Allowed

The Federal Bank Ltd., v. Sh. Lakhwinder Singh and Others

DRT18 Oct 2023OA/2015/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by The Federal Bank Ltd. for recovery of Rs.60,81,569.00 from four respondents. The Tribunal approved the bank's claim and modeled future interest at a uniform simple rate of 10% per annum.

What did the court decide?

Recovery of Rs.60,81,569.00 with future simple interest @10.00% p.a.; Issuance of Recovery Certificate; Entitlement to attach and sell personal assets if hypothecated property is insufficient.

The Federal Bank Ltd., versus Sh. Lakhwinder Singh and Others — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2015/2022

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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: 18.10.2023

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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 Attorney holder, Sh. Shilp

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……..Applicant Versus

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Sh. Lakhwinder Singh s/o Sh. Bahadar Singh

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Sh. Bahadar Singh s/o Sh. Lal Singh

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Smt. Jaswant Kaur w/o Sh. Bahadar Singh 4. Smt. Jaspreet Kaur w/o Sh. Lakhwinder Singh

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All resident of Village Jakhepal, Hambalvas, Tehsil Sunam, Udham Singh Wala, 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 on 12.12.2022 by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.60,81,569.00 (Rupees Sixty Lacs Eighty One Thousand Five Hundred Sixty Nine only). The Original Application has been filed through Sh. Shilp, Branch Manager o f the applicant bank, who is

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competent to institute the Original Application vide 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 credit facility of Rs.48.00 Lacs under the Federal Agricultural Term Loan (AMTL). 3. The applicant Bank sanctioned the credit facility of Rs.48.00 Lacs under the Federal Agricultural Term Loan (AMTL) vide Sanction Letter dated 08.06.2015, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants No.1 and 2 had mortgaged their immovable properties i.e. total land measuring 79K-16M situated at Village Hambalwass Jakehpal, Tehsil Sunam, District Sangrur, Punjab vide Declaration u/s 4(1) dated 03.06.2015, which is Annexure A3 to this OA.

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Documents executed:- Agreement of Agricultural Loan, Security Delivery Letter, D.P. Note, Letter of Set Off and Undertaking all dated 08.06.2015, which are Annexures A4 to A8 to this OA; Balance confirmation Letters dated 11.05.2018 and 21.04.2021, which are Annexures A9 and A10 to this OA; Copy of Letter dated 14.12.2021, which is Annexure A11 to this OA; Copy of Notice dated 17.02.2022, which is Annexure A12 to this OA and Statement of account along with certificate under Bankers book evidence act, which is Annexure A13 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.60,81,569.00, 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 25.09.2023.

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In support of the OA, affidavit of Sh. Shilp, Branch Manager, The Federal Bank Limited 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 A13 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.60,81,569.00 (Rupees Sixty Lacs Eighty One Thousand Five Hundred Sixty Nine 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 @17.83%p.a. (inclusive of @4%p.a. penal interest) with quarterly 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%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.60,81,569.00 (Rupees Sixty Lacs Eighty One Thousand Five Hundred Sixty Nine 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 property 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 04.11.2023. 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. Pronounced by me in the Open Tribunal. Dated: 18.10.2023

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

The Federal Bank Ltd., v. Sh. Lakhwinder Singh and Others

Case brief

What is this about?

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The Federal Bank Ltd., v. Sh. Lakhwinder Singh and Others

Case brief

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