Original application filed by Bank of India for recovery of Rs.50.04 Lacs was allowed ex-parte. The Tribunal directed payment with 8% simple interest and authorized recovery via asset sale.
Recovery certificate ordered. Defendants liable to pay Rs.50,04,824.95 plus costs and 8% simple interest p.a.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH
ORIGINAL APPLICATION NO.1718/2022
PRESIDED OVER BY MRIDULESH KUMAR SINGH
DATE OF INSTITUTION: 12.10.2022
DATE OF DECISION: 29.05.2024 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 Jagraon, District Ludhiana, through its duly constituted attorney, Sh. Ved Prakash, Chief Manager
| ……..Applicant | |
|---|---|
| Versus | |
| 1. | Sh. Baldev Singh S/o Sh. Ujjagar Singh, R/o Village Lodhiwal, Tehsil |
| Sidhwa Bet, District Ludhiana (Borrower/Mortgagor) |
|
| 2. | Sh. Inderjit Singh S/o Sh. Hardev Singh, R/o H.No.1, Village |
| Lodhiwal, Tehsil Jagraon, District Ludhiana (Co-borrower) |
|
| 3. | Sh. Charan Singh S/o Sh. Atma Singh R/o H.No.114, Village Burj |
| Naklian, Tehsil Raikot, District Ludhiana (Guarantor) |
|
| ….……Defendants | |
| Ad Ar Ad De |
vocates: gued by Ms. Lovedeep Kaur, Advocate proxy for Ms. Puja Sharma, vocate for the applicant fendants are ex-parte |
| FINAL ORDER | |
| 1. | Present Original Application was instituted by the applicant bank |
| un | der Section 19 of the Recovery of Debts Due to Banks and Financial |
| In | stitutions Act, 1993, against the defendants for recovery of |
| Rs | .50,04,824.95p (Rupees Fifty Lacs Four Thousand Eight Hundred |
| Tw | enty Four and Ninety Five Paisa only). The Original Application has |
| be | en filed throughSh. Ved Prakash, Chief Manager of the applicant |
2
bank, who is competent to institute the Original Application vide Authority Letter dated 13.12.2019, which is Annexure A1 to this OA. 2. The brief facts of the OA are that the defendant Nos.1 and 2 had approached the applicant bank for the grant of KCC Limit of Rs.20.00 Lacs and Overdraft Limit of Rs.10.00 Lacs vide Loan Application dated 15.03.2016, which are Annexures A2 and A12 to this OA. Defendant no.3 stood as guarantor. 3. The applicant Bank sanctioned the KCC Limit of Rs.20.00 Lacs and Agriculture Overdraft Limit of Rs.10.00 Lacs vide Sanction Letter dated 23.03.2016, which is Annexure A4 to this OA and Sanction Letter, which is Annexure 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. total land measuring 100 Kanal 05 Marla situated at Village Lodhiwal, Tehsil Sidhwan Bet, District Ludhiana, Punjab vide Letter to SubRegistrar for creation of charge dated 23.03.2016 and Declaration u/s 4(1) bearing mutation no. 817 dated 29.03.2016, which are Annexures A8 and A9 to this OA. Documents executed:- Voter I.D. proof of defendant Nos.1 and 2 in File 3, which is Annexure A3 to this OA; D.P. Notes, Hypothecation-cumLoan agreement, Deeds of guarantee, Letters of declaration, undertaking and authority and Agreements all dated 29.03.2016, which are Annexures A5 to A7, A10, A11 and A14 to A17 to this OA; Acknowledgment of debts dated 26.03.2019, which is Annexure A18 to this OA; Legal notices dated 03.06.2019, 05.09.2019, 01.06.2021 and 20.08.2022 along with postal receipts, which are Annexures A19 to A22 to this OA and Statements of accounts along with Certificate, which are Annexures A23 and A24 to this OA. 5. The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in loan accounts there was a debit of Rs.50,04,824.95p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding
3
amount, therefore, the applicant bank requested to accept the application and to issue Recovery Certificate accordingly.
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
4
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.50,04,824.95p (Rupees Fifty Lacs Four Thousand Eight Hundred Twenty Four and Ninety Five Paisa 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 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.
Dated: 29.05.2024 (MRIDULESH KUMAR SINGH) Presiding Officer,
DRT-III, Chandigarh
2 issues framed by the court
Whether the applicant bank is entitled to recover the outstanding loan amount of Rs.50,04,824.95 from the defendants jointly and severally.
Whether the Tribunal can exercise discretion to grant simple interest at 8% per annum instead of the claimed rates.
2 provisions across 2 enactments
Bank of India
Sh. Baldev Singh
Sh. Inderjit Singh
Sh. Charan Singh
Mridulesh Kumar Singh
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court
