Allowed

Axis Bank Limited v. Jagtar Singh and Another

DRT24 Sept 2024OA/2123/2022

Case brief

AI extract

What is this about?

The Debt Recovery Tribunal allowed the bank's application for recovery of a defaulted KCC loan of Rs.25.20 Lacs. The defendants were present ex-parte. The tribunal ordered repayment of the principal with simple interest at 8% p.a. and granted a recovery certificate for enforcement via sale of mortgaged and personal assets.

What did the court decide?

Recovery of Rs.25,20,060.59 with simple interest at 8% p.a.; issuance of Recovery Certificate; liberty to enforce against sale of mortgaged and personal assets.

Axis Bank Limited versus Jagtar Singh and Another — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.2123/2022

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 21.03.2022

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DATE OF DECISION: 24.09.2024

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Axis Bank Ltd. a banking company incorporated under the provisions of the Companies Act and a Banking Company within the meaning of the Section (c) of the Banking Regulation Act, 1949 (10 of 1949) and having its registered office at Trishul, Opposite Samartheswar Temple, New Law Garden, Ellisbridge, Ahmedabad-380006 (Gujarat) and having its Branch amongst other places at Axis Bank Limited, Nagra, Distt. Sangrur, (Punjab), through its Authorized Signatory Sh. Sandeep Kumar.

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……..Applicant

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Versus

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1. Sh. Jagtar Singh S/o Sh. Bant Singh, R/o H.No.103, Village Khetla Tehsil- Sunam & District Sangrur (Punjab)

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2. Sh. Lakhwinder Singh S/o Sh. Didar Singh, R/o Village Diwangarh, Tehsil Sunam & District Sangrur (Punjab)

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….……Defendants

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Advocates:

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Argued by Sh. Gurnam Singh, Advocate proxy for Sh. Rajiv Sharma, Advocate 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.25,20,060.59p (Rupees Twenty Five Lac Twenty Thousand Sixty And Fifty Nine Paise Only). The Original Application has been filed through Sh. Sandeep Kumar, Branch Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 16.09.2021, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant no.1 & 2 had approached the applicant for the grant of KCC Limit of Rs.20.00 Lacs vide Loan Application dated 24.02.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the KCC Limit of Rs.20.00 Lacs vide Sanction Letter dated 24.02.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendant no.1 had mortgaged his immovable properties i.e. total land measuring 39 Kanal 17 Marla situated at Village Khetla, Tehsil Sunam, District Sangrur vide Registered Mortgage Deed bearing VasikaNo.2428 d ated 06.03.2014, with its translation, which is Annexure A8 to this OA. Documents executed:- Loan Cum Hypothecation Agreement, Demand Promissory Note, D.P. Note Delivery Cum Waiver Letter, Deed of Guarantee all dated 07.03.2014, which are Annexures A4 to A7 to this OA; Loan Recall Notice dated 09.12.2021 along with Postal receipt, which is Annexure A9 to this OA and Statement of Account along with Banker Books Evidence, which is Annexure A10 to this OA. 5. The loan account became irregular and was classified as NPA and after adjusting debit and credit entries in the loan account there was a debit of Rs.25,20,060.59p, 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. 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 05.09.2024. 7. In support of the OA, affidavit of Sh. Sandeep Kumar, Branch Manager, Axis Bank Limited h as been filed. 8. Heard 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,

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the applicant had proved its case. From the perusal of all the Annexure A1 to A10 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.25,20,060.59p (Rupees Twenty Five Lac Twenty Thousand Sixty And Fifty Nine Paise Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of all the accounts.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @11.65%p.a. plus penal interest @6.00%p.a. with half yearly rests from 01.12.2021 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.25,20,060.59 (Rupees Twenty Five Lac Twenty Thousand Sixty And Fifty Nine Paise Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of

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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. 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 16.10.2024. 15. 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. Pronounced by me in the open Tribunal . Dated: 24.09.2024. (MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Axis Bank Limited v. Jagtar Singh and Another

Case brief

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Axis Bank Limited v. Jagtar Singh and Another

Case brief

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