Allowed

Indian Bank (earlier known as Allahabad Bank), v. Sh. Hazoora Singh and Others

DRT21 Nov 2023OA/2008/2022

Case brief

AI extract

What is this about?

DRT allowed an original application for recovery of a loan principal of Rs. 25,73,982. The court determined the defendants are jointly and severally liable and ordered recovery from mortgaged properties. The tribunal fixed a uniform simple interest rate at 7.30% per annum. A Recovery Certificate was issued.

What did the court decide?

Ordered recovery of Rs. 25,73,982 along with current and future simple interest @7.30% p.a.; issued Recovery Certificate; directed recovery from sale of mortgaged properties or personal assets.

Indian Bank (earlier known as Allahabad Bank), versus Sh… — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2008/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 12.12.2022

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DATE OF DECISION: 21.11.2023

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Indian Bank (earlier known as Allahabad Bank), a body corporate and nationalized bank under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act of 1970 with its Head Office at PB No.1384 66, Rajaji Salai, Chennai-600001, Tamil Nadu, India amongst others, a Branch Office at Near Old Bus Stand, Partap Colony, Samana, District Patiala, Punjab through its Constituted Attorney, Sh. Naresh Kumar Kochhar, presently posted as Manager

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……..Applicant

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Versus

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Sh. Hazoora Singh (Borrower)

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Sh. Hira Singh (Borrower)

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Sh. Jaskarandeep Singh (Borrower)

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All sons of Sh. Darshan Singh

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Sh. Manjit Singh S/o Sh. Mangal Singh (Guarantor)

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All residents of Village Kalawanoo, Tehsil Patran, District Patiala, Punjab

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………Defendants

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Advocates:

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Argued by Sh. I.P.S. Issar, counsel for the applicant Defendants are ex-parte

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FINAL ORDER

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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.25,73,982.00 (Rupees Twenty Five Lacs Seventy Three Thousand

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Nine Hundred and Eighty Two only). The Original Application has been filed through Sh. Naresh Kumar Kochhar, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 14.03.2015, which is Annexure A2 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of ‘Akshay Krishi’ KCC Limit of Rs.15.00 Lacs vide Loan Application dated 26.11.2012, which is Annexure A3 to this OA.

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The applicant Bank sanctioned the ‘Akshay Krishi’ KCC Limit of Rs.15.00 Lacs vide Sanction Letter dated 27.11.2012, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant Nos.1 to 3 had mortgaged their immovable properties i.e. total land measuring 21 Kanal 09 Marla situated at Village Kalawanoo, Tehsil Patran, District Patiala, Punjab vide Registered Mortgage Deed bearing Vasika No.3195 dated 12.11.2012 and Jamabandi for the year 2006-07 along with their translations, which are Annexures A6 and A7 to this OA.

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Documents executed:- Notification dated 04.03.2020, which is Annexure A1 to this OA; Hypothecation Agreement and Deed of guarantee both dated 27.11.2012, which are Annexures A5 and A9 to this OA; Advocate lien report dated 12.11.2012, which is Annexure

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A8 to this OA; Acknowledgments of debt dated 19.08.2014, 31.03.2017 and 11.02.2020, which are Annexures A10 to A12 to this OA; Bank notice dated 17.06.2016 along with its translation, which is Annexure A13 to this OA and Statement of account along with computer certificate, which is Annexure A14 to this OA.

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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.25,73,982.00, which is recoverable and the defendants

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were served recall notices but they did not repay the outstanding

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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 05.07.2023. 7. In support of the OA, affidavit of Sh. Naresh Kumar Kochhar, Branch Manager, Indian Bank has been filed. 8. Heard ex-parte arguments and perused record. 9. 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 A14 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.25,73,982.00 (Rupees Twenty Five Lacs Seventy Three Thousand Nine Hundred and Eighty Two 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 @7.30%p.a. along with @2%p.a. penal interest with monthly rests from 01.10.2022 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 defendants, quantum of loan and prevalent market rates of

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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 @7.30%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.25,73,982.00 (Rupees Twenty Five Lacs Seventy Three Thousand Nine Hundred and Eighty Two only) jointly and severally, with costs, current and future simple interest @7.30%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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 01.12.2023. 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: 21.11.2023

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

Indian Bank (earlier known as Allahabad Bank), v. Sh. Hazoora Singh and Others

Case brief

What is this about?

What did the court decide?

Indian Bank (earlier known as Allahabad Bank), v. Sh. Hazoora Singh and Others

Case brief

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What did the court decide?

What the court decided

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