Allowed

Bank of India v. Jagnanden Singh Alias Jagnandan Singh and Another

DRT19 Nov 2024OA/1619/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the Bank of India's application for recovery of Rs.32.40 Lacs outstanding against two borrowers who defaulted on KCC and OD loans. Evidence was considered ex-parte, and the Tribunal fixed simple interest at 8% p.a. and ordered a recovery certificate.

What did the court decide?

Recovery of Rs.32,40,630.33 with costs and simple interest @8% p.a. till realization; issuance of Recovery Certificate.

Bank of India versus Jagnanden Singh Alias Jagnandan Singh and… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1619/2022 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 08.09.2022

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DATE OF DECISION: 19.11.2024

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Bank of India, a Body Corporate Constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act No.V of 1970, having its head office at “Star House”, C-5, Block-G, Bandra Kurla Complex, Bandra (East), Mumbai-400051 and Branch Office amongst other places at Village Bhullar, Distt. Muktsar, through its duly constituted attorney Sh. Ved Prakash presently posted as Chief Manager at Raikot Branch.

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……..Applicant

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Versus

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Sh. Jagnanden Singh @ Sh. Jagnandan Singh S/o Sh. Mahinder Singh R/o H. No.355, Bamu Patti, Mulla Patti, Lodi Patti Village Lambi Doda, District Muktsar.

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Sh. Jagmohan Singh S/o Shri Mahinder Singh R/o H.No.1186, Village Doda, District Muktsar.

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….……Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, 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 under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.32,40,630.33p (Rupees Thirty Two Lacs Forty Thousand Six Hundred Thirty and Thirty Three Paise only). The Original Application has been filed through Sh. Ved Prakash, Chief Manager o f the applicant, who is competent to institute the Original Application vide Power of Attorney dated 03.12.2019, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant no.1 had approached the applicant for the grant of KCC Limit of Rs.10.00 Lacs and OD Limit of Rs.10.00 Lacs vide Loan Applications dated 26.02.2015, which are Annexures A2 & A12 to this OA. 3. The applicant sanctioned the KCC Limit of Rs.10.00 Lacs and OD Limit of Rs.10.00 Lacs vide Sanction Letters dated 04.03.2015, which is Annexure A4 & A13 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable properties i.e. a. Land measuring 20K-00M situated at Village Doda-II, Hadbast No.75, Tehsil Gidderbaha, District Sri Muktsar Sahib, Punjab vide Letter to Sub Registrar for Creation a Charge bearing vasika no.666, dated 11.03.2015 and Declaration u/s 4(1) of The Punjab Agriculture Credit Operations & Miscellaneous Provisions Banks Act 1978 , which are Annexures A8 & A9 to this OA.

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b. Land measuring 20K-03M situated at Village Doda-II, Hadbast No.75, Tehsil Gidderbaha, District Sri Muktsar Sahib, Punjab vide Letter to Sub Registrar for Creation a Charge bearing vasika no.665, dated 11.03.2015 and Declaration u/s 4(1) of The Punjab Agriculture Credit Operations & Miscellaneous Provisions Banks Act 1978 , which are Annexures A18 & A19 to this OA Documents executed:- Voter ID Card of defendant in File No.3, which is Annexure A3 to this OA; Demand Promissory Note, Hypothecation cum Loan Agreement, Deed of Guarantee, Letter of Declaration, undertaking and Authority Letter all dated 11.03.2015, which are Annexures A5, A6 A7, A10, A11, A14, A15, A16 & A17 to this OA; Acknowledgement of Debt & Securities dated 29.08.2017 & 18.07.2020, which are Annexures A20 & A21 to this OA; Recall Notices dated 09.10.2019 & 02.12.2020, along with their translation which are Annexures A22, A-22T, A23 & A-23T to this OA; Legal Notice dated 08.08.2022, along with postal receipts which is

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Annexure A24 to this OA and Statement of account along with certificate, which is Annexure A25 & A26 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.32,40,630.33p, 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. 6. The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 13.11.2024

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In support of the OA, affidavit of Sh. Ved Prakash, Chief Manager, Bank of India h as been filed. 8. Heard arguments and 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 A26 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were 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, accounts of the defendants were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.32,40,630.33p (Rupees Thirty Two Lacs Forty Thousand Six Hundred Thirty and Thirty Three Paise 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 in relief clause has claimed interest

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@9.30%p.a. in respect of KCC limit and interest @10.05%p.a. in respect of AGOD plus penal interest @2% with half yearly rests from 02.08.2022 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 both the loan accounts 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.32,40,630.33p (Rupees Thirty Two Lacs Forty Thousand Six Hundred Thirty and Thirty Three Paise only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in both the loan accounts 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. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 12.12.2024.

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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: 19.11.2024.

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

Bank of India v. Jagnanden Singh Alias Jagnandan Singh and Another

Case brief

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Bank of India v. Jagnanden Singh Alias Jagnandan Singh and Another

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