PUNJAB NATIONAL BANK vs M/S RATTAN LAL PERIWAL AND SONS AND OTHERS on 17 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 defendants for recovery of

Thousand Five Hundred Fifty One and Fourteen Paise only). The Transfer Application has been filed through Sh. Raman Kataria, Deputy Manager of the applicant, who is competent to institute the Transfer Application vide General Power of Attorney dated 21.08.2004, which is Annexure A2 to this TA.

2. The brief facts of the TA are that the defendant No.1 through its partner i.e. defendant no.2 to 4 had approached the applicant for the grant of Cash Credit Limit of Rs.250.00 Lacs and further from time to time for its renewals cum enhancement upto Rs.308.00 Lacs. The defendants approached the Applicant for reduction-cum Reversal of the Cash Credit Limit from Rs.308.00 Lacs to Rs.250.00 Lacs and sanctioned fresh Term Loan (GECL) of Rs.49.00 Lacs.

3. The applicant sanctioned the Cash Credit Limit of Rs. Rs.250.00 Lacs and further from time to time sanctioned its renewal cum enhancement upto Rs.308.00 Lacs vide Sanction Letters dated 28.06.2018 and 03.09.2019, which are Annexures A4 & A10 to this TA. The Applicant further sanctioned reduction-cum Reversal of the Cash Credit Limit from Rs.308.00 Lacs to Rs.250.00 Lacs and Term Loan (GECL) of Rs.49.00 Lacs vide Sanction Letters dated 03.01.2020 and 17.06.2020, which are Annexures A12 & A13 to this TA and the terms and conditions were duly accepted by the defendants.

4. Defendants no.2 to 7 had mortgaged their immovable properties i.e.

(i) Residential House measuring 444 Sq. yards and 4 Sq. Feet situated at Street no.4, Last Chowk, Area of Mandi Abohar, Tehsil Abohar, District Fazilka is owned by defendant No. 3, 4, 6 & 7 vide Equitable Mortgage of Registered Title Deed bearing vasika no. 463 dated 12.05.2015

(ii) Residential Plot measuring 50 * 50 Sq. Feet i.e. 9 Marla situated at R.S. Park (Backside New Suraj Nagri), Tehsil Abohar, District Fazilka, Punjab is owned by defendant No.2 vide Equitable Mortgage of Sale Deed bearing vasika no. 3244 dated 18.12.2003

(iii) Residential house build on land measuring 33 * 50 Sq. Feet i.e. 6 Marlas situated at Street no. 2/7, Suraj Nagri, near Sito road, Railway crossing, Abohar, Punjab is owned by defendant no. 5 vide Sale deed bearing vasika no. 618 dated 05.05.1992

along with their translations, which are Annexures A21, A22 & A23 to this TA Documents executed:- Gazette Notification dated 04.03.2020, which is Annexure A1 to this TA; Partnership Deed dated 01.08.2008, which is Annexure A3 to this TA; Supplemental Agreement, Agreement of Guarantee all dated 06.07.2018, which are Annexures A5 to A9 to this TA; Hypothecation Agreement dated 03.09.2018, which is Annexure A11 to this TA; Master Agreement, Agreement for Working, Agreement of Guarantee, Hypothecation Agreement all dated 24.06.2020, which are Annexures A14 to A20 and A20-A to this TA; Letter of continuity dated 25.06.2020, which are Annexures A24 to A26 to this TA; Notice u/s 13 (2) dated 12.09.2022, which is Annexure A27 this TA and Accounts Statement, which are Annexures A28 & A29.

5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.3,03,91,551.00, 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.

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 08.01.2025.

7. In support of the TA, affidavit of Sh. Raman Kataria, Deputy Manager-cum- General Power of Attorney, 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 A29 to this TA, 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, both the 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 of Rs.3,03,91,551.00 (Rupees Three Crore Three Lacs Ninety One Thousand Five Hundred Fifty One and Fourteen Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Transfer Application till realization of both the accounts.

10. In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @12.50%p.a. in Cash Credit Limit and @9.25%p.a. In GECL plus Penal Interest @2.00%p.a. with monthly rests from 01.02.2023 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 both 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

Thousand Five Hundred Fifty One and Fourteen Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both 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 27.02.2025.

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: 17.01.2025 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh