Allowed

Canara Bank v. Sh. Raghbir Singh @ Raghvir Singh

DRT21 Jun 2023OA/1549/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed the application filed by Canara Bank for recovery of Rs. 28,06,054.70 from a defaulting borrower. The court awarded uniform simple interest at 8% per annum from the date of filing and directed the issuance of a Recovery Certificate.

What did the court decide?

Recovery sum of Rs. 28,06,054.70 plus 8% per annum simple interest w.e.f. 22.08.2022. Recovery Certificate issued.

Canara Bank versus Sh. Raghbir Singh @ Raghvir Singh — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO.1549/2022

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DATE OF INSTITUTION: 22.08.2022

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DATE OF DECISION: 21^st DAY OF JUNE, 2023

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Canara Bank , a body corporate, constituted under Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970, having its Head Office at J.C. Road, Bangalore and inter alia Branch at Babain, District Kurukshetra, Haryana, through its General Power of Attorney holder, Sh. Susheel Kumar Gupta, Officer

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…..Applicant Bank

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Versus

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Sh. Raghbir Singh @Raghvir Singh S/o Sh. Kashi Ram S/o Sh. Kripa Ram R/o Village Tatki, Tehsil Babain, District Kurukshetra, Haryana

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…..Defendant

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Argued by: Sh. Loveneet, Manager Law (GPA holder) for the applicant bank

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Defendant ex parte vide order dated 27.01.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant

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bank under Section 19(1) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity) against the defendant for recovery of Rs. 28,06,054.70/- (Rupees Twenty Eight lacs Six Thousand Fifty Four and Seventy Paisa Only) . It has been filed through Sh. Susheel Kumar Gupta, Officer of the applicant bank stated to be competent to institute the Original Application vide General Power of Attorney dated 20.03.2018, Annexure-A1 (copy).

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OA NO.1549/2022 CANARA BANK VS SH. RAGHBIR SINGH 2

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The brief facts of the case of the applicant as per the Original Application are that defendant had approached the applicant bank for grant of Kissan Cash Credit of Rs. 12 lacs and Kissan overdraft of Rs. 7 lacs vide loan applications dated 31.08.2015 and 07.11.2016, Annexures-A2 and A11 (copy).

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The applicant bank sanctioned the above said loan facilities to the defendant vide sanction memorandums dated 31.08.2015 and 07.11.2016, Annexures-A3 and 12 (copy) as per the terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facilities, defendant executed various loan and security documents, i.e. hypothecation agreement dated 01.09.2015 for KCC, AnnexureA4 (copy), authority letter dated 01.09.2015 to operate accounts, Annexure-A5 (copy), link letters dated 01.09.2015 and 16.11.2016, Annexures-A8 and A15 (copy) and KOD agreement dated 16.11.2016, Annexure-A13 (copy). Specimen signature card of borrower is Annexure-A6 (copy).

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The aforesaid loans were further secured by creation of registered mortgage in respect of agricultural land measuring 59 Kanals 03 Marlas situated in the revenue estate of Tatki, Sub-Tehsil Babain, District Kurukshetra, fully detailed in para No. 3A of the original application.

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The documents related to mortgage are as under :

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i. Registered mortgage deed dated 01.09.2015, Annexure-A7 (copy).

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OA NO.1549/2022 CANARA BANK VS SH. RAGHBIR SINGH 3

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ii. Declaration dated 08.11.2016 under Section 4(1) of the Haryana Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A14 (copy).

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It is further the case of the applicant bank that the loan facilities was duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank and resultantly, the loan accounts became irregular and those were declared as NPA on 31.03.2021. The defendant executed acknowledgement of debt and security letters dated 14.06.2018, 04.05.2021, 11.11.2019 and 04.05.2021, Annexures-A9, A10, A16 and A17 (copy). The applicant bank recalled the entire outstanding amount vide notices dated 06.10.2020, 16.02.2021, 06.03.2021, 22.03.2021 and 21.05.2021 along with original postal receipts, Annexure-A18 (colly) (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs. 28,06,054.70/- (Rupees Twenty Eight lacs Six Thousand Fifty

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Four and Seventy Paisa Only) is recoverable against the defendant as per statements of accounts duly certified under Bankers’ Books Evidence Act, Annexures-A19 and A20 (copy) and certificate, Annexure-A21 (copy).

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Since the defendant did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant

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OA NO.1549/2022 CANARA BANK VS SH. RAGHBIR SINGH 4

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despite service, thus, the defendant was proceeded against ex parte vide order dated 27.01.2023 .

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In support of the contents of the OA, affidavit of evidence of Sh. Susheel Kumar Gupta, Officer of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Sh. Loveneet, Manager Law (GPA holder) of the applicant bank and gone through the record carefully. 10. It was argued by Sh. Loveneet, Manager Law (GPA holder) of the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A21 , it is clear that the defendant had approached the applicant bank for availing of the loan facilities which were granted to him after he had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs. 28,06,054.70/- (Rupees Twenty Eight lacs Six Thousand Fifty Four and Seventy Paisa Only) from the defendant.

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In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has not claimed any particular rate of interest. In sanction memorandums dated 31.08.2015 and 07.11.2016, Annexures-A3 and 12 (copy), the rates of interest

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OA NO.1549/2022 CANARA BANK VS SH. RAGHBIR SINGH 5

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have been mentioned @12% per annum for KCC and @11.65% per annum for KOD, respectively.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs declaring that the defendant is liable to pay to the applicant bank a sum of Rs. 28,06,054.70/- (Rupees Twenty Eight lacs Six Thousand Fifty Four and Seventy Paisa Only) with current and future simple interest @ 8% per annum , w.e.f. 22.08.2022 till the date of realisation of the amount. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendant in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, applicant bank shall be at liberty to recover the same by attachment and sale of personal

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OA NO.1549/2022 CANARA BANK VS SH. RAGHBIR SINGH 6

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assets/property of the defendant. The applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 21.08.2023.

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Copy of this order be sent to the applicant bank and the defendant through registered/speed post. This order be also

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uploaded on the official website of this Tribunal.

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Announced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Canara Bank v. Sh. Raghbir Singh @ Raghvir Singh

Case brief

What is this about?

What did the court decide?

Canara Bank v. Sh. Raghbir Singh @ Raghvir Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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