Allowed

Axis Bank Limited v. Sh. Kuldeep Sangwan

DRT17 Jul 2023OA/2147/2022

Case brief

AI extract

What is this about?

The Tribunal allowed an Original Application filed under the RDBFI Act by Axis Bank against two respondents for recovery of Rs. 35,24,188.50. The court modified the claimed interest rate from 11.5% to 8% per annum, jointly and severally ordered payment, and issued a Recovery Certificate.

What did the court decide?

Recovery of Rs.35,24,188.50 with simple interest @8% per annum from 17.11.2022; Recovery Certificate issued.

Axis Bank Limited versus Sh. Kuldeep Sangwan — Contract and Commercial Disputes | DRT (2023)

¶1

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

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ORIGINAL APPLICATION NO. 2147 of 2022

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DATE OF INSTITUTION: 17.11.2022

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DATE OF DECISION: 17^th DAY OF JULY, 2023

¶5

Axis Bank Limited , having its Registered Office at Trishul, 3^rd Floor, opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad, Gujrat, also at Axis Bank, Loan Centre, S.C.O 350-352, Sector-34 A, Chandigarh-160022, through Sh. Rohit Varun Singh Thakur, its Authorised Representative

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.......Applicant Bank

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Versus

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Sh. Kuldeep Sangwan S/o Sh. Kali Ram R/o Village Jaipur (24), Near Government School, District Jind, Haryana-126112

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Sh. Ram Mehar S/o Sh. Kali Ram R/o Village Jaipur (24), Near Government School, District Jind, Haryana-126112

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......Defendants

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Argued by: Sh. Sandeep Kumar, Legal Manager Authorised by Resolution of Board for the applicant bank Defendants ex parte vide order dated 18.02.2023

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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 defendants for recovery of Rs.35,24,188.50/- (Rupees Thirty Five Lacs Twenty Four Thousand One Hundred Eighty Eight and Fifty Paisa Only) . The OA has been filed through Sh. Rohit Varun Singh Thakur, Authorised

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OA/2147/2022 AXIS BANK Vs KULDEEP SANGWAN AND ANOTHER 2

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Representative of the applicant bank, stated to be competent to institute the Original Application vide Power of Attorney dated 17.12.2021, Annexure-A1 (copy).

¶16

The brief facts of the case of the applicant as per Original Application are that defendant No. 1 had approached the applicant bank for grant of production credit facility of Rs. 11.54 lacs and overdraft facility of Rs. 20.14 lacs vide loan application dated 29.06.2020, Annexure-A2 (copy). Defendant No. 2 stood as a guarantor for repayment of the loan.

¶17

The applicant bank sanctioned aforesaid credit facilities vide sanction letter dated 16.07.2020, Annexure-A3 (copy) as per terms and conditions duly accepted by the defendants.

¶18

In order to secure the aforementioned credit facilities, the defendants executed various loans and security documents, i.e. loancum-hypothecation agreement dated 16.07.2020, Annexure-A4 (copy), working capital loan agreement dated 16.07.2020, AnnexureA5 (copy) and demand promissory note dated 16.07.2020, AnnexureA6 (copy).

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The aforesaid loans were further secured by creation of mortgage of two parcels of land by the defendants as follows:

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i. Agricultural land measuring 72 Kanals 4 Marlas by defendant No. 2 situated in the revenue estate of Jaipur.

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ii. Agricultural land measuring 74 Kanals 10 Marlas by defendant No. 1 situated in the revenue estate of Jaipur.

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fully detailed in para No. 5.6 of the Original Application. Declaration dated 16.07.2020 under section 4(1) of the Haryana Agriculture Credit

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OA/2147/2022 AXIS BANK Vs KULDEEP SANGWAN AND ANOTHER 3

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Operations and Miscellaneous Provisions (Banks) Act, 1973, Annexure-A7 (copy).

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It is further the case of applicant that the loan facilities were duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank and resultantly, the loan accounts were declared as NPA because those became irregular. The applicant bank recalled the entire outstanding amount vide legal notice dated 11.05.2022, Annexure-A10 (copy) and original postal receipts, Annexures-A11 and A12 (copy), but to no avail.

¶26

It is further the case of applicant bank that after adjusting debit and credit entries in loan accounts, a sum of Rs.35,24,188.50/(Rupees Thirty Five Lacs Twenty Four Thousand One Hundred

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Eighty Eight and Fifty Paisa Only) is recoverable against defendants as per statements of accounts dated 11.05.2022, certified under Bankers’ Book Evidence Act and memorandums of interest, Annexures-A8 and A9 (colly) (copy).

¶28

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

¶29

Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants despite service, thus, defendants were proceeded against ex-parte vide order dated 18.02.2023 .

¶30

In support of contents of the Original Application, affidavit of evidence of Sh. Rohit Varun Singh Thakur, Authorised Representative of the applicant bank was filed.

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OA/2147/2022 AXIS BANK Vs KULDEEP SANGWAN AND ANOTHER 4

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

¶33

It was argued Sh. Sandeep Kumar, Legal Manager of the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A12 , it comes out that the defendants had approached the applicant bank for availing of the loan facilities which were granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.35,24,188.50/- (Rupees Thirty Five Lacs Twenty Four Thousand One Hundred Eighty Eight and Fifty Paisa Only) from the defendants, from the date of filing the present Original Application, till realization of the amount.

¶34

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @11.5% per annum. In sanction letter dated 16.07.2020, Annexure-A3 (copy), rates of interest have been mentioned @11.5% per annum in both facilities.

¶35

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

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OA/2147/2022 AXIS BANK Vs KULDEEP SANGWAN AND ANOTHER 5

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loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, 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 realization of the amount ordered vide this order. It is ordered accordingly.

¶38

In the result, the Original Application is allowed with cost declaring that the defendants are liable to pay to the applicant bank a sum Rs.35,24,188.50/- (Rupees Thirty Five Lacs Twenty Four Thousand One Hundred Eighty Eight and Fifty Paisa Only) with current and future simple interest @8% per annum w.e.f. 17.11.2022 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of defendants in execution proceedings, if not sold earlier under the provisions of the Securitization 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 defendants. The applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

¶40

Parties to appear before Recovery Officer concerned on 15.09.2023.

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OA/2147/2022 AXIS BANK Vs KULDEEP SANGWAN AND ANOTHER 6

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Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be also uploaded on the official website of this Tribunal.

¶43

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

Axis Bank Limited v. Sh. Kuldeep Sangwan

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Kuldeep Sangwan

Case brief

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