Allowed

Indian Bank v. Sh. Buta Singh

DRT15 Dec 2023OA/1339/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the original application filed by Indian Bank for recovery of Rs. 23,11,558.00 from two defendants who defaulted on a Kisan Credit Card loan secured by land mortgage, granting interest and ordering issuance of a recovery certificate.

What did the court decide?

Recovery of Rs. 23,11,558.00 with costs and simple interest @9.30% p.a.; issuance of Recovery Certificate; liberty to enforce via execution proceedings.

Indian Bank versus Sh. Buta Singh — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1339/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.07.2022

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DATE OF DECISION: 15.12.2023

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Indian Bank (In which Allahabad Bank stands amalgamated and the name of Allahabad Bank has been changed to Indian Bank pursuant to Government of India Gazette Notification No.133 (GSR-156(E) dated 04.03.2020 sanctioning the scheme of amalgamation effective from 01.04.2020) Applicant is a Body Corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai- 600014, having its branches all over India and amongst other places in Partap Colony, Near Old Bus Stand, Samana, District Patiala, Punjab- 147101, through its Senior Manager (Law) and constituted attorney, Sh. Naresh Kumar Kochhar ……..Applicant Versus 1. Sh. Buta Singh S/o Sh. Mahinder Singh, R/o Village Nassupur, Tehsil Samana, District Patiala, Punjab 2. Sh. Mahinder Singh S/o Sh. Kartar Singh, R/o Village Nassupur, Tehsil Samana, District Patiala, Punjab

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………Defendants Advocates: Ms. Jasleen Kaur, counsel for the applicant Defendants are ex parte 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.23,11,558.00 (Rupees Twenty Three Lacs Eleven Thousand Five Hundred and Fifty Eight only). The Original Application has been filed

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through Sh. Naresh Kumar Kochhar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.03.2015, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of ‘Akshay Krishi’ Kisan Credit Card Limit of Rs.15.00 Lacs vide Loan application dated 31.05.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the ‘Akshay Krishi’ Kisan Credit Card Limit of Rs.15.00 Lacs vide Sanction Letter dated 11.06.2013, 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 properties i.e. total land measuring 28 Kanal 09 Marlas situated at Village Nassupur, Tehsil Samana, District Patiala, Punjab vide Registered Mortgage Deed bearing vasika no.655 dated 06.06.2013 along with its translation, which is Annexure A7 to this OA. Documents executed:- Acknowledgment dated 11.06.2013, which is Annexure A4 to this OA; D.P. Note dated 11.06.2013, which is Annexure A5 to this OA; Hypothecation agreement and Affidavit dated 06.06.2013, which are Annexures A6 and A8 to this OA; Letter along with its translation, which is Annexure A9 to this OA; Consent Clauses and Deed of Guarantee dated 11.06.2013, which are Annexures A10 to A12 to this OA; Acknowledgment of debts dated 31.12.2015 and 31.03.2017, which are Annexures A13 and A14 to this OA; Letter of Request dated 31.03.2017, which is Annexure A15 to this OA; Acknowledgment dated 22.01.2020, which is Annexure A16 to this OA; Legal Notice along with its Translation dated 07.06.2022, which is Annexure A17 to this OA; Statement of accounts along with Certificates, Which are Annexures A18 and A19 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

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debit of Rs.23,11,558.00, 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.

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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 07.11.2023.

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In support of the OA, affidavit of Sh. Naresh Kumar Kochhar, Senior Manager, Indian Bank h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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 A19 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.23,11,558.00 (Rupees Twenty Three Lacs Eleven Thousand Five Hundred and Fifty Eight 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @9.30%p.a. with monthly rests from the date of filing of this OA till the realization.

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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

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instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loans 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 @9.30%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,11,558.00 (Rupees Twenty Three Lacs Eleven Thousand Five Hundred and Fifty Eight only) jointly and severally, with costs, current and future simple interest @9.30%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. 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 20.12.2023. 15. 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.

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Pronounced by me in the open Tribunal. Dated: 15.12.2023

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

Indian Bank v. Sh. Buta Singh

Case brief

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Indian Bank v. Sh. Buta Singh

Case brief

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