DRT allowed an ex-parte application by State Bank of India for recovery of Rs. 1.68 crore granted as loan facilities to farmers, awarding 7% annual interest.
Recovery of Rs. 1,68,40,345.18/- with simple interest @7% per annum from 21.10.2023. Issuance of Recovery Certificate. Libery to recover from sale of mortgaged property or attachment of personal asset
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DEBTS RECOVERY TRIBUNAL-2, CHANDIGARH, PRESIDED OVER BY M.M. DHONCHAK
ORIGINAL APPLICATION NO.1423/2023
DATE OF INSTITUTION: 21.10.2023
DATE OF DECISION: 20th DAY OF JANUARY, 2024
State Bank of India, a body corporate, constituted under the provisions State Bank of India Act, 1955, having its Corporate Centre at Madame Cama Road, Nariman Point, Mumbai (Maharashtra)400021, carrying on its business of banking in India and Abroad, having one of its local head offices at Sector-17-A, Chandigarh and its Branch amongst other places at Village Urlana-Kalan, District Panipat (Haryana)-132107 having its Retail Asset Credit Centre (RACC), Panipat at G.T. Road, Panipat (Haryana)-132103 and one of the Specialised Branches known as Stressed Assets Recovery Branch at SCO No. 70, Ground Floor, Sector-5, Panchkula, District Panchkula (Haryana)-134109, through its Chief Manager, Sh. Jaibir Singh
….. Applicant
Versus
OA/1423/2023 STATE BANK OF INDIA VS M/S S M LAYER FARM AND OTHERS 2
.... Defendants
Argued by: Sh. Vivek Verma, Advocate for the applicant bank Defendants ex parte vide order dated 02.01.2024
FINAL ORDER
Present Original Application was instituted by the applicant bank under Section 19(1) of the Recovery of Debts and Bankruptcy Act, 1993 (hereinafter referred to as ‘the Act’ for brevity), against the defendants for recovery of Rs.1,68,40,345.18/- (Rupees One Crore Sixty Eight Lakh Forty Thousand Three Hundred Forty Five and Eighteen Paisa Only). It has been filed through Sh. Jaibir Singh, Chief Manager of the applicant bank stated to be competent to institute the Original Application.
OA/1423/2023 STATE BANK OF INDIA VS M/S S M LAYER FARM AND OTHERS 3
10.02.2022, Annexures-A2 and A14 (copy), as per terms and conditions which were duly accepted by the defendants.
The documents related to the mortgage are as under:
OA/1423/2023 STATE BANK OF INDIA VS M/S S M LAYER FARM AND OTHERS 4
mortgaged property along with copy of ’ jamabandi’ for the years 2014-2015 and 2019-2020, Annexures-A12 and A17 (colly) (copy).
vi. Letter of confirmation dated 10.02.2022 for extension of mortgage by deposit of title deed along with its postal receipt, Annexure-A17/A (colly) (copy).
vii. Title investigation reports dated 25.05.2023 and 27.05.2023, non-encumbrance certificates, copy of the ’ Jamabandi’ for the years 2019-2020, affidavit dated 25.05.2023 for verification of the property and nakal ‘ Jamabandi’ for the years 2019-2020, Annexures-A18 and A19 (colly) (copy).
viii. Valuation report dated 02.05.2023, Annexure-A25 (copy). 6. It is further the case of the applicant bank that the loan facilities were duly availed of by the defendants but they failed to maintain the financial discipline of the applicant bank leading to the loan accounts becoming irregular and those being classified as NPA on 03.11.2022. The applicant bank recalled entire outstanding amount vide loan recall notices dated 20.08.2022, 01.09.2022 and 17.09.2022, Annexure-A20 (colly) (copy) and legal notices dated 03.10.2022 and 03.06.2023 along with their postal receipts, Annexures-A21 and A22 (colly) (copy), but to no avail.
It is further the case of the applicant bank that after adjusting debit and credit entries in the loan accounts, a sum of Rs.1,68,40,345.18/- (Rupees One Crore Sixty Eight Lakh Forty Thousand Three Hundred Forty Five and Eighteen Paisa Only), is recoverable against the defendants as per statements of accounts, duly certified under Bankers’ Books Evidence Act, 1891, Annexures-A23 and A24 (copy).
OA/1423/2023 STATE BANK OF INDIA VS M/S S M LAYER FARM AND OTHERS 5
Since the defendants did not repay the outstanding amount, therefore, the applicant bank preferred the present Original Application for issuance of Recovery Certificate.
OA/1423/2023 STATE BANK OF INDIA VS M/S S M LAYER FARM AND OTHERS 6
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 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 and defendant Nos. 3 and 4 being females, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @7% per annum from the date of filing of the OA till realisation of the amount ordered vide this order. It is ordered accordingly.
Forty Thousand Three Hundred Forty Five and Eighteen Paisa
Only) with current and future simple interest @7% per annum w.e.f. 21.10.2023, 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
OA/1423/2023 STATE BANK OF INDIA VS M/S S M LAYER FARM AND OTHERS 7
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 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.
Pronounced in the open Tribunal (M.M. Dhonchak) Presiding Officer DRT-2, Chandigarh
3 issues framed by the court
Whether the applicant bank is entitled to recovery of outstanding dues under Section 19(1) of the RDB Act
Whether the application of uniform simple interest at 7% per annum is appropriate in the present case
Whether the defendants are liable to pay joint and several amount with future interest
3 provisions across 3 enactments
State Bank of India
M/s S.M. Layer Farm
Kuldeep Malik
Mewa Devi
Raj Bala
M.M. DHONCHAK
As recorded by the court registry
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