Allowed

Central Bank of India v. Sh. Jaswinder Singh and Another

DRT14 Aug 2024OA/1111/2023

Case brief

AI extract

What is this about?

The DRT allowed an application for recovery of a term loan. The tribunal declared the defendants jointly and severally liable to pay the principal amount, costs, and future simple interest at 8% per annum, reducing the bank's claimed higher rate. Recovery can proceed via sale of mortgaged properties.

What did the court decide?

Recovery of Rs. 35,84,525.50 with simple interest at 8.00% p.a. from the date of filing; Recovery Certificate issued.

Central Bank of India versus Sh. Jaswinder Singh and Another — Money Laundering | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1111/2023

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 29.08.2023

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DATE OF DECISION: 14.08.2024

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Central Bank of India, body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970 having its head office at Chander Mukhi Building, Nariman Point, Mumbai400021 and having one of its Branch situated at Central Bank of India, Adjoining SBI Bank, near New Courts, Patiala, Sunam, District Sangrur, Punjab through Mrs. Urvashi Sharma who is presently working as Senior Manager, Central Bank of India, Regional Office, K.P. Complex, Adj. Hotel Park Plaza, Ferozepur Road, Ludhiana, Punjab, constituted Power of Attorney Holder of the Bank and Principal Officer. ……..Applicant Versus 1. Mr. Jaswinder Singh S/o Sh. Gurdev Singh, R/o VPO Satoj, Tehsil Sunam, District Sangrur, Punjab. (Borrower/Mortgagor)

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Sh. Jagtar Singh S/o Sh. Roop Singh R/o Sidhu Patti Satoj Sangrur, Tehsil Sunam, District Sangrur, Punjab.

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(Guarantor) ….……Defendants Advocates: Argued by Ms. Ritika Kansal, Advocate proxy for Sh. Surinder Nath Sharma, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. Present Original Application was instituted by the applicant bank under Section 19 of the Recovery of Debts Due to Banks and Financial

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Institutions Act, 1993, against the defendants for recovery of Rs.35,84,525.50p (Rupees Thirty Five Lacs Eighty Four Thousand Five Hundred Twenty Five and Fifty Paise only). The Original Application has been filed through Mrs. Urvashi Sharma, Senior Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 24.03.2014, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 had approached the applicant bank for the grant of Term Loan for Poly House of Rs.46.62 Lacs vide Loan application dated 02.04.2015, which is Annexure A2 to this OA. Defendant No.2 stood as Guarantor. 3. The applicant Bank sanctioned the grant of Term Loan for Poly House of Rs.46.62 Lacs vide Sanction Letters dated 30.04.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 40K-00M situated at Village Satoj, District Sangrur, Punjab vide Declaration under section 4(1) dated 28.04.2015 and Letter to The Joint Sub Registrar for creation of charge bearing vasika no.48 dated 30.04.2015 and Jamabandi for the year 2012-2013, along with their translations, which are Annexures A5, A5/T, A6 & A6/T to this OA. Documents executed:- Legal Scrutiny Report dated 02.04.2015, which are Annexures A4 to this OA; Loan Cum Hypothecation Agreement, Term Loan Agreement, Supplementary Agreement, Copy of Consent Clause by borrower, Letter of Interest Variation, Form for Guarantee for Advances and Credits Generally, copy of consent clause by guarantor all dated 05.05.2012, which are Annexures A7, A8, A9, A10, A11, A12, & A13 to this OA; Loan cum Hypothecation Agreement, Term Loan Agreement, Supplementary Agreement, DP Note, Letter of Waiver, Consent Clause to be executed by the

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borrower(s) all dated 04.04.2018 Which are Annexures A14, A15, A16, A17, A18 & A19 to this OA; Letter of Acknowledgement of debt dated 04.03.2021, which is Annexure A20 to this OA; Notice by Bank dated 09.06.2023 along with postal receipts, which is Annexure A21, and Statement of Account with certificate dated 23.08.2023, which is Annexure A22 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.35,84,525.50 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 defendant and they were proceeded ex-parte on 10.07.2024.

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In support of the OA, affidavit of Mrs. Urvashi Sharma, Senior Manager , Central Bank of India h as been filed. 8. Heard ex-parte 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 Annexures A1 to A22 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.35,84,525.50 (Rupees Thirty Five Lacs Eighty Four Thousand Five Hundred Twenty Five and Fifty Paise only) along with interest from the defendants,

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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 @12.70%p.a. with half yearly rests including plus @2% p.a. penal interest & costs on upto 13.07.2023 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 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.35,84,525.50 (Rupees Thirty Five Lacs Eighty Four Thousand Five Hundred Twenty Five and Fifty Paise 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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 05.09.2024. 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: 14.08.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Central Bank of India v. Sh. Jaswinder Singh and Another

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Central Bank of India v. Sh. Jaswinder Singh and Another

Case brief

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