Allowed

Axis Bank Limited v. Sh. Heera Singh and Others

DRT29 Feb 2024OA/1359/2022

Case brief

AI extract

What is this about?

The DRT allowed the bank's original application for recovery of an outstanding loan of Rs. 55,84,179.23 from three defendants who defaulted on a KCC facility. The court ordered repayment of the principal sum with interest at 10% p.a. and authorized recovery via mortgage property sale or asset attachment.

What did the court decide?

Recovery of Rs. 55,84,179.23 plus costs and simple interest at 10% p.a. to be enforced by sale of hypothecated properties or personal assets.

Axis Bank Limited versus Sh. Heera Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1359/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 24.06.2022

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DATE OF DECISION: 29.02.2024

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Axis Bank Limited. (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’, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380006, Gujrat and branch at Axis Bank Ltd. Adda Dhaka, Ludhiana through its Attorney Sh. Rohit Thakur working a Deputy Manager with the applicant Bank.

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……..Applicant

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Versus

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Sh. Heera Singh S/o Milkha Singh, Village Moje Wala, PO Fatehgarh, Pantoor, Tehsil Dharamkot, Distt Moga, Punjab 142051.

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Sh. Baldev Singh S/o Milkha Singh, Village Moje Wala, PO Fatehgarh, Pantoor, Tehsil Dharamkot, Distt Moga, Punjab 142051.

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Sh. Sahib Singh S/o Gura Singh, Village Danewala, Tehsil and District Moga, Punjab, 142042.

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… Defendants

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Advocates:

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Argued by Sh. Deepak Jain, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.55,84,179.23P (Rupees Fifty Five Lacs Eighty Four Thousand One Hundred Seventy Nine and Twenty Three Paisa only). The Original Application has been filed through Sh. Rohit Thakur, Deputy Manager of

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the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 and 2 had approached the applicant bank for the grant of Production Credit Limit under KCC of Rs.50.00 Lacs vide Loan Application dated 20.02.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.50.00 Lacs vide Sanction Letter dated 19.03.2013, which is Annexure A4 to this OA and the terms and conditions were duly accepted by the defendants.

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The defendant Nos.1 and 2 had mortgaged their immovable property i.e. total land measuring 76 Kanals 12 Marlas detail of which is as under :-

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1. Land measuring 62 Kanals 13 Marlas owned by defendant 1 and 2;

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1. Land measuring 09 Kanals 03 Marlas owned by defendant No. 2;

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1. Land measuring 00 Kanals 05 Marlas owned by defendant No.1 and 2; 4) Land measuring 04 Kanals 11 Marlas owned by defendant No.1 and 2 all situated at Village Mauje wala, Tehsil Dharamkot, District Moga, Punjab vide Mortgage Deed dated 02.04.2013 along with its translation, which is Annexure A7 to this OA .

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Documents executed: - Guarantor Form dated 20.02.2013, which is Annexure A3 to this OA; Loan cum Hypothecation Agreement and Deed of Guarantee both dated 10.04.2013, which are Annexures A5 and A6 to this OA; Letters of Acknowledge of Debt dated 11.08.2017 and 01.06.2020, which is Annexure A8 (Colly) to this OA; Legal Notice dated 02.06.2022 and Postal Receipts, which is Annexure A9 (Colly) to this OA; Statement of account, which is Annexure A10 to this OA; Manual Foreclosure, which is Annexure A11 to this OA and Certificate U/S 2A of Bankers Book Evidence Act & Certificate U/S Section 65 B of the Evidence Act which is Annexure A12 (Colly) 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

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of Rs.55,84,179.23P, 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 exparte on 07.02.2024.

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In support of the OA, affidavit of Sh. Rohit Thakur, Deputy Manager, Axis Bank Limited has been filed.

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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 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.55,84,179.23P (Rupees Fifty Five Lacs Eighty Four Thousand One Hundred Seventy Nine and Twenty Three 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 accounts. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @10.90% with half yearly rests plus penal interest @6%p.a. along with full costs from 03.11.2021 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

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the defendants, quantum of loans 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 Rs.55,84,179.23P (Rupees Fifty Five Lacs Eighty Four Thousand One Hundred Seventy Nine and Twenty Three Paisa only) 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 13.03.2024.

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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. 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 Limited v. Sh. Heera Singh and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Sh. Heera Singh and Others

Case brief

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