Allowed

Axis Bank v. Smt. Charanjit Kaur

DRT5 Jun 2023OA/403/2023

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed an application filed by Axis Bank against two defendants for recovery of a loan amount of Rs. 20,61,861 plus interest. The proceedings were conducted ex-parte as the defendants appeared absent. The court reduced the claimed interest rate to a uniform 7% per annum.

What did the court decide?

Recovery of Rs. 20,61,861 with simple interest @7% per annum; issuance of Recovery Certificate; liberty to recover via sale of mortgaged property or personal assets.

Axis Bank versus Smt. Charanjit Kaur — Execution and Attachment | DRT (2023)

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

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ORIGINAL APPLICATION NO. 403 of 2023

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DATE OF INSTITUTION: 17.02.2023

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DATE OF DECISION: 5^th DAY OF JUNE, 2023

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Axis Bank Limited , a Company incorporated under the provisions of the Companies Act and a Banking Company within the meaning of the Section 5 (c) of the Banking Regulation Act 1949 (10 of 1949) and having its Registered Office at Trishul, Opposite Samartheswar Temple, Near Law Garden, Ellisbridge, Ahmedabad, Gujarat-380006 and its Branch amongst other places at Axis Bank Limited, Kalpi, District Ambala, Haryana, through its Authorised Signatory, Sh. Rohit Varun Singh Thakur

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.......Applicant Bank

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Versus

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Smt. Charanjit Kaur W/o Sh. Randhir Singh R/o Village NaggalKardhan, Ind. Estate, District Ambala, Haryana-13006

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Sh. Hardeep Singh S/o Sh. Randhir Singh R/o Village NaggalKardhan, Ind. Estate, District Ambala, Haryana-13006

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......Defendants

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Argued by: Sh. Rajiv Sharma counsel for the applicant bank Defendants ex parte vide order dated 02.06.2023

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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 defendants for recovery of Rs.20,61,861/(Rupees Twenty lacs Sixty One Thousand Eight Hundred and

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OA/403/2023 AXIS BANK Vs CHARANJIT KAUR AND ANOTHER 2

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Sixty One Only) . The OA has been filed through Sh. Rohit Varun Singh Thakur, Authorised Signatory of the applicant bank, stated to be competent to institute the Original Application vide Power of Attorney dated 17.11.2021, Annexure-A1 (copy).

¶16

The brief facts of the case of the applicant as per Original Application are that the defendants had approached the applicant bank for grant of cash credit facility of Rs. 25 lacs and term loan facility of Rs. 3 lacs vide loan application dated 16.01.2016, Annexure-A2 (copy).

¶17

The applicant bank sanctioned cash credit facility of Rs. 19.50 lacs and term loan facility of Rs. 2.50 lacs vide sanction letter dated 22.01.2016, 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 loan and security documents, i.e. loancum-hypothecation agreement dated 04.02.2016, Annexure-A4 (copy), demand promissory note dated 04.02.2016, Annexure-A5 (copy) and demand promissory note delivery–cum-waiver letter dated 04.02.2016, Annexure-A6 (copy).

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The aforesaid loans were further secured by creation of mortgage by defendant No. 1 in respect of agricultural land measuring 40 Kanals situated in the revenue estate of Ajrana-Kalan, District Kurukshetra, Haryana, fully detailed in para No. 5(k) of the Original Application. Registered mortgage deed dated 02.02.2016 is Annexure-A7 (copy).

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It is further the case of the 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

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OA/403/2023 AXIS BANK Vs CHARANJIT KAUR AND ANOTHER 3

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accounts were declared as NPA because those became irregular. The applicant bank recalled the entire outstanding amount vide notice dated 13.07.2022 along with its postal receipts, Annexure-A8 (colly) (copy), but to no avail.

¶23

It is further the case of the applicant bank that after adjusting debit and credit entries in loan accounts a sum of Rs.20,61,861/(Rupees Twenty lacs Sixty One Thousand Eight Hundred and Sixty One Only) is recoverable against defendants as per statements of accounts, Annexures-A9 and A10 (copy) certified under Bankers’ Book Evidence Act.

¶24

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

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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 02.06.2023 . 8. In support of the contents of Original Application, affidavit of evidence of Sh. Sandeep Kumar, Authorised Signatory of the applicant bank was filed. 9. This Tribunal has heard ex parte arguments advanced by the learned proxy counsel and gone through the record carefully. 10. It was argued by the learned proxy counsel 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 A10 , it comes out that the defendants had approached the applicant bank for availing of

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OA/403/2023 AXIS BANK Vs CHARANJIT KAUR AND ANOTHER 4

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the loan facilities which were granted to them. It is further cleared 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.20,61,861/- (Rupees Twenty lacs Sixty One Thousand Eight Hundred and Sixty One Only) from the defendants, from the date of filing the present Original Application, till realization of the amount.

¶28

In so far as pendente lite and future interest is concerned, the applicant bank in relief clause has claimed rate of interest @10.90% and @11.95% per with half yearly rests plus @6% per annum penal interest. In sanction letter dated 22.01.2016, Annexure-A3 (copy), rate of interest has been mentioned @12% per annum in cash credit facility and @13% per annum in term loan facility, respectively.

¶29

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, prevalent market rates of interest which have gone drastically downhill in yesteryears and defendant No. 1 being a lady, 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 realization of the amount ordered vide this order. It is ordered accordingly.

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OA/403/2023 AXIS BANK Vs CHARANJIT KAUR AND ANOTHER 5

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In the result, the Original Application is allowed with cost declaring that the defendants are liable to pay to the applicant bank a sum

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Rs.20,61,861/- (Rupees Twenty lacs Sixty One Thousand Eight

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Hundred and Sixty One Only) with current and future simple interest @7% per annum w.e.f. 17.02.2023 , 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.

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Parties to appear before Recovery Officer concerned on 03.08.2023.

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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.

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

Axis Bank v. Smt. Charanjit Kaur

Case brief

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Axis Bank v. Smt. Charanjit Kaur

Case brief

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