Allowed

The Federal Bank Ltd., v. Sh. Amrit Rajdeep Singh and Another

DRT26 Dec 2023OA/2009/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's original application for recovery of Rs.57.54 lakhs against joint borrowers who defaulted on an agricultural term loan. The court incorporated mortgage details and directed the issuance of a recovery certificate. Interest was capped at 10% p.a.

What did the court decide?

Declaration of joint and several liability to pay Rs.57,54,657.00 with costs and uniform simple interest at 10.00% p.a.; direction to issue Recovery Certificate.

The Federal Bank Ltd., versus Sh. Amrit Rajdeep Singh and… — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2009/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 09.12.2022

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DATE OF DECISION: 26.12.2023

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The Federal Bank Ltd., a banking company, registered under the Companies Act, 1956 and having its Registered Office at Alwaye, Ernakulam District and having branches all over India and one of its branch office amongst other places at B/II-10-12, Mata Modi Road, Sunam, District Sangrur (Punjab), through its Branch Manager and General Power of Attorney holder, Sh. Shilp

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……..Applicant

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Versus

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Sh. Amrit Rajdeep Singh S/o Sh. Chand Singh Chatha

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Sh. Chand Singh Chatha S/o Sh. Mehar Singh

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Both Resident of H.No.570, Village Chatha Nanhera, Tehsil Sunam, District Sangrur (Punjab) 148028

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………Defendants

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Advocates:

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Argued by Sh. S.C. Prajapati, counsel proxy for Sh. Nitin Grover, 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.57,54,657.00 (Rupees Fifty Seven Lacs Fifty Four Thousand Six Hundred and Fifty Seven only). The Original Application has been filed through Sh. Shilp, Branch Manager o f the applicant bank, who is competent to institute the Original Application vide General Power of Attorney dated 11.02.2022, which is Annexure A1 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 Federal Agricultural Term Loan of Rs.47.00 Lacs.

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The applicant Bank sanctioned the Federal Agricultural Term Loan of Rs.47.00 Lacs vide Sanction Letters dated 21.03.2016 and 12.04.2016, which are Annexures A2 and A4 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 40K-00M situated at Village Chatha Nanhera, Tehsil Sunam Udham Singh Wala, District Sangrur, Punjab vide Declaration u/s 4(1) dated 08.04.2016, which is Annexure A3 to this OA.

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Documents executed:- Agreement for agricultural loans, Security delivery letter, D.P. note and Letter of set off all dated 12.04.2016, which are Annexures A5 to A8 to this OA; Confirmation letters dated 10.12.2018 and 29.09.2021, which are Annexures A9 and A10 to this OA, Letters dated 17.03.2021 and 14.12.2021, which are Annexures A11 to A13 to this OA; Legal notice dated 17.02.2022, which is Annexure A14 to this OA and Statement of account alog with certificate under Banker’s Book Evidence Act certificate, which is Annexure A15 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.57,54,657.00, 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. 6. The defendants were served notices to appear before this Tribunal. Defendants appeared before this Tribunal through their counsel but later due to non-appearance, they were proceeded exparte on 15.11.2023.

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In support of the OA, affidavit of Sh. Shilp, Branch Manager, The Federal 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 A15 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.57,54,657.00 (Rupees Fifty Seven Lacs Fifty Four Thousand Six Hundred and Fifty Seven 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 @18.83%p.a. with half yearly rests from 08.12.2022 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 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 @10.00%p.a. in

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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.57,54,657.00 (Rupees Fifty Seven Lacs Fifty Four Thousand Six Hundred and Fifty Seven only), jointly and severally, with costs, current and future simple interest @10.00%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 04.01.2024. 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: 26.12.2023

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

The Federal Bank Ltd., v. Sh. Amrit Rajdeep Singh and Another

Case brief

What is this about?

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The Federal Bank Ltd., v. Sh. Amrit Rajdeep Singh and Another

Case brief

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What did the court decide?

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