PUNJAB NATIONAL BANK vs AMAR SINGH on 13 February 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.23,06,978.00 (Rupees Twenty Three Lac Six Thousand Nine Hundred Seventy Eight 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 21.09.2004, 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.4.00 Lacs to this TA. Further, defendant had approached the applicant for enhancement of

KCC Limit from Rs.4.00 Lacs to Rs.15.00 vide loan application dated 16.06.2014, which is Annexure A8 to this TA.

3. The applicant sanctioned KCC Limit of Rs.4.00 Lacs vide Sanction Letter dated 15.05.2010, which is Annexure A2 to this TA. Further, applicant again sanctioned the enhancement of KCC Limit from Rs.4.00 Lacs to Rs.15.00 vide Sanction Letter dated 16.06.2014, which is Annexure A9 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 24K-0M situated at Village Muse, Tehsil & District Tarn Taran, vide Mortgaged Deed bearing vasika no.428 dated 28.05.2010 and vasika no.523 dated 18.06.2014 along with their translation, which are Annexures A7 & A13 to this TA. Documents executed:-Hypothecation Agreement, Letter of Undertaking, Letter of Consent & Declaration all dated 11.06.2010, which are Annexures A3 to A6 to this TA; Hypothecation Agreement, Letter of Undertaking & Letter of Consent all dated 25.06.2014, which are Annexures A10 to A12 to this TA; Balance confirmation letter dated 01.03.2013, 25.02.2016, 01.02.2019, 31.01.2022, which is Annexure A14 to this TA; Recall Notice dated 19.07.2022, which is Annexure A15 to this TA; Legal Notice dated 22.11.2023 with postal receipts, which is Annexure A16 to this TA and Statement of Account along with certificate, which are Annexures A17 & A18 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 adebit of Rs.23,06,978.00, 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 16.01.2025.

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 A18 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.23,06,978.00 (Rupees Twenty Three Lac Six Thousand Nine Hundred Seventy Eight Only) along with interest from the defendant, 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 @10.00%p.a. along with penal interest @2.00%p.a. with rests from 13.06.2023 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.23,06,978.00 (Rupees Twenty Three Lac Six Thousand Nine Hundred Seventy Eight Only) 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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 15.03.2025

15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 13.02.2025

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