Allowed

Indian Bank v. Sh. Gobinder Singh

DRT22 Aug 2023OA/585/2022

Case brief

AI extract

What is this about?

This Recovery Tribunal allowed the bank's original application for recovery of a loan. The court decreed the principal amount plus costs and uniform simple interest at 10.00% per annum, authorizing execution against mortgaged properties.

What did the court decide?

Recovery certificate issued; respondents ordered to pay Rs.37,88,591.00 with interest @10.00% p.a. from date of filing. Entitled to recover via sale of hypothecated/mortgaged assets or personal assets

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.585/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 10.03.2022

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DATE OF DECISION: 22.08.2023

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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 a Branch amongst others at Near Old Bus Stand, Pratap Colony, Samana, District Patiala (hereinafter) referred to as “the Bank” through its duly constituted attorney Sh. Naresh Kumar Kochhar, Branch Manager ……..Applicant

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Versus

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Sh. Gobinder Singh S/o Sh. Anoop Singh, R/o H.No.63, Village Mardanheri, Tehsil Samana, District Patiala (Borrower/Mortgagor)

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Sh. Jora Singh @ Zora Singh S/o Sh. Hassal Singh, R/o Village Saffipur Kalwa, Tehsil Sunam, District Sangrur, Punjab (Guarantor)

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….……Defendants

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Advocates: 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.37,88,591.00 (Rupees Thirty Seven Lacs Eighty Eight Thousand

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Five Hundred and Ninety One only). The Original Application has been filed through Sh. Naresh Kumar Kochhar, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.03.2015, 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 ‘Akshay Krishi’ Kisan Credit Card of Rs.18.00 Lacs vide Loan applications dated 20.04.2012, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the ‘Akshay Krishi’ Kisan Credit Card of Rs.18.00 Lacs vide Sanction Letter dated 07.05.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 24 Kanals 00 Marlas situated at Village Marda Herhi, Tehsil Samana, District Patiala, Punjab vide Registered Mortgage Deed No.258 along with its translation dated 04.05.2012, which are Annexures A8 and A8/T to this OA. Documents executed:- Acknowledgment Letter, D.P. Note, Hypothecation agreement, Deed of guarantee, Consent Letters and Affidavit all dated 07.05.2012, which are Annexures A3/A, A5 to A7, A9 and A9/A to this OA; Voter ID Proof of Defendant No.1, which is Annexure A4 to this OA; Acknowledgments of debt dated 27.04.2017 and 17.01.2020, which are Annexures A10 and A11 to this OA; Recall notice dated 01.02.2021, which is Annexure A12 to this OA and Statement of account, which is Annexure A13 to this OA. 5. 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.37,88,591.00, 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 were proceeded ex-parte on 17.08.2023.

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In support of the OA, affidavit of Sh. Naresh Kumar Kochhar, Branch Manager, Indian Bank h as 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 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.37,88,591.00 (Rupees Thirty Seven Lacs Eighty Eight Thousand Five Hundred and Ninety 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 accounts.

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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 29.09.2021 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 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 amounts 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.37,88,591.00 (Rupees Thirty Seven Lacs Eighty Eight Thousand Five Hundred and Ninety 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 amounts. 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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this

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Tribunal on 30.08.2023.

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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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Dated: 22.08.2023

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

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Order dictated, signed and pronounced by me in the open Tribunal.

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Dated: 22.08.2023

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

Indian Bank v. Sh. Gobinder Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sh. Gobinder Singh

Case brief

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