PUNJAB NATIONAL BANK vs MOHINDER SINGH on 10 January 2025

FINAL ORDER

1. Present Transfer Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.31,03,420.44p (Rupees Thirty One Lac Three Thousand Four Hundred Twenty & Paise Forty Four Only). The Transfer Application has been filed through Sh. Arun Kumar, Manager of the applicant, who is competent to institute the Transfer Application vide General Power of Attorney dated 24.09.2004, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendant had approached the applicant for the grant of KCC Limit of Rs.16.00 Lacs vide Loan application dated 02.01.2016, which is Annexure A2 to this TA.

3. The applicant sanctioned KCC Limit of Rs.16.00 Lacs vide Sanction Letter dated 04.04.2016, which is Annexure A3 to this TA and the terms and conditions were duly accepted by the defendant.

4. Defendant had mortgaged his immovable property i.e. total land measuring 65K-13M situated at Village Dalla, Hadbast no.181, Tehsil & District Tarn Taran, Punjab vide Declaration under Section 4(1) dated 30.03.2016 along with their translation, which is Annexure A8 to this TA. Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent & Declaration all dated 04.04.2016, which are Annexures A4 to A7 to this TA; Creation of Charge dated 30.03.2016, which is Annexure A9 to this TA; Balance & Security Confirmation Letter dated 04.03.2019 & 27.07.2021, which is Annexure A10 to this TA; Recall Notice dated 02.03.2021, which is Annexure A11 to this TA; Legal Notice dated 22.11.2023 with postal receipts, which is Annexure A12 to this TA and Statement of Account along with certificate, which are Annexures A13 & A14 to this TA.

5. 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.31,03,420.44p, which is recoverable and the defendant was 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 defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded ex- parte on 06.01.2025.

7. In support of the TA, affidavit of Sh. Arun Kumar, Manager, Punjab National Bank has been filed.

8. Heard arguments and 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 Annexures A1 to A14 to this TA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.31,03,420.44p (Rupees Thirty One Lac Three Thousand Four Hundred Twenty & Paise Forty Four Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Transfer Application till realization of the account.

10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.50%p.a. along with penal interest @2%p.a. with rests from 05.04.2023 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 defendant, 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 @08.00%p.a. in the loan account from the date of filing of the TA 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 defendant is liable to pay to the applicant a total sum of Rs.31,03,420.44p (Rupees Thirty One Lac Three Thousand Four Hundred Twenty & Paise Forty Four Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in the loan account from the date of filing of TA 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 21.02.2025.

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: 10.01.2025

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