Allowed

Punjab National Bank v. M/S R K Brothers

DRT7 Mar 2025OA/986/2024

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant's application for recovery of Rs.38,44,303.20 p from the respondents. The debt was classified as NPA, and after hearing, the Tribunal granted uniform simple interest at 8% p.a. instead of the claimed 9.50%. The order directs the issuance of a Recovery Certificate and future execution.

What did the court decide?

Recovery of Rs.38,44,303.20p with 8% simple interest from the date of filing; issuance of Recovery Certificate.

Punjab National Bank versus M/S R K Brothers — Contract and Commercial Disputes | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.986/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 02.08.2024

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DATE OF DECISION: 07.03.2025

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Punjab National Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having the Head Office at Plot No. 4, Sector 10, Dwarka, New Delhi110075 and amongst others one of its Branch Rajpura Main, Patiala Road, District Patiala(Punjab) and Circle STSTRA Centre, Patiala, through its Senior Manager Sh. Gurcharan Singh.

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……..Applicant Versus

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M/s RK Brothers, a proprietorship concern having its Office at 298, Dalima Vihar, Rajpura, District Patiala-140401 through its proprietor Sh. Ravi Kumar S/o Sh. Sat Dev

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Sh. Ravi Kumar S/o Sh. Sat Dev, R/o House no. 298, Dalima Vihar, Rajpura, District Patiala-140401

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Mrs. Minu @ Meenu W/o Sh. Ravi Kumar 298, Dalima Vihar, Rajpura, District Patiala-140401

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………Defendants

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Advocates:

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Argued by Sh. Jatinder Kumar Sharma, Advocate for the applicant (through VC) 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.38,44,303.20p (Rupees Thirty Eight Lacs Forty Four Thousand Three Hundred Three and Paisa Twenty only). The Original Application has been filed through Sh. Gurcharan Singh, Senior Manager w ho is competent to institute the 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 defendants had approached the applicant for Cash Credit Limit of Rs.12.00 Lacs and further for Term Loan I of Rs.5.00 Lacs. Thereafter defendants again approached the applicant for enhancement of CC Limit to Rs.20.00 Lacs. Later defendants again approached the applicant Term Loan II of Rs.12.50 Lacs and further for GECL Term Loan of Rs.5.00 Lacs.

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The applicant sanctioned Cash Credit Limit of Rs.12.00 Lacs and further for Term Loan I of Rs.5.00 Lacs vide sanction letter dated 29.03.2017 and 22.01.2019, which are Annexures A2 & A14 to this OA. Thereafter defendants again approached the applicant for enhancement of CC Limit to Rs.20.00 Lacs vide sanction letter dated 26.09.2019, which is Annexure A20 to this OA. Later defendants again approached the applicant Term Loan II of Rs.12.50 Lacs and further for GECL Term Loan of Rs.5.00 Lacs, vide sanction letters dated 18.06.2020 and 29.09.2021, which are Annexures A25 and A32 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.2 had mortgaged her immovable properties i.e. a. all part and parcel of Shop no. 7 measuring 16½ Sq. Yards Situated at Dalima Vihar, Rajpura, District Patiala vide Equitable Mortgage of Sale Deed bearing vasika no.2626 dated 11.10.2017 with its translation and

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b. all part and parcel of Commercial Property measuring 44 Sq. Yards Situated at Dalima Vihar, Rajpura, District Patiala vide Equitable Mortgage of Sale Deed bearing vasika no.2019-20/9/1/2792 dated 15.10.2019 with its translation and

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c. all part and parcel of Residential Property measuring 100 Sq. Yards Situated at plot/ House no.40-C(old), plot/House no.298 (new), Dalima Vihar, Near Under Bridge Road, Rajpura, District Patiala vide Equitable Mortgage of Sale Deed bearing vasika no. 2197 dated 29.1.2014 with its translation, which is Annexure A36 to this OA,

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Documents executed:- Agreement for Overdraft, Agreement of Hypothecation, Common Agreement, Sole Proprietor Letter, General Declaration/Undertaking and Deed of Guarantee all dated 30.03.2017, which are Annexures A3 to A8 to this OA; Agreement of Term Loan, Agreement of Term Loan for immoveable property, Common Agreement, Sole Proprietor Letter and Deed of Guarantee all dated 28.09.2017, which are Annexures A9 to A13 to this OA; Supplemental Agreement, Common Agreement, Sole Proprietor Letter, General Declaration/Undertaking and Deed of Guarantee all dated 04.02.2019, which are Annexures A15 to A19 to this OA; Agreement of Term Loan, Agreement of Term Loan for immoveable property, Common Agreement and Deed of Guarantee all dated 27.09.2019, which are Annexures A21 to A24 to this OA; Agreement for Working Capital Term Loan, Master Undertaking, General Declaration/ Undertaking, DP Note, Format for Authorization and Agreement of Guarantee all dated 20.06.2020, which are Annexures A26 to A31 to this OA; Master Undertaking, Agreement of Guarantee and Form for Authorization all dated 30.09.2021, which are Annexures A33 to A35 to this OA; CERSAI, which is Annexure A37 to this OA; Balance and Security Confirmation Letters dated 19.07.2018, 03.02.2019, 05.10.2019, 15.07.2021, 19.07.2021, 30.07.2022 and 01.06.2023, which is Annexure A38 to this OA; Legal Notice dated 06.07.2024, which is Annexure A39 to this OA; Notices u/s 13 (2) of SARFAESI Act dated 21.09.2023 with Postal Receipts, which is Annexure A40 to this OA; Possession Notice dated 28.03.2024, which is Annexure A41 to this OA; Statements of Accounts with computer certificate, which is Annexure A42 to this OA and Valuation Report date 09.05.2024, which is Annexure A43 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in all the loan accounts there was a debit of Rs.38,44,303.20p, which is recoverable and the defendants were served recall notices but they did not repay the

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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 but no one appeared on behalf of defendants and they were proceeded ex parte on 19.02.2025

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In support of the OA, affidavit Sh. Gurcharan Singh, Senior Manager, Punjab National Bank has been filed.

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Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing 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 A43 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum Rs.38,44,303.20p (Rupees Thirty Eight Lacs Forty Four Thousand Three Hundred Three and Paisa Twenty only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @9.50%p.a. with monthly rests from 01.07.2024 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in all the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.38,44,303.20p (Rupees Thirty Eight Lacs Forty Four Thousand Three Hundred Three and Paisa Twenty only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all the loan accounts 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 09.04.2025. 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 . Dated: 07.03.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. M/S R K Brothers

Case brief

What is this about?

What did the court decide?

Punjab National Bank v. M/S R K Brothers

Case brief

What is this about?

What did the court decide?

What the court decided

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