Allowed

Central Bank of India v. Sh. Balwinder Kumar @ Balinder Singh

DRT1 Jan 2024OA/1411/2023

Case brief

AI extract

What is this about?

The Tribunal allowed the bank's Original Application for recovery of an agricultural loan of approximately Rs. 43.89 lakhs. After hearing the applicant ex parte, the Tribunal held the defendants liable jointly and severally and adjusted interest to 8% per annum. A Recovery Certificate was issued, directing attachment of assets if dues remain unsatisfied.

What did the court decide?

Ordering defendants to pay Rs. 43,89,104 with simple interest @8% p.a. from 30.09.2023 until realisation, issuing Recovery Certificate, and directing attachment of assets if payment is not made.

Central Bank of India versus Sh. Balwinder Kumar @… — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK

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ORIGINAL APPLICATION NO.1411/2023

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DATE OF INSTITUTION: 30.09.2023

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DATE OF DECISION: 1^st DAY OF JANUARY, 2024

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Central Bank of India, a body corporate, constituted under the provisions of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, having its Central Office at Chander Mukhi, Nariman Point, Mumbai and a Branch amongst other places at Ismailabad, District Kurukshetra, through its Power of Attorney holder, Sh. Bansi Lal

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…..Applicant

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Versus

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Sh. Balwinder Kumar @ Balinder Singh s/o Sh. Sahab Singh s/o Sh. Nanda r/o Village Udarsi, Tehsil Thanesar, District Kurukshetra (Haryana)

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Sh. Suraj Garg s/o Sh. Ishwar Dayal r/o Village Thol, Tehsil Ismailabad, District Kurukshetra

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…..Defendants

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Argued by: Sh. Rahul Garg proxy counsel for Sh. Ashish Malhotra, Advocate for the applicant bank Defendants ex parte vide order dated 30.12.2023

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FINAL ORDER

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Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts Due to Banks and

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Financial Institutions Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of

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OA/1411/2023 CENTRAL BANK OF INDIA Vs SH. BALWINDER KUMAR AND ANOTHER 2

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Rs.43,89,104/(Rupees Forty Three Lac Eighty Nine Thousand One Hundred and Four Only) . It has been filed through Sh. Bansi Lal , Manager of the applicant bank stated to be competent to institute the Original Application vide Power of Attorney dated 15.09.2018, Annexure-A1 (copy).

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The brief facts of the case of the applicant as per Original Application are that defendant No. 1 had approached the applicant bank for grant of CKCC limit of Rs. 24,00,000/- vide loan application Form dated 04.01.2018 for agriculture credit, Annexure-A2 (colly) (copy). Defendant No. 2 stood as a guarantor for repayment of the loan amount.

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The applicant bank sanctioned aforesaid facility to the defendants vide sanction letter dated 25.01.2018, Annexure-A3 (copy), as per terms and conditions which were duly accepted by the defendants.

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In order to secure the aforementioned credit facility, the defendants executed assets and liabilities dated 11.01.2018, financial report dated 05.01.2018, interview-cum-appraisal form, memorandum for sanction dated 11.01.2018 and affidavit regarding difference in name dated 02.02.2018, Annexure-A2 (colly) (copy), loan-cum-hypothecation agreement dated 25.01.2018, AnnexureA4 (copy), demand promissory note 25.01.2018, Annexure-A5 (copy), letter of continuity dated 25.01.2018, Annexure-A6 (copy), supplementary agreement dated 25.01.2018, Annexure-A7 (copy) and guarantee Form dated 25.01.2018 for advances, Annexure-A8 (copy).

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OA/1411/2023 CENTRAL BANK OF INDIA Vs SH. BALWINDER KUMAR AND ANOTHER 3

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The aforesaid loan was further secured by creation of mortgage by defendant No. 1 in respect of agricultural land measuring 36 Kanal 4 Marla situated in the revenue estate of Udarsi, Tehsil Thanesar, District Kurukshetra, Haryana, fully detailed in para No. 5(vii) of the Original Application. Declaration dated 23.01.2018 under Section 4(1) of the Haryana Agricultural Credit Operations and Miscellaneous Provisions (Banks) Act, 1973, is Annexure-A9 (copy).

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It is further the case of the applicant bank that the loan facility was duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan account becoming irregular and it being classified as NPA on 25.02.2020. The defendants executed acknowledgement of debt letter dated 15.12.2020, Annexure-A11 (copy). The applicant bank recalled entire outstanding amount vide legal notice dated 28.08.2023 along with postal receipts, Annexure-A12 (colly) (copy), but to no avail

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It is further the case of the applicant bank that after adjusting debit and credit entries in the loan account, a sum of Rs.43,89,104/(Rupees Forty Three Lac Eighty Nine Thousand One Hundred and Four Only) , is recoverable against the defendants as per statement of account along with calculation chart, certified under Bankers’ Books Evidence Act, 1891, Annexure-10 (colly) (copy).

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Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.

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OA/1411/2023 CENTRAL BANK OF INDIA Vs SH. BALWINDER KUMAR AND ANOTHER 4

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Notices of the Original Application were duly served upon the defendants, but since none appeared on behalf of the defendants, thus, defendants were proceeded against ex parte vide order dated 30.12.2023 .

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In support of contents of the OA, affidavit of evidence of Sh. Bansi Lal , Manager of the applicant bank was filed.

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This Tribunal has heard ex-parte arguments advanced by the learned proxy counsel for the applicant bank and gone through the record carefully.

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It was argued by the learned proxy counsel of the applicant bank that in view of unrebutted documentary evidence brought on record, the applicant bank had proved its case against the defendants for recovery of the amount sought. From perusal of Annexures-A1 to A12, it is clear that the defendants had approached the applicant bank for availing of the loan facility which was granted to them. It is further clear that the defendants had executed all the relevant documents as stated above in favour of the applicant bank. Unfortunately, the defendants failed to pay back the loan as per terms and conditions of the agreement executed between the parties. From the documentary evidence brought on record, it is proved that applicant bank is entitled to recover a sum of Rs.43,89,104/- (Rupees Forty Three Lac Eighty Nine Thousand One Hundred and Four Only) from the defendants.

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In so far as pendente lite and future interest is concerned the applicant bank in relief clause, has claimed rate of interest @12.50% per annum along with penal interest @2% per annum. In

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OA/1411/2023 CENTRAL BANK OF INDIA Vs SH. BALWINDER KUMAR AND ANOTHER 5

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sanction letter dated 25.01.2018, Annexure-A3 (copy), rate of interest has been mentioned @9.80% per annum.

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This Tribunal is of the considered opinion that sometimes in appropriate cases the prerogatives of mercy and magnanimity are the brightest jewels in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including the Pandemic Covid-19 affecting businesses, nature of the mortgaged property, purpose of loan, i.e. agricultural, present conditions of economy based on agriculture, quantum of loan, prevalent market rates of interest which have gone drastically downhill in yesteryears, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.

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In the result, the Original Application is allowed with costs holding that the defendants are liable to pay to the applicant bank a sum of Rs.43,89,104/- (Rupees Forty Three Lac Eighty Nine Thousand One Hundred and Four Only) with current and future simple interest @8% per annum w.e.f. 30.09.2023 , till the date of realisation of the amount. The liability of the defendants shall be joint as well as several. Accordingly, the applicant bank shall be at liberty to recover aforesaid amount from the sale of mortgaged/hypothecated property of the defendants in execution proceedings, if not sold earlier under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 or otherwise. If the dues of the bank still remain unsatisfied, the applicant bank shall be at

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OA/1411/2023 CENTRAL BANK OF INDIA Vs SH. BALWINDER KUMAR AND ANOTHER 6

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liberty to recover the same by attachment and sale of personal assets of the defendants. However, the applicant bank is at liberty to enforce the claim through due process of law.

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Issue Recovery Certificate accordingly.

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Parties to appear before Recovery Officer concerned on 22.02.2024 .

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Copy of this order be sent to the applicant bank and the defendants through registered/speed post. This order be uploaded on the official website of this Tribunal.

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Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh

Central Bank of India v. Sh. Balwinder Kumar @ Balinder Singh

Case brief

What is this about?

What did the court decide?

Central Bank of India v. Sh. Balwinder Kumar @ Balinder Singh

Case brief

What is this about?

What did the court decide?

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