Allowed

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

DRT26 Jul 2024OA/1282/2022

Case brief

AI extract

What is this about?

Debts Recovery Tribunal allowed an application filed by Axis Bank Ltd. against three respondents for recovery of a non-performing loan of Rs.28,51,556.06. The Tribunal adjusted the claimed interest rate to uniform simple interest at 8%p.a. and ordered the issuance of a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.28,51,556.06 with simple interest at 8%p.a. Issuance of Recovery Certificate. Liberty to enforce claim through sale of mortgaged/personal properties.

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.1282/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 15.02.2022

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DATE OF DECISION: 26.07.2024

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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’, 3rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad -380006, Gujarat and branch at Adda Dakha, Branch Ludhiana through its Attorney Sh. Sandeep Kumar working as Manager with the applicant bank

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……..Applicant

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Versus

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Sh. Jarnail Singh S/o Sh. Mahinga Singh, R/o VPO Sheikh Daulat, Tehsil Jagraon, District Ludhiana-142036

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Sh. Roop Singh S/o Sh. Jarnail Singh, R/o VPO Sheikh Daulat, Tehsil Jagraon, District Ludhiana-142036

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Sh. Gurbachan Singh S/o Sh. Arjan Singh, R/o Village Pona, Tehsil Jagraon, District Ludhiana-142026

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….……Defendants

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Advocates:

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Argued by Sh. Deepak Jain, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.28,51,556.06p (Rupees Twenty Eight Lacs Fifty One Thousand Five Hundred Fifty Six and Six Paisa only). The Original Application has been filed through Sh. Sandeep Kumar, Manager o f the applicant bank, who is competent to institute the Original Application vide Special 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 defendants had approached the applicant bank for the grant of CC Limit (CCAGR) of Rs.24.00 Lacs vide

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Application Form dated 19.11.2012, which isAnnexure A2to this OA.
Defendant No.3 stood as guarantor vide Guarantor form dated
19.11.2012, which isAnnexure A3to this OA.
3. The applicant Bank sanctioned the CC Limit (CCAGR) of Rs.24.00
Lacs vide Sanction Letter dated 06.12.2012, which isAnnexure A4to
this OA and the terms and conditions were duly accepted by the
defendants.
4. Defendant No.1had mortgaged his immovable property i.e. land
measuring 41 Kanal 10 Marla situated atVillage Sekh Daulat, Hasbast
No.47, Tehsil Jagraon, District Ludhiana, Punjab vide Registered
Mortgage Deed bearing Vasika No.4397 dated 10.12.2012,which is
Annexure A7to this OA.
Documents executed:- Loan-cum-Hypothecation agreement, which is Annexure A5to this OA; Deed of guarantee dated 14.12.2012, which
isAnnexure A6to this OA; Legal notice dated 15.01.2022, which is
Annexure A8 (colly)to this OA and Statement of account along with Manual Foreclosure, Certificate u/s 2A of Bankers Books Evidence Act, and Certificate u/s Section 65B of Evidence Act, which areAnnexures A9 to A12to 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.28,51,556.06p, 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.
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 21.05.2024.
7. In support of the OA, affidavit ofSh. Sandeep Kumar, Manager,
Axis Bank Ltd.has been filed.
8. Heard ex parte 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 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.28,51,556.06p (Rupees Twenty Eight Lacs Fifty One Thousand Five Hundred Fifty Six and Six 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.

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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 @10.40%p.a. plus penal interest @6%p.a. with half yearly rests from 01.01.2022 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.28,51,556.06p (Rupees Twenty Eight Lacs Fifty One Thousand Five

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Hundred Fifty Six and Six Paisa 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.

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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 17.08.2024.

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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 .

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Dated: 26.07.2024

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

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

Case brief

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

Case brief

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