Allowed

Indian Bank v. Sh. Joginder Singh

DRT22 Jan 2024OA/7/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank’s original application for recovery of a loan of Rs. 24,65,040.00 from the borrower and joint guarantor. The tribunal granted uniform simpleInterest at 10.00p.a., ordered recovery from mortgaged properties or personal assets, and directed issuance of the Recovery Certificate.

What did the court decide?

Recovery of Rs. 24,65,040.00 jointly and severally with costs and simple interest @10% p.a. from filing date till realization; issuance of Recovery Certificate.

Indian Bank versus Sh. Joginder Singh — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.07/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH DATE OF INSTITUTION: 18.09.2021 DATE OF DECISION: 22.01.2024 Indian Bank (In which Allahabad Bank amalgamated w.e.f. 01.04.2020), a body corporate duly constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 66, Rajaji Salai, Chennai-600001 and branches all over India and amongst other places at Moga (eAB) Branch, District Moga, Punjab through its Manager and Authorized Officer, Sh. Amit Kalsi ……..Applicant Versus 1. Sh. Joginder Singh alias Kala Singh S/o Sh. Mall Singh, R/o H.No.80, VPO Dhoorkot Tahli, Tehsil and District Moga, Punjab (Borrower) 2. Sh. Jasveer Singh S/o Sh. Mukhtiar Singh, R/o H.No.35, VPO Dhoorkot Tahli, Tehsil and District Moga, Punjab (Guarantor) ………Defendants Advocates: Argued by Sh. J.S. Sehgal, counsel proxy for Sh. Sumeet Sehgal, counsel 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.24,65,040.00 (Rupees Twenty Four Lacs Sixty Five Thousand and Forty only). The Original Application has been filed through Sh. Amit

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Kalsi, Manager o f the applicant bank, who is competent to institute the Original Application vide Authorization Letter dated 15.06.2021, which is Annexure A2 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 ‘Akshay Krishi’ KCC Limit of Rs.12.00 Lacs vide Loan Application dated 27.08.2014, which is Annexure A3 to this OA. 3. The applicant Bank sanctioned the ‘Akshay Krishi’ KCC Limit of Rs.12.00 Lacs for the 1^st year, which will be increased upto the limit of Rs.17,56,920.00 till the 5^th year; vide Sanction Letter dated 12.09.2014, which is Annexure A4 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 10K-16½M situated at Village Dhoorkot Tahli Wala, Tehsil and District Moga, Punjab vide Declaration u/s 4(1) and Mutation certificate both dated 12.09.2014 and Translation of Mortgage Rapat Certificate, which are Annexures A8 to A10 to this OA. Documents executed: - Gazette notification dated 04.03.2020, which is Annexure A1 to this OA; Hypothecation agreement and Deed of guarantee both dated 20.09.2014, which are Annexures A5 and A6 to this OA; Acknowledgment of debt dated 07.10.2018, which is Annexure A7 to this OA; Notices dated 26.07.2021 posted on 28.07.2021 along with postal receipts, which are Annexures A11 to A13 to this OA and Statement of account along with Computer certificate, which is Annexure A14 to this OA. 5. 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.24,65,040.00, 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 17.11.2023. 7. In support of the OA, affidavit of Sh. Amit Kalsi, Manager, Indian Bank has 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 Annexures A1 to A14 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.24,65,040.00 (Rupees Twenty Four Lacs Sixty Five Thousand and Forty 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 in relief clause has claimed interest @10.25%p.a. along with @2%p.a. penal interest from 18.07.2021 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 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

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just and appropriate to grant uniform simple interest @10.00%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.24,65,040.00 (Rupees Twenty Four Lacs Sixty Five Thousand and Forty 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. 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 08.02.2024. 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: 22.01.2024 (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Indian Bank v. Sh. Joginder Singh

Case brief

What is this about?

What did the court decide?

Indian Bank v. Sh. Joginder Singh

Case brief

What is this about?

What did the court decide?

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