Allowed

Indian Overseas Bank v. Sh. Gopal

DRT12 Jul 2023OA/1682/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's original application for recovery of Rs. 40.56 Lacs against the defaulting borrower. The court granted a recovery certificate and ordered simple interest at 7% per annum from the date of filing, adjusting for pandemic impact and market rates.

What did the court decide?

Recovery certificate issued for Rs.40,56,191.70/- with simple interest at 7% p.a. from 08.09.2022. Liberty granted to recover through sale of mortgaged/hypothecated property or attachment of personal

Indian Overseas Bank versus Sh. Gopal — 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.1682/2022

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DATE OF INSTITUTION: 08.09.2022

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DATE OF DECISION: 12^th DAY OF JULY, 2023

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Indian Overseas Bank , a Banking Company duly constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act 1970, having its Head Office at 763, Anna Salai, Chennai and Branches all over India and amongst other places at Retail Mart, Yadav Bhavan, Old Railway Road Gurgaon-122002, through its Chief Manager and Constituted Attorney, Sh. Surender Kumar

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…..Applicant Bank

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Versus

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Sh. Gopal S/o Sh. Bir Singh R/o Near A.V.N School, Pingor-Palwal, Haryana-121105

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…..Defendant

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Argued by: Sh. Surinder Kumar, Chief Manager for the applicant bank Defendant ex parte vide order dated 03.02.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant 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.40,56,191.70/- (Rupees Forty Lacs Fifty Six Thousand One

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Hundred Ninety One and Seventy Paisa Only) . It has been filed through Sh. Surender Kumar, Chief Manager of the applicant bank

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OA/1682/2022 INDIAN OVERSEAS BANK VS GOPAL

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stated to be competent to institute the Original Application vide Power of Attorney dated 31.03.2010, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that the defendant had approached the applicant bank for grant of term loan facility of Rs. 39.52 Lacs vide loan application dated 05.01.2021, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid facility to the defendant vide sanction letter dated 19.01.201, Annexure-A3 (copy) as per terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facility, the defendant executed various loans and security documents, i.e. demand promissory note dated 19.01.2021, Annexure-A4 (copy), undertaking dated 19.01.2021 regarding repayments of instalments, Annexure-A5 (copy), undertaking dated 19.01.2021 regarding rate of interest, Annexure-A6 (copy) and term loan agreement dated 16.01.2021 for direct finance scheme, Annexure-A8 (copy). 5. The aforesaid loan was further secured by creation of mortgage by the defendant in respect of residential flat No. 1204 measuring 1300 Square Feet on 12^th Floor, in Tower A1 in Avlon Rangoli, Sector 24, Dharuhera, Haryana fully detailed in para No. 3(A) of the Original Application.

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The documents relating to the mortgage are as under:

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i. Registered conveyance deed dated 13.09.2021, Annexure-A9 (copy).

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OA/1682/2022 INDIAN OVERSEAS BANK VS GOPAL

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ii. Affidavit dated 15.01.2021 regarding mortgaged property,

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Annexure-A7 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank and resultantly, the loan account became irregular and it was declared as NPA on 21.05.2022. The applicant bank recalled entire outstanding amount vide notice dated 23.03.2022, Annexure-A10 (copy), legal notice dated 01.06.2022, Annexure-A11 (copy) and notice dated 09.6.2022 under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 along with its postal receipt, Annexure-A12 (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 account, a sum of Rs.40,56,191.70/- (Rupees Forty Lacs Fifty Six Thousand One Hundred Ninety One and Seventy Paisa Only) is recoverable against the defendant as per statement of account dated 08.07.2022, Annexure-A13 (copy), duly certified under Bankers’ Books Evidence Act dated 08.07.2022, Annexure-A14 (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, thus, the defendant was proceeded against ex-parte vide order dated 03.02.2023 .

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OA/1682/2022 INDIAN OVERSEAS BANK VS GOPAL

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In support of the contents of the OA, affidavit of evidence of Sh. Surender Kumar, Chief Manager Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Sh. Surinder Kumar, Chief Manager of the applicant bank and gone through the record carefully.

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It was argued by Sh. Surinder Kumar, Chief Manager 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 A14 , it is clear that the defendant had approached the applicant bank for availing of the loan facility which was granted to him. It is further clear that the defendant 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

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Rs.40,56,191.70/- (Rupees Forty Lacs Fifty Six Thousand One Hundred Ninety One 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 claimed rate of interest @10.05% per annum. In sanction letter dated 19.01.2021, Annexure-A3 (copy), the rate of interest has been mentioned @7.15% per annum.

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OA/1682/2022 INDIAN OVERSEAS BANK VS GOPAL

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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 the mortgaged property, purpose of loan, i.e. housing, 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 @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this 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.40,56,191.70/- (Rupees Forty Lacs Fifty Six Thousand One Hundred Ninety One and Seventy Paisa Only) with current and future simple interest @7% per annum w.e.f. 08.09.2022 , 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, the applicant bank shall be at liberty to recover the same by attachment and sale of personal assets 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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OA/1682/2022 INDIAN OVERSEAS BANK VS GOPAL 6

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Parties to appear before Recovery Officer concerned on 12.09.2023.

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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 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

Indian Overseas Bank v. Sh. Gopal

Case brief

What is this about?

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Indian Overseas Bank v. Sh. Gopal

Case brief

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