Allowed

Idbi Bank Limited v. Smt. Angoori

DRT4 Aug 2023OA/2236/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for recovery of a loan amount against the respondent. Declaring the respondent liable for the principal sum with future simple interest at 7% per annum, the Tribunal issued a Recovery Certificate and directed proceedings against the mortgaged/hypothecated property or personal assets if dues remain unsatisfied.

What did the court decide?

Recovery of Rs.21,45,096.58 plus simple interest at 7% per annum from filing date, enforceable against mortgaged property or personal assets.

Idbi Bank Limited versus Smt. Angoori — Contract and Commercial Disputes | DRT (2023)

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

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ORIGINAL APPLICATION NO.2236/2022 DATE OF INSTITUTION: 02.12.2022

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DATE OF DECISION: 4^th DAY OF AUGUST, 2023

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IDBI Bank Limited , a Company incorporated and Registered under the Companies Act and a Banking Company within the meaning of Section 5(c) under the Bank Regulation Act, 1949, carrying the Business of Banking and having its Head Office at IDBI Tower, WTC Complex, Cuffe Parade, Mumbai and one of its Branches at Hansi, District Hissar, Haryana, through Sh. Ved Prakash, AGM of the Branch duly authorised by the Higher Authority of the Bank

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…..Applicant Bank

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Versus

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Smt. Angoori w/o Sh. Raj Kumar s/o Sh. Dhokal R/o Village Khanpur, Teshil Hansi, District Hissar, Haryana

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…..Defendant

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Argued by: Sh. Rinku Banjara, Assistant General Manager for the applicant bank Defendant ex parte vide order dated 12.06.2023

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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.21,45,096.58/(Rupees Twenty One Lacs Forty Five Thousand Ninety Six and Fifty Eight Paisa Only) . It has been filed through Sh. Ved Prakash, AGM of the applicant bank stated to be

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OA/2236/2022 IDBI BANK VS ANGOORI 2

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competent to institute the Original Application vide delegation of powers, 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 KCC facility of Rs.15 lacs vide loan application dated 16.01.2018, Annexure-A2 (copy).

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The applicant bank sanctioned aforesaid facility to the defendant vide sanction letter dated 05.02.2018, Annexure-A3 (copy) as per terms and conditions which were duly accepted by the defendant.

¶16

In order to secure the aforementioned credit facility, the defendant executed various loans and security documents, i.e. Hypothecation-cum-loan agreement dated 12.02.2018, Annexure-A4 (copy), demand promissory note dated 12.02.2018, Annexure-A5 (copy) and demand promissory note delivery letter dated 12.02.2018, Annexure-A6 (copy).

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The aforesaid loan was further secured by creation of mortgage by the defendant in respect of agricultural land measuring 92 Kanals 4 Marlas situated in the revenue estate of Khanpur, Tehsil Hansi, District Hisar, Haryana, fully detailed in para No. 6 of the Original Application. Registered Mortgage deed dated 07.02.2018 is 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 02.06.2022. The defendant executed acknowledgement of debt-cum-revival letter dated 03.02.2021, Annexure-A8 (copy). The applicant bank recalled the entire outstanding amount vide recall notice dated 24.11.2021,

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OA/2236/2022 IDBI BANK VS ANGOORI 3

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Annexure-A9 (copy) and notice dated 09.03.2022, Annexure-A10 (copy) and its postal receipts, Annexure-A11 (copy), but to no avail.

¶21

It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.21,45,096.58/(Rupees Twenty One Lacs Forty Five Thousand Ninety Six and Fifty Eight Paisa Only) is recoverable against the defendant as per statement of account, duly certified under Bankers’ Books Evidence Act, Annexure-A12 and certificate,

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Annexure-A13 (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 12.06.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Ved Prakash, AGM of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by Sh. Rinku Banjara, Assistant General Manager of the applicant bank and gone through the record carefully.

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It was argued by Sh. Rinku Banjara, Assistant General 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 A13 , 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

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OA/2236/2022 IDBI BANK VS ANGOORI

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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 Rs.21,45,096.58/- (Rupees Twenty One Lacs Forty Five Thousand Ninety Six and Fifty Eight Paisa Only) from the defendant.

¶31

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @11.55% plus penal interest @2% per annum. In sanction letter dated 05.02.2018, Annexure-A3 (copy), the rate of interest has been mentioned @7% per annum up to Rs. 3 lacs and @11.55% per annum above Rs. 3 lacs.

¶32

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. agricultural, present conditions of economy based on agriculture, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yesteryears and the defendant being a female, 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.

¶33

In the result, the Original Application is allowed with costs declaring that the defendant is liable to pay to the applicant bank a

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OA/2236/2022 IDBI BANK VS ANGOORI

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sum of Rs.21,45,096.58/- (Rupees Twenty One Lacs Forty Five Thousand Ninety Six and Fifty Eight Paisa Only) with current and future simple interest @7% per annum w.e.f. 02.12.2022 , 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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Parties to appear before Recovery Officer concerned on 29.09.2023.

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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.

¶40

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

Idbi Bank Limited v. Smt. Angoori

Case brief

What is this about?

What did the court decide?

Idbi Bank Limited v. Smt. Angoori

Case brief

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