Allowed

Axis Bank Limited v. Balbir Singh

DRT14 Nov 2024OA/1415/2022

Case brief

AI extract

What is this about?

The DRT-III allowed the OA filed by Axis Bank against Balbir Singh for recovery of Rs. 37.03 Lakhs. The court modified the claimed interest rate, granting simple interest at 8% p.a., and ordered the issuance of a Recovery Certificate executable under SARFAESI Act provisions.

What did the court decide?

Recovery Certificate issued; Defendant liable to pay Rs. 37,03,392.27p with costs and simple interest at 8% p.a. Amount recoverable via sale of mortgaged properties.

Axis Bank Limited versus Balbir Singh — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1415/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.07.2022

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DATE OF DECISION: 14.11.2024

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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’ 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380 006, Gujarat and branch at Threeke, Ludhiana through its Attorney Sh. Rohit Varun Singh Thakur working as Deputy Manager with the applicant Bank.

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……..Applicant Versus

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Sh. Balbir Singh S/o Ishar Singh R/o House No.91/5-B, Guru Amardass Nagar, Ward No.43, Village Sunet, Tehsil and District Ludhiana 141001.

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………. Defendant

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Advocates: Argued by Sh. Deepak Jain, Advocate for the applicant ( through VC) Defendant is 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 defendant for recovery of Rs.37,03,392.27p (Rupees Thirty Seven Lacs Three Thousand Three Hundred Ninety Two And Twenty Seven Paise Only). The Original Application has been filed through Sh. Rohit Varun Singh Thakur, Deputy Manager of the applicant, who is competent to institute the Original Application vide General 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 had approached the applicant for grant of Agriculture CC Limit of Rs.35.00 Lacs vide Loan Application dated 24.02.2014, which is Annexure A2 to this OA. 3. The applicant sanctioned Agriculture CC Limit of Rs.35.00 Lacs vide Sanction Letter dated 12.03.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged her immovable properties i.e. total land measuring 67K-12M situated at Village Jonewal, Hadbast No.12, Tehsil Koom Kalan, District Ludhiana, Punjab vide Registered Mortgaged Deed bearing v asika No.1428 dated 1 3.03.2014, along with its translation which is Annexure A5 to this OA. Documents executed:- Loan-cum-Hypothecation Agreement dated 18.03.2014, which is Annexure A4 to this OA; Legal Notice along dated 02.06.2022 along with postal receipts, which is Annexure A6 (colly) to this OA and Statement of Account, Manual Foreclosure along with Certificate under Banker’s Book Evidence Act, which are Annexures A7 to A10 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.37,03,392.27p, which is recoverable and the defendant was 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. 6. The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 11.11.2024. 7. In support of the OA, affidavit of Sh. Rohit Varun Singh Thakur, Deputy Manager, Axis Bank h as been filed. 8. Heard arguments and perused record. 9. It was argued by learned counsel through video conferencing that in view of the documentary evidence brought on record which had

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gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A10 to this OA, it is proved that the defendant approached applicant for availing of the loan facility which was granted to him and for that he had executed all the relevant documents in favour of the bank. The defendant failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.37,03,392.27p (Rupees Thirty Seven Lacs Three Thousand Three Hundred Ninety Two And Twenty Seven Paise Only) along with interest from the defendant, 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 in relief clause has claimed interest @9.75%p.a. plus penal interest @6%p.a with half yearly rests 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 the defendant, 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 @08.00%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. 11. In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.37,03,392.27p (Rupees Thirty Seven Lacs Three Thousand Three Hundred Ninety Two And Twenty Seven Paise Only) with costs, current

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and future simple interest @08.00%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 defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. 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. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 10.12.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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 . Dated: 14.11.2024

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

Axis Bank Limited v. Balbir Singh

Case brief

What is this about?

What did the court decide?

Axis Bank Limited v. Balbir Singh

Case brief

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What did the court decide?

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