Allowed

Indian Bank v. Jaswant Singh

DRT19 Sept 2024OA/326/2024

Case brief

AI extract

What is this about?

The DRT allowed the applicant's original application for recovery of Rs.46,95,000 from the respondents for defaulted KCC loans and restructuring amounts. The court applied a uniform simple interest rate of 7.55% and directed the issuance of a Recovery Certificate and attachment/proceedings under the SARFAESI Act.

What did the court decide?

Issuance of Recovery Certificate; recovery of Rs.46,95,000 with 7.55% interest; order for attachment and sale of mortgaged/personal assets.

Indian Bank versus Jaswant Singh — Cheque Dishonour | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.326/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 26.02.2024

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DATE OF DECISION: 19.09.2024

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Indian Bank, a body corporate, constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970,having its Corporate Office, 254-260, Avvai Shanmugam Salai, Royapettah, Chennai-600014 and w.e.f. 01.04.2020 being the successor to Allahabad Bank in terms of Gazette of India Notification No. G.S.R.156(E) dated 04^th March, 2020 issued by the Central Government in exercise of the powers conferred upon it by Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970) and Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), the Central Government after consultation with the Reserve Bank of India, notified the Scheme of Amalgamation of Allahabad Bank into Indian Bank Scheme, 2020. Therefore, the term “Applicant Bank”, wherever the context so warrants, would interchangeably mean the erstwhile Allahabad Bank and/or Indian Bank. The erstwhile Allahabad Bank’s Branch Office at Dashmesh Nagar, Bela Chowk Branch, Tehsil Ropar, District Roop Nagar (Punjab) through its Principal Officer General Power of Attorney holder Ms. Suman Kumari posted as Senior Manager.

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……..Applicant Versus 1. Sh. Jaswant Singh (now Deceased) through its Legal Heirs:1(a). Sh. Manpreet Singh S/o Late Sh. Jaswant Singh, R/o Village Golumajra, Post Office Dhamana, Tehsil & District Roop Nagar (Punjab) Legal Heirs & Principal Borrower. …Defendant

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Advocates: Argued by Ms. Savita Trighatia Nar, Advocate for Applicant Defendant is 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.46,95,000.00 (Rupees Forty Six Lacs Ninety Five Thousand Only). The Original Application has been filed through M s. Suman Kumari, Senior Manager o f the applicant, who is competent to institute the Original Application vide Authority Letter dated 04.01.2024, which is Annexure A1 to this OA.

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The brief facts of the OA are that the Defendant No.1 (now deceased) & 1(a) had approached the applicant for the grant of KCC Limit of Rs.13.00 Lacs vide Loan application dated 27.12.2012, which is Annexure A2 to this OA. Further, Defendant No.1 (now deceased) & 1(a) had approached the applicant for Restructuring of KCC Limit by converting the overdue amount of interest into a fresh term loan of Rs.4,32,937.00 vide Request Letter dated 26.12.2014, which is Annexure A9 to this OA.

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The Applicant sanctioned the KCC Limit of Rs.13 Lacs vide Sanction Letter dated 28.12.2012, which is Annexure A3 to this OA. Further, Applicant sanctioned the Restructuring of KCC Limit by converting the overdue amount of interest into a fresh term loan of Rs.4,32,937.00 vide Appraisal Note for Restructuring of Agriculture Loans and Sanction Letter dated 26.12.2014 & 31.07.2018, which are Annexures A10 & A12 to this OA.

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Defendant No.1 (now deceased) & 1(a) had mortgaged their immovable property i.e. land measuring 30K-0M situated at Village Rajgiri, H.B. No.518, Tehsil Anandpur Sahib, District Roopnagar (Punjab) vide Registered Mortgage Deed bearing vasika no .2184 dated

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31.12.2012 along with its translation, which is Annexure A4 to this OA.

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Documents executed:-Title Investigation Report (TIR) dated 28.12.2012, w hich is Annexure A5 to this OA; Hypothecation Agreement, Demand Promissory Note & Consent Letter all dated 01.01.2013, which are Annexures A6 to A8 to this OA; Demand Promissory Note dated 26.12.2014, which is Annexure A11 to this OA; Acknowledgment of Debt dated 28.02.2020 & 06.11.2023, which is Annexure A13 to this OA; Legal Notice dated 11.08.2022, which is Annexure A14 to this OA and Statement of Accounts attached and certified under Banker Books Evidence Act, 1981, which is Annexure A15 to this OA.

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The loan accounts became irregular and was classified as NPA and after adjusting debit and credit entries in both loan accounts there was a debit of Rs.46,95,000.00 which is recoverable and the defendant was served recall notice but he did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notice to appear before this Tribunal but no one appeared on behalf of defendant and he was proceeded exparte on 16.08.2024.

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In support of the OA, affidavit of Ms. Suman Kumari, Senior Manager, Indian Bank h as been filed. 8. Heard arguments and perused record.

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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 A15 to this OA, it is proved that the defendant approached applicant for availing of the loans facilities which were granted to him and for that he had executed all the relevant documents in favour of the applicant. The defendant failed to pay back

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the loans as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendant were classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs. Rs.46,95,000.00 (Rupees Forty Six Lacs Ninety Five Thousand Only) along with interest from the defendant, from the date of filing of the present Original Application till realization of 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 @7.55%p.a. in KCC Loan with half yearly rests from 01.01.2024 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 loans 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 @7.55%p.a. in both the loan accounts 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 defendant is liable to pay to the applicant a total sum of Rs.46,95,000.00 (Rupees Forty Six Lacs Ninety Five Thousand Only), with costs, current and future simple interest @7.55%p.a. in both the loan accounts 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 defendant 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

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attachment and sale of personal assets of the defendant. 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 11.10.2024. 15. Copy of this order be given dasti to the applicant and be sent to defendant 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: 19.09.2024

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

Indian Bank v. Jaswant Singh

Case brief

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Indian Bank v. Jaswant Singh

Case brief

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What did the court decide?

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