Allowed

Axis Bank Limited v. Smt. Balwinder Kaur

DRT22 Aug 2024OA/1202/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's application under Section 19 RDBIF Act for recovery of Rs. 61.68 Lakhs. The court modified the claimed interest rate from 13% to 8% per annum and ordered issuance of a Recovery Certificate against the mortgaged property.

What did the court decide?

Recovery of Rs. 61,68,003.73 with simple interest @ 8% p.a. from filing date till realization, to be recovered from sale of mortgaged property.

Axis Bank Limited versus Smt. Balwinder Kaur — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1202/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.03.2022

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DATE OF DECISION: 22.08.2024

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Axis Bank Ltd., having its registered office at “Trishul”, 3^rd Floor, opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad, Gujarat, Also At:- Axis Bank, Loan Centre, SCO-350-352, Sector-34-A, Chandigarh-160022, through Sh. Sandeep Kumar, its authorized representative.

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……..Applicant Versus

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Smt. Balwinder Kaur W/o Sh. Bahadur Singh, NR Govt. Girls School, Chamkaur Sahib, Tehsil Chamkaur Sahib District Roop Nagar, Punjab- 140112.

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….……Defendant

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Advocates:

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Argued by Ms. Dipti Toni, Advocate proxy for Sh. Gagandeep Toni, Advocate for the applicant (through VC) 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 defendants for recovery of Rs.61,68,003.73p (Rupees Sixty One Lacs Sixty Eight Thousand Three and Paisa Seventy Three only). The Original Application has been filed through Sh. Sandeep Kumar, its authorized representative o f the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant bank for the grant of KCC Limit of Rs.48.00 Lacs vide Application Form dated 12.10.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the CC Limit of Rs.48.00 Lacs for Sanction Letter dated 26.10.2013, which is Annexure A3 to this OA; and the terms and conditions were duly accepted by the defendant.

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Defendant had mortgaged his immovable property i.e. land measuring 105K-13M situated at Village Bhallan, Hadbast No. 273, Tehsil Nagal, District Roopnagar Punjab vide Registered Mortgage Deed bearing vasika no. 1058 dated 01.11.2013 along with its English Translation, which is Annexure A6 to this OA.

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Documents executed: - Loan cum Hypothecation Agreement, Demand Promissory Note both dated 28.10.2013, which are Annexures A4 & A5 to this OA; Statement of account with certificate, which is Annexure A7 to this OA and Demand Notice dated 29.12.2021 along with its Postal Receipt, which are Annexures A8 & A9 to this OA and

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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.61,68,003.73p, 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 she was proceeded ex-parte on 16.07.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, authorized representative, Axis Bank Ltd. has been filed. 8. Heard ex-parte arguments and perused record.

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It was argued by learned proxy 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 A9 to this OA, it is proved that the defendant approached applicant bank for availing of the loan facility which was granted to her and for that she had

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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.61,68,003.73p (Rupees Sixty One Lacs Sixty Eight Thousand Three and Paisa Seventy Three only) along with interest from the defendant, 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 @13.00%p.a. from 30.11.2021 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 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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.61,68,003.73p (Rupees Sixty One Lacs Sixty Eight Thousand Three and Paisa Seventy Three only), 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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI

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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 defendant. 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 12.09.2024. 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: 22.08.2024

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

Axis Bank Limited v. Smt. Balwinder Kaur

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Smt. Balwinder Kaur

Case brief

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What did the court decide?

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