Allowed

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) v. Messrs Vijay K Jairath and Others

DRT15 Jan 2024OA/1917/2022

Case brief

AI extract

What is this about?

The Tribunal allowed the original application filed by Axis Bank Ltd. for recovery of a loan of Rs.6,99,77,155.71 against M/s Vijay K Jairath and family. The court granted uniform simple interest at 10% per annum and ordered issuance of a Recovery Certificate.

What did the court decide?

Recovery of Rs.6,99,77,155.71 with costs and 10% simple interest from filing date till realization. Issued Recovery Certificate.

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) versus Messrs… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.1917/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 04.03.2022

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DATE OF DECISION: 15.01.2024

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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 offices 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, Ms. Khushpreet Bains

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……..Applicant Versus

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M/s Vijay K Jairath through its Proprietor, 535, Behind Cooperative Store, College Road, Tehsil and District Ludhiana, Punjab-141008

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2^nd Address : - 2463/1, Moti Nagar, Tehsil and District Ludhiana, Punjab-141010

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3^rd Address : - H.No.535/7-A, Atma Singh Street, College Road, Civil Lines, Tehsil and District Ludhiana, Punjab-141008

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Smt. Radha Rani W/o Late Sh. Vijay K. Jairath, Proprietor of M/s Vijay K Jairath, R/o 535, Behind Co-operative Store, College Road, Tehsil and District Ludhiana, Punjab-141008

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2^nd Address : - 2463/1, Moti Nagar, Tehsil and District Ludhiana, Punjab-141010

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3^rd Address : - H.No.535/7-A, Atma Singh Street, College Road, Civil Lines, Tehsil and District Ludhiana, Punjab-141008

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Sh. Varinder Jairath S/o Late Sh. Vijay K Jairath, R/o H.No.535/7A, Atma Singh Street, College Road, Civil Lines, Tehsil and District Ludhiana, Punjab-141008

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Sh. Narinder Jairath S/o Late Sh. Vijay K Jairath, R/o H.No.535/7- A, Atma Singh Street, College Road, Civil Lines, Tehsil and District Ludhiana, Punjab-141008

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Sh. Rajinder Jairath S/o Late Sh. Vijay K Jairath, R/o H.No.535/7A, Atma Singh Street, College Road, Civil Lines, Tehsil and District Ludhiana, Punjab-141008 ………Defendants

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Advocates:

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Argued by Sh. Manav Singal, 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.6,99,77,155.71p (Rupees Six Crores Ninety Nine Lacs Seventy Seven Thousand One Hundred Fifty Five and Seventy One Paisa only). The Original Application has been filed through Ms. Khushpreet Bains, Deputy Manager of the applicant bank, who is competent to institute the Original Application vide Power of Attorney dated 15.10.2020, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant No.1 through its proprietor defendant no.2 had approached the applicant bank for the takeover of Cash Credit Limit of Rs.475.00 Lacs and LER facility of Rs.18.00 Lacs from IndusInd Bank and for the further grant of Overall Cash Credit Facility of Rs.600.00 Lacs including sub Limits in the form

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of Export Credit Limit of Rs.400.00 Lacs and LER facility of Rs.150.00 Lacs.
3. The applicant Bank sanctioned the Overall Cash Credit Facility of
Rs.600.00 Lacs including sub Limits in the form of Export Credit Limit
of Rs.400.00 Lacs and LER facility of Rs.150.00 Lacs vide Sanction
Letter and Letter of arrangement dated 26.05.2017, which are
Annexures A2 and A3to this OA and the terms and conditions were
duly accepted by the defendants.
On further request of the defendants, the applicant bank
renewed the credit facilities by reducing the overall cash credit limit to
Rs.4,93,78,000.00 and out of which Rs.52.00 Lacs was sanctioned as
CC limit and Rs.4,41,78,000.000 was sanctioned as RPCFC/EBRD (FCY- USD) which also includes EPC facility of Rs.4.00 lacs and Rediscounting of export bills abroad of Rs.4.00 lacs as sub-limits and the existing LER
limit of Rs.150.00 lacs vide Renewed/Sanction Letter dated
11.10.2018, which isAnnexure A23to this OA.
4. Defendant No.1, 2 and 5 had mortgaged their immovable
properties detailed as below:- a) Plot No.4, bearing MC No.B-XXX-2643/1 measuring 610-1/2 Sq. Yards situated at Baba Gajja Jain Colony, Village Sherpur Kalan, H.B. No.176, Tehsil and District Ludhiana, Punjab; in the name
of defendant no.1 vide Sale Deed No.13394 dated 16.08.1989
and Sale Deed No.13531 dated 17.08.1989 along with their
translations and declaration-cum-confirmation deed dated
12.07.2017, which are AnnexuresA16, A17 and A18to this
OA;
b) Plot No.26 measuring 410-2/3 Sq. Yards situated at Village
Birmi, H.B. No.146, Sub-Tehsil Mullanpur, Tehsil and District
Ludhiana, Punjab; in the name of defendant no.2 vide Sale Deed No.894 dated 05.07.2012 along with its translation and

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declaration-cum-confirmation deed dated 17.07.2017, which are Annexures A19 and A20 to this OA; and c) Land measuring 04 Kanal 10 Marla situated at Village Tibba, H.B. No.249, Sub-Tehsil Sahnewal, Tehsil and District Ludhiana, Punjab; in the name of defendant no.5 vide Transfer Deed bearing Vasika No.844 dated 22.05.2012 along with its translation and declaration-cum-confirmation deed dated 17.07.2017, which are Annexures A21 and A22 to this OA. Documents executed:- Composite Hypothecation deed, D.P. notes, D.P. note delivery-cum-waiver letters, Agreement-cum-indemnity, Loan agreement, Undertaking, Undertaking-cum-indemnity and Deeds of guarantee all dated 26.05.2017, which are Annexures A4 to A15 to this OA; Demand notice dated 12.02.2020, which is Annexure A24 to this OA and Statements of accounts, which are Annexures A25 and A26 to this OA.

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The EBRD/RPCFC facility and CC limit 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.6,99,77,155.71p, 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. 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 18.12.2023. 7. In support of the OA, affidavit of Ms. Khushpreet Bains, Deputy Manager, Axis Bank Ltd. h as been filed. 8. Heard ex-parte 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, the applicant bank had proved its case. From the perusal of all the

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Annexures A1 to A26 to this OA, it is proved that the defendants approached applicant bank 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 bank. The defendants failed to pay back the loans 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 bank is entitled to recover a sum of Rs.6,99,77,155.71p (Rupees Six Crores Ninety Nine Lacs Seventy Seven Thousand One Hundred Fifty Five and Seventy One 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 accounts.

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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 @12.40%p.a. in EBRD/RPCFC facility and @12.10%p.a. in CC Limit with monthly rests in both; from 01.12.2021 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 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 @10.00%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.6,99,77,155.71p (Rupees Six Crores Ninety Nine Lacs Seventy Seven Thousand One Hundred Fifty Five and Seventy One Paisa only) jointly and severally, with costs, current and future simple interest

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@10.00%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. 12. Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly. 14. Parties to appear before Learned Recovery Officer of this Tribunal on 03.02.2024. 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: 15.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) v. Messrs Vijay K Jairath and Others

Case brief

What is this about?

What did the court decide?

Axis Bank Ltd. (earlier known as Uti Bank Ltd.) v. Messrs Vijay K Jairath and Others

Case brief

What is this about?

What did the court decide?

What the court decided

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Issues for consideration

Statutes considered

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