PUNJAB NATIONAL BANK vs NARINDER SINGH on 26 December 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.31,02,422.86p (Rupees Thirty One Lacs Two Thousand Four Hundred Twenty Two and Paise Eighty Six Only). The Transfer Application has been filed through Sh. Arun Kumar, Principal Officer of the applicant bank, 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 that the defendant had approached the applicant bank for the grant of KCC Limit (Under KGS Scheme) of Rs.18.00 Lacs.

3. The applicant Bank sanctioned the KCC Limit (Under KGS Scheme) of Rs.18.00 Lacs vide Sanction Letter dated 23.09.2013, which is Annexure A2 to this TA and the terms and conditions were duly accepted by the defendant.

4. Defendant had mortgaged his immovable properties i.e. total land measuring 32Kanal-16Marla situated at Village Panjwarh, Tehsil Tarn Taran, Punjab vide Registered Mortgage Deed bearing Vasika No.1231 dated 27.09.2013 with its translation, which is Annexure A6 to this TA. Documents executed:- Hypothecation Agreement, Letter of Undertaking, Letter of Consent all dated 30.09.2013, which are Annexures A3 to A5 to this TA; Balance Confirmation Letter dated 26.09.2016, 15.09.2018 & 27.07.2021, which is Annexure A7 to this TA; Legal Notice dated 10.05.2022 with its translation, which is Annexure A8 to this TA and Statement of Account with certificate, which are Annexures A9 & A10 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.31,02,422.86p, which is recoverable and the defendant were served recall notices but they 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 21.12.2024.

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

8. Heard 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 had proved its case. From the perusal of all the Annexures A1 to A10 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.31,02,422.86p (Rupees Thirty One Lacs Two Thousand Four Hundred Twenty Two and Paise Eighty Six 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 @9.75%p.a. along with penal Interest @2.00%p.a. from 01.10.2023 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.31,02,422.86p (Rupees Thirty One Lacs Two Thousand Four Hundred Twenty Two and Paise Eighty Six 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 15.02.2025.

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: 26.12.2024.

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