List of documents	A2
3	Application for Housing Loan dated 20.08.2012	A3
4	Letter of Sanction dated 24.08.2012 duly acknowledged by Defendants	A4
5	Agreement for Housing Loan dated 24.08.2012 executed by Defendants	A5
6	Agreement of Guarantee dated 24.08.2012 executed by 3rdDefendant in favour of the Bank.	A6
7	Letter of Undertaking dated 24.08.2012 executed by Defendant Nos.1 & 2	A7
8	Letter of Consent clause dated 24.08.2012 executed by Defendant Nos.1&2.	A8
9	Letter of Authority dated 24.08.2012 executed by Defendant Nos.1 & 2	A9
10	Master Undertaking from Borrowers/Cash Credit Account executed by Defendants	A10
11	Title Deed Register extract dated 31.08.2012	All
12	Letter of Acknowledgment dated 03.09.2012 having acknowledged the receipt of under-noted title deeds deposited with the bank.	Al2
13	Balance cum Security confirmation letter dated 25.06.2018 confirming the balance as on 31.03.2018	A13
14	Notice u/s 13(2) of the SARFAESI Act on 04.08.2018 issued by the Bank to defendants	A14
15	Accounts Extract - Term Loan A/c No.078500NC00005206	A15

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(T. RAJESH) PRESIDING OFFICER

Punjab National Bank v. Sri. Deelip Kumar

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. Sri. Deelip Kumar

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

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