Allowed

Bank of India v. Charanpreet Singh

DRT23 Aug 2024OA/107/2024

Case brief

AI extract

What is this about?

In an ex-parte application under the RDDBFI Act, 1993, the Tribunal allowed the Bank of India's claim for Rs. 37,78,993 against the guarantor and legal heir. The Court reduced from claimed to a uniform 8% p.a. simple interest and ordered the issuance of a Recovery Certificate.

What did the court decide?

Recovery Certificate issued; Defendant to pay Rs. 37,78,993 plus costs and simple interest at 8% p.a. from date of filing till realization.

Bank of India versus Charanpreet Singh — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.107/2024 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 17.12.2023

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DATE OF DECISION: 23.08.2024

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act No.V of 1970, having its Head office at “Star House” C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at Dala, Distt. Moga through its duly constituted attorney, Sh. Prasad Dwarka presently posted as Chief Manager at Zonal Office, Ludhiana Branch. ……..Applicant Bank Versus

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Sh. Charanpreet Singh S/o Late Sh. Baldev Singh, (Guarantor and Legal heir) to the Estate of Late Sh. Baldev Singh (Borrower/Mortgagor) R/o Village Dala, Patti Dasumra, Distt. Moga, Punjab ….……Defendant

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, Advocate for the applicant Defendant is 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 defendant for recovery of Rs.37,78,993.00 (Rupees Thirty Seven Lacs Seventy Eight Thousand Nine Hundred and Ninety Three only). The Original Application has been filed through Sh. Prasad Dwarka, Chief Manager o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 05.12.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that Late Sh. Baldev Singh had approached the applicant bank for the grant of KCC Limit of Rs.15.00 and AGOD Limit of Rs.10.00 Lacs, vide Loan applications both dated 28.05.2014, which are Annexures A2 & A10 to this OA. Defendant No.1 stood as guarantor.

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The applicant Bank sanctioned the KCC Limit of Rs.15.00 and AGOD Limit of Rs.10.00 Lacs vide Sanction Letter dated 29.05.2014, which are Annexure A3 & A11 to this OA; and the terms and conditions were duly accepted by the Late Sh. Baldev Singh.

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Late Sh. Baldev Singh had mortgaged his immovable property i.e. land measuring 32K-00M situated at Village Dala, Tehsil and District Moga, Punjab vide Registered Mortgage Deeds bearing Vasika No.1409 and Vasika No.1408, both dated 30.05.2014, along with their translations which are Annexures A9, A9/T & A16, A16/T to this

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OA.

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Documents executed: - D.P. Notes, Hypothecation cum Loan Agreement, Deeds of Guarantee, Letters of Declaration, Undertaking & Authority, Agreements, all dated 05.06.2014, which are Annexures A4, A5, A6, A7, A8, A12, A13, A14 & A15 to this OA; Acknowledgement of debt/securities dated 03.05.2017, 09.05.2017, 21.03.2020 & 04.04.2020, which are Annexures A17 to A20 to this OA; Acknowledgement of debt/securities by legal heirs dated 04.02.2023, which is Annexure A21 to this OA; Legal Notices dated 14.07.2022, 06.01.2023 & 05.08.2023, which are Annexures A22 to A24 to this OA and Statement of accounts along with certificate which are Annexures A25 & A26 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 all the loan accounts there was a debit of Rs.37,78,993.00, which is recoverable and the defendant was served recall notice but he 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 defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 18.07.2024.

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In support of the OA, affidavit of Sh. Prasad Dwarka, Chief Manager, Bank of Bank has 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 A26 to this OA, it is proved that Late Sh. Baldev Singh approached applicant bank for availing of the loan facilities which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant 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.37,78,993.00 (Rupees Thirty Seven Lacs Seventy Eight Thousand Nine Hundred and Ninety Three only) along with interest from the legal heir of Late Sh. Baldev Singh i.e. defendant No.1 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 @10.00%p.a. in KCC & AGOD with half yearly rests plus Penal Interest @2.00%p.a. in both from 16.03.2023 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

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just and appropriate to grant uniform simple interest @8.00%p.a. in all 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 defendant is liable to pay to the applicant a total sum of Rs.37,78,993.00 (Rupees Thirty Seven Lacs Seventy Eight Thousand Nine Hundred and Ninety Three only) with costs, current and future simple interest @8.00%p.a. in 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/mortgaged properties of the legal heir of Late Sh. Baldev Singh i.e. defendant No.1 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 legal heir of Late Sh. Baldev Singh i.e. defendant No.1. 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. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 14.09.2024. 15. Copy of this order be given dasti to the applicant bank and be sent to defendant 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: 23.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Charanpreet Singh

Case brief

What is this about?

What did the court decide?

Bank of India v. Charanpreet Singh

Case brief

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What did the court decide?

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