Allowed

Indian Overseas Bank v. Pritam Singh and Others

DRT19 Sept 2024OA/1224/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs.37,98,684.99 from the borrowers on an ex-parte basis. The court reduced interest to 8% per annum and directed recovery from mortgaged properties or personal assets. A Recovery Certificate was issued.

What did the court decide?

Order allowed; recovery of principal plus interest @ 8% p.a. from mortgaged properties or personal assets; Recovery Certificate issued.

Indian Overseas Bank versus Pritam Singh and Others — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1224/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.05.2022

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DATE OF DECISION: 19.09.2024

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Indian Overseas Bank, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Central Office at 762, Anna Salai, Chennai-600002 and amongst other places a branch office at Raikot, Tehsil and District Ludhiana, through its duly constituted attorney Sh. Ram Dass, Manager, Indian Overseas Bank, Raikot Branch, Ludhiana.

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……..Applicant

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Versus

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Sh. Pritam Singh S/o Sh. Randhir Singh

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Sh. Gurjant Singh S/o Sh. Pritam Singh

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Both resident of H.No. 316, VPO Naiwala, Tehsil and District Barnala, Punjab.

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Sh. Tarlochan Singh S/o Sh. Jeet Singh, R/o VPO Kaire, Tehsil and District Barnala, Punjab.

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….……Defendants

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Advocates:

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Argued by Sh. Surinder K. Chawla, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.37,98,684.99p (Rupees Thirty Seven Lacs Ninety Eight Thousand Six Hundred Eighty Four and Paisa Ninety Nine only). The Original Application has been filed through Sh. Ram Dass, Manager of the applicant, who is competent to institute the Original Application vide Power of Attorney dated 13.01.2009, which is Annexure A1 to this OA.

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¶18

The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit (KCC) of Rs.16.00 Lacs vide Loan application dated 12.06.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned the Cash Credit Limit (KCC) of Rs.16.00 Lacs vide Sanction Letter dated 28.07.2014, which is Annexure A10 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 22K-10M situated at Village Naiwala, Tehsil and District Barnala (Punjab) vide Registered Mortgaged Deed bearing vasika No.1644 dated 21.07.2014 and Jamabandi for the year 20142015 along with their Translations, which are Annexures A5 & A6 to this OA.

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Documents executed:- Guarantee for Cash Credit, Guarantor Statement, Letter of Hypothecation, Demand Promissory Note Delivery Letter all dated 28.07.2014, which are Annexures A3, A4 & A7 to A9 to this OA; Legal Notice sent by bank through its counsel to the defendants dated 25.06.2020 along with postal Receipts, which are Annexures A11 to A14 to this OA; Certified Statement of Account along with Certificate u/s 65-B of Indian Evidence act, which are Annexures A15 to A17 to this OA and Revival Letter dated 29.07.2015, which is Annexure A18 to this OA and 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.37,98,684.99p, 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. 6. 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 08.08.2024.

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In support of the OA, affidavit of Sh. Ram Dass, Manager, Indian Overseas Bank h as been filed.

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Heard arguments and perused record.

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It was argued by learned counsel 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 A18 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.37,98,684.99p (Rupees Thirty Seven Lacs Ninety Eight Thousand Six Hundred Eighty Four and Paisa Ninety Nine 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.

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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 @12.70%p.a. plus penal interest @2%p.a. with half yearly rests from 13.08.2021 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 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.37,98,684.99p (Rupees Thirty Seven Lacs Ninety Eight Thousand Six Hundred Eighty Four and Paisa 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. 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 11.10.2024.

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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 . Dated: 19.09.2024

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

Indian Overseas Bank v. Pritam Singh and Others

Case brief

What is this about?

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Indian Overseas Bank v. Pritam Singh and Others

Case brief

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What did the court decide?

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