Allowed

Central Bank of India v. Hoshiar Singh Alias Husiar Singh and Others

DRT17 Oct 2024OA/1170/2023

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an Original Application filed by Central Bank of India for recovery of Rs.34.22 lacs against three borrowers. The Tribunal decreed payment with costs and fixed simple interest at 8% p.a., directing recovery via hypothecated properties or attachment of personal assets under SARFAESI Act provisions.

What did the court decide?

Deemed to recover Rs.34,21,999.00 jointly and severally with costs and 8% p.a. simple interest; granted liberty to recover via sale of hypothecated properties or attachment of personal assets.

Central Bank of India versus Hoshiar Singh Alias Husiar Singh… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1170/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.10.2023

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DATE OF DECISION: 17.10.2024.

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Central Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Chander Mukhi Building, Nariman Point, Mumbai 400021 and having one of its Branch situated at Central Bank of India, Mahavir Road, Behind old truck union, Mandi Ahmedgarh, District Malerkotla, 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 applicant and Principal Officer

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……..Applicant

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Versus

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Sh. Hoshiar Singh @ Husiar Singh S/o Sh. Joginder Singh, R/o Village Chhapar, Tehsil and District Ludhiana, Punjab

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Smt. Manpreet Kaur Boparai W/o Sh. Balraj Singh, R/o Village Chappar, Tehsil and District Ludhiana, Punjab

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Sh. Balvir Singh S/o Sh. Sarwan Singh, R/o Village Maherna Khurd, Tehsil Ahmedgarh, District Sangrur, Punjab

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….……Defendants

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Advocates:

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Argued by Sh. Surinder Nath Sharma, Advocate for the applicant (through VC) 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

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Rs.34,21,999.00 (Rupees Thirty Four Lacs Twenty One Thousand Nine Hundred Ninety Nine only). The Original Application has been filed through Mrs. Urvashi Sharma, Senior Manager o f the applicant, who is competent to institute the Original Application vide General 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 for the grant of Kisan Cash Credit Limit of Rs.25.00 Lacs vide Loan application dated 30.03.2013, which is Annexure A2 to this OA and further for its renewal.

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The applicant sanctioned the Kisan Cash Credit Limit of Rs.25.00 Lacs vide Sanction Letter dated 03.04.2013, which is Annexure A3 to this OA and further applicant sanctioned the renewal of KCC Limit of Rs.25.00 Lacs vide Letter by the Borrower to the requesting for loan renewal dated 07.03.2020, which is Annexure A15 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 24K-00M situated at Village Chappar, Tehsil and District Ludhiana (Punjab) vide Registered Mortgaged Deed bearing vasika No.127 dated 03.04.2013 along with English Translation, which are Annexures A4 and A-4(T) to this OA.

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Documents executed:- Advocate Report on Title dated 03.04.2013, which is Annexure A5 to this OA; Non Encumbrance Certificate dated 01.04.2013, which is Annexure A6 to this OA; Loan cum Hypothecation Agreement, D.P. Note, Letter of Waiver, Letter of declaring acceptance of consent clause by the Borrower, Letter of Guarantee and Letter of Continuity all dated 06.04.2013, which are Annexures A7 to A12 to this OA; Balance Confirmation Letter dated 08.03.2016, which is Annexure A13 to this OA; Letter by Advocate to the regarding Verification of Rapat of Mortgaged dated 09.06.2016, which is Annexure A14 to this OA; Agreement for Hypothecation, D.P. Note, Letter of Waiver and Letter of Continuity all dated

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15.02.2023, which are Annexures A16 to A19 to this OA; Notice of Recall of Bank’s Dues by Advocate dated 19.06.2023 with postal receipts, which is Annexure A20 to this OA and Statement of Account with certificate, which is Annexure A21 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.34,21,999.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant 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. Sh. C.K. Jangra, Advocate appeared on behalf of defendants and filed Memo of Appearance but did not filed Power of Attorney. Since no one appeared on behalf of defendants, they were proceeded ex parte on 09.10.2024.

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In support of the OA, affidavit of Mrs. Urvashi Sharma, Senior Manager, Central Bank of India h as been filed.

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Heard arguments and perused record.

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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 had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.34,21,999.00 (Rupees Thirty Four Lacs Twenty One Thousand Nine Hundred Ninety Nine only) along with interest from the defendants, jointly and severally, from the

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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 in relief clause has claimed interest @11.15%p.a. along with penal interest @2.00%p.a. with half yearly rests from 18.08.2023 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 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.34,21,999.00 (Rupees Thirty Four Lacs Twenty One Thousand Nine Hundred Ninety 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 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 applicant 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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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 28.10.2024.

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Copy of this order be given dasti to the applicant 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.

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Dated: 17.10.2024

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

Central Bank of India v. Hoshiar Singh Alias Husiar Singh and Others

Case brief

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Central Bank of India v. Hoshiar Singh Alias Husiar Singh and Others

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