Allowed

Axis Bank Ltd. v. Sh. Karamjit Singh and Others

DRT28 May 2024OA/1020/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an Original Application filed by Axis Bank for recovery of Rs.29,15,429 from three defendants who failed to repay an agricultural loan. The Tribunal reduced the claimed interest to 8% p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Debt of Rs.29,15,429 to be paid with 8% simple interest; Recovery Certificate issued.

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

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1020/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 20.06.2022

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DATE OF DECISION: 28.05.2024

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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 Payal, District Ludhiana (Punjab), through its Attorney Sh. Rohit Varun Singh Thakur, Authorized Officer of Applicant Bank.

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……..Applicant

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Versus

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Sh. Karamjit Singh S/o Sh. Jang Singh, R/o H.No.44, Village Daun Majra, Tehsil Payal, District Ludhiana -141414

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Sh. Gurjant Singh S/o Sh. Jang Singh, R/o H.No.44, Village Daun Majra, Tehsil Payal, District Ludhiana -141414.

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Sh. Jang Singh S/o Sh. Dogar Singh, R/o H.No.44, Village Daun Majra, Tehsil Payal, District Ludhiana -141414

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate proxy for Sh. Sumeet Sehgal, Advocate 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.29,15,429.00 (Rupees Twenty Nine Lacs Fifteen Thousand Four Hundred and Twenty Nine only). The Original Application has been filed through Sh. Rohit Varun Singh Thakur, Authorized Officer o f the applicant bank, who is competent to institute the Original Application

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vide Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant bank for the grant of Agriculture Cash Credit Limit of Rs.30.00 Lacs vide Application Form for Credit Facilities dated 08.10.2015, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Agriculture Cash Credit Limit of Rs.30.00 Lacs vide Sanction Letter dated 12.11.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.3 had mortgaged his immovable properties i.e. total land measuring 48K-0M (6 Acres) situated at Village Dau Majra, Tehsil Payal, District Ludhiana (Punjab) vide Letter to Sub registrar for creation of charge and Declaration Under Section 4 (1) bearing mutation no.971 dated 17.11.2015, which is Annexure A7 to this OA. Documents executed:- Loan cum Hypothecation Agreement dated 18.11.2015, which is Annexure A4 to this OA; Demand Promissory Note, DP Note Delivery cum waiver Letter, which are Annexures A5 and A6 to this OA; Notice dated 17.05.2022 with postal receipt, which are Annexures A8 to A11 to this OA and Statement of Loan Account along with Certificate regarding the Computer System and the genuineness of the statement of Accounts being prepared through Computer System, which is Annexure A12 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.29,15,429.00, 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. 6. 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 28.03.2024.

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In support of the OA, affidavit of Sh. Rohit Varun Singh Thakur, Authorized Officer, Axis Bank Ltd. 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 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.29,15,429.00 (Rupees Twenty Nine Lacs Fifteen Thousand Four Hundred and Twenty Nine 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 @10.90%p.a. plus penal interest @2%p.a. with half yearly rests from 03.11.2021 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 @8.00%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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.29,15,429.00 (Rupees Twenty Nine Lacs Fifteen Thousand Four Hundred and Twenty Nine only) jointly and severally, with costs, current and future simple interest @8.00%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.

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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 12.06.2024.

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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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Pronounced by me in the open Tribunal . Dated: 28.05.2024

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

Axis Bank Ltd. v. Sh. Karamjit Singh and Others

Case brief

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Axis Bank Ltd. v. Sh. Karamjit Singh and Others

Case brief

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