Allowed

Kotak Mahindra Bank Limited v. Harjeet Singh and Others

DRT19 Dec 2024OA/1613/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.50,27,972 due from three DEFINANTS. The court modified the claimed interest rate to 8% p.a. and directed recovery from mortgaged or personal assets.

What did the court decide?

Decree passed for recovery of Rs.50,27,972 with 8% simple interest; Recovery Certificate issued; Execution to be conducted by Recovery Officer.

Kotak Mahindra Bank Limited versus Harjeet Singh and Others — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1613/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2022

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DATE OF DECISION: 19.12.2024

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Kotak Mahindra Bank Ltd., (in which ING Vysya Bank Ltd stands amalgamated and the name of IVBL has been changed to Kotak Mahindra Bank Ltd.(KMBL) pursuant to the order issued by Reserve Bank of India under sub section 4 of section 44A of Banking Regulations Act,1949, sanctioning the scheme of amalgamation effective from 01.04.2015, as Communicated by RBI ride its letter no. DBR No.PSBD.14527/16.01.136/2014-2015 March 31-2015 and order issued by RBI vide Letter No.DBR/PSBD/14476/ 16.01.136/2014-15 dated 31^st March 2015), thus the applicant is a banking company, carrying on the Banking business under the Companies Act,1956 and having its registered office at 27BKC, C27, G Block, Bandra Kurla Complex, Bandra (E) and branches at different places one in Ropar, Distt. Rupnagar, through Sh. Munish Sharma, Authorized Officer of Applicant.

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……..Applicant

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Versus

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Sh. Harjeet Singh S/o Sh. Ranjodh Singh, R/o Village Rattangarh, Tehsil Khamano, Distt. Fatehgarh Sahib-141801.

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Smt. Rajwant kaur W/o Sh. Harjeet Singh R/o Village Rattangarh, Tehsil Khamano, Distt. Fatehgarh Sahib-141801.

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Sh. Harpal Singh S/o Sh. Ranjodh Singh, R/o Village Rattangarh, Tehsil Khamano, Distt. Fatehgarh Sahib-141801.

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….……Defendants

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Advocates: Argued by Sh. Anup Prajapati, Advocate proxy for Sh. J.S. Sehgal, Advocate for Applicant Sh. Sunpreet Singh, Advocate proxy for Sh. Bharat Kawal, Advocate for Defendant No.1 None for Defendant Nos. 2 & 3

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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 defendants for recovery of Rs.50,27,972.00p (Rupees Fifty Lacs Twenty Seven Thousand Nine Hundred Seventy Two only). The Original Application has been filed through Sh. Munish Sharma, Authorized Officer o f the applicant, who is competent to institute the Original Application vide Delegation of powers vide resolution dated 27.06.2022, 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 for the grant of KCC Limit of Rs.37.00 Lacs. 3. The applicant sanctioned the KCC Limit of Rs.37.00 Lacs vide Credit Arrangement Letter dated 08.07.2013, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant no. 1 & 3 had mortgaged their immovable properties i.e. Land Measuring 64K-0M situated at Village Rattangarh, Hadbast No.309, Tehsil Khamano, Distt. Fatehgarh Sahib vide Registered Mortgage Deed bearing vasika No.772 dated 05.08.2013, along with its Translations , which are Annexures A10 & A11 to this OA. Documents executed:-Order of Amalgamation issued by reserve Bank of India dated 31.03.2015, which is Annexure A2 to this OA; Annexure B-1, Demand Promissory Note, Take Delivery Letter to DPN, Hypothecation Agreement, Consent letter to be executed by Borrower, Undertaking cum letter of authorization for insuring crop and other moveable assets all dated 10.07.2013, Which are Annexures A4 to A9 to this OA; Notice dated 22.07.2022, with postal receipts, which are Annexures A12 to A15 to this OA and Statement of Account along with certificate regarding the computer system dated 04.08.2022, which is Annexure A16 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.50,27,972.00p, which is recoverable and the defendants were 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.

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The defendants were served notices to appear before this Tribunal. SH. H.P. Singh, Advocate proxy for Sh. Harsh Manocha appeared on behalf of defendant nos.2 and 3 and filed Power of Attorney but did not filed WS within stipulated period. Sh. Bharat Kawal, Advocate appeared for defendant no.1 and filed Power of Attorney but he also did not filed WS within stipulated period. Therefore, opportunity to file WS by all the defendants was closed and their defense was stuck of on 13.12.2024.

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In support of the OA, affidavit of Sh. Munish Sharma, Authorized Officer, Kotak Mahindra Bank Ltd., has been filed.

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Heard arguments of Ld. Counsel for applicant. Ld. Counsel for defendant no.1 has not advanced any argument. None appeared for defendant nos.2 and 3. Perused record.

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It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.50,27,972.00p (Rupees Fifty Lacs Twenty Seven Thousand Nine Hundred Seventy Two only)

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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 in relief clause has claimed interest @12.00%p.a. with half yearly rests from 24.06.2022 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 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 @8.00%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 defendants are liable to pay to the applicant a total sum of Rs.50,27,972.00p (Rupees Fifty Lacs Twenty Seven Thousand Nine Hundred Seventy Two only) jointly and severally, with costs, current and future simple interest @8.00%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 defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant 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. 12. 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 04.02.2025.

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Copy of this order be given dasti to the applicant 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: 19.12.2024.

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

Kotak Mahindra Bank Limited v. Harjeet Singh and Others

Case brief

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Kotak Mahindra Bank Limited v. Harjeet Singh and Others

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