Allowed

Axis Bank Ltd. v. Sh. Jagir Singh and Others

DRT9 May 2024OA/1828/2022

Case brief

AI extract

What is this about?

Axis Bank filed an Original Application under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act against three defendants for recovery of Rs.30,26,359.54p on a Kisan Power loan secured by mortgaged land. The Tribunal allowed the application in the defendants' absence. While awarding the principal, the Tribunal exercised its discretion to reduce the claimed interest rate of 17.15%p.a. to a uniform 8.00%p.a. as just and appropriate. Recovery was ordered via sale of mortgaged or personal properties with a directive for a Recovery Certificate and future appearance before the Recovery Officer.

What did the court decide?

Recovery of Rs.30,26,359.54p jointly and severally with simple interest @8.00%p.a. from filing date till realization; Recovery Certificate issued; Enforcement against mortgaged or personal properties.

Axis Bank Ltd. versus Sh. Jagir Singh and Others — Execution and Attachment | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1828/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 19.11.2022

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DATE OF DECISION: 09.05.2024

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Axis Bank Ltd. (earlier known as UTI Bank Ltd.), a banking company, carrying on the banking business under the Banking Regulation Act, 1949, incorporated under The Companies Act, 1956 and having its Registered Office at ‘Trishul”, 3^rd Floor, Opposite Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad-380006, Gujarat and one of its Branch Office amongst other places known as Axis Bank Ltd. situated at SCO No.367-368, 3^rd Floor, Above Akash Education Institute, Sector 34-A, Chandigarh through its Deputy Manager, Sh. Rohit Varun Singh Thakur

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……..Applicant

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Versus

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Sh. Jagir Singh S/o Sh. Surjan Singh, R/o H.No.27-B, Village Sohal Thathi, Tehsil and District Tarn Taran, Punjab-143401

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Sh. Gurjant Singh S/o Sh. Jagir Singh, R/o H.No.27-B, Village Sohal Thathi, Tehsil and District Tarn Taran, Punjab-143401

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Sh. Sukhdev Singh S/o Sh. Kashmir Singh, H.No.320, Village Sohal Thathi, Tehsil and District Tarn Taran, Punjab-143401

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………Defendants

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Advocates:

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Argued by Sh. Rahul Garg, counsel proxy for Sh. D.K. Singal, counsel 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.30,26,359.54p (Rupees Thirty Lacs Twenty Six Thousand Three Hundred Fifty Nine and Fifty Four Paisa Only). The Original Application has been filed through Sh. Rohit Varun Singh Thakur, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 17.12.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 and 2 had approached the applicant bank for the grant of Credit Facility of Rs.18.00 Lacs vide Application Form for Credit Facility dated 22.08.2014, which is Annexure A2 to this OA.

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The applicant Bank sanctioned the Credit Facility under Kisan Power of Rs.18.00 Lacs vide Sanction Letter dated 09.10.2014, 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 had mortgaged his immovable properties i.e. total land measuring 52 Kanal 1 Marla (6.50 Acre) detailed as:a) Land measuring 43 Kanal 19 Marla situated at Village Sohal Thathi-A, Hadbast No.187, Tehsil Jhabal Kalan, District Tarn Taran, Punjab and b) Land measuring 08 Kanal 02 Marla situated at Village Sohal Thathi-B, Hadbast No.187, Tehsil Jhabal Kalan, District Tarn Taran, Punjab

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vide Declaration u/s 4(1) and Letter to Sub-Registrar for creation of charge dated 13.10.2014, which are Annexures A8 and A9 to this OA. Documents executed: - Loan-cum-hypothecation agreement, D.P. note, D.P. note delivery-cum-waiver letter and Deed of guarantee all dated 16.10.2014, which are Annexures A4 to A7 to this OA; Legal notice

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dated 23.09.2022 along with postal receipt, which is Annexure A10 to this OA and Statement of account with certificate, which is Annexure A11 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.30,26,359.54p, 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 20.03.2024. 7. In support of the OA, affidavit of Sh. Rohit Varun Singh Thakur, Deputy Manager, Axis Bank Ltd., has been filed. 8. Heard ex-parte arguments and perused record. 9. It was argued by the learned proxy counsel 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 A11 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.30,26,359.54p (Rupees Thirty Lacs Twenty Six Thousand Three Hundred Fifty Nine and Fifty Four Paisa 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.

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In so far as pendent elite and future rate of interest is concerned, the applicant bank has claimed interest @17.15%p.a. with half yearly rests from 01.01.2022 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.30,26,359.54p (Rupees Thirty Lacs Twenty Six Thousand Three Hundred Fifty Nine and Fifty Four Paisa 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 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 17.05.2024.

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Copy of this order be given dasti to the applicant bank and be

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sent to defendants through registered/speed post and this order be also

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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: 09.05.2024

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

Axis Bank Ltd. v. Sh. Jagir Singh and Others

Case brief

What is this about?

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Axis Bank Ltd. v. Sh. Jagir Singh and Others

Case brief

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