Allowed

Bank of India v. Kaur Singh and Others

DRT22 Oct 2024OA/1100/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the Original Application filed by Bank of India for recovery of a defaulted loan. It declared the legal heirs of deceased borrowers and a co-borrower jointly liable to pay the dues with simple interest at 8% per annum, granting the Recovery Certificate for execution.

What did the court decide?

Recovery Certificate issued; Defendants directed to pay Rs. 28,29,051.48 with simple interest @8% p.a. from filing date; Enforceable via sale of mortgaged or personal assets.

Bank of India versus Kaur Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1100/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.09.2023

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DATE OF DECISION: 22.10.2024

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Bank of India, a Body Corporate and a nationalized Bank under the Provisions of the Banking Companies (Acquisition & Transfer of Undertaking) Act of 1970 with its H.O. at Bank of India, Star House, C- 5, “G” Block, Bandra Kurla Complex, Bandra (East) Mumbai 400051

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and amongst others a Branch at Nihal Singh Wala, District Moga, through Shri Prasad Dwarka Constituted Attorney of the Applicant Bank.

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……..Applicant

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Versus

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Sh. Kaur Singh S/o Sh. Bachan Singh Since deceased by following

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legal heirs:

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1A. Smt. Amarjit Kaur Brar, Daughter in Law.

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1B. Sh. Sukhjeet Singh Brar, Grandson

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1C. Smt. Hardeep Kaur Brar, Grand Daughter

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Resident of Village Gaziana, Tehsil Nihal Singh Wala, District Moga, Punjab.

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Sh. Gurmit Singh S/o Sh. Kaur Singh Since deceased by following

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legal heirs:

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2A. Smt. Amarjit Kaur Brar, Widow

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2B. Sh. Sukhjeet Singh Brar, Son

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2C. Smt. Hardeep Kaur Brar, Daughter

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Resident of Village Gaziana, Tehsil Nihal Singh Wala, District Moga, Punjab.

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3. Sh. Atma Singh S/o Sh. Gurdev Singh R/o of Village Patto Hira
Singh, Tehsil Nihal Sing Wala, District Moga, Punjab.
….……Defendants

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Advocates:

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Argued by Ms. Sonal Chabra, Advocate proxy for Sh. Pankaj Beri, 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.28,29,051.48p (Rupees Twenty Eight Lac Twenty Nine Thousand Fifty One and Forty Eight Paisa Only). The Original Application has been filed through Shri Prasad Dwarka Constituted Attorney 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. 2. The brief facts of the OA are that the defendant nos.1 & 2(both since deceased) had approached the applicant bank for the grant of KCC Limit of Rs.10.00 Lacs & OD Limit of Rs.05.00 Lac vide Loan applications dated 04.02.2014, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.10.00 Lacs & OD Limit of Rs.05.00 Lac vide Memorandum of Sanction Letter dated 06.02.2014, which is Annexure A2 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1(Since deceased) had mortgaged his immovable properties i.e. total land measuring 31Kanal-12Marla situated in Village Gaziana, Tehsil Nihal Singh Wala, District Moga vide Registered Mortgage Deed bearing Vasika No.2375 dated 21.02.2014, with its translations, which is Annexure A10 to this OA. Documents executed:- D.P. Notes, Letter of Declaration, Undertaking & Authority, Agreement, Hypothecation Cum Loan Agreement and Deed of Guarantee all dated 24.02.2014, which are Annexures A4 to

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A9 to this OA; Death Certificate dated 12.09.2016 with its translation,

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which is Annexure A11 to this OA; Legal Notice dated 31.03.2023 with postal receipts, which is Annexure A12 to this OA and Statements of accounts along with certificates, which are Annexures A13 & A14 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 both the loan accounts there was a debit of Rs.28,29,051.48, 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 legal heirs of deceased defendant nos.1 and 2 i.e. 1(A), 1(B), 1(C), 2(A), 2(B), 2(C) and defendant no.3 were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 18.10.2024.

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In support of the OA, affidavit of Shri Prasad Dwarka Constituted Attorney, Bank of India h as been filed. 8. Heard 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 Annexure A1 to A14 to this OA, it is proved that the defendant nos.1 & 2(both since deceased) and defendant no.3 approached applicant bank for availing of the loan facilities which were 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, 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.28,29,051.48p (Rupees Twenty Eight Lac Twenty Nine Thousand Fifty One and Forty Eight Paisa Only) along with interest from the legal heirs of deceased defendant nos.1 and 2 i.e. 1(A), 1(B), 1(C), 2(A), 2(B), 2(C) and from defendant no.3,

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jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

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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 @13.65%p.a. with half yearly rests from 01.08.2023 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 legal heirs of deceased defendant nos.1 and 2 i.e. 1(A), 1(B), 1(C), 2(A), 2(B), 2(C) and defendant no.3, 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 @08.00%p.a. in 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.

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In the result, the application is allowed declaring that the legal heirs of deceased defendant nos.1 and 2 i.e. 1(A), 1(B), 1(C), 2(A), 2(B), 2(C) and defendant no.3 are liable to pay to the applicant a total sum of Rs.28,29,051.48p (Rupees Twenty Eight Lac Twenty Nine Thousand Fifty One and Forty Eight Paisa Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in all 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 heirs of deceased defendant nos.1 and 2 i.e. 1(A), 1(B), 1(C), 2(A), 2(B), 2(C) and defendant no.3 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 heirs of deceased defendant nos.1 and 2 i.e. 1(A), 1(B),

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1(C), 2(A), 2(B), 2(C) and defendant no.3. 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 02.11.2024. 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: 22.10.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Bank of India v. Kaur Singh and Others

Case brief

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Bank of India v. Kaur Singh and Others

Case brief

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