Allowed

Indian Bank v. Sh.Lakhbir Singh and Anr.

DRT17 Nov 2023OA/463/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal, Chandigarh, allowed an Original Application filed by Indian Bank against borrowers and guarantors for recovery of Rs. 23,61,251 due from an agricultural loan account. The Tribunal granted uniform interest at 10% p.a., ordered recovery from mortgaged properties, and issued a Recovery Certificate.

What did the court decide?

Direct recovery of Rs. 23,61,251 jointly and severally with 10% interest via sale of mortgaged and personal assets; Recovery Certificate issued.

Indian Bank versus Sh.Lakhbir Singh and Anr. — Execution and Attachment | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.463/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.02.2022

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DATE OF DECISION: 17.11.2023

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Indian Bank, (erstwhile Allahabad Bank) a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai- 600014 and a branch amongst others at G.T. Road, Moga through its duly constituted attorney, Sh. Surinder Kumar, Senior Manager

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……..Applicant Versus

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Sh. Lakhbir Singh S/o Sh. Sant Singh, R/o VPO Raniala, Tehsil Dharamkot, District Moga (Borrower/Mortgagor)

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Sh. Mahinder Singh S/o Sh. Sant Singh, R/o Village Raniala, Tehsil Dharamkot, District Moga (Guarantor) ………Defendants

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Advocates:

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Argued by Sh. Aseem Kataria, counsel proxy for Ms. Puja Sharma, 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.23,61,251.00 (Rupees Twenty Three Lacs Sixty One Thousand Two Hundred Fifty One only). The Original Application has been filed through Sh. Surinder Kumar, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant bank for the grant of KCC Limit of Rs.10.00

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Lacs under Bank’s ‘Akshay Krishi’ scheme vide Loan Application dated 29.05.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs under Bank’s ‘Akshay Krishi’ scheme which will be increased in 5 years up to Rs.14,64,100/- vide Sanction Letter dated 04.06.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable property i.e. land measuring 18K-13M situated at Village Raniala, Tehsil Dharamkot, District Moga, Punjab vide Registered Mortgage Deed bearing Vasika No.273 dated 04.06.2014 along with its translation, which are Annexures A7 and A-7T to this OA.

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Documents executed:- Acknowledgement Letter dated 12.06.2014, which is Annexure A-3A to this OA; PAN Card of defendant no.1 in File 3, which is Annexure A4 to this OA; D.P. Note, Hypothecation Agreement, Deed of Guarantee and Consent Letter all dated 12.06.2014, which are Annexures A-4A, A5, A6 and A8 to this OA; Acknowledgment of debt dated 05.09.2018, which is Annexure A9 to this OA; Recall notice dated 18.03.2020, which is Annexure A10 to this OA, Legal notice dated 03.12.2021 along with its translation, which are Annexures A11 and A-11T to this OA and Statement of account, which is Annexure A12 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.23,61,251.00, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 16.10.2023.

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In support of the OA, affidavit of Sh. Surinder Kumar, Senior Manager, Indian Bank has 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 A12 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.23,61,251.00 (Rupees Twenty Three Lacs Sixty One Thousand Two Hundred Fifty One 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 @10.30%p.a. along with @2%p.a. penal interest with half yearly rests from 29.12.2021 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.23,61,251.00 (Rupees Twenty Three Lacs Sixty One Thousand Two Hundred Fifty One 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.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 28.11.2023.

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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: 17.11.2023

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

Indian Bank v. Sh.Lakhbir Singh and Anr.

Case brief

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Indian Bank v. Sh.Lakhbir Singh and Anr.

Case brief

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