Allowed

Indian Bank v. Sh. Surinder Singh and Another

DRT13 Feb 2024OA/1658/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the Original Application filed by Indian Bank against a borrower and guarantor for recovery of Rs.40.50 Lakhs outstanding on a Kisan Credit Card loan. The court awarded interest at 10% per annum and issued a Recovery Certificate.

What did the court decide?

Declaration of liability to pay Rs.40,50,383 jointly and severally with 10% simple interest; Recovery Certificate issued.

Indian Bank versus Sh. Surinder Singh and Another — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1658/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 05.08.2022

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DATE OF DECISION: 13.02.2024

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Indian Bank (erstwhile Allahabad Bank), on the basis of Amalgamation Scheme dated 04.03.2022, a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act 1970, having its Head Office at 66, Rajaji Salai, Royapettah, Chennai and Corporate Office at 254-260, Avvai Shanmugham Salai, Chennai, Tamil Nadu, 600014 and having its Zonal Office at Chandigarh and amongst other Branches a branch at Samana through its Manager, Sh. Naresh Kumar Kochar duly constituted and Authorized Signatory

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……..Applicant

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Versus

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Sh. Surinder Singh S/o Late Sh. Sucha Singh, R/o Village Gobind Nagar, Tehsil Samana, District Patiala (Borrower)

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Sh. Mohinder Singh S/o Sh. Mohar Singh, R/o Village Gobind Nagar, Tehsil Samana, District Patiala (Guarantor) ….……Defendants Advocates: Argued by Ms. Deepika Mittal, Advocate for the applicant Defendants are ex-parte FINAL ORDER 1. 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.40,50,383.00 (Rupees Forty Lacs Fifty Thousand Three Hundred Eighty Three only). The Original Application has been filed through Sh. Naresh Kumar Kochar, Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 14.03.2015, 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 bank for the grant of loan under ‘Akshay Krishi’ Kisan Credit Card (KCC) Scheme of Rs.17.00 Lacs vide Loan application dated 10.04.2013, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the loan under ‘Akshay Krishi’ Kisan Credit Card (KCC) Scheme of Rs.17.00 Lacs for the 1^st year which will be enhanced every year upto the limit of Rs.25.00 Lacs till the start of 5^th year vide Interview cum Appraisal Form dated 13.04.2013; Memorandum for Sanction of Loan and Sanction Letter dated 22.04.2013, which are Annexures A3 to A5 to this OA; and the terms and conditions were duly accepted by the defendants. 4. Defendant No.1 had mortgaged his immovable property i.e. land measuring 47K-00M situated at Village Samana, Tehsil Samana, District Patiala, Punjab vide Registered Mortgaged Deed bearing vasika no.90 dated 18.04.2013, which is Annexure A9 to this OA.

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Documents executed: - D.P. Note dated 27.04.2013, which is Annexure A6 to this OA; Consent Clause to be executed by Borrower dated 22.04.2013, which is Annexure A7 to this OA; Agreement for Hypothecation dated 18.04.2013, which is Annexure A8 to this OA; Consent Clause to be executed by Guarantor and Deed of Guarantee both dated 22.04.2013, which are Annexures A10 & A11 to this OA; Mutation Report dated 18.04.2013, which is Annexure A12 to this Acknowledgements of Debt dated 18.05.2017 & 16.03.2020, which are Annexures A13 & A14 to this OA; Legal Notice dated 15.03.2020, which is Annexure A15 to this OA and Statement of Account upto 15.03.2020, 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.40,50,383.00, which is recoverable and the defendants were 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 defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 16.01.2024. 7. In support of the OA, affidavit of Sh. Naresh Kumar Kochar, Manager, Indian Bank (erstwhile Allahabad Bank) h as been filed. 8. Heard ex-parte 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 gone unrebutted, the applicant bank 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 bank 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 bank. 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 bank is entitled to recover a sum of Rs.40,50,383.00 (Rupees Forty Lacs Fifty Thousand Three Hundred Eighty Three only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account. 10. In so far as pendent elite and future rate of interest is concerned, the applicant bank in relief clause has claimed interest @13.70%p.a. plus @2%p.a. penal interest with monthly rests from 28.06.2022 till the realization. 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 @10.00%p.a. in

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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.40,50,383.00 (Rupees Forty Lacs Fifty Thousand Three Hundred Eighty Three only) jointly and severally, with costs, current and future simple interest @10.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant bank 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 bank 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 02.03.2024.

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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: 13.02.2024

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

Indian Bank v. Sh. Surinder Singh and Another

Case brief

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Indian Bank v. Sh. Surinder Singh and Another

Case brief

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