Allowed

Bank of India v. Sh.Charan Singh and Another

DRT5 Feb 2024OA/2061/2022

Case brief

AI extract

What is this about?

Bank of India filed a recovery petition under the RDBFI Act for an outstanding sum against borrowers and a guarantor. The defendants appeared ex-parte. The Tribunal allowed the application, declaring liability for the principal amount, costs, and future interest at 10% p.a., authorizing recovery via sale of mortgaged properties under SARFAESI.

What did the court decide?

Recovery of Rs.51,60,035.98 with costs and simple interest at 10.00%p.a. from sale of mortgaged properties or attachment of assets.

Bank of India versus Sh.Charan Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2061/2022

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PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 16.12.2022

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DATE OF DECISION: 05.02.2024

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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 inter-alia, Branch Office amongst other places at Jagraon, District Ludhiana, Punjab through its duly Constituted Attorney, Sh. Ved Prakash, Chief Manager, Raikot Branch

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…….Applicant

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Versus

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Sh. Charan Singh S/o Sh. Atma Singh R/o H.No.114, Village Burj Nakliya, Tehsil Raikot, District Ludhiana (Borrower/Mortgagor)

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Sh. Inderjit Singh S/o Sh. Hardev Singh R/o H.No.1, Village Lodhiwala, Tehsil Jagraon, District Ludhiana (Guarantor)

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………Defendants

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Advocates:

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Argued by Ms. Lovedeep Kaur, counsel proxy for Ms. Puja Sharma, 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.51,60,035.98p (Rupees Fifty One Lacs Sixty Thousand Thirty Five and Ninety Eight Paisa only). The Original Application has been filed through Sh. Ved Prakash, Chief Manager of the applicant bank, who is

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competent to institute the Original Application vide Power of Attorney dated 13.12.2019, which is Annexure A1 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 KCC Limit of Rs.30.00 Lacs vide Loan Application dated 04.12.2013, which is Annexure A2 to this OA. 3. The applicant Bank sanctioned the KCC Limit of Rs.30.00 Lacs vide Sanction Letter dated 06.12.2013, 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 56K-00M detailed as: (i) land measuring 46 Kanal 1-1/4 Marlas; and (ii) land measuring 09 Kanal 18-3/4 Marlas; both situated at Village Mand Tihara, Tehsil Jagraon, District Ludhiana, Punjab; vide Registered Mortgage Deed bearing vasika no.1217 dated 20.12.2013 along with its translation, which are Annexures A8 and A-8T to this OA.

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Documents executed: - Voter Id proof of defendant nos.1 and 2 in File 3, which is Annexure A3 to this OA; D.P. Note, Agreement of Hypothecation, Deed of guarantee; Letter of Declaration Undertaking & Authority and Agreement all dated 24.12.2013, which are Annexures A5 to A7, A9 and A10 to this OA; Acknowledgements of debt dated 10.05.2016, 26.04.2019 & 23.04.2022, which are Annexures A11 to A13 to this OA; Legal notices dated 03.06.2019, 05.09.2019, 09.05.2022 & 20.08.2022, which are Annexures A14 to A17 to this OA and Statement of account, which is Annexure A18 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.51,60,035.98p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding

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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 20.12.2023.

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In support of the OA, affidavit of Sh. Ved Prakash, Chief Manager, Bank of India has been filed.

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Heard ex-parte arguments and perused record.

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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 A18 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.51,60,035.98p (Rupees Fifty One Lacs Sixty Thousand Thirty Five and Ninety Eight 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 in relief clause has claimed interest @10.30%p.a. plus @2%p.a. penal interest with half yearly rests from 18.08.2022 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 defendant, quantum of loan and prevalent market rates of

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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 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.

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In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.51,60,035.98p (Rupees Fifty One Lacs Sixty Thousand Thirty Five and Ninety Eight Paisa 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.

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Parties to appear before Learned Recovery Officer of this Tribunal on 17.02.2024.

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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

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Dated: 05.02.2024

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

Bank of India v. Sh.Charan Singh and Another

Case brief

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Bank of India v. Sh.Charan Singh and Another

Case brief

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