Allowed

Indian Bank v. Sh. Ranjit Singh and Another

DRT26 Sept 2023OA/489/2022

Case brief

AI extract

What is this about?

The Tribunal considered an Original Application filed by Indian Bank under Section 19 of the RDBFI Act for recovery of an agricultural loan. Deemed an ex-parte hearing where defendants did not appear, the tribunal declared the defendants liable to pay the outstanding amount with revised simple interest.

What did the court decide?

Issued Recovery Certificate; declared defendants liable to pay Rs. 28,32,750.00 plus simple interest at 10.00% p.a.; authorized enforcement against mortgaged/personal assets.

Indian Bank versus Sh. Ranjit Singh and Another — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.489/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 22.03.2022

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DATE OF DECISION: 26.09.2023

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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, Tamil Nadu and Branch amongst at G.T. Road, Moga, Punjab through its duly constituted attorney Sh. Surinder Kumar, Senior Manager

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……..Applicant Versus

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Sh. Ranjit Singh S/o Sh. Tara Singh, R/o H.No.24, Part-2, Village Rasulpur Malla, Tehsil Jagraon, District Ludhiana, Punjab (Borrower/Mortgagor)

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Sh. Balvir Singh S/o Sh. Tara Singh, R/o H. No.62, VPO Rasulpur Malla, Tehsil Jagraon, District Ludhiana, Punjab (Guarantor)

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, 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.28,32,750.00 (Rupees Twenty Eight Lacs Thirty Two Thousand Seven Hundred Fifty only). The Original Application has been filed through Sh. Surinder Kumar, Senior Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 26.08.2010, 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 Agricultural loan under ‘Akshay Krishi’ Kisan Credit Card of Rs.12.00 Lacs vide Loan application dated 10.02.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Agricultural loan under ‘Akshay Krishi’ Kisan Credit Card of Rs.12.00 Lacs for the 1^st year which will be enhanced every year upto 5 years till Rs.17,56,920.00 vide Sanction Letter dated 10.03.2014, 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 properties i.e. total land measuring 11 Kanal 7-1/2 Marlas situated at Village Rasulpur, Tehsil Jagraon, District Ludhiana, Punjab vide Registered Mortgage Deed bearing vasika no.5202 dated 11.03.2014 along with its translation, which are Annexures A7 and A7/T to this OA.

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Documents executed:- Acknowledgment letter dated 25.04.2014, which is Annexure A-3A to this OA; Voter ID of defendant no.1 in File 3, which is Annexure A4 to this OA; D.P. Note, Hypothecation agreement, Deed of guarantee and Consent Letters dated 25.04.2014, which are Annexures A-4A, A5, A6 and A8 to this OA; D.P. Note dated 05.06.2015, which is Annexure A9 to this OA; Acknowledgment of debt dated 06.07.2018, which is Annexure A-9A to this OA; Recall notices dated 16.04.2018 and 09.03.2020, which are Annexures A10 and A11 to this OA; Legal Notice dated 08.02.2022, which are Annexures A12 and A12/T to this OA and Statement of account, 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.28,32,750.00, 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 31.08.2023.

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In support of the OA, affidavit of Sh. Surinder Kumar, Senior Manager, Indian Bank h as been filed.

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Heard ex-parte arguments and perused record.

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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.28,32,750.00 (Rupees Twenty Eight Lacs Thirty Two Thousand Seven Hundred Fifty 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 @10.35%p.a. along with @2%p.a. penal interest with yearly rests from 08.02.2022 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 loans 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

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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.28,32,750.00 (Rupees Twenty Eight Lacs Thirty Two Thousand Seven Hundred Fifty 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 06.10.2023. 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.

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Pronounced by me in the open Tribunal. Dated: 26.09.2023

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

Indian Bank v. Sh. Ranjit Singh and Another

Case brief

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Indian Bank v. Sh. Ranjit Singh and Another

Case brief

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