Allowed

Axis Bank Ltd. v. Sh. Arpan Singh And Others

DRT29 Feb 2024OA/1330/2022

Case brief

AI extract

What is this about?

This judgment allows an original application filed by Axis Bank for recovery of a loan. The Tribunal declared the respondents liable to repay Rs. 34,39,606.49 with interest at 10% per annum. A recovery certificate was issued.

What did the court decide?

Recovery of Rs. 34,39,606.49 at 10% p.a. interest; issuance of recovery certificate; liberty to enforce through sale of mortgaged assets or personal assets.

Axis Bank Ltd. versus Sh. Arpan Singh And Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1330/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.03.2022 DATE OF DECISION: 29.02.2024
Axis Bank Ltd., having its registered office at “Trishul, 3^rdFloor,
Opposite Samartheswar Temple, Law Garden, Ellisbridge, Ahmedabad,
Gujrat also at: Axis Bank, Loan Centre, SCO-350-352, Sector-34A,
Chandigarh-160022 through Sh. Sandeep Kumar, its authorized
representative ……..Applicant Versus
1. Sh. Arpan Singh S/o Sh. Parmjit Singh, R/o VPO. Lakhewali, Tehsil & District Mukhtsar-152026 (Borrower)
2. Sh. Jaspandeep Singh S/o Sh. Parmjit Singh, R/o VPO. Lakhewali, Tehsil & District Mukhtsar-152026 (Co-Borrower)
3. Smt. Sukhvir Kaur C/o Sh. Parmjit Singh, R/o VPO. Lakhewali,
Tehsil & District Mukhtsar-152026 (Co-Borrower) ….……Defendants Advocates: Argued by Sh. Gagandeep Toni, Advocate for the applicant Defendants are ex-parte FINAL ORDER
1. 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.34,39,606.49p (Rupees Thirty Four Lacs Thirty Nine Thousand Six
Hundred Six and Forty Nine Paise only). The Original Application has
been filed throughSh. Sandeep Kumar, Authorised Representative of the applicant bank, who is competent to institute the Original

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Application vide General 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 defendants had approached the applicant bank for the grant of Working Capital of Rs.25.00 Lacs vide Loan application dated 17.09.2015, which are Annexures A2 to A4s to this OA.

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The applicant Bank sanctioned the Working Capital of Rs.24.00 Lacs vide Sanction Letter dated 17.06.2020, which is Annexure A5 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendants had mortgaged his immovable properties i.e. total land measuring 80K-00M situated at Village Lakhewali, Tehsil and District Sri. Muktsar Sahib, Hadbast No.49 vide Declaration under Section 4(1) dated 21.09.2015, which is Annexure A8 to this OA. Documents executed:- Loan-cum-Hypothecation Agreement and Demand Promissory Notes both dated 23.09.2015, which are Annexures A6 & A7 to this OA; Statement of account dated 30.11.2021, which is Annexure A9 to this OA; Demand Notice dated 05.01.2022, which is Annexure A10 to this OA and Posting Receipts dated 06.01.2022, which are Annexures A11 to A13 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.34,39,606.49p, 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.

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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 08.02.2024.

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In support of the OA, affidavit of Sh. Sandeep Kumar, Authorized Representative, Axis Bank Ltd. h as been filed.

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Heard ex-parte 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 bank had proved its case. From the perusal of all the Annexures A1 to A13 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.34,39,606.49p (Rupees Thirty Four Lacs Thirty Nine Thousand Six Hundred Six and Forty Nine Paise 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 @11.30%p.a. from 30.11.2021 till 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 @10.00%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

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Rs.34,39,606.49p (Rupees Thirty Four Lacs Thirty Nine Thousand Six Hundred Six and Forty Nine Paise only) jointly and severally, with costs, current and future simple interest @10.00%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.

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.03.2024.

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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.

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Pronounced by me in the open Tribunal.

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Dated: 29.02.2024

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

Axis Bank Ltd. v. Sh. Arpan Singh And Others

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Arpan Singh And Others

Case brief

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