Allowed

Axis Bank Ltd. (earlier Uti Bank Ltd.) v. Sh. Harnam Singh and Others

DRT15 Jan 2024OA/1154/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the applicant bank's original application for recovery of a loan of Rs. 42,00,952.48p from the defendants. The court granted a uniform simple interest rate of 10% per annum and issued a recovery certificate.

What did the court decide?

Recovery of Rs.42,00,952.48p plus simple interest at 10% p.a.; issuance of Recovery Certificate; liberty to enforce claim via sale of assets.

Axis Bank Ltd. (earlier Uti Bank Ltd.) versus Sh… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1154/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.06.2022

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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 branch at Axis Bank Ltd., Tehsil Road, Jagraon, Ludhiana through its Attorney, Sh. Rohit Thakur working as Deputy Manager with the applicant bank

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……..Applicant

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Versus

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Sh. Harnam Singh S/o Sh. Gopal Singh, R/o Village Doburji, Tehsil Dharamkot, District Moga-142042

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Sh. Mukhtiar Singh S/o Sh. Harnam Singh, R/o Village Doburji, Tehsil Dharamkot, District Moga-142042

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Sh. Jarnail Singh S/o Sh. Sardool Singh, R/o Village Doburji, Tehsil Dharamkot, District Moga-142042

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………Defendants

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Advocates:

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Argued by Sh. Deepak Jain, 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.42,00,952.48p (Rupees Forty Two Lacs Nine Hundred Fifty Two and Forty Eight Paisa only). The Original Application has been filed through Sh. Rohit Thakur, Deputy Manager of the applicant bank, who is

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competent to institute the Original Application vide Special Power of Attorney and Board Resolution, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant Nos.1 and 2 had approached the applicant bank for the grant of Production Credit Limit of Rs.40.00 Lacs under Kisan Power Scheme vide Loan Application dated 12.07.2012, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the Production Credit Limit of Rs.40.00 Lacs under Kisan Power Scheme vide Sanction Letter dated 11.08.2012, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.1 had mortgaged his immovable properties i.e. total land measuring 85 Kanals 10 Marlas situated at Village Daburji and Badduwal, Tehsil Dharamkot, District Moga, Punjab vide Registered Mortgage Deed bearing Vasika No.1496 dated 16.08.2012 along with its translation, which is Annexure A7 to this OA. Documents executed:- Guarantor form dated 12.07.2012, which is Annexure A3 to this OA; Loan-cum-Hypothecation agreement and Deed of guarantee both dated 22.08.2012, which are Annexures A5 and A6 to this OA; Letter of acknowledgment of debt dated 17.07.2019 and 30.03.2017, which is Annexure A8 to this OA; Legal notice dated 02.06.2022 alongwith postal receipts, which is Annexure A9 (Colly) to this OA; Statement of account, which is Annexure A10 to this OA; Manual foreclosure, which is Annexure A11 to this OA and Certificate u/s 2A of Banker’s Book of Evidence Act and Certificate u/s 65B of the Evidence Act, which is Annexure A12 (Colly) 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.42,00,952.48p, 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. 7. In support of the OA, affidavit of Sh. Rohit Thakur, Deputy Manager, Axis Bank Ltd. h as been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by learned counsel through video conferencing 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.42,00,952.48p (Rupees Forty Two Lacs Nine Hundred Fifty Two and Forty Eight Paisa 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. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.65%p.a. with half yearly rests along with @6%p.a. penal interest from 03.11.2021 till the realization. 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

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @10.00%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. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.42,00,952.48p (Rupees Forty Two Lacs Nine Hundred Fifty Two and Forty Eight Paisa 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.

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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 02.02.2024. 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 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Ltd. (earlier Uti Bank Ltd.) v. Sh. Harnam Singh and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. (earlier Uti Bank Ltd.) v. Sh. Harnam Singh and Others

Case brief

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What did the court decide?

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