Allowed

Indian Bank (erstwhile Allahabad Bank), v. Amrinder Singh and Another

DRT6 Sept 2023OA/587/2022

Case brief

AI extract

What is this about?

The DRT allowed an application by a bank for recovery of an outstanding agricultural loan and restructured term loan of Rs. 21,18,061 against borrowers, deeming it just to grant uniform interest and issuing a recovery certificate.

What did the court decide?

Declared defendants liable to pay Rs. 21,18,061.00 with simple interest @ 10% p.a.; issued Recovery Certificate.

Indian Bank (erstwhile Allahabad Bank), versus Amrinder Singh… — Banking and Recovery | DRT (2023)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.587/2022

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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: 06.09.2023

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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 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

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……..Applicant Versus

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Sh. Amrinder Singh S/o Sh. Sukhminder Singh, R/o H.No.31, Village Bishanpura, Tehsil Samana, District Patiala (Borrower/Mortgagor)

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Alternate Address : H.No.31, Ghuman Niwas, Indira Puri, Samana, District Patiala

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Sh. Jaskaran Singh S/o Sh. Harjeet Singh, R/o Sekhon Colony, Tehsil Samana, District Patiala (Guarantor)

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….……Defendants

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Advocates:

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Argued by Sh. Ajay Singla, 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.21,18,061.00 (Rupees Twenty One Lacs Eighteen Thousand Sixty One only). The Original Application has been filed through Sh. Naresh

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Kumar Kochhar, Branch 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 Agricultural loan under ‘Akshay Krishi’ Kisan Credit Card scheme of Rs.10.00 Lacs vide Loan application dated 05.05.2012, which is Annexure A2 to this OA. Later, the defendants requested the applicant bank to restructure their loan account.

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The applicant Bank sanctioned the Agricultural loan under ‘Akshay Krishi’ Kisan Credit Card scheme of Rs.10.00 Lacs vide Sanction Letter dated 16.05.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. Later, on request of the defendants the applicant bank restructured the loan account by carving out a Term Loan of Rs.5.37 Lacs vide Sanction letter dated 31.07.2018, which is Annexure A12 to this OA.

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Defendant No.1 had mortgaged his immovable properties i.e. total agricultural land measuring 15 Kanals 15 Marlas situated at Village Kahangarh Bhutna, Tehsil Samana, District Patiala, Punjab vide Registered Mortgage Deed bearing vasika no.332 dated 10.05.2012 along with its translation, which are Annexures A8 and A8-T to this OA.

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Documents executed:- Acknowledgement letter, D.P. Note, Deed of Guarantee and Consent letters all dated 16.05.2012, which are Annexures A4, A-5A, A7 and A9 to this OA; Voter Id proof of defendant no.1, which is Annexure A5 to this OA; Hypothecation Agreement dated 10.05.2012, which is Annexure A6 to this OA; Legal notice dated 17.12.2014, which is Annexure A10 to this OA; Acknowledgement of debt dated 20.05.2018, which is Annexure A11 to this OA; Recall notice dated 02.02.2021, which is Annexure A13 to this OA and Statement of Accounts, which are Annexures A14 and A15 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.21,18,061.00, 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. Defendant no.1 appeared before this Tribunal through his counsel but did not file WS. None appeared on behalf of defendant no.2. Therefore, right to file WS was closed and defense was struck-off and both the defendants were proceeded ex-parte on 25.08.2023.

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In support of the OA, affidavit of Sh. Naresh Kumar Kochhar, Branch Manager, Indian Bank h as been filed.

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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 A15 to this OA, it is proved that the defendants approached applicant bank for availing of the KCC loan facility which was granted to them and for that they had executed all the relevant documents in favour of the bank. Later, on request of the defendants the applicant bank restructured the KCC loan account by carving out a Term Loan of Rs.5.37 Lacs. Despite that, the defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.21,18,061.00 (Rupees Twenty One Lacs Eighteen Thousand Sixty 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 in both KCC and Term loan 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 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 both the loan accounts 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.21,18,061.00 (Rupees Twenty One Lacs Eighteen Thousand Sixty One only) with costs, current and future simple interest @10.00%p.a. in both the loan accounts 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 property 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.09.2023. 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

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also uploaded on the official website of this Tribunal and record be consigned.

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Dated: 06.09.2023

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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: 06.09.2023

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

Indian Bank (erstwhile Allahabad Bank), v. Amrinder Singh and Another

Case brief

What is this about?

What did the court decide?

Indian Bank (erstwhile Allahabad Bank), v. Amrinder Singh and Another

Case brief

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What did the court decide?

What the court decided

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