Allowed

Sarv Haryana Gramin Bank v. Rambir

DRT24 Mar 2023OA/842/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's application for a recovery certificate against the defendant for an outstanding loan of Rs.22,84,516.53P. The bank claimed the amount with interest at 13.25% p.a., but the Tribunal exercised discretion and awarded uniform simple interest at 8% p.a. from the date of filing.

What did the court decide?

Recovery certificate issued for Rs.22,84,516.53P with simple interest @8% per annum w.e.f. 16.03.2022 till realization.

Sarv Haryana Gramin Bank versus Rambir — Banking and Recovery | DRT (2023)

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

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ORIGINAL APPLICATION NO.842/2022

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DATE OF INSTITUTION: 16.03.2022

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DATE OF DECISION: 24^th DAY OF MARCH, 2023

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Sarva Haryana Gramin Bank , a Bank constituted and functioning under Regional Rural Banks Act, 1976 and having its Head Office at Sarv Haryana Gramin Bank House, Plot No. 1, Sector 3, Rohtak, Haryana-124001 and one of its Branches at Chhapar, Tehsil Charkhi-Dadri, District Bhiwani, Haryana127021

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...Applicant Bank

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Versus

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Sh. Rambir S/o Sh. Kashi Ram R/o Village Chhapar, Tehsil CharkhiDadri, District Bhiwani, Haryana-127021

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.....Defendant

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Argued by: Sh. Sunil Gupta, counsel for the applicant bank Defendant ex parte vide order dated 16.12.2022

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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 the defendant for recovery of Rs.22,84,516.53p (Rupees Twenty Two lacs Eighty Four Thousand Five Hundred Sixteen and Fifty Three Paisa Only) . It has been filed through Sh. Ashwani Kumar, Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 18.08.2018, Annexure-A1 (copy).

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The brief facts as per the Original Application are that the defendant had approached the applicant bank for grant of KCC facility of Rs.16.80

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OA/842/2022SARV HARYANA GRAMIN BANK Vs RAMBIR

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lacs and Term Loan facility of Rs. 3 lacs vide loan application dated 25.02.2016, Annexure-A2 (colly) (copy).

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The applicant bank sanctioned aforesaid facilities to the defendant vide process note/letter of sanction dated 25.02.2016, Annexure-A2 (colly) (copy) as per the terms and conditions which were duly accepted by the defendant.

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In order to secure the aforementioned credit facilities, the defendant executed various loan and security documents, i.e. Hypothecation agreement dated 04.03.2016, Annexure-A3 (copy), undertaking dated 04.03.2016 regarding credit facility, Annexure-A5 (copy), undertaking dated 04.03.2016 regarding understanding of terms and conditions of credit facility, Annexure-A6 (copy) and term loan agreement dated 09.03.2016, Annexure-A7 (copy).

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The aforesaid loans were further secured by creation of registered mortgage by the defendant in respect of agricultural land measuring 140 Kanals situated in the revenue estate of Chhapar, Tehsil Charkhi-Dadri, District Bhiwani, Haryana, fully detailed in para No. 5.6 of the Original Application.

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The documents relating to the mortgage are as under:

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i. Declaration dated 04.03.2016 regarding non-encumbrances of the mortgaged land, Annexure-A4 (copy).

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ii. Registered mortgage deed dated 02.03.2016, Annexure-A8 (copy).

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iii. Request letter dated 03.03.2016 to the Tehsildar, Charkhi-Dadri, for entry/mutation of mortgaged property, Annexure-A9 (copy).

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It is further the case of the applicant bank that the loan facilities were duly availed of by the defendant but he failed to maintain the financial discipline of the applicant bank and resultantly, the loan accounts became irregular and those were declared NPA on 22.09.2021.The

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OA/842/2022SARV HARYANA GRAMIN BANK Vs RAMBIR

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defendant executed balance and security confirmation letters dated 18.01.2019 and 22.11.2021, Annexures-A14 and A15 (colly) (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 15.11.2021, Annexure-A12 (copy), along with its postal receipt, Anneuxre-A13 (copy), but to no avail.

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.22,84,516.53p

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(Rupees Twenty Two lacs Eighty Four Thousand Five Hundred Sixteen and Fifty Three Paisa Only) is recoverable against the defendant as per statements of accounts dated 15.03.2022, AnnexuresA10 and A11 (copy), duly certified under Banker’s Books Evidence Act.

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

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Notice of the Original Application was duly served upon the defendant, but since none appeared on behalf of the defendant, thus, the defendant was proceeded against ex parte vide order dated 16.12.2022 .

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In support of the contents of the OA, affidavit of evidence of Sh. Ashwani Kumar, Manager of the applicant bank was filed.

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This Tribunal has heard ex parte arguments advanced by the learned counsel and gone through the record carefully.

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It was argued by the learned counsel that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendant for recovery of the amount sought. From perusal of Annexures-A1 to A15 , it comes out that the defendant had approached the applicant bank for availing of the loan facilities which were granted to him. It is further clear that the defendant had executed all the relevant documents as stated above in favour of the applicant bank.

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OA/842/2022SARV HARYANA GRAMIN BANK Vs RAMBIR

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Unfortunately, the defendant failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.22,84,516.53p (Rupees Twenty Two

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lacs Eighty Four Thousand Five Hundred Sixteen and Fifty Three Paisa Only) from the defendant.

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In so far as pendent lite and future interest is concerned, the applicant bank, in relief clause, has claimed rate of interest @13.25% per annum in both loan facilities. In letter of sanction dated 25.02.2016, Annexure-A2 (colly) (copy), rate of interest has been mentioned @13.25% per annum. 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. agriculture, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs declaring that the defendant is liable to pay to the applicant bank a sum Rs.22,84,516.53p (Rupees Twenty Two lacs Eighty Four Thousand

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Five Hundred Sixteen and Fifty Three Paisa Only) with current and future simple interest @8% per annum w.e.f. 16.03.2022 , till the date of realisation of the amount. Accordingly, the applicant bank shall be at

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OA/842/2022SARV HARYANA GRAMIN BANK Vs RAMBIR

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liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendant in execution proceedings, if not sold earlier under the provisions of the Securitisation 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 defendant. 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 08.05.2023.

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Copy of this order be sent to the applicant bank and the defendant 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

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DRT-2, Chandigarh

Sarv Haryana Gramin Bank v. Rambir

Case brief

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Sarv Haryana Gramin Bank v. Rambir

Case brief

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