Allowed

Indian Bank v. Harnek Singh

DRT24 Oct 2024OA/164/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application filed under Section 19 RDBFI Act, 1993, for recovery of Rs.20.92 lakhs. The defendant failed to appear. The court modified the claimed interest rates and granted uniform simple interest at 8% p.a. from the filing date, ordering recovery from mortgaged or personal assets.

What did the court decide?

Declaration of liability to pay Rs.20,92,601.00p with costs and simple interest @8% p.a. to be recovered from sale of mortgaged or personal assets.

Indian Bank versus Harnek Singh — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.164/2024 PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 03.01.2024

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DATE OF DECISION: 24.10.2024

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Indian Bank, (erstwhile Allahabad Bank) a Body Corporate Constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970, having its Corporate Office at 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and a Branch amongst at Mehna, Distt. Moga through Sh. Rakesh Kumar, Branch Manager, Authorized by Applicant.

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……..Applicant Versus Sh. Harnek Singh S/o Sh. Banta Singh, Resident Village Chugawan, Tehsil & District Moga.

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….……Defendants

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Advocates:

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Argued by Ms. Deepika Mittal, 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 bank under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.20,92,601.00p (Rupees Twenty Lac Ninety Two Thousand Six Hundred One Only). The Original Application has been filed through Sh. Rakesh Kumar, Branch Manager of the applicant bank, who is competent to institute the Original Application vide Authority Letter dated 19.09.2023, which is Annexure A1 to this OA.

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The brief facts of the OA that the defendant had approached the applicant bank for the grant of KCC Loan (Akshay Krishi) of Rs.21.90 Lacs vide Loan Application dated 01.11.2012, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the KCC Limit of Rs.15.00 Lacs for the 1^st year to be enhanced upto Rs.21.90 Lacs for the 5^th year vide Sanction Letter dated 05.11.2012, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his residential properties i.e. total land measuring 67Kanal 05Marla situated at Village Chugawan, Tehsil & Distt. Moga vide Registered Mortgage Deed bearing V asika No.6042 dated 08.11.2012 with its translation, which is Annexure A6 to this OA.

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Documents executed:- D.P. Note dated 24.11.2012, which is Annexure A4 to this OA; Hypothecation Agreement dated 08.11.2012, which is Annexure A5 to this OA; Voucher dated 16.05.2015, which is Annexure A7 to this OA; Acknowledgment of Debt 01.12.2018, 12.06.2020 & 02.06.2023, which is Annexure A8 to A10 to this OA; D.P. Note dated 12.06.2020, which is Annexure A11 to this OA; Legal Notice dated 02.06.2023 with postal receipt, which is Annexure A12 to this OA and statement of account with certificate, which is Annexure A13 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.20,92,601.00p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 21.10.2024.

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In support of the OA, affidavit of Sh. Rakesh Kumar, Branch Manager, Indian Bank has been filed. 8. Heard arguments and perused record 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted,

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the applicant had proved its case. From the perusal of all the Annexures A1 to A13 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.20,92,601.00p (Rupees Twenty Lac Ninety Two Thousand Six Hundred One Only) along with interest from the defendant, 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 bank in relief clause has claimed interest @8.65%p.a. plus penal interest @2.00%p.a. with yearly rests from 16.09.2023 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.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.20,92,601.00p(Rupees Twenty Lac Ninety Two Thousand Six Hundred One Only) with costs, current 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

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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 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.

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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 05.11.2024. 15. Copy of this order be given Dasti to the applicant bank 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. Pronounced by me in the open Tribunal . Dated: 24.10.2024.

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

Indian Bank v. Harnek Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Harnek Singh

Case brief

What is this about?

What did the court decide?

What the court decided

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