Allowed

State Bank of India v. Sh. Teja Singh

DRT23 Sept 2024OA/281/2022

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the applicant bank's application for recovery of Rs.34,01,566/- plus interest against two borrowers who failed to repay an enhanced KCC loan, directing sale of mortgaged properties and issuance of a recovery certificate.

What did the court decide?

Application allowed for recovery of Rs.34,01,566/- with interest; liability joint and several; recovery certificate issued; sale of mortgaged properties directed.

State Bank of India versus Sh. Teja Singh — Contract and Commercial Disputes | DRT (2024)

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IN THE DEBTS RECOVERY TRIBUNAL-I, CHANDIGARH

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BEFORE: A S NARANG, PRESIDING OFFICER

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OA No: 281 of 2022 Date of Institution: 28.01.2022 Date of Decision: 23.09.2024

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SBI, branch situated at ADB Phillaur, District Jalandhar, Punjab.

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……..Applicant

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1. Sh. Teja Singh S/o Sh. Gurdiyal Singh, R/o H. No.65, Village Mangat, Tehsil Ludhiana East, District Ludhiana, Punjab.

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1. Sh. Jagdeep Singh S/o Sh. Teja Singh, R/o H. No.65, Village Mangat, Tehsil Ludhiana East, District Ludhiana, Punjab. ……….Defendants

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Advocates

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Ms. Lovedeep Kaur, proxy counsel for Ms. Puja Sharma, Counsel for the applicant bank. Defendants- Ex parte.

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OA for the Recovery of Rs.34,01,566/- with interest @10.60% per annum with half yearly rests from the date of filing the present application i.e. 28.01.2022.

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ORDER

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SBI (Bank) has filed this application under Section 19 of the Recovery of Debts and Bankruptcy Act, 1993 (RDB Act) for the recovery of Rs.34,01,566/- with interest against Sh. Teja Singh And Another (defendants).

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Bank’s case is that on 29.12.2011, it had granted KCC Loan of Rs.10.00 lacs to defendant no.1 for agricultural purpose. To secure the loan, Defendant no.1 had mortgaged his immovable property (fully detailed in para No.5.5 of the application). The loan was chargeable to interest @14.75% per annum with half yearly rests. Thereafter, at the request of defendant nos.1 and 2, on 19.09.2015, the said KCC Limit was enhanced from Rs.10.00 lacs to Rs.20.00 lacs. The loan was

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chargeable to interest @13.70% per annum with half yearly rests. To secure the loan, Defendant no.1 had mortgaged his immovable property (fully detailed in para No.5.10 of the application). On 30.06.2021, a sum of Rs.34,01,566/- was due from the defendants. Despite repeated requests, defendants did not make the repayment. Hence, this application.

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On 01.04.2022, summonses were sent to the defendants by registered post, which were duly served. However, defendants did not put in appearance. Vide order dated 29.03.2023, they were proceeded ex parte .

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In order to prove its case, the Bank has placed on record the affidavit of Ms. Tamanna Gopal, Branch Manager along with the loan and security documents and marked them as Exhibit A-1 to A-21.

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I have perused the evidence on the record. I am of the considered view that the Bank has proved its case that it had advanced the loan of Rs.20.00 lacs and on 30.06.2021, a sum of Rs.34,01,566/- was due.

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Accordingly, the application of the bank for the recovery of Rs.34,01,566/- (Rupees Thirty Four Lacs One Thousand Five Hundred Sixty Six Only) with interest @10.60% per annum with half yearly rests from the date of filing the present application i.e. 28.01.2022, till the date of payment is hereby allowed with costs. The liability of all the defendants would be joint and several. Bank can recover its dues by the sale of mortgaged properties, fully detailed in para No.3A of the application as well as from the personal movable and immovable property(ies) of the defendants.

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Pending IAs, if any, stand disposed of.

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Recovery Certificate be issued accordingly.

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Parties are directed to appear before Recovery Officer on 24.10.2024 , who is directed to distribute the sale proceeds of the mortgage properties and standing crops as per the provisions of Section 19(20-AB) of the Act . 10. A Copy of this order along with Recovery Certificate be sent to the Recovery Officer as well as the parties. Pronounced in the open court. (A S Narang) Dated: 23.09.2024 Presiding Officer DRT-1, Chandigarh

State Bank of India v. Sh. Teja Singh

Case brief

What is this about?

What did the court decide?

State Bank of India v. Sh. Teja Singh

Case brief

What is this about?

What did the court decide?

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