Allowed

Idbi Bank Limited v. Avtar Singh and Another

DRT28 Nov 2024OA/329/2023

Case brief

AI extract

What is this about?

This judgment of the Debt Recovery Tribunal allowed an Original Application for recovery of a loan. The Tribunal found the defendants liable to pay the applicant Rs. 28.64 lakhs with modified interest @8.00% p.a. and directed recovery from mortgaged properties.

What did the court decide?

Recovery certificate issued; Defendants liable to pay Rs. 28,64,082.64 with simple interest @8.00% p.a. from filing date.

Idbi Bank Limited versus Avtar Singh and Another — Contract and Commercial Disputes | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.329/2023 PRESIDED OVER BY MRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 07.03.2023

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DATE OF DECISION: 28.11.2024

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IDBI Bank Limited, a company within the meaning of the Companies Act, 2013 and a Banking Company within the meaning of Section 5 (c) of the Banking Regulations Act, 1949 and having its Registered Office at IDBI Tower, WTC Complex cuffe Parade, Mumbai-400005 and its branches at various places including branch office at Mukandpur Road, Banga, District Nawanshahr, Punjab through its Authorized Officer Sh. Deepak Kumar.

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……..Applicant

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Versus

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Sh. Avtar Singh S/o Sh. Mehnga Singh, V.P.O. Kangraur, District SBS Nagar, Nawashehar, Punjab-144503

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Sh. Jagtar Singh S/o Sh. Mehnga Singh, V.P.O. Kangraur, District SBS Nagar, Nawashehar, Punjab-144503

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….……Defendants

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Advocates:

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Argued by Sh. J.S. Sehgal, Advocate proxy for Sh. Sumeet Sehgal, 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.28,64,082.64p (Rupees Twenty Eight Lacs Sixty Four Thousand Eighty Two and Paisa Sixty Four only). The Original Application has been filed through Sh. Deepak Kumar, Authorized Officer o f the applicant, who is competent to institute the Original Application vide Delegation of Power, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendants no.1 & 2 had approached the applicant for the grant of Cash Credit Limit of Rs.25.00

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Lacs vide Application Form dated 16.12.2014, which is Annexure A2 to this OA.

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The applicant sanctioned the Cash Credit Limit of Rs.25.00 Lacs vide Letter of Intent dated 23.12.2014, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendants. 4. Defendants No. 1 had mortgaged his immovable properties i.e. total land measuring 25K-07M-6Sarsahies situated at Village Kangraur, Hadbast No. 32, Tehsil Banga, District SBS Nagar, Nawashehar (Punjab) vide Declaration under section 4 (1) dated 2 3.12.2014 along with its Translations, which is Annexure A8 to this OA. Documents executed:- Hypothecation-cum-Loan Agreement, Common Guarantee Deed, Declaration to be obtained from the borrower all dated 23.12.2014, which are Annexures A4, A5 & A7 to this OA; Demand Promissory Note dated 27.12.2014, which is Annexure A6 to this OA; Acknowledgement of Debt cum Revival Letter, Revival Letter both dated 16.11.2020, which are Annexures A9 & A10 to this OA; Notice dated 14.11.2022 along with postal Receipts, which are Annexures A11 to A13 to this OA; Statement of Loan Account along with certificate regarding the computer system and the genuineness of the statement of account being prepared though computer system, 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.28,64,082.64p, 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 26.11.2024. 7. In support of the OA, affidavit of Sh. Deepak Kumar, Authorized Officer, IDBI Bank Limited has been filed.

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Heard 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 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 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.28,64,082.64p (Rupees Twenty Eight Lacs Sixty Four Thousand Eighty Two and Paisa Sixty Four 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 in relief clause has claimed interest @9.85%p.a. plus penal interest @2.00%p.a. with half yearly rests from 01.05.2022 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 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.

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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.28,64,082.64p (Rupees Twenty Eight Lacs Sixty Four Thousand

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Eighty Two and Paisa Sixty Four only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant 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.

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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 01.01.2025.

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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: 28.11.2024

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

Idbi Bank Limited v. Avtar Singh and Another

Case brief

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Idbi Bank Limited v. Avtar Singh and Another

Case brief

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