Allowed

Axis Bank Ltd. v. Sh. Jasvir Singh

DRT15 Jan 2024OA/1007/2022

Case brief

AI extract

What is this about?

The DRT allowed an ex-parte Original Application filed by Axis Bank against two borrowers under Section 19 of the RDBFI Act, 1993, for recovery of Rs.46.75 lakhs, granting uniform simple interest at 10% p.a. and authorizing sale of mortgaged properties.

What did the court decide?

Recovery of Rs.46,75,467.00 with costs and uniform simple interest @10.00% p.a. from the date of filing of the OA till realization.

Axis Bank Ltd. versus Sh. Jasvir Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1007/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.02.2022

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DATE OF DECISION: 15.01.2024

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Axis Bank Ltd. (earlier UTI Bank Ltd.), a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at ‘Trishul’, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad-380006, Gujarat and branches at different places throughout India including one at Mavi Kalan, District Patiala, Punjab through its Attorney, Sh. Sandeep Kumar, Authorized Officer of the applicant bank

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……..Applicant

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Versus

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Sh. Jasvir Singh S/o Sh. Sewa Singh, R/o Village Harchand Pura, Tehsil Patran, District Patiala-147102

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Sh. Sewa Singh S/o Sh. Surain Singh, R/o Village Harchand Pura, Tehsil Patran, District Patiala-147102

(Borrowers)

………Defendants

Advocates:

Argued by Sh. Sumeet Sehgal, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.46,75,467.00 (Rupees Forty Six Lacs Seventy Five Thousand Four Hundred and Sixty Seven only). The Original Application has been filed

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through Sh. Sandeep Kumar, Authorized Officer of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Cash Credit Limit i.e. KCC of Rs.36.00 Lacs vide Loan Application dated 09.03.2015, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Cash Credit Limit i.e. KCC of Rs.36.00 Lacs vide Sanction Letter dated 13.03.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged their immovable properties i.e. total land measuring 32 Kanal 00 Marla situated at Village Attlan, Tehsil Patran, District Patiala, Punjab vide Declaration u/s 4(1) dated 20.03.2015 along with its translation, which are Annexures A7 and A8 to this OA.

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Documents executed:- Loan-cum-Hypothecation agreement, D.P. note, and DPN delivery-cum-waiver letter all dated 23.03.2015, which are Annexures A4 to A6 to this OA; Notice and postal receipts dated 14.01.2022, which are Annexures A9 to A11 to this OA and Statement of account along with computer certificate, 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.46,75,467.00, 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 16.12.2023.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Officer, Axis Bank Ltd. h as been filed.

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Heard ex-parte arguments and perused record.

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It was argued by learned 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.46,75,467.00 (Rupees Forty Six Lacs Seventy Five Thousand Four Hundred and Sixty Seven 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 @11.50%p.a. with half yearly rests along with @2%p.a. penal interest from 01.12.2021 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 defendant, 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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.46,75,467.00 (Rupees Forty Six Lacs Seventy Five Thousand Four Hundred and Sixty Seven 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. 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 03.02.2024. 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. Pronounced by me in the Open Tribunal. Dated: 15.01.2024

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

Axis Bank Ltd. v. Sh. Jasvir Singh

Case brief

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Axis Bank Ltd. v. Sh. Jasvir Singh

Case brief

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What did the court decide?

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