Allowed

Indian Bank v. Kashmir Singh and Another

DRT26 Sept 2024OA/1935/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed an application filed under Section 19 of the RDBFI Act, 1993. The court declared the defendants jointly and severally liable to repay the loan principal of Rs. 24,84,965 with interest at 8% p.a. and authorized recovery via mortgage sale or attachment of assets.

What did the court decide?

Recovery of Rs. 24,84,965 with costs and future simple interest @8% p.a. from the date of filing till realization, enforceable via sale of mortgaged properties or attachment of personal assets.

Indian Bank versus Kashmir Singh and Another — Cheque Dishonour | DRT (2024)

¶1

DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

¶2

ORIGINAL APPLICATION NO.1935/2022 PRESIDED OVER BY MRIDULESH KUMAR SINGH

¶3

DATE OF INSTITUTION: 17.10.2022

¶4

DATE OF DECISION: 26.09.2024

¶5

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, Chennai and corporate office at 254-260, Avvai Shanmugham Salai, Chennai, Tamil Nadu600014 and having its Zonal Office at Chandigarh and amongst other branches a branch at Patran through its Senior Manager Sh. Yogesh Kumar duly constituted and Authorized Signatory.

¶6

……..Applicant

¶7

Versus

¶8

Sh. Kashmir Singh S/o Sh. Balkar Singh, R/o House No. 20, Part-4, village Shutrana, Tehsil Patran, District Patiala, Punjab.

¶9

Sh. Amandeep Singh S/o Sh. Balwinder Singh, R/o Village Shutrana, Tehsil Patran, District Patiala, Punjab.

¶10

….……Defendants

¶11

Advocates:

¶12

Argued by Ms. Deepika Mittal, Advocate for the applicant Defendants are ex-parte

¶13

FINAL ORDER

¶14

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.24,84,965.00 (Rupees Twenty Four Lacs Eighty Four Thousand Nine Hundred and Sixty Five only). The Original Application has been filed through Sh. Yogesh Kumar, Senior Manager o f the applicant who is competent to institute the Original Application vide Authority Letter dated 20.09.2022, which is Annexure A1 to this OA.

¶15

The brief facts of the OA are that the defendants had approached the applicant bank for the grant of KCC Limit of Rs.9.90 Lacs for the 1^st year and to be enhanced upto Rs.14,49,459 for the 5^th

¶16

¶17

year, vide Loan Application dated 05.01.2015 and further for its Renewal Application dated 31.03.2018 which are Annexures A2 and A14 to this OA.

¶18

The applicant Bank sanctioned the KCC Limit of Rs.9.90 Lacs for the 1^st year and to be enhanced upto Rs.14,49,459 for the 5^th year vide Memorandum of Sanction Letter and Sanction Letter dated 13.01.2015, which is Annexure A5 to this OA and further renewed it and the terms and conditions were duly accepted by the defendants.

¶19

Defendants No.1 had mortgaged his immovable properties i.e. total land measuring 40K-00M situated at Village Shutrana, Tehsil Patran, District Patiala (Punjab) vide Declaration u/s 4(1) dated 08.01.2015, Lien Report dated 08.01.2015 and Jamabandi for the year 2009-2010 along with their Translations, which are Annexures A9 to A11 to this OA.

¶20

Documents executed:- Interview cum Appraisal Form dated 06.01.2015, which is Annexure A3 to this OA; D.P. Note, Consent Clause to be executed by borrower, Hypothecation agreement, Consent Clause to be executed by Guarantor, Deed of Guarantee all dated 13.01.2015, which are Annexures A4, A6 to A8, A12 & A13 to this OA; D.P. Note, Acknowledgement of Debt both dated 31.03.2018, which are Annexures A15 to A17 to this OA; Recall Notice Account Statement dated 20.05.2020, which is Annexure A18 to this OA; Legal Notice dated 08.06.2022 along with its translations and postal Receipts, which is Annexure A19 to this OA; Acknowledgment of Debt dated 14.07.2022, which is Annexure A20 to this OA and Account Statement with certificate, which is Annexure A21 to this OA.

¶21

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.24,84,965.00, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

¶22

¶23

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 07.09.2024.

¶24

In support of the OA, affidavit of Sh. Yogesh Kumar, Senior Manager, Indian Bank h as been filed.

¶25

Heard arguments and perused record.

¶26

It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A21 to this OA, it is proved that the defendants approached applicant 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 applicant. 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 is entitled to recover a sum of Rs.24,84,965.00 (Rupees Twenty Four Lacs Eighty Four Thousand Nine Hundred and Sixty Five 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.

¶27

In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.00%p.a. plus penal interest @2%p.a with monthly rests from 21.09.2022 till the realization.

¶28

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

¶29

¶30

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.

¶31

In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.24,84,965.00 (Rupees Twenty Four Lacs Eighty Four Thousand Nine Hundred and Sixty Five 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 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 applicant 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.

¶32

Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

¶33

Parties to appear before Learned Recovery Officer of this Tribunal on 18.10.2024.

¶34

Copy of this order be given dasti to the applicant 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.

¶35

Pronounced by me in the open Tribunal . Dated: 26.09.2024

¶36

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

Indian Bank v. Kashmir Singh and Another

Case brief

What is this about?

What did the court decide?

Indian Bank v. Kashmir Singh and Another

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

Punjab National Bank versus Nirmala Rani Alias Devi and Another

Punjab National Bank versus Mukhtiar Singh

Punjab National Bank versus M/S Arrow Industries And Others

Punjab National Bank versus Davinder Singh and Another

Punjab National Bank versus Jasraj Singh

Punjab National Bank versus Jaspreet Kaur Cheema and Others