Allowed

Bank of India v. Harchand Singh and Others

DRT13 Sept 2024OA/1328/2023

Case brief

AI extract

What is this about?

The Tribun allowed the recovery application filed by Bank of India against the respondents. It declared the respondents liable to pay Rs.30,01,020.65 with costs and current/future simple interest at 8% p.a. The order also directed the issuance of a Recovery Certificate and allowed enforcement under the SARFAESI Act.

What did the court decide?

Recovery of Rs.30,01,020.65 jointly and severally with costs and simple interest @8% p.a.; issuance of Recovery Certificate; liberty to enforce claim under SARFAESI Act.

Bank of India versus Harchand Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1328/2023

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.12.2023

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DATE OF DECISION: 13.09.2024

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Bank of India, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 with its Head Office at Bank of India Star House, C-5, “G” Block, BandraKurla Complex, Bandra (East), Mumbai and having branches all over India and one of its Branch office situated at VOP Malaudh, District Ludhiana, Punjab through its Chief Manager-cum-General Power of Attorney Sh. Suresh Kumar.

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……..Applicant Bank

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Versus

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Sh. Harchand Singh S/o Sh. Mohinder Singh, R/o Village Sihan Dand, Tehsil Payal, District Ludhiana, Punjab-141119

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Sh. Manjit Singh, S/o Sh. Pishora Singh R/o Village Sihan Dand, Tehsil Payal, District Ludhiana, Punjab-141119

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Sh. Manmohan Singh, S/o Sh. Bharpur Singh, R/o Village Sihan Dand, Tehsil Payal, District Ludhiana, Punjab-141119

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….……Defendants

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Advocates:

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Argued by Sh. Rajan Puri, 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.30,01,020.65p (Rupees Thirty Lacs One Thousand Twenty and Paise Sixty Five Only). The Original Application has been filed through Sh. Suresh Kumar, Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 20.02.2023, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 approached the applicant for the grant of KCC Limit of Rs.5.00 Lacs and further for OD Limit of Rs.10.00 Lacs vide Loan Applications dated 26.11.2008 & 01.09.2014, which are Annexures A2 & A8 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.5.00 Lacs and further sanctioned OD Limit of Rs.10.00 Lacs vide Sanction Letters dated 12.12.2008 & 06.10.2014, which are Annexures A3 & A9 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No.1 had mortgaged his immovable property i.e., (i) land measuring 05 Bigha 5 Biswa 12 Biswasia situated at Village Chak Sihan Daud, Tehsil Payal, District Ludhiana vide Registered Mortgaged Deed bearing vasika no.883 dated 10.12.2008, which is Annexures A13 to this OA and

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(ii) land measuring 0 4 Bigha 0 Biswa 0 Biswasia Pukhta situated at Village Chak Sihan Daud, Sub Tehsil Malludh, Tehsil Payal, District Ludhiana vide Declaration dated 29.09.2014 along with their Translations, which are Annexures A13 & A14 to this OA. Documents executed:-Demand Promissory Note, Hypothecation Agreement, Agreement & Guarantee Agreement all dated 12.12.2008, which are Annexures A4 to A7 to this OA; Demand Promissory Note, Agreement & Deed of Guarantee all dated 06.10.2014, which are Annexures A10 to A12 to this OA; Balance Confirmation Letters dated 05.05.2011, which is Annexure A15 to this OA; Legal Notice dated 12.10.2023, which is Annexure A16 to this OA and Statement of Accounts, which are Annexures A17 & A18 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.30,01,020.65, 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 but no one appeared on behalf of defendants and they were proceeded ex-parte on 03.08.2024.

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In support of the OA, affidavit of Sh. Suresh Kumar, Chief Manager, 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 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 loans 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.30,01,020.65 (Rupees Thirty Lacs One Thousand Twenty And Paise Sixty Five Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of both the accounts.

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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 @12.25%p.a. in KCC and interest @13.70%p.a. in OD Limit along with @2%p.a. with half yearly rests from 01.10.2023 till actual 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

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just and appropriate to grant uniform simple interest @8.00%p.a. in the loan accounts 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.30,01,020.65 (Rupees Thirty Lacs One Thousand Twenty And Paise Sixty Five 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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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 09.10.2024.

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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: 13.09.2024

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

Bank of India v. Harchand Singh and Others

Case brief

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Bank of India v. Harchand Singh and Others

Case brief

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