Allowed

Axis Bank Ltd., v. Sh. Balwinder Singh and Another

DRT21 Dec 2023OA/1062/2022

Case brief

AI extract

What is this about?

This tribunal adjudicated an original application for recovery of a bank loan. The defendants failed to repay the amount. After hearing the applicant ex-parte, the tribunal declared the defendants liable to pay the outstanding sum, interest, and costs, and ordered acceptance of the application for recovery certificate issuance. Scope of search is limited to this order.

What did the court decide?

Permitted recovery of Rs. 22,21,850.21 p with interest at 9.50% p.a.; ordered issuance of recovery certificate; allowed enforcement through sale of mortgaged property or attachment of personal assets.

Axis Bank Ltd., versus Sh. Balwinder Singh and Another — Money Laundering | DRT (2023)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1062/2022

¶3

PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶4

DATE OF INSTITUTION: 19.05.2022

¶5

DATE OF DECISION: 21.12.2023

¶6

Axis Bank Ltd., having its Registered Office at Trishul, 3^rd Floor, Opposite Samartheswar Temple, Law Garden, Ellis Bridge, Ahmedabad, Gujarat. Also at Axis Bank, Loan Centre, SCO 350-352, Sector 34-A, Chandigarh-160022 through Sh. Rohit Varun Singh Thakur, its Authorized Representative ……..Applicant Versus 1. Sh. Balwinder Singh S/o Sh. Karan Singh R/o Village Manak Dahar, URF Nandgarh, Tehsil and District Patiala (Borrower) 2. Smt. Jasvir Kaur C/o Sh. Halwinder Singh R/o Village Manak Dahar, URF Nandgarh, Tehsil and District Patiala

(Co-Borrower)

….……Defendants

Advocates:

Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep Toni, Advocate for the applicant Defendants are ex-parte

¶11

FINAL ORDER 1. Present Original 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 defendants for recovery of Rs.22,21,850.21p (Rupees Twenty Two Lacs Twenty One Thousand Eight Hundred Fifty and Twenty One Paise only). The Original Application has been filed through Sh. Rohit Varun Singh Thakur,

¶12

¶13

Authorized Representative o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA.

¶14

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Working Capital Limit of Rs.20.00 Lacs vide Loan application dated 14.01.2014, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Working Capital Limit of Rs.20.00 Lacs vide Sanction Letter dated 15.04.2019, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 32K-00M situated at Village Manak Dahar, H.B. No.244, Tehsil and District Patiala, Punjab vide Registered Mortgaged Deed bearing vasika no.1519 dated 13.02.2014, which is Annexure A5 to this OA. Documents executed:- Loan-cum-Hypothecation Agreement dated 15.02.2014, which is Annexure A4 to this OA; Statement of account, which is Annexure A6 to this OA; Demand notice dated 31.03.2022, which is Annexure A7 to this OA and Postal receipts dated 02.04.2022, which is Annexure A8 to this OA. 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.22,21,850.21p, which is recoverable and the defendants 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 14.11.2023.

¶15

¶16

In support of the OA, affidavit of Sh. Rohit Varun Singh Thakur, Authorized Representative, Axis Bank Ltd. h as 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 A8 to this OA, it is proved that the defendants approached applicant bank for availing of the loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendants 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.22,21,850.21p (Rupees Twenty Two Lacs Twenty One Thousand Eight Hundred Fifty and Twenty One Paise only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

¶17

In so far as pendent elite and future rate of interest is concerned, the applicant bank has claimed interest @9.50%p.a. till the realization.

¶18

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 @9.50%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

¶19

¶20

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.22,21,850.21p (Rupees Twenty Two Lacs Twenty One Thousand Eight Hundred Fifty and Twenty One Paise only) jointly and severally, with costs, current and future simple interest @9.50%p.a. in the loan account from the date of filing of OA 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 defendants 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 defendants. The applicant is at liberty to enforce the claim through due process of law.

¶21

Any other application pending stands disposed of.

¶22

Issue Recovery Certificate accordingly.

¶23

Parties to appear before Learned Recovery Officer of this Tribunal on 30.12.2023.

¶24

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

¶25

Pronounced by me in the open Tribunal.

¶26

Dated: 21.12.2023

¶27

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

Axis Bank Ltd., v. Sh. Balwinder Singh and Another

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd., v. Sh. Balwinder Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank, versus Messrs Shakti Industries and Others

Canara Bank, versus Messrs Komal Enterprises and Others

Dbs Bank India Limited, versus Messrs Chawla Traders and Another

Canara Bank, versus Sh. Rajdeep Singh

Hdfc Bank Limited, versus Sh. Gurvinder Singh and Another

Indian Bank (erstwhile Allahabad Bank) versus Sh.Budha Singh and Another