Punjab National Bank vs Sh. Pargat Singh on 24 April 2024

FINAL ORDER

1. Present Transfer Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.33,21,545.00 (Rupees Thirty Three Lacs Twenty One Thousand Five Hundred and Forty Five only). The Transfer Application has been filed through Sh. Mangat Singh Bains, Senior Manager of the applicant bank, who is competent to institute the Transfer Application vide Power of Attorney dated 28.11.2013, which is Annexure A1 to this TA.

2. The brief facts of the TA are that the defendant had approached the applicant bank for the grant of KCC of Rs.10.00 Lacs vide Loan application dated 08.01.2011, which is Annexure A2 to this TA.

3. The applicant Bank sanctioned the KCC of Rs.10.00 Lacs vide Sanction Letter dated 08.01.2011, 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. land measuring 30 Kanal 8 Marla situated at Mand Ahmadwal, Tehsil Bholath, District Kapurthala, Punjab vide Jamabandi for the year 2004-05 and Registered Mortgaged Deed bearing Vasika No.2087 dated 06.01.2011 along with their translations, which are Annexure A6, A6/A and A7 to this TA. Documents executed:- Hypothecation agreement dated 08.01.2011, which is Annexure A4 to this TA; Balance and security confirmation letters dated 03.01.2014, 09.02.2016, 26.09.2018 and 27.08.2021, which are Annexures A5, A5/A, A5/B and A5/C to this TA; Statement of account along with computer certificate, which is Annexure A8 to this TA and Voter ID of defendant, which is Annexure A9 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.33,21,545.00, which is recoverable and the defendant was served recall notices but he did not repay the outstanding amount, therefore, the applicant bank 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 13.03.2024.

7. In support of the TA, affidavit of Sh. Mangat Singh Bains, Senior Manager, Punjab National Bank has been filed.

8. Heard ex-parte arguments and perused record.

9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant bank had proved its case. From the perusal of all the Annexures A1 to A9 to this TA, it is proved that the defendant approached applicant bank 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 bank is entitled to recover a sum of Rs.33,21,545.00 (Rupees Thirty Three Lacs Twenty One Thousand Five Hundred and Forty Five 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 bank in relief clause has claimed interest @8.75%p.a. plus penal interest @2%p.a. with yearly rests from 17.12.2022 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 @8.75%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.33,21,545.00 (Rupees Thirty Three Lacs Twenty One Thousand Five Hundred and Forty

Five only) with costs, current and future simple interest @8.75%p.a. in the loan account from the date of filing of TA till the date of realization of the amount. Accordingly, the applicant bank 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 bank 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 01.05.2024.

15. Copy of this order be given dasti to the applicant bank 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: 24.04.2024

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